Vale of Clwyd Senedd member, Gareth Davies MS, has raised concerns in the Senedd over the Welsh Government’s approach to the phasing out of the Basic Payment Scheme (BPS) offered to farmers, warning that the planned reduction risks creating uncertainty and financial pressure for farmers across Wales.
During yesterday’s Business Statement and Announcement in the Senedd, Mr Davies called for a statement from the Cabinet Secretary for Climate Change and Rural Affairs on the phasing out of the Basic Payment Scheme ahead of the introduction of the Sustainable Farming Scheme (SFS), arguing that the 40% drop is too steep.
In his comments, Mr Davies highlighted the importance of ensuring a smooth and manageable transition for farmers as changes to agricultural support are introduced. He drew attention to the proposed 40% reduction in BPS payments from 2026, describing it as a “cliff edge” rather than a gradual phase-out, and warned that such a sharp reduction could have serious consequences for farm businesses.
He also raised concerns he has heard from farmers, some of whom feel under pressure to adopt the Sustainable Farming Scheme due to the scale and speed of the reduction in existing support. He further noted the anxiety within the sector about the lack of a clear long-term funding commitment for the Sustainable Farming Scheme beyond 2026, making it difficult for farmers to plan for the future.
He questioned how the Welsh Government’s approach aligns with previous assurances that farmers would not be forced onto the new scheme through sudden or punitive changes to existing payments, and asked how the agricultural sector had been consulted specifically on the impact of the proposed 40% cut.
Responding on behalf of the Welsh Government, the Trefnydd and Cabinet Secretary for Social Justice, Jane Hutt MS responded with:
“The sustainable farming scheme was supported by this Senedd—supported after extensive consultation, which is certainly ongoing in terms of the transition to the new arrangements, which will be good for farmers, good for communities and good for Wales.”
Following the debate, Gareth Davies MS said:
“Many farmers were bitterly opposed to the Sustainable Farming Scheme, but have now accepted that the change is coming, and all they’re asking for is a reasonable length of time to adjust.
“The 40% reduction in Basic Payment Scheme support in a single year is far more like a cliff edge than a managed transition, and many farmers have told me they feel bullied into adopting the new payment system which requires a portion of farmland to be given over to tree planting and habitat management.
“Even the new scheme has no clear long-term funding which makes it extremely difficult for them to plan ahead, adding to their anxiety, and I’m disappointed that the Welsh Government didn’t address the concerns of many farmers that I put to them.
“The Welsh Government previously said it would not use cliff-edge tactics to force farmers onto the new scheme, so they should honour their word and work with farmers to make the transition from the Basic Payment Scheme to the Sustainable Farming Scheme more manageable.”