NFU Cymru is calling on Welsh Government to ensure the Sustainable Farming Scheme (SFS) provides the same level of stability to farm businesses as the Basic Payment Scheme does currently.

That will be the key message from the union’s President Aled Jones when he opens the fourth NFU Cymru/Wynnstay Sustainable Farming Conference, taking place on the farm of Rob Lewis and his family near the Elan Valley, later today (Thursday 12th September).

During his speech, NFU Cymru President Aled Jones will highlight that we are at a pivotal time for farming and rural Wales with the development of the Sustainable Farming Scheme now at a crucial stage.

Speaking to the conference audience gathered at Glan Elan Farm, Cwmddauddwr later today, NFU Cymru President Aled Jones will say: “NFU Cymru supports the overarching framework for the SFS and the principle that farmers should receive a Universal Baseline Payment in return for the delivery of a suite of Universal Actions. However, this is on the condition that it is universally accessible to all farms – that is all systems, scales and locations.

“We believe that universal MUST mean universal, and provide equal access for all active farmers, including those like Glan Elan, where common land is an integral part of the business and those who farm the land but do not own it.

“We fully support the Cabinet Secretary for Climate Change and Rural Affairs, Huw Irranca-Davies’ decision to maintain the BPS for 2025, the widespread and unprecedented levels of concern with Welsh Government’s SFS proposals earlier this year was impossible to ignore.

“We have always said that the transition to future agricultural policy cannot begin until we have confidence that the new schemes deliver the same level of stability to farm businesses, our rural communities and the supply chain that the Basic Payment Scheme does currently. It is vital that budget for BPS in 2025 is secured and enhanced to recognise the inflationary effects that have occurred over the past 10 years.

“Looking ahead we need a clear undertaking to provide a UK agricultural support budget for the length of the next parliament – a ring fenced multi-annual agricultural budget taking us through to the next election. In conjunction, the new Westminster Government must look afresh at the budgetary allocation it provides to support UK agriculture in order to restore its real-terms value, which has been significantly eroded by very high rates of agricultural inflation.

“NFU Cymru believes that Welsh farming now needs a minimum budget of £500 million annually to take account of inflation and to help ensure that our ambitions in relation to food, climate and nature can be met.

“Welsh Government has also committed to a process of ‘meaningful engagement’ on final scheme design, working in partnership with the industry, The Ministerial Roundtable and sub-groups formed by Welsh Government to deliver this are now working at pace and we are pleased to be part of this process. At NFU Cymru, we are absolutely committed to working on behalf of our members to get an SFS that works for all.”

Furthermore, Mr Jones will say: “The announcement at this year’s Royal Welsh Show that Sites of Special Scientific Interest (SSSIs) will now be eligible for the habitat management element of the Universal Baseline Payment is welcome. It demonstrates that changes to the scheme may be possible so that it works on all farms, however there is still a long way to go.

“A key omission from Welsh Government’s consultation was any information on payments beyond a proposal for a payment rate recognising the costs incurred, income forgone associated with scheme actions and an intention to consider ‘social value’ within the payment methodology.

“Within the consultation, Welsh Government stated that this will take time to get right given the variation in the values of ‘natural capital’ benefits by type, location and time, which adds to the difficulty in defining a fair and proportionate approach. Subsequently, Welsh Government has confirmed it will work with the Ministerial Roundtable to ensure that payments go beyond costs incurred and income forgone, and include an element to reflect the social value or positive actions as a result of sustainable food production.

“Cost incurred, income forgone calculations have long been the established methodology for determining the payments of successive agri-environment schemes in Wales and further afield. But these schemes have operated alongside the BPS and Welsh Government is not simply designing a replacement agri-environment scheme – it is designing the replacement to both Pillars of the CAP.

“A key question that is yet to be resolved is ‘what is meant by social value?’

“The positive comments made by the Cabinet Secretary for Climate Change and Rural Affairs at NFU Cymru’s Royal Welsh Show seminar, when explicit reference was made to the social value of the Welsh language and thriving communities, points to a much broader scope than the natural capital approach summarised within the SFS consultation. One that is more in keeping with the SLM objectives of the Agriculture (Wales) Act.

“Debates on the meaning of ‘social value’ may appear academic. However, the SFS is set to be the key mechanism to support farmers in Wales from 2026 onwards, so it is imperative that Welsh Government – through the payment methodology – recognises and values farming’s broad contribution to the well-being of Wales, delivering key environmental outcomes alongside the continued production of food, underpinning our rural communities and safeguarding our Welsh language, culture and heritage.

“Farmers can only deliver for society from a position of farm business viability. It is said ‘price is what you pay, value is what you get’ and Welsh farming delivers real value. The contribution Rob and his family make here in the Elan Valley. The contribution each and every one of us here play – whether farmers or partners in the supply chain – is the perfect embodiment of the unparalleled contribution Welsh agriculture makes to our rural communities, economy, environment, landscape, as well as to our national identity, our language and our culture.”