Huw Irranca-Davies, Deputy First Minister and Cabinet Secretary for Climate Change & Rural Affairs
I wish to update Members of the Senedd on this and next year’s Basic Payment Scheme (BPS) payments ahead of the Sustainable Farming Scheme (SFS) commencing in 2026.
More than 94% of claimants have received their full or balance BPS 2024 payment today. Over 15,300 Welsh farm businesses have received payments worth £66.88m, in addition to £160.52m paid as BPS advance payments since 14 October. My officials will continue to process the outstanding BPS 2024 claims as soon as possible. I expect all but the most complex cases to be completed by 30 June 2025.
In May I announced that BPS would continue for 2025 as part of the SFS Preparatory Phase.
Today, I can confirm a total Direct Payments budget of £238 million which will provide BPS payments to farmers in 2025 at the same level provided in 2024. We expect BPS 2025 to be the final year of full BPS payments, with the SFS Transition Period planned to start in 2026.
We recognise that the agriculture sector is undergoing significant changes, and so Welsh Ministers continue to safeguard the BPS budget to provide continuity of support as transition to life beyond BPS continues. We have listened to farmers and their representatives about the importance of providing an element of stability before the introduction of SFS.
I recently published an updated SFS Outline demonstrating the significant changes we have made to the proposed Scheme thanks to consultation feedback and an intensive period of work with the Ministerial Roundtable and other stakeholders. The changes address the needs of Welsh farmers, while supporting the ongoing sustainable production of food, as well as tackling the climate and nature emergencies. We will continue to listen to, and work with stakeholders as we progress the extra detail needed before we make any final decisions on the SFS next year.
Alongside BPS 2025, I have announced several SFS preparatory schemes including Habitat Wales Scheme, Habitat Wales Commons, Organic Support Payment, Farming Connect, and a new Integrated Natural Resources Scheme. New application windows have and will shortly open for our successful Growing for the Environment, Small Grants Environment, Small Grants Efficiency, Small Grants Horticulture Start up and the newly merged Agriculture Diversification and Horticulture Scheme.
We continue to face uncertain and challenging times; however, this government is steadfastly committed to supporting Welsh farmers to sustainably produce quality food. This is demonstrated today in our maintenance of the BPS budget, despite considerable financial pressures on other areas.