On the basis of consultation feedback, and flowing from Wales’s legislative framework, the Welsh Government proposes to pursue an objective of sustainable land management, which balances the needs of the current generation with our obligations to the next. This, of course, includes Wales’s future farmers.

Food production is a vital component of sustainable land management. A sustainable approach will make it possible to produce public goods as a consequence of producing food. Reflecting on the consultation responses, we propose to bring together the economic resilience and public goods schemes proposed in 'Brexit and our land' into a single sustainable farming scheme. A single scheme would allow us to explore economic and environmental opportunities at the same time. It helps us find win-wins—things that are good for both food and the environment. We propose that a sustainable farming scheme should provide annual payments to farmers in return for the public goods outcomes delivered on their farms. We propose that payments are targeted to specific outcomes. This could provide a powerful tool for delivering against our environmental commitments, including reversing biodiversity decline, meeting our carbon budgets and achieving our clean air targets. It is difficult to see how we can meaningfully and efficiently address these commitments without nationwide action across the 80 per cent of Welsh land managed by farmers.

Reflecting on the consultation responses, we have found the production of food and the production of public goods to be mutually reinforcing, not mutually exclusive. In many cases, the same action, done in the right way, can contribute both to the production of food and the production of public goods outcomes, and we want to pay for these outcomes. There are many ways a farmer can improve air quality through food production: soil management, animal husbandry and targeted nutrient application are just three possible ways. By producing food in this way, we can deliver benefits for the farmer, the environment and the wider public.

Paying for public goods outcomes delivered through appropriate farming practice would ensure that all types of farm have the potential to enter the scheme if they desire. This is vitally important, because many farmers may rely on the new scheme to make a profit, just as they do with the current BPS. In addition to the annual payments, we would propose to provide investment, advice and training to support farm business development. These measures would aim to improve the farm’s profitability. Our farmers face significant challenges and I understand the apprehension in many of the consultation responses. These revised proposals are designed to address many of the concerns raised.

Before we can proceed, a number of things need to happen. Firstly, we need an agreed budget. While the UK Government has pledged to maintain cash levels of agricultural funding until 2022, there is no certainty on what happens thereafter. We must continue to insist Wales receives its current share. This funding will determine how much we can pay farmers. Secondly, we need further consultation on our proposals to enable us to consider the practical elements of a sustainable farming scheme and ensure the administration is practical to operate. Thirdly, we need to undertake a full impact assessment. We are developing capability that, once the budget is known, will allow us to estimate the impact on different farm types across Wales.

We cannot move forward until all of this is in place. The scale of uncertainty surrounding our exit from the EU has only increased, and we cannot make decisions on the transition timetable without first knowing more. While Welsh Government can propose policy, it is only farmers who can deliver real change on our land. Therefore, I want to continue to work with farmers and stakeholders of all views on how to turn our proposals into a practical reality. Reflecting this, following the publication of the next consultation, I intend to launch a process to co-design our proposals, involving farmers and others in the design of the practical aspects, before the Welsh Government decides on the way forward.

Finally, Presiding Officer, I would like once again to express my thanks for the consultation contributions received. Future policy proposals will be better for these, and together we can work to help farmers thrive, harness the value of Welsh land, and secure a prosperous, resilient agricultural sector in Wales.