Thank you, Deputy Presiding Officer. Last year, the Welsh Government carried out one of its largest consultations on agriculture. I am extremely grateful to everyone who engaged in the discussion. Given the importance of farming in Wales, it is unsurprising the debate was significant. Views expressed by respondents were strong and wide-ranging. Despite this, the vast majority agreed Welsh Government should continue to support Welsh farmers and Welsh land. Today I am publishing the summary of responses to the consultation and the Welsh Government’s policy response. I have carefully considered the views expressed in the responses and have made a number of changes to the policy proposals in light of the consultation, will be explored in the forthcoming consultation in July.

EU membership means our farmers and their supply chains currently benefit from access to a large, tariff-free and frictionless market. The UK’s future trading relationships remain unclear. However, what is clear is farmers will face new challenges when operating outside the EU. Farm businesses will need to become more resilient. After Brexit, we have an opportunity to put in place a system of support designed in Wales. The starting point must be our obligations contained within the well-being of future generations Act, which places a multifaceted duty on the Welsh Government to carry out sustainable development to improve the social, economic, environmental and cultural well-being of Wales. In addition, the Environment (Wales) Act introduces a further set of principles and duties designed to support the sustainable management of natural resources and biodiversity in Wales. It follows that sustainability must be at the heart of Wales’s farm support policy.

The well-being goals defined in the well-being of future generations Act are particularly relevant to farming, given its keystone role in our environment, rural economy and communities, culture and language. The basic payment scheme falls short of furthering these goals in critical respects. It is insufficient to enhance the environment, does not provide an incentive to improve and is poorly targeted. Throughout the consultation, the Welsh Government emphasised that maintaining the status quo was not an option, because the UK had decided to leave the EU and its common agricultural policy, with the direct implication that BPS in Wales will come to an end. In order to determine what should replace it, we need to reflect on our obligations and the new economic context. No decisions on future schemes will be taken without further consultation and impact assessment. This also reflects the significant and continuing uncertainty about the nature of Brexit.

However, at this stage, the Welsh Government considers that universal income support not linked to outcomes is not an effective way to support farmers. The Welsh Government therefore intends to move away from a universal income support scheme based on land under management to a new system of outcome-targeted payments, and this will be subject to further consultation in July.