The consultation presented a case for future funding to support and reward farmers who operate sustainable farming systems. In a world where future trade agreements are likely to open up our markets to a greater degree of competition, demonstrating the sustainability of food produced on Welsh farms with high animal welfare and environmental standards is likely to be increasingly important. The framework would also allow us to support the production of sustainable food and deliver against our environmental justice commitments.  

We received over 3,300 responses to the consultation. I again wish to thank those who took the time to read, consider and respond to it. In May, I published an independent analysis of the responses, and today I am publishing the policy response to the consultation. The range of views expressed in the responses reflect the broad scope of the proposals in the consultation. Upon careful consideration of these and the range of views expressed during the process, I continue to propose a future system of agricultural support designed around the sustainable land management framework.

The competitiveness of the farming sector in Wales was raised as a key issue in many responses, with some arguing a focus on environmental outcomes would harm the financial viability of Welsh farming. The proposed approach would provide an important income stream for farmers, recognising the important work they do in delivering environmental outcomes and rewarding them for it. In addition, we are seeking to reinforce the long-term competitiveness of the sector through enhanced business advice and support. This will help support farmers in the new economic realities following the UK’s departure from the EU. The competitiveness of farming, food production and improved environmental resilience are complementary agendas and our proposals are clear in this regard.  A sustainable land management approach will allow us to respond to the climate emergency, will help to reverse biodiversity decline, will ensure high standards of animal health and welfare, and will protect our natural resources. Food produced using this approach will be sustainable, ensuring a food supply for future generations.

In light of this, the Welsh Government has agreed to continue its development of proposals for a scheme based on the sustainable land management framework. A range of options will be explored, all of which will be judged in terms of cost, benefit and compliance with the Well-being of Future Generations (Wales) Act 2015 and the Environment (Wales) Act 2016. To support the development of our proposals, we are undertaking a range of economic analysis to understand the impact of moving from an entitlement-based income support scheme to a voluntary scheme that rewards the production of outcomes. We are expecting output from this analysis next summer and I will ensure this is publicly available. 

No decision on any future scheme will be made before I've considered the results of the analysis and taken all other relevant considerations into account. To enable farmers to adjust their existing business model to accommodate any changes required by the proposed scheme, there will be a transition period. Before the end of this Senedd term, I will publish a White Paper that will pave the way for the introduction of an agriculture (Wales) Bill during the sixth Senedd term. I propose this Bill be strategic in scope, setting a support framework that can accommodate the development of agriculture and forestry within Wales for the next 15 to 20 years. The Bill will enable farmers to be financially supported and ensure a coherent and fair system of regulation can be applied to the agricultural sector. Over the coming months, we will continue to engage with stakeholders to enable the ongoing development of these proposals for the White Paper.

To ensure farmers are supported following the UK exit from the EU, I intend to launch a consultation later in the summer to seek views on the retention and simplification of rules around agricultural support for farmers and the rural economy. This support would bridge the gap between the current EU funding and any new scheme based on sustainable land management. The UK Government’s ongoing delays in confirming the level of replacement funding are frustrating and are delaying detailed forward planning.

Globally, it has been an extremely challenging few months, and Welsh farmers, of course, have not been exempt from recent circumstances. I am proud of the resilience they have shown in responding to those difficulties. Farmers, foresters and other land managers play a vital part in the economic, environmental and social well-being of Wales. We will continue to support them to adapt to economic and political changes, as well as the impact of climate change.