2. Will the Minister make a statement on the new sustainable farming scheme proposals? TQ654

I was pleased to publish our proposals for the sustainable farming scheme today. The scheme has been designed to support farmers to produce food in harmony with the environment. I look forward to hearing the views of farmers and stakeholders on the proposals in our second phase of co-design.

Minister, thank you for your response. I'm pleased to see how far this statement has progressed since the initial 'Brexit and our land' consultation of 2018, where replacement funding was first discussed. Firstly, I am left disappointed that, given the press release calling this a landmark announcement—and indeed it is, as this is the replacement to the basic payment scheme and the first subsidy policy ever developed in Wales for Welsh farmers—only a written statement this morning was issued. I believe that an oral statement to this Chamber would have been more appropriate, given the gravity of the changes afoot. I appreciate that we have a long summer ahead of agricultural shows, where you, I and other Members will discuss the SFS at length with the unions and stakeholders, but I know Members would have appreciated the opportunity to quiz you on this scheme before recess. So, I am grateful to the Llywydd for accepting my topical question.

Moving on to the contents, there is a lot to be commended in the SFS. However, there are a few areas that I would like to seek further clarification on. You say that a decision on how the final scheme will look will not be made until, I quote, further consultation on the

'detailed proposals and the economic analysis has been presented in 2023.'

This will include modelling the actions in the scheme and assessing how the actions support farmers to produce food sustainably. This modelling appears to ignore the need for food security, at a time when global conditions are so uncertain and fragile. I would urge you to ensure that any modelling that goes ahead before next year incorporates food security and growing our food self-sufficiency sustainability. Regarding this modelling, I would stress that there must be key markers to determine the impact of the scheme on not only our sustainable food production but also on our culture, the Welsh language and the vitality of our rural communities. Sustainability is not just environmental, but is also cultural and socioeconomic, and I would hope to see more within the SFS to show that these key objectives are included.

There are concerns relating to the plans for all farms to ensure 10 per cent of their farm is covered in trees. While the industry agrees improvements are needed and it is willing to play its part in supporting nature, it is essential that these trees are the right trees in the right place. A well-meaning policy could potentially have negative impacts. From experience, I know that many farms will already be very close to or even exceeding this 10 per cent requirement, but others have very low levels of tree coverage, due to the locations of their farms. For example, there are many farms on the west coast of Wales—

Can I remind the Member that this is a topical question, and not necessarily a debate? So, please, we need to get the questions, okay.

Yes, of course. I've got many questions on this, Dirprwy Lywydd, so—

Well, you have a limited time, as you know.

Well, thank you very much. But, in terms of this, there are many different types of farms in Wales—how can a 10 per cent blanket coverage be relevant to those farms on the coast of Wales, where trees can't grow as well as on those inland? I appreciate what the Deputy Presiding Officer has said, so I will wrap it up there, but I am keen to hear more on the sustainable farming scheme, going forward. Diolch, Dirprwy Lywydd.

Thank you. And I think you broadly welcomed the sustainable farming scheme outline that we've published today, and I've certainly been very heartened by the response of many of our stakeholders, our farming unions and individuals. And as you say, I think we certainly have moved a considerable way in four years, if you look back to the first consultation, back in 2018, of 'Brexit and our land'. And that's because of the two consultations we've had, the White Paper we've had, and the first phase of co-design. And I was very keen to publish this outline scheme ahead of the summer shows—I thought it was really important to get it out there, so that we can have those further discussions, and also to encourage farmers and stakeholders to sign up to the second phase of the co-design. We had 2,000 farmers who helped us in the first phase last year; I would like to beat that. I've set that target, so I'd be very keen for everyone to join in that conversation. And of course, I'd be very interested in your views on the scheme.

You focused on a couple of points. I think the biggest challenge to food security are the climate and nature emergencies. And that's why we've got this single agenda, if you like—you can't pick out one thing; they're very integrated and complementary objectives, I think, tackling those nature and climate emergencies and the sustainable production of food. And obviously, we will go further when we publish the agricultural Bill here in the Senedd in the autumn. The main thing is that this scheme is designed to keep farmers on our land, and I absolutely take on board what you say about socio and cultural objectives and outcomes for our farmers.

In relation to trees, we do have a very challenging target to reach of 43,000 hectares of new woodland by 2030 to help us mitigate climate change. And you'll be aware of the UK Climate Change Committee recommendations in relation to that. And obviously, farmers have a significant part to play in helping us achieve that target. You're quite right, many farmers will already have 10 per cent of their land to trees. A farm I went to on Monday to launch the scheme, he hasn't got 10 per cent, and he had some very challenging questions about how he could reach 10 per cent. Others will have 10 per cent, the 10 per cent habitat cover as well. And that's part of the conversation, to hear the concerns of farmers, but also how we can work together to ensure those targets are reached.

I know people will be disappointed that the financial levels aren't there. However, I'm waiting to see the economic analysis. We can't do anything until we have that analysis and modelling, and I think that's accepted, that that will be the next part ahead of the final consultation next year. So, this is just another step along the way. We're now at probably the fourth major step in that journey. 

Minister, it's very pleasing to hear you say you want to keep farmers on the land, and I think that's what we all want to see, and that's what our farming industry wanted to see. In paragraph 2.3.5, it's stated that:

'All farmers should be able to access the Scheme.

'It is important the Scheme works for all types of farms. The Scheme is designed so all farm types can access it, including tenants and those with rights to common land.'

Minister, many tenant farmers are concerned that the good work they're going to do around enhancing the environment could only be to benefit the landowner, or potentially that landowners could evict tenants off their farms to access the scheme's funding themselves. I was asked by a Breconshire young farmer the other day about carbon offsetting, and they were very keen to know will the carbon offsetting go against the active farmer who's doing the work on the farm, or will it actually go against the landowner, say the National Trust, for example. So, Minister, what protections are you going to put in place to protect those tenant farmers and actually make sure that scheme funding goes to the active farmer, and not big conglomerates who do not do any farming at all?

So, tenant farmers have played a huge part, I think, in getting us to where we are now, and you may be aware that I will be convening some specialist working groups to help us look at the co-design of the scheme ahead of the final consultation. And tenancies was absolutely the first working group that we wanted to set up, because I think they do have some very pertinent and specific concerns. And if it doesn't work for tenant farmers, this scheme won't work for farmers. So, I've made that very clear to the Tenant Farmers Association particularly, who I've had many discussions with. 

The whole point of the scheme is that it's farmers who are actively managing the land that will be rewarded. So, that will be part of the discussion going forward. As I say, it's got to work for every type of farmer. It's also got to work for every type of farm. So, I was at a sheep farm on Monday, as I say, to hear Russell Edwards's concerns about the scheme, but it was also really encouraging that he was already ticking many boxes in order to get that baseline payment. But, as I say, this is the start of the next step; I'm sure there will be changes. This is why it's not a formal consultation, because, as we go through those conversations, I'm sure there will be changes and new things introduced ahead of that final consultation. 

Thank you to Sam Kurtz for introducing this question today. And given where we were four years ago with 'Brexit and our land', there's been a significant shift here in language and tone, and that's to be welcomed. I'm also pleased to see that the co-operation agreement between Plaid Cymru and the Government has led to ensuring that there will be stability payments continuing during the transition period up until 2029. Again, that's to be warmly welcomed. 

But, and there is a 'but', the new system needs to recognise the importance of the role of farmers in producing food, particularly in the current climate. Food production should be one of the core outputs, and farmers should be rewarded for this. Will food production therefore be a central part of any new Bill and one of the outputs? In addition to this, as we've heard, the importance of agriculture in relation to community and culture is central to the development of our nation. So, will culture be one of the core outputs, and will farmers be rewarded for maintaining our communities and our culture? 

There is some coverage of the need for land for forestry, water and wildlife. Will you ensure that farmers won't be asked to allocate good agricultural land for this, and that rather you will co-operate with farmers to identify the most appropriate land? Also, is there flexibility in terms of the percentage of land to be designated? Are you talking about forestry, or are you also talking about hedgerows? Would fernland count towards the 10 per cent of waterways?

Finally, with around 30,000 farm units in Wales, it will be important to ensure that Farming Connect has sufficient resources to tackle the additional responsibilities. What additional resources will you provide in order to ensure that Farming Connect can deliver work in this area? And, can you give an assurance that farmers won't be penalised for failings that may be related to a lack of capacity within Farming Connect? I ask this not only on behalf of myself, but a young boy from Dyffryn Ardudwy, Nedw, raised some of these issues with me yesterday and asked what the future of farming will be for him. So, these questions are important to the new entrants too. Thank you.

Thank you. I'll just pick up on that final point. I mentioned in my answer to James Evans that we were setting up some specialist working groups, and young and new entrants will be another specialist working group, because I think you're absolutely right, it is vital that this scheme works for our future generation farmers as well. This is the first time we've had bespoke agricultural policies and protocols and schemes for Wales, so we need to get it right probably for two or three decades, I would say. So, it's absolutely vital that young and new entrants are part of that conversation. I will say there are going to be four specialist working groups—tenancies; young and new entrants; cross-border farm businesses; and, common land—because it is really important that we take all those views on board. 

I think the over-arching principle of this scheme is that you produce food. If you don't produce food, you won't be in the scheme, so I hope that answers your question. We obviously recognise that food production is vital for our nation, but this scheme also recognises that we must, must respond to the climate and nature emergencies if we are to have that sustainable and resilient agricultural sector that we all want to see. As I said in an earlier answer, I think those emergencies are the biggest threat to global food security. 

You mentioned about Farming Connect, and it is important that it's fit for purpose and is able to cope. Obviously, that is something that we've been looking at very closely, not just in preparing this scheme, but over the last probably three years while we've been bringing the policy forward. We've been looking at Rural Payments Wales Online as a sort of measure of how we've done that to take forward this scheme too.

Regarding the 10 per cent, certainly hedgerows will be able to be included. There will be some farms that probably can't reach 10 per cent, so those are the farmers that I do hope will come forward to have discussions with us. We're asking all farmers to reach 10 per cent, so that we can spread the load across Wales to avoid having large-scale land-use change. As I say, we want to keep farmers on the land, so it is really important that we have those conversations. To help meet those tree-planting targets, we are having a hedges-and-edges approach to the universal action, so we will support farmers to integrate more trees onto their land and into the farming system. Certainly, farmers have told me they want to plant more hedges, they want to plant shelter belts, and trees in field corners. So, that's what we will be working with. We're proposing at the moment to allow farmers up to five years to get to that 10 per cent minimum requirement. I think it was Sam Kurtz who said about the right tree in the right place; that's really important, and that will be part of that work as well.

Thank you, Minister.