WALES could have its own agricultural policy as work begins on shaping a new farming strategy ahead of Britain’s exit from the European Union – but a halt has been called on next year’s round of Glastir applications.

In a week that saw the First Minister Carwyn Jones and the farming secretary, Lesley Griffiths, meet with representatives from across the farming sector to discuss a way forward for farming in Wales, farmers were warned that the government was “pausing work’’ on 2017 Glastir applicatons.

Mrs Griffiths said there had been no assurances from Westminster over future funding of the Rural Development Programme.

“The First Minister has sought assurances from the Prime Minister that whenever the EU funds cease, an equivalent amount will be given to the Welsh Government to allow continuity in the planned Programme (RDP). To date, he has not received that assurance, therefore, there is uncertainty as to our future funding streams,’’ said Mrs Griffiths.

But she gave an assurance that contracts already held by farmers would be honoured by the Welsh Government and advised people to continue to applying for schemes that can be competed in a “relatively short timescale’’.

“However, where a project extends beyond 2018, we now have to delay the decision until we are sure of our future funding,’’ said Mrs Griffiths.

“This affects our Glastir 2017 applicants, since their contracts would run until 2021. We are pausing work on these but will update stakeholders when we receive further information from the UK Government.’’

Until now, £957m had available in the 2014-2020 Rural Development Programme, a structure designed to provide grant support to rural communities. In 2014, £240m was paid in direct subsidies to Welsh farmers.

Although the First Minister admits he does not as yet have a ready-made solution for the way ahead, the talk is already of a ‘Welsh Agricultural Policy’.

He insisted that securing the future of grant funding for farmers was "one of the most immediate concerns".

“There is no doubt Britain’s decision to leave the EU has caused uncertainty for the environment and agriculture sectors considering the substantial levels of funding and support the EU provides,’’ he said.

“Indeed, out of all areas of Welsh government business, these sectors are those most closely linked to the EU.”

This month’s meeting with farmers’ leaders at the Senedd had been the start of a “long, uncertain journey”, he added. “I will not make any promises that I will have all the answers.

“What assurance I can give however is that I will work tirelessly to seek guarantees from the UK Government that Wales will not be financially worse off as a result of the UK leaving the EU.

“We will be in listening mode. Nothing will be off the table and I will ensure the views raised will be at the very forefront of my mind when I am negotiating with the UK Government over the timing and terms of the UK’s withdrawal from the EU.”

This month, Lesley Griffiths will visit farms and rural businesses across Wales to hear what they think are the challenges and opportunities that the UK’s exit from the EU will present.

NFU Cymru president Stephen James believes the EU referendum result presents Wales with an opportunity to reshape trade and environmental policies and to develop an overall Welsh agricultural policy that is fit for purpose.

Meanwhile, the Farmers’ Union of Wales warns that the importance of the family farm in the Welsh way of life must not be forgotten and neither the significance of agriculture to the wider rural economy.

FUW president Glyn Roberts said many farmers were worried about the state and commitment to existing contracts. “We must gain clarity for them,’’ he insisted.

Country Land and Business Association Cymru director, Rebecca Williams, said the first priority should be to establish a world-leading agricultural policy and to ensure the sector played the "appropriate leading role in the critical trade negotiations that lie ahead".