LARGE, extensive hill farms will be the biggest winners under Wales’ finalised plans for the Basic Payment Scheme.

After months of uncertainty and a legal challenge, deputy farming minister Rebecca Evans, has announced that Wales will move to a flat rate payment system by 2019 with an “add-on” redistributive payment for the first 54 hectares of farmland.

Under this model it is anticipated that farmers will be paid €243 (£173) for the first 54-hectares of eligible land per farm and €124 (£88) for all remaining eligible land by 2019.

Although Mrs Evans insists this option treats all farmers equally, intensive lowland farms, which would have been paid €200/ha (£143/acre) under the Welsh government’s original proposals, will lose out. Large, extensive hill farms which would have received €20/ha (£14/acre) will gain substantially.

The original scheme was scrapped after a legal challenge by a group of farmers, including Tony Davies, who farms in the Elan Valley.

Reacting to Tuesday’s announcement, he said the group had favoured a flat rate by 2019 with no add-ons. “However, on a positive note, even with the redistributive option we concede that it is much fairer than the original proposed scheme which was unlawful,’’ he said.

“I am also pleased that our government has introduced a scheme that was in the consultation papers, unlike last year.’’

The Farmers’ Union of Wales calculates that under the new scheme, financial losses for around 70 per cent of claimants will be reduced.

NFU Cymru wanted a scheme based on differential payment rates. “Today’s announcement will please some of our members who will see this as the most suitable of the realistic options left remaining to Welsh Government. Others will naturally be deeply concerned at the impact this decision will have on their business and will fear for how they will be able to adapt their business to significant changes in EU support payments,’’ said the union’s president, Stephen James.

Now that the government has agreed a model for the new scheme, it will need to get it approved by the European Commission. It says it intends to move swiftly so that part-payments can be made as early as possible in the EU payments window, which opens on December 1st.

CLA Cymru said it would lobby for complementary support from the Rural Development Programme for farmers and landowners.

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CAPTION

Large, extensive hill farms will gain substantially under Wales’ new BPS.

PICTURE: Debbie James.