Farmers expecting cut in payments

14 January 2014 Last updated at 06:47 GMT

Farmers in Wales expecting cut in payments

A consultation on how direct payments to farmers will work was held

Farmers are due to find out how much money they will receive over the next six years to help them produce food.

Payments which come from the EU's Common Agricultural Policy (CAP) are expected to fall and there may be different rates to assist upland farms.

Farming unions say incomes will fall between now and 2020 and prices of meat could go up.

But the Natural Resources Minister, who is to reveal the payments, said it was time for efficiency and resilience.

Alun Davies is expected to re-affirm what he said at the end of last year that this will be "just the first step in real term decline of direct support for farmers".

Wales has about 16,000 farmers and CAP is used by the Welsh government to fund activities which support farmers, the countryside and rural communities.

The main focus of CAP is to help farmers produce food at affordable prices.

Last year it was announced that direct farm payments for Wales will be around €2,245m over 2014-2020, with €355m allocated for rural development schemes.

'More money'

But the budgets for both are being reduced by 12.6% and 5.5% respectively after allowing for expected inflation.

Mr Davies held a consultation on how the direct farm payments will be implemented in Wales and his decision is being announced on Tuesday afternoon.

Phil Siddall, who runs a farm near Newborough on Anglesey, said: "With the cuts, we'll need more money for our beef, for any farm products.

"We need more money and can the housewife afford to pay more for our beef? No.

"The price of food will definitely go up."