Addressing high production costs in the farming sector

We are aware of the impact increasing input costs are having on agricultural producers. In particular, the price of:

• fuel
• feed
• fertiliser

We are closely monitoring the position via the UK Agriculture Market Monitoring Group (on gov.uk).

The following information includes advice, guidance, and webinars to help mitigate high prices. This includes:

• resources from Agriculture and Horticulture Development Board (AHDB), Hybu Cig Cymru and Farming Connect
• information about BPS Advance Payments
• details of our schemes available to you

We are providing advance Basic Payment Scheme (BPS) payments again this year. This will help with cash-flow certainty. Our support will continue to help you, including:

• our commitment to continue the Basic Payment Scheme unchanged in 2023.
• extending Glastir contracts until the end of 2023

Most farmers will receive a payment worth 70% of their estimated claim value in October. Balance payments will follow from December.

On 1 April, we announced a package of support for:

• farmers
• foresters
• land managers
• food businesses

This is worth over £227 million over the next three financial years. These schemes will support the resilience of the rural economy.

Small Grants – Efficiency

The application window for the new Small Grants – Efficiency scheme opened on 18 May 2022. It closed on 29 June 2022 with a £5 million budget. The scheme provides a grant of between £1,000 and £12,000 of support for farmers. Investment in new technology and equipment will improve technical, financial and environmental performance.

The scheme enables the use of technology, such as

• livestock electronic identification (EID)
• crop monitoring technology
• precision application equipment
• GPS

This allows the collection and use data to make informed management decisions. These can contribute to increasing productivity and financial performance.

Growing for the Environment

Support to mitigate some of the impact of increasing fertiliser costs. It offers an opportunity to:

• graze cover crops in spring, and/or
• utilise the cover crop as green manure in the spring for use by the following crop

There are two application windows in 2022. A window for autumn sown crops opened on 20 June and closed on 29 July.

It supported the growth of crops which provide:

• environmental
• biodiversity and
• production benefits

These include protein crops, mixed leys (also known as herbal leys) and cover crops.

The support enables environmental enhancement and mitigation of increasing input costs by growing more home-grown forage.

Support for the horticultural sector

With a vibrant horticulture sector, we aim to develop a sustainable agricultural industry.

It delivers a range of environmental, social and economic benefits. By growing more horticultural produce, people can access fresh and healthy local produce.

Two complementary schemes are available:

• Horticulture Start Up Scheme

Supports new entrants into the Welsh horticulture sector. The Expression of Interest (EoI) window opened on 25 May 2022 and closed on 29 June 2022.

• Horticulture Development Scheme

Grants for existing commercial horticulture growers to invest in new technology and equipment. The first application window, with a budget of £1.5 million, between 4 April and 10 June.

Information and guidance to help agricultural producers facing rising costs for animal feed:

Agriculture and Horticulture Development Board (AHDB)

• Tackling silage costs and reducing waste (on ahdb.org.uk)
• Webinar: Clamp silage slippage – how to try and avoid slippage this season (on ahdb.org.uk) 
• Choose your silage inoculant carefully (on ahdb.org.uk)
• Recommended Grass and Clover Lists (RGCL) (on ahdb.org.uk) 

Farming Connect 

• Prosper from Pasture (on businesswales.gov.wales)

Supports you to develop your knowledge and confidence in pasture management. At the same time, you will learn how to reduce input costs and improve output.

• Welsh Pasture Project (on businesswales.gov.wales)

Aims to provide information and management advice based on regional grass growth trends

• Managing lambs after weaning (on businesswales.gov.wales)

Workshop to help improve lamb performance post-weaning.

Hybu Cig Cymru / Meat Promotion Wales

• Best practice in managing grassland, water, and soils (on meatpromotion.wales)
• Perfecting the Welsh Way (on meatpromotion.wales)
• Optimised Management of Upland Pasture – Webinar (on YouTube)
• Grasscheck GB Project (on meatpromotion.wales)
• New Project to Research Benefits of Grazing Systems (on meatpromotion.wales)

We are working with:

• stakeholders
• UK government
• devolved governments

to track the price of fertiliser. This will help us consider any mitigating actions which we could take.

Information and guidance are available as follows:  

Agriculture and Horticulture Development Board (AHDB)

• Cost benefit calculator for nitrogen fertiliser use on grassland (on ahdb.org.uk)
• Nitrogen fertiliser adjustment calculator for cereals and oilseeds (on ahdb.org.uk)
• Fertiliser information (on ahdb.org.uk)
• Blog: How should farmers manage costly nitrogen fertilisers? (on ahdb.org.uk)
• How best to respond to costly fertiliser nitrogen for use in 2022 (on ahdb.org.uk)
• Mitigating high fertiliser prices (Webinar) (on ahdb.org.uk)
• Growing grass: simple use of nutrients and fertiliser (Webinar) (on ahdb.org.uk)
• Make the most of your muck (Webinar) (on ahdb.org.uk)

Farming Connect

• Nutrient Management Planning | Farming Connect (gov.wales) 
• Cut your losses: Maximising the benefits of a nutrient management plan | Farming Connect (gov.wales)
• Grassland farmers can mitigate against impact on grass growth of applying less N | Farming Connect (gov.wales)
• Rising Fertiliser costs encourage seasonal Soil Testing | Farming Connect (gov.wales)
• Podcast - Give rotational grazing a try this Spring | Farming Connect (gov.wales)
• Reducing N input through the use of clover at Mountjoy | Farming Connect (gov.wales)

You can:

• find business advice and support through Farming Connect (on businesswales.gov.wales)
• arrange a one-to-one on-farm clinic (on businesswales.gov.wales)

Farmwell Wales is an online information hub. You can get advice on personal and business resilience for you and your family.

We are aware of the difficulties many farmers are facing due to increasing costs. RPW is continuing to monitor the situation closely.

If farmers need to make changes to management practices which may impact on their ability to deliver Glastir commitments they should contact RPW immediately to request a derogation.

Full consideration will be given to all requests on a case by case basis. Annual payments may be affected where contract requirements cannot be delivered.

Details of the Glastir option and field number/s should be provided, along with as much information as possible regarding the circumstances leading to the request. Depending on the issue, supporting evidence may also be requested. Farmers must not deviate from their Glastir contract requirements before receiving approval from RPW.