Closure of the Fruit and Vegetable Aid Scheme and Public Intervention and Private Storage Aid schemes in Wales

This consultation document sets out the proposal to close the Fruit and Vegetable Aid scheme and Public Intervention (PI) and Private Storage Aid (PSA) schemes in Wales by the end of 2025.

Since the UK’s departure from the European Union (EU) in 2020, assimilated EU legislation has remained in place, including legislation governing agricultural funding schemes. Included in this are the Fruit and Vegetable Aid (FVA) scheme and the Public Intervention (PI) and Private Storage Aid (PSA) schemes.

Fruit and Vegetable Aid scheme

The FVA Scheme was established by the EU in 1996. The scheme offers Producer Organisations (POs) financial assistance from the Welsh Government to increase fruit and vegetable production by offering funding for actions that contribute to improved competitiveness, with a particular focus on collaboration and productivity.

This is on a match-funded basis, with the Welsh Government contributing an equal amount as the Producer Organisation themselves to their operational fund. This operational fund may be used for:

1. planning of production, including production and consumption forecasting and follow-up
2. improvement of product quality, whether in a fresh or processed form
3. boosting products' commercial value
4. promotion of the products, whether in a fresh or processed form
5. environmental measures, particularly those relating to water, and methods of production respecting the environment, including organic farming
6. crisis prevention and management.

Government assistance is capped at 4.1% of the value of marketed production for the Producer Organisation. This assistance is conditional on POs meeting a particular set of requirements to be able to apply for the funding. These are that the PO must:

• have its head office located in the constituent nation where the majority of the value of marketed production is calculated or, where the majority of members are located. The head office cannot be moved until the end operational programme currently in force
• have at least 5 grower members, all of whom are separate legal entities
• have an annual turnover of €1 million (in terms of marketable production) - for POs recognised exclusively for mushrooms or nuts, this is €250,000
• be formed on the initiative of farmers who are growers of one or more products listed in Annex I of the regulation EUR No. 2013/1308 and/or of such products intended solely for processing
• use environmentally sound cultivation practices, production techniques and waste management practices, in particular to protect the quality of water, soil and landscape, and preserve or encourage biodiversity

Since its inception in 1996, there have been no applications from Welsh POs for the FVA scheme. This would suggest that the current support scheme is not benefitting the horticulture sector in Wales and should be reviewed. Currently, the annual administration cost of running the scheme is over £1 million in England. This cost may need to be realised by the Welsh Government if we were to continue the scheme going forward.

We propose to close the current scheme and work with the sector to consider how to better support the horticulture sector in Wales.

The Public Intervention and Private Storage Aid schemes

The PI and PSA schemes are two of the main market intervention mechanisms under the Common Agricultural Policy for supporting market prices. Both schemes relate to the removal of commodity products from the market when prices fall below certain thresholds.

Currently, the mandatory PI schemes open automatically if the market price for certain products falls below the threshold during set months of the year.

These products are:

• unsalted butter
• skimmed milk powder
• beef and veal
• common wheat
• durum wheat
• barley
• maize

The scheme requires the Rural Payments Agency (RPA) to buy in the products (up to a certain quantity), whereupon they become government property. PI schemes in exceptional market conditions offer financial support during a crisis. These are opened at the discretion of Ministers and can be opened to the same products as the mandatory schemes, and paddy rice.

Similar to PI schemes in exceptional market conditions, PSA schemes may be opened for agricultural products for a set time when market prices are so low as to make sale of the goods unprofitable for an extended time. The products are placed in storage for a period of months, with the scheme paying part of the costs of this. These products are then sold later, when it is hoped prices will have recovered. The products remain the property of the farmer or processor throughout.

Neither PI or PSA have been used in Wales since 2000 and do not offer value for money due to their lack of use and high administration costs. Updated market intervention powers set out in the Agriculture (Wales) Act 2023 allow Welsh Ministers to support farmers through direct payments in exceptional circumstances, providing a much more effective method of intervention to aid farm businesses in a crisis. Similar market intervention powers were used to provide financial support for dairy farmers during the Covid-19 pandemic.

Going forward, the RPA will cease future administration of Welsh Government schemes. The Welsh Government do not have another mechanism to accept and process payments for the FVA scheme or the PI or PSA schemes. To implement these changes would put a large administrative and financial strain on the Welsh Government to introduce a whole set of new processes that it does not currently administer.

Since changes to the Common Agricultural Policy were introduced in the 1990s, there has been a reduction in the use of the PI and PSA schemes, leading to the reduction of storage facilities across the UK and reduction of staff numbers working to implement these schemes. The systems that were used to run both schemes are also out of date and would need to be updated to run these schemes efficiently. The schemes would require storage to be procured, the training of new technical officers and restarting technical contracts with laboratories, all of which would need significant financial investment.

As the FVA scheme has never been used and the PI and PSA schemes have not been used in Wales since 2000, we do not foresee these proposals having a particular impact on the Welsh language. We are mindful, however, that with a high proportion of agricultural workers being Welsh speakers, we need to consider this aspect when making policy decisions affecting the farming sector.

Fruit and Vegetable Aid scheme questions

Question 1. To what extent do you agree or disagree with the proposed changes set out in this consultation?

Question 2. Have you ever considered applying for the Fruit and Vegetable Aid scheme in Wales?

Question 3. Do you expect these proposals to affect your business in any way?

Question 4. Do you expect these proposals to affect your community?

Question 5. Do you think the Welsh Government should offer an alternative to this scheme?

Question 6. We would like to know your views on the effects that the proposals would have on the Welsh language, specifically on opportunities for people to use Welsh and on treating the Welsh language no less favourably than English. What effects do you think there would be? How could positive effects be increased, or negative effects be mitigated?

Question 7: Please also explain how you believe the proposals could be formulated or changed so as to have positive effects or increased positive effects on opportunities for people to use the Welsh language and on treating the Welsh language no less favourably than the English language, and no adverse effects on opportunities for people to use the Welsh language and on treating the Welsh language no less favourably than the English language.

Question 8. We have asked a number of specific questions. If you have any related issues which we have not specifically addressed, please use this space to report them.

Public Intervention and Private Storage Aid questions

Question 1. To what extent do you agree or disagree with the proposed changes set out in this consultation?

Question 2. Have you ever considered applying for Public Intervention or Private Storage Aid Schemes in Wales?

Question 3. Do you expect these proposals to affect your business in any way?

Question 4. Do you expect these proposals to affect your community?

Question 5. We would like to know your views on the effects that the proposals would have on the Welsh language, specifically on opportunities for people to use Welsh and on treating the Welsh language no less favourably than English. What effects do you think there would be? How could positive effects be increased, or negative effects be mitigated?

Question 6: Please also explain how you believe the proposals could be formulated or changed so as to have positive effects or increased positive effects on opportunities for people to use the Welsh language and on treating the Welsh language no less favourably than the English language, and no adverse effects on opportunities for people to use the Welsh language and on treating the Welsh language no less favourably than the English language.

Question 7. We have asked a number of specific questions. If you have any related issues which we have not specifically addressed, please use this space to report them.

Submit your comments by 25 August 2025, in any of the following ways.

• Complete our online response form
• Download, complete our response form and email to: FutureFarmingConsultation@gov.wales
• Download, complete our response form and post it to:
  
  Future Farming Policy
  Agriculture – Sustainable Development Division
  Welsh Government County Hall
  Spa Road East
  Llandrindod Wells
  LD1 5LG

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Number: WG52221

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