Royal Welsh recap: Policy takes centre stage as farmers fight for their future
Royal Welsh recap: Policy takes centre stage as farmers fight for their future
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Waking up at the crack of dawn is nothing out of the ordinary for the Welsh agriculture community. But for one four-day stretch in the year, the sun rises for them, not over the family farm, but over the hills of Llanelwedd.
“[I have] So many long memories of the Royal Welsh Show, going up with my family, going up with young farmers, lots of competitions, lots of meeting up with friends that you haven’t seen perhaps for 12 months,” said Abi Reader, Deputy President of the National Farmers’ Union (NFU) Cymru.
“And it’s the annual gathering where everybody can exchange stories. It’s just so important for people to remember what a big community we are and how supportive we can be.
“It’s our showcase for our fabulous consumers who will come and see everything that we’re proud of. It is the pinnacle of our Welsh agriculture events and an opportunity to show off everything that we do to feed the nation and look after the landscape.”
Farming can often be an isolating job, with long hours in the fields and only your animals as company, which is why the social element of the RWAS is just as, if not more, important than the economic one.
“It’s crucial that farmers have the opportunity to talk. There’ll be many that may not see another person for sometimes six or seven days, perhaps even longer, depending on what job you’re doing.
“To be able to get out, to speak to other farmers, understand that you’re probably sharing the same sort of problems. You might be able to find some solutions. There are a lot of businesses there who can offer you support. And really put some energy back into what you do.”
In many ways, the RWAS began early this year. The key talking point going into the show was the Welsh Government’s new Sustainable Farming Scheme (SFS), announced the previous week.
Set to launch on 1 January 2026, marking what ministers describe as a “landmark moment” for Welsh agriculture, the scheme is designed to support food production while enhancing environmental sustainability and building resilience in the face of climate change.
Deputy First Minister and Cabinet Secretary for Climate Change and Rural Affairs, Huw Irranca-Davies, hailed the scheme as a “new agreement between the people of Wales and our farmers,” underpinned by a framework of Universal, Optional, and Collaborative Actions. He confirmed a £238 million budget for the scheme’s launch year, with a phased transition from the current Basic Payment Scheme (BPS).
Following backlash during the consultation phase, the government has dropped its controversial 10% mandatory tree cover requirement, replacing it with voluntary tree and hedgerow planting plans backed by flexible incentives.
The BPS will be reduced to 60% of current payment levels in 2026, with further reductions expected, a sharper transition than previously promised.
Speaking at the Royal Welsh Showground, Huw Irranca-Davies told Businessin Wales: “It’s not a cliff edge, but it is a faster taper than the 20% per year.
“But the 20% [reduction] per year was due to come in last year if we had launched the scheme, so we’re one year further on, so actually the 40% represents that we are a year further on already.
“But there is another reason behind that as well: of course, we want to encourage people to get away from the old legacy scheme, because that’s not what it is of the post-EU BPS scheme and to come into the SFS, the Sustainable Farming Scheme.
“The 40% [reduction] is designed to encourage that more rapid uptake, but it also then releases more money that can come back into the SFS. So, if more people join early, we’re trying to make the right carrots there as well, and incentives that then release more money into the SFS scheme.
“I appreciate for some it’s a little bit sharper than they expected, but it’s definitely not a cliff edge, and it still phases out over a couple of years afterwards. But I want people to join the scheme, that’s why I’ve set it at 40%, and it’s also because we’re 12 months further on down the line than originally was envisaged.”
When pressed further on whether he would be open to further changes to the funding for farmers who don’t sign up to the SFS, the Deputy FM said: “No. Absolutely not. That’s a fundamental part of the scheme now, and it’s based on the balance of decisions we’ve made on different elements of the scheme.”
Shadow Rural Affairs Secretary Samuel Kurtz MS criticised the lack of transparency and questioned the scheme’s legitimacy without a Senedd vote or accompanying economic analysis.
“We are still in the dark about the real-world consequences of Labour’s scheme,” said Kurtz.
Plaid Cymru’s Llyr Gruffydd MS acknowledged that the final scheme is a “clear improvement” and praised the role of industry engagement. However, he called for multi-annual funding commitments beyond 2026 and urged clarity on long-promised elements like social value payments and budget allocations across the scheme tiers.
“A one-year pledge is simply not enough… farmers need longer-term certainty,” Gruffydd said.
While the Welsh Government felt it was important to get the SFS announcement out ahead of the show, Nigel Farage decided to leave his until the second day.
The former leader of the Brexit Party and UKIP addressed a packed press conference, as rumours of defection to is Reform UK party swirled around the showgrounds.
In a dramatic entrance, Farage and former Tory David Jones were followed into the press room by Laura Anne Jones MS, who was, until the announcement, a sitting Conservative Party Member of the Senedd.
Laura Anne Jones becomes Reform UK’s first Senedd Member ahead of what is set to be a hotly contested election in May 2026, a move that came as a surprise to many, not least her Conservative colleagues, who she admitted were unaware she would be making such an appearance.
During the media Q&A, Businessin Wales asked Nigel Farage about the proposed changes to the Sustainable Farming Scheme.
The SFS funding model has been in place since the UK left the EU, replacing the funding Welsh farmers had received while part of the bloc.
A prominent Brexiteer, and figurehead of the movement to leave the EU, Farage said: “I think the biggest problem with Brexit was that, actually, those of us that believed in it were never in a position to implement it.
“There are big disappointments in the way that Brexit has been implemented across a number of levels. Of course, we stand taller on the world stage.
“Of course, there are benefits that we’ve derived from it. But frankly, I think when it comes to agriculture, for example, I don’t think anybody in government or in the senior civil service ever contemplated us voting to leave, or ever had any plan in place.”
Commenting on Laura Anne Jones’ defection, Welsh Conservative Leader Darren Millar MS said: “Naturally, I’m disappointed by Laura’s decision, and Conservative Party members and voters in South East Wales will feel very let down by her announcement.
“The Welsh Conservatives will not allow this to distract us from our national mission to boot Labour out and fix Wales.
“In the meantime, we wish Laura all the very best in her new high-tax and high-spend party.”
Away from the drama that had made its way from Cardiff Bay to mid-Wales, much of the anger was directed eastwards. Prime Minister Sir Keir Starmer was a notable absentee from the show, but if he had made an appearance, it’s doubtful his welcome would have been overwhelmingly warm.
Following proposals in the Chancellor’s budget regarding changes to Inheritance Tax, the farming community across the UK has been worried about what the future holds for their family businesses.
The feeling was so strong that NFU Cymru President Aled Jones wrote a letter to the Prime Minister, calling for urgent revisions to the UK Government’s proposal, which he says are causing “huge anxiety” among Welsh farming families.
From April 2026, the proposed changes would cap 100% relief on agricultural and business property at £1 million, with only 50% relief on amounts above that threshold. Under the plan, both APR and Business Property Relief (BPR) would be counted together towards the cap.
“I am concerned that the number of farm businesses which stand to be impacted by this policy change will be far greater than Treasury predictions,” Jones wrote in his letter to 10 Downing Street.
“What pains me more than anything is the sheer number of elderly farmers who, having worked hard all their lives, now find themselves tormented with the continual worry that their passing will create an unmanageable financial burden for their loved ones.”
Jones said hundreds of Welsh families have contacted the union, prompting him to act. His letter to the Prime Minister argues that many elderly farmers are being placed in an “invidious position” with little legal or financial recourse.
“Across our nation, there are countless examples of farmers in their twilight years having to deal with complex tax and legal considerations, at a time in life when even minor decisions can be a source of considerable apprehension,” Jones wrote. “For many of these people, either due to age or health issues, there is no recourse to insurance cover to meet tax liabilities.”
He continued: “I know that no government would want to place anyone in the difficult and invidious position that many elderly farmers now find themselves in. My view remains that an opportunity still exists for your government to mitigate very many of the human impacts of these policy proposals, whilst meeting the Government’s aim of raising revenue.”
In response, a government spokesperson said: “Our reforms to Agricultural and Business Property Relief are vital to fix the public services we all rely on. Three-quarters of estates will continue to pay no inheritance tax at all, while the remaining quarter will pay half the inheritance tax that most people pay, and payments can be spread over 10 years, interest-free.
“We’re investing billions of pounds in sustainable food production and nature’s recovery, slashing costs for food producers to export to the EU, and have appointed former NFU president, Baroness Minette Batters to advise on reforms to boost farmers’ profits.”
With less than nine months before the proposed changes come into effect, industry voices warn that without amendments, the reform could reshape the landscape for generational family farming across the UK.
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