Controversial farm subsidy scheme gets billion pound budget - Published Funding for Wales' controversial new farm subsidy scheme will exceed a billion pounds during this Senedd term, the Welsh government has announced. Setting a budget spanning several years to help farmers plan ahead was one of Plaid Cymru's promises for its first 100 days in power. But the offer of £340m a year is roughly the same as farms have received since 2012.

Farming and environment groups had been calling for closer to £500m a year. Farming minister Llyr Gruffydd said the money was a "baseline" that would be ring-fenced for farming, delivering "certainty and stability" for the sector. The protest-hit Sustainable Farming Scheme (SFS) was introduced earlier this year, after almost a decade in development.

Payments with a greener focus replace the subsidies farms had received before Brexit based on how much land they had. Those who sign up have to agree to a checklist of requirements - including managing at least 10% of their land as habitat. The budget announcement is being made on the opening day of the Royal Welsh Agricultural Show in Llanelwedd.

Caryl Davies, a beef and sheep farmer from Eglwyswrw, Pembrokeshire, said her family had decided to join the new scheme. "There are ways that farming and nature can work together, it'll improve the soil and the crops we're growing," she said. The fact that the budget was being ring-fenced over several years would "give people a bit more confidence they've made the right decision," she said.

"A three-year plan gives you some certainty about what you're going to get," agreed retired livestock auctioneer Alwyn Jones, showing his pedigree Welsh Black cattle. But the money would not go far, he said, as costs have gone up and "everything has gone dearer". While a three-year budget is welcome, "five years would be better and a bit more money obviously," added Stephen Roberts from Denbigh.

Figures show that about half of farmers applying for subsidies this year decided to opt into the new SFS. The other half decided to stick with the old regime for now, meaning they will see a 40% cut in funding this year as those subsides are phased out. However far more land is covered by the new arrangements - with 905,545 hectares being farmed by those in the SFS, and 384,399 hectares by those who remain in the legacy scheme.

The Welsh government said it would commit £340m per year to the SFS up to March 2030 and the next Senedd election. It means £238m a year will be reserved for the entry-level payment - known as the scheme's universal layer. A further £102m will go towards optional and collaborative layers - where farms can choose additional, more ambitious environmental work for extra cash.

NFU Cymru president Abi Reader said the industry would "really welcome the multi-annual funding". "If we were still in the EU we would have a seven-year cycle so we're not quite there but at least we know for the next three years it's certain," she said. "It would be really good to see a budgetary uplift," she added, but acknowledged that "in this economic climate that is going to be a real challenge".