Questions now from party spokespeople. Conservative spokesperson, Samuel Kurtz. 

Diolch, Llywydd. Minister, the recent Audit Wales report highlighted that, at the end of March, £58 million remained unspent from the rural development programme, with the deadline for spending this money being the end of this year. How confident are you that all this money will be spent, and not a penny will be returned to the EU? 

I'm just as confident as the last time I was asked this question. It seems a lot of opposition Members are constantly asking me how confident I am about it. You mentioned a figure. Over £765 million of the total programme spend has now been spent; there's about 10 per cent still to go. And as you said yourself, we have until the end of this year to make sure all that money is spent. So, I can only be confident about what I've done, so what I've done is try to make sure that we've over-committed, because I think you have to learn lessons from previous programmes. Clearly, over-committing, I think, is okay to do, because there's quite often an underspend, because of challenges that beneficiaries face—I'm not criticising—and obviously COVID came along and there have been even more challenges. So, what I've been very clear about with my officials is they must work closely with the beneficiaries. It's really important that the beneficiaries, who tell us they can spend that money, do that. I've done what I can do; I want them to do what they can do, but also if they have any concerns, to highlight them with my officials as soon as possible. 

Thank you for those reassurances, Minister, but if we are being honest, the Welsh Government has a bit of a chequered history when delivering the rural development plan. In June 2020, Audit Wales identified that key aspects of the design, operation and oversight of the rural development fund were not effective enough to ensure that grant awards would deliver value for money. That's a damning indictment of the Welsh Government's performance. And that's without touching on the fact that your Government moved the absolute maximum amount of money away from direct support for Welsh farmers via pillar 1, over to pillar 2 and the RDP—the highest anywhere in the European Union. You've refused multiple requests from me and the unions to hold an independent review into the RDP delivery, and that ship has now sailed. But given the importance of future schemes, can you outline what lessons—and you mentioned lessons learnt—but what lessons have been learned from those experiences, so that Audit Wales aren't repeating the same criticisms in the near future?

Well, again, I will repeat what I’ve said many times in the Chamber, what lessons were learned, and it’s really important lessons are learned; I’m not dismissing that at all. The findings of the 2020 Audit Wales report have already been addressed, so we’ve had enhanced selection rules implemented to ensure that projects are selected openly and fairly. Projects were selected in merit order in accordance with the published scoring procedure, and value for money is a criteria for all project awards. And those principles are absolutely embedded within the RDP grant appraisal model, and are in place for any current and future rural investment schemes. We didn’t need an independent inquiry, because this programme is scrutinised within an inch of its life. There is a huge amount of scrutiny in relation to this programme.

Thank you, Minister, and yes, you mentioned that it was scrutinised, and we’re grateful for the work that Audit Wales did back in 2020 to bring that to light.

But, finally, you recently made a joint announcement with the Minister for Climate Change regarding tree planting in Wales, which states:

'payment rates will be uplifted to pay 100% of 2023's actual costs'.

Can I ask from where this money has been found to pay for this uplift? And as next month I believe you’re due to make a statement on the sustainable farming scheme ahead of the summer agricultural shows, was this joint statement by the climate change Minister and yourself just a sign of things to come: trees over everything else? Because I attended the Royal Welsh Agricultural Society’s Regen event at Sealands Farm in the Vale of Glamorgan last week, to see the good work that farmers are already doing through regenerative farming, and that’s what should be supported. I note that the Minister was unable to attend, but some of your officials were there. So, what guarantees can you give that the SFS will actually be tailored to support those farmers who are producing environmentally friendly food, be they tenants, upland farmers or lowland farmers? Diolch, Llywydd.

I’m very pleased you were able to attend the Regen '23 event at Sealands Farm. I’m looking forward to visiting Sealands Farm, I hope before summer recess, or certainly as we just go into summer recess, because I’ve heard of the excellent work that’s being undertaken there; as you say, some officials were able to attend.

Obviously, we’re still in the co-design phase of SFS. I will be bringing forward a statement before we go into summer recess. You’ll know from our many discussions that sustainable food production is absolutely at the heart of the sustainable farming scheme, but we need to plant more trees. We know that. I’m sure you’ve had the opportunity to read the latest UK Climate Change Committee report that if we are going to meet our carbon emission targets, particularly around agriculture, those trees need to be there.

Plaid Cymru spokesperson, Mabon ap Gwynfor.

Thank you, Llywydd. Well, it’s another sunny and hot day with the sun shining as it has been for around six weeks now. It’s early in the year to be talking about drought, but the truth is that the grass is already parched and the rivers are running dry, whilst a number of farmers have got their first cut in early in the year. The lack of rain means that the growth of grass for the second cut will be difficult, which will lead to difficulties with feed, not only with a shortage of grass on grazing land over the summer, but also with hay being in short supply as we look to the winter too. The price of buying in hay will increase, and drinking water will become scarce.

So, will the Minister give us an assessment of the impact of the higher temperatures and the decline in rainfall on agriculture, particularly with regard to crops and feed? Also, what steps is the Government taking to support farmers and to ensure the resilience of Welsh farms during these dry months, and those that are to come?

Well, we are certainly seeing the impacts of climate change, aren’t we? I was reflecting, because I remember a Royal Welsh Show—it’s probably about five years ago now—where we were in a very similar position. We all know what the temperatures at last year’s Royal Welsh Show were, and the fact is that this is now becoming much more the norm than what we were facing probably a decade ago, even.

I haven’t had any specific discussions about support for the agricultural sector. I’m sure it will come, and as we approach the Royal Welsh Show and the other agricultural shows in particular, I’m sure it will be a topic of conversation. I remember having a drought summit at one Royal Welsh Show because things had indeed got that bad. But as you know, everything we’re doing through the Agriculture (Wales) Bill and through the sustainable farming scheme that we will be bringing forward is to help our farmers become more competitive and more resilient as we certainly face the impact of climate change.

I thank the Minister for that response. I want to turn now to Glastir. Glastir, of course, is vital for a number of farmers in Wales—indeed, it's equivalent to between 10 per cent and 20 per cent of the turnover of a number of our farms. It's an important programme, which gives financial security to a number of farmers as they deliver steps to safeguard the environment and help the restoration of nature, such as improving water quality, protecting biodiversity, tree planting, developing habitats of importance, amongst other steps. But farmers have been in touch concerned about the stability of these payments in looking forward to next year. So, in the face of these concerns and the importance of Glastir to a number of our farmers, I wonder whether the Minister can give assurance to those farms today with regard to the Glastir payments for next year, and ensure that farmers hear what the financial plans are for 2024. 

Unfortunately, I can't give that assurance today. As we know, I extended Glastir contracts for a further year, which will take us up to the end of this year. I'm awaiting advice on what we do in relation to next year. Obviously, we're looking at the sustainable farming scheme, and that will be that transition, which, obviously, isn't until 2025, so we do have that gap in 2024. But I'm afraid I can't give any detail today.