Thousands of Welsh farmers with Glastir contracts could lose a significant source of income from the end of this year.

Glastir closes on 31st December and a new interim Habitat Cymru Scheme is being introduced to bridge the gap until 2025 when the new Sustainable Farming Scheme (SFS) is up and running.

But with no assurance from the Welsh Government that this scheme will match levels of income currently received through Glastir, farmers are worried.

NFU Cymru’s Rural Affairs Board has voiced its own concern that farmers with Glastir Advanced, Commons and Organic area-based contracts, worth £35m a year, will be worse off.

Further details on Habitat Cymru Scheme, including payment rates, are expected to be published later this month ahead of the application window opening.

The scheme is expected to provide a payment per hectare of eligible habitat land, including habitat land previously under management in 2023 and additional mapped habitat land not currently under paid management and also preserve environmental support for common land.

NFU Cymru said there was a need to provide a “stable and well-planned’’ transition from current to future schemes.

But its Rural Affairs Board Chair Hedd Pugh said that when it came to Glastir the Welsh Government had made a decision of significance without comprehensive impact assessment and economic modelling.

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He described this as “deeply concerning’’.

“Thousands of farmers with Glastir contracts face the prospect of a significant loss of income from the end of the year with Welsh Government unable to provide any reassurance that the new, interim scheme will match levels of income currently received through Glastir. This is far from a ‘fair transition’,’’ said Mr Pugh.

Glastir is seen as a critical component of farm business incomes, including supporting the organic farming sector in Wales.

“With farm input costs through the roof and interest rates soaring, the loss of Glastir leaves farmers currently under contract in a worrying situation,’’ said Mr Pugh.

The board is urging the government to offer Glastir extensions for 2024 with the new interim habitat scheme offered to non-Glastir contract holders.

“The maintenance of current funding levels for farming through the Basic Payment Scheme in 2024, alongside the provision of adequate funding for agri-environment is going to be essential to maintaining the confidence of the industry ahead of Welsh Government’s proposed introduction of the Sustainable Farming Scheme from 2025,’’ said Mr Pugh.

A Welsh Government spokesperson said extending Glastir was not an option.

“Glastir is funded through the European Union (EU) Rural Development Programme (RDP), which ends in 2023.

The closure of the EU RDP brings the closure of the schemes it supported.’’

The extended Glastir contracts issued to, and accepted by participants, reflect this, the spokesperson added.

“The move to post-EU domestic funding arrangements provides an opportunity for all farmers to apply for support to maintain and enhance habitats and other environmental features on their holdings, including existing Glastir participants.

“Simply extending existing Glastir contracts is, therefore, not an option.’’