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UFU notes progress of ANC Payment Bill and stresses need for new funding

Serene countryside and idyllic rural landscape of green fields, rolling hills and grazing sheep in the Glens of Antrim, Northern Ireland

The Ulster Farmers’ Union (UFU) has acknowledged the progression of the Areas of Natural Constraint (ANC) Payment Bill through its second stage, marking an important step in efforts to deliver financial support to farm businesses operating in severely disadvantaged areas (SDA).

The UFU has consistently highlighted the importance of targeted support for ANC farmers. However, the Union, and parties in support of the bill are clear that any future ANC payment must be funded through new and additional money and must not come at the expense of existing agricultural budgets.

This support must strengthen, rather than weakens, current schemes under the Farm Sustainability framework. Redirecting existing funding would undermine farm businesses and dilute the impact of support already in place.

UFU deputy president, Glenn Cuddy, said, “Progressing this Bill is an important step, but any ANC payment must be built on new money. Farmers cannot afford to see existing support diluted to fund another scheme. This must be additional funding that recognises the unique challenges of farming in constrained areas and supports those businesses to remain viable.”

Farmers in ANC areas play a vital role in sustaining rural communities, supporting food production, and managing some of the most environmentally sensitive land. Their work maintains essential knowledge and skills associated with farming marginal land, while also contributing to wider environmental outcomes, including reducing wildfire risk through active land management. The loss of these businesses would have long-term consequences, including land abandonment and declining biodiversity.

The need for support is increasingly evident. Over the past two years, suckler cow numbers have declined by 9% and ewe numbers by 11%, with the impact most acute in ANC regions. This reduction affects not only these areas but the wider supply chain, including lowland farms and the meat processing sector.

Sheep farmers, many of whom are based in ANC areas, have also faced significant financial pressure, including an estimated 17% reduction in Farm Sustainability Payments, with limited opportunity to recover this income. Previous commitments to introduce a dedicated sheep support scheme have yet to be delivered, further compounding challenges within the sector.

DAERA farm income figures for 2023/24 underline the scale of the issue, showing that farms in Less Favoured Areas (LFA) would record an average net loss of £17,909 without direct support payments. This highlights the fragile viability of these businesses and the urgent need for meaningful intervention.

As the Bill moves to Committee Stage for further scrutiny, the UFU will continue to engage constructively to ensure that any ANC scheme delivers genuine additional funding and provides practical, targeted support for farmers working in constrained areas.