The Farmers' Union of Wales today reacted angrily to the Welsh Assembly Government's decision to reject a way of distributing an emergency EU fund for dairy farmers that would have favoured Wales' smaller producers.

Two distribution options were considered by the Assembly - Option 1: a payment of 0.2 pence per litre (ppl) of production during the 12-month period of greatest market disturbance (1 October 2008 to 30 September 2009) to each dairy farmer and Option 2: a two-tier payment comprising a payment of 0.5ppl on the first 100,000 litres of production plus an estimated payment of 0.15ppl on production over 100,000 litres during the specified period.

Both options had been considered by the FUW's 12 county branches and by the union's milk and dairy produce committee with the overwhelming majority favouring a two-tier mechanism on the grounds that, on average, smaller producers had higher production costs and were, by definition, unable to benefit from production bonuses and other production-related advantages.

"The two-tier system was also backed by members who stood to lose out under such a calculation," said committee chairman, Anglesey dairy farmer Eifion Huws.

"The decision, therefore, comes as a smack in the face for Wales's smaller family farms and I am extremely disappointed that the Minister has not opted for a more equitable system.

"It is claimed that if Wales had chosen an alternative option to the rest of the UK, the payments could not be guaranteed to be made by the deadline of 30 June 2010 by the Rural Payments Agency (RPA).

"Yet there are less than 2,300 dairy farms in Wales, and a two-tier calculation based on milk production is so straightforward a child could do it. If it is true that the RPA couldn't undertake a simple calculation for such a small number of holdings before July then that demonstrates that the agency is both incompetent and unfit for purpose.

"However, my main concern is that the Minister has simply bowed to pressure from the other devolved regions. While the moneys involved are not substantial, this sends out a damning message regarding the Welsh Assembly Government's support for smaller family farms."

Announcing she had selected Option 1, Rural Affairs Minister Elin Jones said it was chosen by the majority of farmers and industry representatives throughout the UK but she admitted in Wales their consultation gave a 50/50 split between both options.

Farmers will be receiving their payments from mid-April 2010 until the end of June.

The Farmers' Union of Wales today described as a positive development the additional 2p per litre former suppliers of collapsed cooperative Dairy Farmers of Britain (DFB) are to get for milk they had to sell for a much reduced price before they could find a new buyer.

"We must look on the positive side because most farmers supplying Dairy Farmers did not expect to receive such a payment," said FUW milk committee chairman Eifion Huws.

"It is very welcome but for most suppliers it means an additional payment of hundreds of pounds, not the thousands they would have expected for their milk."

Mr Huws believes it took some farmers up to six weeks to secure a new buyer after receivers Pricewaterhouse Coopers were appointed in June 2009.

The unexpected additional payments were possible following successful cash collections by the receivers from milk customers over the past six months.

DFB employed a total of 2,200 at its cheese factory at Llandyrnog, Denbighshire, and liquid milk dairy in Bridgend plus other sites in the south-west and north-east of England and the Midlands.

It had 1,800 farmer members across Great Britain who supplied over one billion litres to the food and drink industry.

The Farmers' Union of Wales today welcomed the conclusions of the Assembly's rural development sub-committee's inquiry into the new Glastir land management scheme outlined in a letter to rural affairs minister Elin Jones.

The letter by sub-committee chairman Rhodri Glyn Thomas AM calls for greater clarity over the scheme. The chairman of the FUW's land use and parliamentary committee Richard Vaughan gave evidence to the sub-committee when it met in Dolgellau last month.

He highlighted the confusion among farmers and demanded that the scheme be deferred until there is greater clarity of all the options.

"The union fully supports the sub-committee's recommendations urging the Assembly Government to review its decision not to provide project officer support for the entry-level scheme and to consider whether its offices have the capacity to deal with increased demand for support from farmers," said Mr Vaughan.

"Glastir represents a seed change for farmers in Wales and it's high time that the Assembly realised that farmers need time to adapt and more details about the scheme so that they can make the right business decisions."

North Wales farmers were urged today to notify the region’s fire and rescue service when they are undertaking controlled burning of heather, grass bracken and gorse on their land to avoid false alarms.

Over the next few weeks staff from the North Wales Fire and Rescue Service will be visiting livestock markets in Ruthin, St Asaph, Mold, Gaerwen, Bryncir, Llanrwst and Dolgellau giving away torches branded with a "controlled burning" telephone number and leaflets to remind landowners how to conduct a safe controlled burn.

"This is an excellent initiative by the fire and rescue services," said Farmers’ Union of Wales Flint and Denbigh county executive officer Marian Jones. "We always urge our farmers to notify the rescue services when they are carrying out a controlled burn.

"It is a very good idea and a welcome reminder that will not only help to avoid false alarms but also to ensure the safety of livestock and wildlife."

North Wales Fire and Rescue Service are visiting the following markets on the following dates:

Ruthin - March 3

St Asaph - March 10

Bryncir - March 14

Mold - March 18

Gaerwen - March 22

Dolgellau - April 1

Llanrwst - April 14