Direct payments to Welsh farmers will decrease by between 12% and 18% this year compared to 2013, at a time when incomes are already falling significantly, the Farmers' Union of Wales (FUW) has warned.The reductions are the combined result of Wales' Pillar One (PI) budget being cut by around 8-10% and the Welsh government's decision to transfer 15% of its PI funds to Pillar Two (P2) for rural development.The two factors mean Welsh entitlement values for 2014 will fall by around 23.4%, but individual CAP beneficiaries will suffer a cut of 12-18% compared to last year, depending on the size of their payment, said the FUW.
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