A £40M capital grant scheme in Wales, which opens for business in April, is a great opportunity for farmers to fund investments they know are needed, but have struggled to afford because of poor returns, say farm leaders.

The Welsh Government’s new small grants scheme, which will support farmers to improve animal performance and crop management and reduce carbon emissions, has been described as a “welcome help’’ by Farmers Union of Wales Younger Voice Committee Chairman, Darren Williams.

He said farmers were continually striving to make their farms more efficient.

“With many farm incomes well below the £20,000 mark, finding the money to invest in what’s needed can be impossible.

“This scheme should therefore provide welcome help on that front, while seeing investment on farms which have paid into the Rural Development Plan (RDP) for years but not received anything.’’

Welsh farmers had paid around £120 million into the RDP through pillar transfers in the last three years. Mr Williams said the rules should therefore allow every farmer to access the scheme, not just a select few.

The scheme is designed to help farmers reduce carbon emissions and improve resilience and competitiveness through 80 items linked to animal health, genetics and performance, crop management, energy efficiency, resource efficiency and ICT. Projects can be funded by up to 40%.

Announcing the scheme on January 6, the Cabinet Secretary for Environment and Rural Affairs, Lesley Griffiths, described it as a boost for farmers following the UK’s decision to leave the EU.

“The new support I am announcing today will be of considerable assistance as our farmers begin to consider how best to shape their businesses to thrive in a post-Brexit world.’’

The first application window is expected to open from April 2017.