The budget includes substantial resources to pursue vigorously the commitment to eradicate bovine TB in Wales, with £27 million new money being made available over the next three years. This is the first time funding has been set aside specifically to deal with the eradication of this disease.
Bovine TB has a devastating impact on many areas and farmers in Wales, and last year dealing with its consequences cost the Assembly Government well over £11 million.
Young farmers also receive a boost from the budget with £2 million being made available from 2010-11 to deliver the One Wales pledge for a new entrants scheme.
The Minister also confirmed that the budget fully meets the commitment to restore Tir Mynydd funding to £29 million in 2008 and £25 million for future years.
Elin Jones said: "This budget is good news for rural Wales and the farming industry. I am painfully aware of how crippling bovine TB is for many farmers, and both Government and farmers need to work together to eradicate the disease. I am pleased to announce that I have secured new funding to deliver on our commitment to vigorously pursue a programme to eradicate bovine TB.
"Officials are currently working on a programme to manage this work and I will report in the New Year on how we will deliver on this commitment. I want to work with stakeholders to both develop and implement measures to eradicate TB, to ensure that new measures are appropriate, practical and most of all effective.''
Ms Jones said that she was particularly pleased to have secured funding for a new entrants scheme for young farmers. ``They are the future of the industry and our rural communities. I will be consulting before the end of the year on a package of measures to support those new to farming,'' she explained.
"In the short-term, these measures will include skills, business and enterprise support via Farming Connect. From 2010-2011 an additional £2 million will be available to provide support for innovative ways for young people to come into farming. I will be working with young farmers themselves in putting this scheme together.
The Minister added: "Later today, I will be visiting a group of young farmers in West Wales who have come together to sell their lamb directly to Marks and Spencer. They received support from Agrisgop to achieve this, and is an example of a success story in rural Wales.
"The budget I have announced today gives us a real opportunity to make a difference and help secure a sustainable future for rural Wales. We are investing in its future, in young farmers, and working on the eradication of a disease which is a burden on so many rural areas.''
o In the financial year 2006-07, total expenditure by the Welsh Assembly Government on TB compensation amounted to just under £11.7 million. This included compensation paid to farmers for animals affected by TB, the costs of haulage and slaughter, fees to valuers and carcass receipts from slaughterhouses.
On current forecasts it is estimated that equivalent expenditure by the Assembly Government on TB compensation in the current financial year (2007-08) will be around £14 million.
The current test and slaughter scheme is in place to protect human and animal health.