FUW concerns over new telecommunications rules
The Farmers’ Union of Wales (FUW) has raised concerns following the implementation of new telecommunications rules which could see farm businesses suffer rental income cuts of up to 90% for hosting mobile phone masts.
The changes, which extend valuation reforms to thousands of existing agreements across the UK, will affect around 15,000 sites from April 2026. Under the revised framework, rents are calculated using a “no-scheme” basis that disregards the commercial value of land for telecoms use, resulting in significant reductions in payments to landowners.
The FUW has warned that, while improving rural connectivity is a shared priority, the current approach risks damaging the very partnerships needed to deliver it. The Union’s concerns are echoed by a coalition including the British Property Federation and APWireless warning that extending the system could worsen tensions between telecoms operators and site providers.
For many Welsh farmers, income from telecoms infrastructure has historically provided an important and stable source of income, helping to offset some volatility in agricultural markets. However, the scale of the reported reductions threatens to remove this vital revenue stream at a time when farm businesses are already under significant financial pressure. The Union is particularly concerned that retrospective changes undermine confidence in contracts and long-term planning.
Commenting, FUW Land Use & Climate Change Committee Chair, Tim Faire said: “Farmers are keen to support the rollout of vital digital infrastructure, but these reforms risk punishing landowners who have long enabled mobile connectivity. Fair compensation and stable agreements are essential if landowners are to be encouraged to engage with these initiatives and rural Wales is to benefit from improved coverage.”
The FUW has also warned that the reforms could prove counterproductive. A breakdown in trust between landowners and telecom operators, alongside reduced financial incentives, may discourage participation in hosting infrastructure. This could ultimately limit the availability of suitable sites and slow progress toward improving digital connectivity in rural Wales.
The coalition has also highlighted that a key safeguard - a complaints mechanism under Section 70 - has yet to be implemented. Without it, there is currently no clear independent route to resolve disputes or concerns about conduct, and the group is calling for this mechanism to be introduced alongside a review of the framework.
The Farmers’ Union of Wales is calling on the UK Government to review the current regime and work with stakeholders to deliver a fairer system.
