Wales’ First Minister, Eluned Morgan MS has repeated concerns voiced by the Farmers’ Union of Wales (FUW) over changes to future funding support rules for Welsh agriculture.

Her comments came as she was questioned by Welsh MPs during a session of Westminster’s Welsh Affairs Committee on Wednesday 12 February 2025. 

As part of the session Henry Tufnell, Member of Parliament for Mid & South Pembrokeshire, questioned the First Minister on her thoughts regarding the UK Government’s decision to move towards a Barnett formula-based allocation of future agricultural funding for Wales, rather than a needs-based formula that has previously been the case.

Responding to Mr Tufnell’s question, the First Minister claimed the Welsh Government were “not very happy” with the announcement, noting that “it is a huge concern that that has been changed."

The First Minister said Wales has a higher proportion of farmers than other parts of the UK and the new funding formula ”will not recognise that" going forward.

Previously, EU funding for UK agriculture was allocated across the UK nations under the Common Agricultural Policy (CAP) formula, based on rural and farming criteria such as the size, number and nature of farms. This resulted in 9.4% of the total UK agriculture budget coming to Wales when we were members of the EU.

The UK Treasury’s decision in October 2024 will however see future proportional adjustments to the Welsh agricultural budget being subject to the Barnett Formula, resulting in a fall from 9% to 5% of any proportional uplifts (or reductions) the UK agriculture budget receives.

Responding to the First Minister’s comments, Ian Rickman, Farmers’ Union of Wales President said: “We welcome the First Minister’s comments, and her concern regarding the significant consequences Barnettisation could have on future farm funding here in Wales.

"The FUW has long warned this change in funding fails to recognise the unique characteristics and needs of Wales' farms - and the move towards a population based model could see both a fall in Welsh farming's future funding and greater divergence between how agriculture is funded across the devolved nations.

"At a time when Welsh farmers are expected to deliver an ever increasing range of sustainability and environmental objectives, while also producing food, there should be a return to the previous allocation formula which better served the needs of the sector here in Wales.”

This week marks Farm Safety Foundation’s ‘Mind your Head’ campaign, raising awareness of the emotional and mental health challenges facing farmers.

Whilst Welsh farmers are renowned for the attention they give to their livestock, crops and machinery, we can all do more when it comes to taking care of ourselves and our own wellbeing. 

The extent of the mental health crisis facing the sector was highlighted in a 2023 Farm Safety Foundation report, which saw 94% of UK farmers under 40 identify mental health as the biggest hidden problems they face day-to-day.

The cause of this endemic within the farming community can vary from farm to farm. However, it’s crucial we recognise that agriculture’s very nature often leaves farmers susceptible to such mental health pressures; from working long hours often in isolation, to significant financial pressures, extreme weather and other external influences.

Amongst these external factors, government politics and policies can often bear weight on the wellbeing of farmers. A recent survey by the Farmers Weekly found that politics was a cause of growing worry within the agriculture sector - with 20% of farmers identifying ‘government policy’ as the number one challenge for 2025 (up from 8% last year). As we’ve seen in the ongoing protests and upheaval within the sector, the changes to Inheritance Tax have been at the forefront of this growing sense of anxiety within the sector with farmers across the country fearing the impact the changes could have on their family farms. 

For many Welsh farmers, the ongoing scourge of bovine TB continues as a significant cause of mental health strain, with a previous study finding 85% of farmers stating that bTB had negatively impacted their own mental health or of someone in their family. These findings were further confirmed in a report launched last month by the Farming Community Network, which found the policy focus on bTB as a serious animal disease often neglected the profound impact of the disease and the implementation of control measures on human health.

In the light of so many changes and challenges facing the sector, this week acts as a timely reminder for us to not only look after our own wellbeing, but also that of our friends and family. Despite the uncertainty facing the sector, help is at hand, and often sharing the load through talking or seeking help can be a big step forward. Here are some details for those who can provide support:

DPJ Foundation: 0800 587 4262

Tir Dewi: 0800 121 4722

FCN: 03000 111 999

RABI: 0800 188 4444

The Farmers’ Union of Wales (FUW) recently met with Welsh Conservative Senedd Leader, Darren Millar MS and Shadow Minister for Infrastructure, Transport and Rural Affairs, Peter Fox MS to discuss the challenges facing Welsh farmers. 

Meeting in Usk, Monmouthshire, the meeting provided an opportunity to focus on a range of issues, including the Sustainable Farming Scheme, bovine TB and the proposed UK Government changes to Inheritance Tax. 

High on the agenda was the need for the Welsh Government to deliver stability for the farming sector, with particular focus given to the Sustainable Farming Scheme. 

Following upheaval within the sector in February 2024, as a result of the Welsh Government’s initial Sustainable Farming Scheme proposals, November 2024 saw the Welsh Government publish an updated framework. Financial modelling and payment rates however remain under discussion, with an announcement expected in Summer 2025.

Commenting on the SFS, Ian Rickman, Farmers’ Union of Wales President said: “We welcome the progress made on the Sustainable Farming Scheme over recent months, and the Welsh Government’s ongoing commitment to work with the sector.

"However, the publishing of the framework in November was merely the end of the beginning, and crucially we now await details of the funding and payment rates for Welsh farmers. It’s vital these budgets and payment methodology deliver real economic stability for our family farms in Wales as we face a backdrop of many other challenges.”

The Farmers’ Union of Wales officials also took the opportunity to highlight the concerns within the sector regarding the UK Government’s proposed changes to the inheritance tax and agricultural property relief, which have led to mass protests and unrest within the farming sector. 

In her first budget, the Chancellor Rachel Reeves, announced that from April 2026, taxes would apply to agricultural assets over £1 million (or up to £3 million in certain circumstances). At the time, the Chancellor claimed the changes would continue to protect small family farms, with “three-quarters of claims unaffected by these changes.”

However, in their submission to the Welsh Affairs Committee’s call for evidence, the FUW questioned the Treasury’s figures, suggesting that the proportion of farmers affected by changes to APR would be far higher than initially claimed by the UK Government.

Ian Rickman, FUW President added: “Our analysis of the impact of changes to the inheritance tax demonstrates a very concerning pattern suggesting that a significant proportion of Welsh farmers responsible for the majority of Welsh food production and agricultural activity will be adversely affected by the changes to APR.

"Given the current and historically low farm profits for the farm types which predominate in Wales, and significant downward pressure on farm incomes due to regulation and changes in support policies, it would appear that in many or most cases such inheritance tax bills would be unaffordable, even when divided over a ten year period, necessitating the sale of large areas of farmland. The subsequent impact on food production, the rural economy, and communities would therefore be far-reaching.”

Commenting following the meeting, Peter Fox MS, who was appointed Shadow Minister for Infrastructure, Transport and Rural Affairs in December 2024 said: “Both Darren and I welcomed the opportunity to meet with the Farmers’ Union of Wales to discuss the many challenges and changes currently facing Welsh farmers.

2As we’ve seen through the growing unrest and dwindling morale within the sector, Welsh farmers are currently facing a perfect storm of pressures - be it the ongoing strain of bovine TB and NVZs, to the immense uncertainty over changes to inheritance tax and the Sustainable Farming Scheme.

"As Shadow Rural Affairs spokesperson, I look forward to continuing to work with the sector, addressing and raising these concerns, and pressing to ensure farmers’ key role as food producers is safeguarded.” 

This February, the Farmers’ Union of Wales is once again encouraging farmers in Wales to get behind the Big Farmland Bird Count, by spending 30 minutes recording the farmland birds they see on their land. 

The initiative celebrates its 12th anniversary this year, and provides an opportunity to construct a snapshot of the health of our cherished farmland birds across Wales and the UK.

With almost 90% of Wales’ land used for agricultural purposes,  how farmers manage their land is vital towards supporting biodiversity, with this survey therefore providing an opportunity to highlight the good work many farmers already do to support nature and the environment.

During last year’s count, nearly 395,000 birds were spotted from 1,721 surveys across the UK. In Wales, 33,882 birds were counted, with a total of 88 species recorded, including 18 species on the ‘Red List’ of birds of conservation concern, such as Starling, Lapwing and House Sparrows.

As well as providing a valuable insight into the state of nature on our farms, the Count also provides an opportunity to highlight what can be done by farmers to help farmland birds survive this difficult time of year so that the breeding populations are increased. Such simple actions include; planting and looking after hedgerows, creating and keeping wide field margins, as well as providing feeders with seeds during late winter and early spring to help birds at a time of year when food can be scarce.

As a Union, we were delighted to sponsor an event in Montgomeryshire this January promoting the Big Farmland Bird Count. This brought over 60 farmers and members of the local community together to raise awareness of how to identify farmland birds, as well as promoting the small, simple steps farmers can take to support bird populations.

The annual UK wide count, run by the Game & Wildlife Conservation Trust (GWCT) will take place between 7-23 February 2025, with farmers encouraged for one day to spend about 30 minutes recording the species and number of birds seen on one particular area of the farm.

For more information on how to take part, and to download your own count sheets, go to the Big Farmland Bird Count website: www.bfbc.org.uk/