The Farmers’ Union of Wales has today said it believes that irrespective of what trade deals are in place post-Brexit, within the UK, Welsh farmers will compete against their counterparts in other devolved regions.
As such, the Union says that the rationale for having a common policy across the UK which minimises unfair competition and market distortion remains unchanged.
Under the current Common Agricultural Policy, Member States are allocated Pillar 1 and Pillar 2 budgets which must be spent on direct support and rural development over the seven year period of the policy.
That money must be spent by Member States and regions within a set of overarching EU Regulations, aimed at minimising unfair competition between regions and ensuring similar rules are applied in regions and on farms.
Those rules allow a degree of flexibility, allowing administrations such as those in Wales, England, Scotland and Northern Ireland to implement payment systems and policies which differ, but comply with the overarching principles of the CAP.
“While there is currently no clarity as to what system, if any, should replace the Common Agricultural Policy once the UK leaves the EU, some have argued for a single agricultural policy and budget to be governed by the UK Government, thereby bypassing devolution, while others believe devolved administrations should have complete autonomy over agricultural budgets and policies,” said FUW President Glyn Roberts.
The Union President added that the way in which budgets are allocated by UK Governments, and the allocation of devolved budgets through the Barnett Formula, further complicate matters, and represent a significant threat in terms of volatility and any allocation of agricultural funding to Wales.
The FUW therefore suggests that a UK agricultural framework should be put in place which prevents unfair competition between devolved regions and secures and protects adequate long term funding for agriculture, while also respecting devolved powers over agriculture and the need for flexibility within that framework, which allows devolved governments to make decisions which are appropriate for their regions.
In addition, specific ring-fenced funding for agriculture should be allocated to Wales outside the Barnett Formula, and should be administered by the Welsh Government.