The Farmers' Union of Wales today urged the Chancellor to scrap his plans for a fuel duty hike in April and demanded that the Coalition government introduces a fuel stabiliser scheme without further delay.

The current surge in inflation, plus the fuel duty rise the Chancellor is committed to introducing, will mean Welsh rural communities could see prices rise by an extra five pence per litre (ppl) or almost 23p per gallon at the pumps.

Prices for unleaded petrol across Wales are already reported to be running at £1.32ppl and up to five pence more for diesel.

"In view of the acute and growing pressure that rises in fuel prices represent for rural businesses, not to mention businesses across the UK, I believe that we have reached a critical point at which action must be taken to significantly reduce fuel tax in order to aid the economy," said FUW president Gareth Vaughan.

"The union is very much in favour of an early introduction of a fuel stabiliser, where duty is cut when oil prices soar and goes up again when prices fall, as this will be much fairer on rural dwellers.

"Bearing in mind that there is a difference of as much as five pence per litre between rural and city garages in Wales already, the added fuel duty coupled with rising oil prices will be devastating to rural communities all over the UK.

"The FUW understands that nothing can be done about the soaring price of crude oil on the international market but the high level of tax imposed on fuel in the UK, compared to every other country in the world, is crippling individuals and businesses alike and threatens to strangle the life out of the rural economy.

"It is grossly unfair that we here in the UK pay far more for our fuel than any other country and the fault lies with the extortionate level of tax imposed by the Government," said Mr Vaughan.

The Farmers’ Union of Wales has welcomed statements by Assembly rural affairs minister Elin Jones and her Scottish and Northern Irish counterparts which are broadly supportive of the union’s views on Common Agricultural Policy (CAP) reform.

During the FUW’s quarterly council meeting today, FUW president Gareth Vaughan said: “I commend our own Minister and the Scottish and Northern Irish administrations for recognising the importance of the CAP to our respective countries and for arguing in favour of a fair and proportionate share of the budget, flexibility to respond to specific local needs, and a reduction in bureaucracy.

“There are, no doubt, detailed areas relating to the CAP where there may be disagreement, but I am glad that the policies of the FUW and the devolved administrations are in broad agreement regarding the overarching principles.”

Mr Vaughan was reacting to a joint statement by the devolved administrations which highlights the importance of agriculture in Wales, Scotland and Northern Ireland and calls on the UK Government to engage with the devolved administrations in order to develop an agreed UK negotiating position reflecting the different interests across all areas of the UK.

The statement also called for the retention of direct payments and market support measures, and a fairer share of EU Pillar 2 funding.

“I believe that the CAP should be viewed as a tailor-made toolbox with which we can address the challenges that growing populations, climate change, rising sea levels and peak oil production represent to European food security,” said Mr Vaughan.

“These challenges are imminent and will significantly affect future generations. Farming families lie at the heart of finding a solution to these challenges, and this is something which the various Celtic administrations have clearly recognised,” he added.

The devastating effects of this week's riots in Tunisia, the floods currently ravaging the planet and last summer's fire and drought in Russian are a stark warning that food security remains a major concern, Farmers' Union of Wales president Gareth Vaughan said today (Tuesday January 18).

"Soon after last summer's catastrophic fire and drought-ravaged Russian grain harvest Prime Minister Vladimir Putin warned its effect would be much worse than previously forecast," Mr Vaughan told the union's annual Welsh farmhouse breakfast at the National Assembly Senedd building.

The FUW organises the function, sponsored by Hybu Cig Cymru, NatWest Rural Banking Wales and the Welsh Assembly Government, to support of the Home Grown Cereals Authority's "Farmhouse Breakfast Week" initiative.

"Sri Lanka is also facing a deepening food crisis after last week's floods decimated crops at a time of high prices and left a quarter of the country under water," Mr Vaughan added.

"Mr Putin revealed the Russian harvest was expected to plummet to 60 million tonnes from the previous forecast of 75 million tonnes which resulted in an increase of wheat prices by 25 per cent.

"And now official estimates say Sri Lanka is in danger of losing as much as 20 per cent of its harvest from the torrential rains.

"So as we tuck into our Welsh breakfast today, let's remember that the fortunes of Welsh farming over the coming year will depend on a range of influences which are as impossible to predict as the weather.

"At the same time we must all strive to avoid a similar scenario to what is happening in Tunisia where violence has spiralled out of control and the death toll reached 23 after people took to the streets to protest about the increasing difficulty of trying to put food on the table and government corruption.

"The protesters there were very unhappy about rising food and fuel prices and the question is now being asked - will the southern Mediterranean region see more food riots?

"The Tunisian violence followed hot on the heels of unrest throughout the region due to rising food prices and youth unemployment.

"In Algeria, protests also broke out earlier this month over price hikes in sugar, milk and flour and resulted in the death of five people.

"So I want to stress that here in Wales we must never forget that farming is an industry for which decisions made now can take years to take effect.

"2011 is a year in which critical decisions regarding the future of the Common Agricultural Policy, and therefore all of our fortunes, will be made at the highest level.

"The EU Commission has already made it clear that food security remains a priority, but the coming months will require lobbying at all levels to fight for a policy which properly reflects the essential role that family farms play in maintaining food production and the fabric of our rural communities."

Three meetings will be held in Carmarthenshire by the Farmers' Union of Wales to hear the grass roots views of members.

The union's East Carmarthenshire sub-branch will meet on Tuesday January 25 at Llangadog Rugby Club when guest speaker, Telesgôôp executive director Richard Rees, will talk about the production and preparation of television programmes.

At a meeting of the North Carmarthenshire sub-branch, on Thursday January 27 at the Black Lion, Abergorlech, county vice chairman Dr Catherine Nakielny will speak about sheep health production.

Manager of the Dairy Development Centre at Gelli Aur, John Griffiths, will address the South Carmarthenshire sub-branch on Tuesday February 1 on the work of the centre at the Greyhound, Llannon, Llanelli.

"Attendance at these meetings, where members can present their views as the grass roots of the industry, is vitally important. Their contributions will assist the union to represent, fight and safeguard their interest more effectively in the future," said FUW county executive officer Meinir Bartlett.

For more details about the meetings contact Mrs Bartlett on 01267 237 974.

Farmers' Union of Wales president Gareth Vaughan - who intends to step down at the end of his seventh presidential year this summer - will be the guest speaker at the annual dinner of the union's Glamorgan branch at The Masons Arms Hotel, Bryncethin, Bridgend, on Thursday February 10.

"I am sure Gareth will have many amusing incidents to recall from his seven years in the role. Join us to make sure we give him a warm send off," said county executive officer Adrian Evans.

During the dinner the Walter G Rowlands Memorial Award will be presented to a worthy recipient. Mr Rowlands was the union's Glamorgan county secretary when he died in service in 1986.

The Coalition Government's plans for the Common Agricultural Policy (CAP) would devastate the majority of farm businesses in the UK and completely undermine food security, Farmers' Union of Wales president Gareth Vaughan warned today.

Mr Vaughan was responding to a speech by Defra secretary of state Caroline Spelman made at the recent Oxford Farming Conference in which she proposed radical changes to the Common Agricultural Policy.

In a letter, he told her: "In the absence of significant moves to ensure fair returns from the market place, reform of the CAP in the way you have proposed would devastate the majority of farm businesses in Wales and throughout the UK, while completely undermining our food security.

"Such concerns are highlighted in a range of academic reports, most notably those published by the Food and Agricultural Policy Research Institute (FAPRI), many of which were commissioned by what is now your department.

"While I appreciate that you have sought to distinguish your policy from that of the previous administration, there appears to me to be relatively little difference between the broad thrusts of either policy, and the conclusions reached by FAPRI would therefore appear to remain valid."

Mr Vaughan also highlighted the possible impacts of Defra's proposals based upon academic research, including a decline in UK food production and rural employment, increased price volatility and dramatic consequences for the Welsh beef and sheep sectors.

The letter outlined nine broad points which, the FUW believes, should underpin the future policy.

They included maintaining support until mechanisms are in place which ensure fair returns for producers, supporting the CAP and its core objectives to ensure the availability of agricultural produce and a fair standard of living for the agricultural community, and recognition of the CAP as a mechanism by which the major environmental and food production challenges of our age can be addressed.

Mr Vaughan has also issued a stark warning regarding the impact of the proposals on the uplands and farming families. "I have grave concerns that, if current UK Government proposals were adopted, this would lead to a situation whereby the majority of the uplands were abandoned, while on more productive land those who are currently farmers would become low-paid employees on vast farms owned by the equivalent of multi-national companies.

"There should be a system in place which ensures farmers receive fair incomes from the marketplace but until that becomes a reality it would be negligent for us to adopt a policy which, numerous reports have warned, would devastate food production and our rural communities at a time when the experts are warning us of impending energy, water and food shortages," he added.