The Farmers’ Union of Wales (FUW) says that the Scottish Government’s confirmation that direct farm support will continue in Scotland highlights the fundamental flaws inherent in Wales’ Sustainable Farming Scheme (SFS) proposals.

Scottish First Minister Humza Yousaf told NFU Scotland's spring conference on Friday (9th February) that 70% of future support will constitute direct farm payments to support food producers. The remaining 30% will be targeted at environmental measures, a ratio similar to current Scottish arrangements.

“By comparison, the Welsh Government’s proposed SFS, due to be introduced next year, would bring direct farm payments to an end completely while introducing a mountain of costly restrictions and requirements,” said FUW President, Ian Rickman.

“This would mean Welsh farmers competing at a huge disadvantage compared to our counterparts in Scotland, despite both our countries having a similar proportion of disadvantaged land where only livestock farming is possible.”

Around 85% of Scotland is classified as Less Favoured, while the proportion in Wales is 80%. In England it is just 17%.

Mr Yousaf also confirmed that a form of Less Favoured Areas support, which was abandoned in Wales in 2013, would continue in Scotland.

“The Welsh Government’s economic analysis published alongside their SFS consultation paper suggests all the rules and restrictions would lead to an 11% reduction in livestock numbers. It would also see a fall in average Welsh farm incomes of between 25 and 35 percent. This figure would rise to between 48% and 85% in the absence of possible ‘top-up’ payments,” said Mr Rickman.

“Now that we have left the EU, the UK effectively has its own single market but without the common payment rules. If Wales diverges from Scotland in the way proposed by Welsh Government, we would not only be disadvantaging our own farmers by introducing a mountain of rules not present for EU producers, but would also be placing our own industry at a huge competitive disadvantage compared to Scotland and handing business to the Scotts on a plate,” said Mr Rickman.

The FUW was a principled opponent of Brexit and after the vote to leave in 2016, argued for a robust replacement for the Common Agricultural Policy that minimised such unfair competition between UK nations. This was apparent in our comprehensive Filling the Void paper published in July 2018.

“This very sensible and economically advantageous move by the Scottish Government needs to be reflected by the Welsh Government when it considers the vast number of improvements that must be made to its current SFS proposals. What is proposed at present is destructive and economically naive, and would be a massive own goal for Wales’ farms, society, culture and economy.

“As we predicted, Brexit has failed Welsh farmers on many levels and the Welsh Government’s plans would merely add to the challenges we have faced since 2016,” he added. 

Farmers’ Union of Wales President, Ian Rickman, has written to all members urging individuals and businesses to formally respond to the Welsh Government’s Sustainable Farming Scheme (SFS) consultation and to make their voices heard. 

“We need only look at the statistics from the Farm Business Survey to understand the significance of agricultural and rural development funding to our food supply chains and the wider rural economy.

“This is the third and final consultation on the SFS proposals and the importance of getting it right cannot be underestimated.

“We have already spoken directly with over 1500 farmers at our local county meetings across Wales in recent weeks, and our team of farming experts have been pushing for changes and amendments to the Welsh Government’s plans over a number of years. This is a crucial juncture for Welsh agriculture and its future

Modelling on the potential economic effects of the Sustainable Farming Scheme published alongside the consultation suggests:

• a reduction in farm business income of up to £199 million
• a reduction in farm output of £125 million
• 122,000 fewer livestock units
• an 11% decline in on-farm labour requirements.

“The reality is that if the scheme remains in its current form, and if the modelling report is correct, farmers uptake will be minimal and everyone will lose out - Welsh farmers, the environment, the public and ultimately the Welsh Government.

“There is a real worry that even under a scenario where scheme payments come nowhere near to compensating for the loss of the Basic Payment Scheme, there will be some farm businesses that will have no choice other than to participate in the SFS. This will, no doubt, place further pressure on farmers’ workload and mental health.

“The Sustainable Farming Scheme must be accessible by all, and provide long-term stability for farming businesses and the wider rural economy that relies upon agriculture. The SFS needs to provide a meaningful income stream which properly rewards farmers and underpins the importance of a high quality food supply chain, produced here in Wales” said Mr Rickman.

The uncertainty around the future of agricultural support in Wales comes against a backdrop of continuous bovine TB breakdowns and the slaughtering of thousands of Welsh cattle every year. This is in addition to an all-Wales approach to bureaucratic pollution regulations which will cost the industry in excess of £400 million to comply with.

“The recent meetings at Welshpool and Carmarthen livestock markets made a clear statement about the frustration felt by many farmers. It illustrated the groundswell of concern with regards to the current situation and future direction of agricultural policy here in Wales.

“As a farmer myself I fully understand and comprehend the frustrations of many at these meetings. We need to ensure that we work together and that the voice of Welsh farmers is being heard by decision makers in Wales and Westminster. Both farming unions will be meeting with Minister for Rural Affairs, Lesley Griffiths, to discuss the way forward.

“I cannot, however, overstate how important it is for every individual and business that will be affected by these proposals to formally respond to this consultation by the 7th of March. It is absolutely crucial that we all do so.

“I would also ask you to contact your local elected representatives at every opportunity, whether they are county councillors, local and/or regional Members of the Senedd or Members of Parliament at Westminster.

“We need to ensure that they also hear your voice and your concerns in order to ensure that we can continue to bring pressure on the Welsh Government to revise the scheme in a way that promotes a sustainable agriculture industry in Wales and safeguards it for the future.”

Respond to the Sustainable Farming Scheme consultation here:

English: https://www.fuw.org.uk/index.php/en/sfs-consultation

Welsh: https://www.fuw.org.uk/index.php/en/sfs-consultation-cy

In a bid to engage farmers in Wales with the final proposals of the Sustainable Farming Scheme, the Farmers’ Union of Wales is hosting an information roadshow for members.

The Welsh Government launched the pivotal consultation on the future of the Sustainable Farming Scheme in December 2023 and it is the mechanism through which farmers will receive support in Wales from 2025 onwards.

Speaking about the consultation FUW President Ian Rickman said: “We have repeatedly consulted with our members on several versions of this scheme since 2018 and are now at the most critical stage of its development. I encourage our members to make every effort to join an information event in their county and actively participate in formulating the Union’s response to the proposals.”

Mr Rickman added that while the Union has been successful in lobbying for certain crucial changes to the scheme since its inception, including the provision of a baseline payment, a number of significant barriers and questions around certain details remain.

In response to the initial Brexit and Our Land Consultation, the FUW maintained that any future payment scheme based on environmental and public goods outcomes must also protect family farms, support rural communities and Welsh Jobs and ensure that agriculture is both sustainable and rewarding. To fail to do so would most likely lead to serious damage to Wales’ family farms and the role they play in Wales’ economy, society, culture and landscape.

“These policy priorities continue to underpin our key asks in relation to the Sustainable Farming Scheme - this scheme must be practical for all farmers in Wales and deliver on our economic, environmental and social sustainability,” said the Union President.

Information events are being held at the following dates and locations:

Tuesday, 23 January, 7.30pm - Ceredigion, Clwb Rygbi Aberaeron

Wednesday, 24 January, 7.30pm - Dinbych & Fflint, Canolfan Genus, Ruthin

Thursday, 25 January, 7.30pm - Carmarthen, Rugby Athletic Club Carmarthen

Thursday 25 January, 12noon - Pembrokeshire, Clarbeston Road Memorial Hall, Clarbeston Road

Thursday, 25 January, 7.00pm - Glamorgan, Grove Golf Club Ltd, Porthcawl, Mid Glamorgan

Monday 29 January, 7pm - Brecon and Radnor, FUW Pavilion, RWAS Showground, Llanelwedd, Builth Wells

Tuesday 30 January, 7.30pm - Ynys Mon, Canolfan CFfI, Cae Sioe Mon 

Wednesday, 31 January, 7.30pm - Caernarfon,  Pwllheli Golf Club, Pwllheli

Thursday 1 February, 7pm - Gwent, Monmouthshire Livestock Market, Abergavenny Road, Raglan

Thursday, 1 February, 10.00am - Meirionnydd, Fferm Sylfaen, Bermo, Gwynedd

Tuesday 6 February, 7.30pm - Montgomeryshire, Welshpool Livestock Market

It’s hard to believe that we’re in the last month of 2023 already. This year seems to have flown by. I guess that’s partly one of the consequences of getting older, time seems to go faster, but also it’s been a very busy year on many fronts. 

As we started the year, the Wales Agricultural Bill was arguably our biggest focus. The importance of getting this crucial legislation right, the framework within which our future schemes for supporting agriculture here in Wales would have to sit, cannot be underestimated. Not just for all of us farming in Wales today, but also for those future generations of farmers which are so crucial to our industry going forwards. 

The landmark legislation will provide the framework for future agriculture support in Wales and is the first time Wales has legislated in this way. We maintained since the introduction of the bill that the absence of economic viability of agricultural businesses and family farms from the Sustainable Land Management objectives is a significant concern and one that we will continue to address. 

The Farmers’ Union of Wales has responded with criticism to the news that 13% has been cut from the draft Rural Affairs budget.

The publication of the Welsh Government draft budget for 2024-25 has revealed that the total funding for rural affairs will be cut by a total of £62 million, around 13%, compared with the final 2023-24 budget as announced in February, to help address the approximate £1.3 billion shortfall.

Whilst it has to be welcomed that the Welsh Government draft budget for 2024-25 for the Basic Payment Scheme (BPS) is maintained at £238 million for 2024, the overall backdrop of this budget reinforces uncertainty for the sector.

Speaking in response to the statement, FUW President Ian Rickman said: “The cuts made to Wales’ rural affairs funding in the Welsh Government’s draft budget for 2024-25 are a serious cause for concern, not least because replacement EU CAP funding alone should now equal around £440 million when taking inflation into account.

“At a time when Welsh farmers face huge uncertainty around future farm support and the actions they will be required to undertake in order to receive such support, it’s of paramount importance that the Welsh Government recognises the sustainable food our farmers produce and the contributions they make to the environment and wider rural economy when allocating funds to the rural affairs portfolio.”

The FUW recently published its report on the role of farm support in Wales’ livestock supply chains, revealing the stark impacts cuts to direct farm support could have on the wider rural economy and as such welcomed that at least some clarity was offered around the BPS.

“The level of clarity around the BPS provides some much needed certainty for our members for next year and will also allow us to provide some indicative figures for the minimum financial support they can expect to receive during the transition into the Sustainable Farming Scheme.

“We welcome the announcement which recognises the significance of the Basic Payment Scheme for around 16,000 farm businesses in Wales, and the thousands of tertiary businesses situated within rural communities which rely directly or indirectly on farms for a proportion of their income, however, the overall shortfall to the sector has to be reviewed and addressed.”

The Farmers’ Union of Wales has honoured the founder of Castell Howell Foods with an award for ‘Outstanding Services to Welsh Agriculture’ at a recent dinner which was held in honour of Brian Jones which was held at the Halliwell Centre in Carmarthen.

After presenting Mr Jones with the award, FUW President Ian Rickman said: “35 years ago Brian Jones and Castell Howell Foods officially started their journey to being one of the largest independent food wholesalers to the foodservice sector in the UK. 

“From the company’s inception in 1988, the business has grown to employ in excess of 800 colleagues, list a range of over 14,000 products, delivering to 5000 customers across Wales and the border counties every week.

“The work Brian has done on behalf of agriculture, food production and promotion of Welsh produce over the years has been exceptional for that we thanked him with this special award.”

Castell Howell are proud of their Welsh agricultural roots with the promotion of local and regional foods a core value. The range of Welsh dairy products, meats, dry and frozen food is unparalleled, and the company is proud to act as an intermediary for many indigenous businesses, purchasing in excess of £37 million of food and services from Welsh suppliers in the past 12 months.

Thanks to his dedication to the food sector, and supporting the communities where the business operates Brian was awarded an MBE, has had the honour of being President of both the Royal Welsh Agricultural Society and Pembrokeshire Show, and is a Fellow of Aberystwyth University.

FUW Chief Executive Guto Bebb added: “I thank the Carmarthen team for their hard work in pulling this event together. It has been a triumph for agriculture and we are proud to have stalwarts such as Brian Jones in our industry ranks. The award is very well deserved and I congratulate Brian on his achievements.”