The Farmers’ Union of Wales (FUW) recently had positive talks with Minister for Climate Change, Julie James MS, with tree planting and the purchase of Welsh land for the purpose of carbon offsetting by businesses from outside of Wales taking centre stage.

The FUW has received reports from members on almost a weekly basis of whole farms or parcels of land being bought up by individuals and businesses from outside of Wales for the purpose of tree planting in order to invest in the growing carbon market or offset their own emissions rather than seeking to reduce their carbon footprint in the first instance.

The Presidential Policy Team discussed the Union’s policy on carbon trading and was more recently agreed in a meeting of the FUW Council:

‘Whilst it is recognised that carbon credits could potentially become important income for some farms in the future, given:

1. The sale of carbon credits from Welsh farmland risks undermining the ability of farms, Welsh agriculture or Wales as a whole to become carbon neutral
2. The concerning rise in the sale of Welsh farmland to individuals and companies from outside Wales in order to create carbon for sale outside Wales or offset their own footprints
3. The fact that in at least some instances such non-Welsh entities and individuals are being funded by Welsh Government to plant such areas

The Welsh Government and Senedd should take urgent action to tackle this issue through some form of control mechanism, and that while carbon quotas may not be the best way forward it is among a range of measures that should be considered in order to prevent growing adverse impacts for Welsh family farms, Welsh communities and Wales as a whole’

The current method of selling carbon risks undermining the ability of farms, Welsh agriculture or Wales as a whole in becoming carbon neutral if urgent action isn’t taken by the Welsh Government.

The Farmers’ Union of Wales’ (FUW) Diversification Committee has highlighted the need for the Welsh Government to take robust action to protect rural communities from the impacts of second home ownership and other factors that are depleting local housing.

During a FUW Diversification Committee meeting held on Thursday 14th October during which the Welsh Government consultation on local taxes for second homes and self-catering accommodation was discussed, delegates expressed acute concerns regarding the impact second home ownership and similar factors are having on the affordability and availability of homes for local people, and how this is threatening the rural communities of Wales.

Around 60% of residents are currently priced out of the housing market in Gwynedd and around 11% of the county's entire stock is being used as second homes. However, the problem is one that impacts areas across Wales and is continuing to grow.

The massive rise in second home ownership and houses purchased by outside investors as AirBnB type accommodation since the beginning of the pandemic has added to existing problems.

The Committee recognises the importance of tourism and self catering accommodation to the economy, but many coastal and rural villages in Wales are seeing their communities devastated, with serious implications for Wales’ heritage and culture.

In considering the Welsh Government’s consultation, the Committee highlighted a number of moves that the Welsh Government and other authorities should take to stem the impact.

New Brexit export controls coupled with impacts of the pandemic, veterinary and slaughterhouse worker shortages, the loss of the Chinese market and CO₂ shortages has resulted in a backlog of more than 100,000 pigs on UK farms.

The UK Government announced on 15th October that measures such as a private storage aid scheme will enable meat processors to store slaughtered pigs for three to six months and process them at a later date.

They are also allowing up to 800 new temporary pork butcher visas for a period of six months as part of the Seasonal Workers Pilot Scheme and the Agriculture and Horticulture Development Board (AHDB) is working to identify new domestic and export markets for pork.

Despite the UK Government’s three week support package for the reopening of the CF Industries plant which produces 60% of the UK’s CO₂ demand, the impact of the short term closure is already having an impact with the FUW receiving reports of fertiliser prices having increased to beyond £700 per tonne.

It is also understood that the loss of foreign workers has resulted in reductions of staffing levels in processing plants from between 12 and 25% while butcher numbers are down by around 16%.

i) Ireland agrees new trade deal with China

The Republic of Ireland has agreed a new trade deal with China which will allow for the export of sheepmeat and breeding pigs.

China accounts for 38 percent of global sheepmeat imports (365,000 tonnes), although a large amount of this will be from countries which are net exporters of red meat such as New Zealand and Australia.

ii) Carbon neutral potatoes from Wales to be sold in Co-Op

The UK’s first carbon neutral potatoes grown by Puffin Produce in Pembrokeshire will be sold across 200 Co-Op stores.

What are known as Root Zero potatoes are sourced from local farmers and are carbon neutral and grown sustainability. The carbon footprint calculations also include the footprint from the entire supply chain.

Puffin Produce has set a target to reduce the carbon intensity of Root Zero potatoes by 51% by 2030 and its operational emissions by 46% by 2030.

iii) German Agriculture Minister calls for more consistent standards in future trade deals

German Agriculture Minister Julia Klöckner has urged the European Commission that calling for a Green Deal for EU agriculture while not maintaining the same ambition in free trade agreements with third countries will place domestic farmers at a competitive disadvantage.

This is one of the many concerns the FUW and others have raised in regards to the free trade agreements between the UK and Australia and New Zealand.