Agricultural Policy News

Agricultural Policy

UK - Japan trade deal agreed in principle but may impose tougher restrictions than those causing deadlock with the EU

Agricultural Policy

The first major UK post-Brexit trade deal was agreed in principle with Japan on 11th September. If signed off by the UK and Japanese Parliaments, it could secure access for as many as 70 products with Geographical Indicators, including products such as Welsh lamb and beef - although these would still be subject to import quotas.

But confusingly, the deal also agrees to replicate the restrictions on subsidies as set out in the EU-Japan agreement, implying tougher restrictions on State Aid than those the UK Government is arguing for in the negotiations with the EU - an argument that has become a major obstacle during the negotiations as the EU demands that these rules should remain in line with their own. So it seems that the Japan deal inadvertently gives the EU what it wants while the UK Government is still arguing about the issue in its negotiations.

The UK Government claims that the State Aid element of the deal is “just a standard clause in any free trade agreement”, and the FUW will therefore continue to seek clarity on the matter.

FUW welcomes Welsh Government commitments to use more wool in public buildings

Agricultural Policy

The FUW has welcomed Welsh Government’s recent comments relating to using more British wool in public buildings in an attempt to support the industry following acute impacts from the Covid-19 pandemic, and has discussed the issue with Minister Lesley Griffiths.

However, the FUW remains concerned that the commitment needs firming up, given it is a commitment “...to consider the more widespread use of wool in our estate in future, subject to the required compliance testing and certification.”

Over recent months, the FUW has discussed the issue with and written to to Welsh and UK Ministers after the global market for crossbred wool was closed at the beginning of the pandemic, resulting in around seven million kilos of unsold stock out of a total twenty-seven million from the 2019/20 clip.

FUW responds to consultation on contractual relationships in the UK dairy industry

Agricultural Policy

In June, Defra and the Devolved Governments launched a consultation into contractual reform for the dairy sector. An earlier review of supply chain fairness by the Grocery Code Adjudicator found an uneven distribution of power within the dairy supply chain and views were sought on contract regulation aimed at improving fairness in the dairy supply chain.

The FUW responded to the consultation after consulting with it’s Milk and Dairy Produce Committee and County Branches across Wales. During the Covid-19 pandemic, the Union received reports from many members who had borne a disproportionate amount of the cost in the supply chain when markets changed overnight.

In light of the pandemic, the FUW supported contract regulation. However, due to the large number of members that supply farmer owned co-operatives, it was also felt that any newly implemented regulations should provide the flexibility to allow for those co-operatives to continue to operate as they do currently for the benefit of their members.

News in Brief September 2020

Agricultural Policy

i) Welsh Government answer raises concerns over future spending

In response to a recent question asked by Shadow Agricultural Spokesman Llyr Huws Grufydd with regard to the funding committed to the RDP Sustainable Management Scheme, Welsh Government clarified that £2,836,260 (18%) and £13,092,091 (82%) of the total funding is spent on capital and revenue (i.e. salaries etc) respectively.

In light of the ongoing Sustainable Farming and our Land: Simplifying Agricultural Support consultation, this clarity raises major concern as to how the future funding for agriculture will be distributed and who will benefit.

ii) Scotland scraps three crop greening requirements

The passing of the Agriculture (Retained EU Law and Data) (Scotland) Bill has provided Scotland with the power to simplify and improve the administration of Common Agricultural Policy (CAP) schemes.

Scottish Government has since confirmed that the £130 million Greening scheme will be simplified from 2021 onwards, removing the three-crop rule altogether and retaining Ecological Focus Areas (EFAs) in the short term. The permanent grassland option will remain.

Similar proposals form part of the Welsh Government’s Simplifying Agricultural Support consultation.

iii) Defra publishes latest licences for badger control in England

In continuing with the long term strategy for tackling Bovine TB which began in 2014, Natural England and Defra have published the latest licences for areas that will undertake badger control activities in England this year.

The licences and supporting documentation for the reauthorised 33 existing and 11 new areas can be viewed here.

RDP funding announcement raises concerns on future priorities

Agricultural Policy

The Welsh Government has given details as to how £106 million of RDP funding will be prioritised over the next three years.

The funding forms part of the EU RDP 2014-20 budget - including the 15% transferred from farmers’ Basic Payments - and from Welsh Government’s own funds.

The Welsh Government says schemes which are considered to underpin Wales’ rural economy, biodiversity and environmental priorities are to receive continued support, as well as new schemes designed in response to current and upcoming challenges. A proportion of the budget will also be used towards the sustainable management of Wales’ natural resources.

Welsh Government priorities will include: