Column - Upcoming Welsh Government Budget

It’s often said that things come in threes, and for Welsh farmers this does seem particularly true at the moment.

November started with widespread concern across the sector following the UK Government’s Budget and the changes to APR and inheritance tax. As displayed on the streets of London, the changes have sparked genuine fear within the sector over the long-term sustainability and succession plans for farms.  Meanwhile it is increasingly apparent significant questions remain surrounding the Treasury’s figures.

Second came the announcement surrounding the revised Sustainable Farming Scheme at the Winter Fair last week. It’s fair to say the latest proposals have fared better than the original scheme that was launched earlier this year. Whilst there has been progress, the devil remains in the detail; both in regards to the proposed payments and economic assessments. Getting this right remains key for the future of Welsh agriculture, the environment and our rural communities.

Last, and certainly not least, we now await the Welsh Government’s draft Budget next week, with the Welsh Rural Affairs settlement vital to farmers and our rural communities.

We know Welsh farmers have seen a drastic reduction in funding post-Brexit. UK Government’s replacement funds for the previous European Union Common Agricultural Policy has fallen significantly short of historic values. For example by the end of the current financial year, Wales will have received around a quarter of a billion pounds less in funding for agriculture and rural development than could have been expected had the UK remained within the EU. This equates to a loss of around £15,000 per Basic Payment Scheme (BPS) claimant in Wales since 2019.

This has meant a shrinking of the Welsh Rural Affairs budget by £37.5 million within the 2023-24 financial year, whilst the publication of the Welsh Government draft budget for 2024-5 revealed a further year-on-year cut of £62 million. This equated to a drop of around 13% - the largest relative reduction of any of the Welsh Government’s departmental budgets.

Whilst we appreciate the wider financial pressures faced by the Welsh Government, this disproportionate cut in funding for rural affairs remains a blow.  This is even more of a concern at a time when Welsh farmers are expected to deliver an ever increasing range of sustainability and environmental objectives, while also producing food.

Looking forward to the upcoming budget, it’s vital that at the very least the expected £340 million is allocated to the Welsh Rural Affairs budget. As part of this, maintaining BPS payments at current rates must be a priority. We know 80% of farm business incomes come from BPS payments. With 50,000 people working in agriculture in Wales, and being part of a wider food and farming sector worth over £9 billion to Wales annually, the economic, employment and social implications of any cut in BPS could be drastic for the industry and rural Wales.

Whilst retaining BPS at its current level will be a priority, it’s also essential that the entire Welsh Rural Affairs budget is increased in line with inflation wherever possible, particularly given the increased allocation of total funding for Wales from the UK Treasury.

Column - The end of the beginning

This year’s Winter Fair was a sweeping success once again, bringing the agriculture sector together, and showcasing the very best of rural Wales, as well as an opportunity for some early Christmas shopping amidst all the brilliant produce and goods.

Of course, one of the main talking points revolved around the announcement of the revised Sustainable Farming Scheme (SFS) Outline by the Deputy First Minister and Cabinet Secretary for Climate Change and Rural Affairs, Huw Irranca-Davies MS. Many will recall the previous proposals sparked grave concern within the industry and a Welsh Government consultation earlier this year drew an unprecedented 12,000 responses. 

Alongside other important ongoing issues such as bovine TB, water quality regulations and inheritance tax relief, revising this Scheme has therefore remained a key priority for the FUW over recent months as we fully understand how important farm support is to the viability of our farm businesses, the rural economy and the wider supply chain here in Wales.

Due to this importance, the FUW has taken the opportunity to engage with Welsh Government stakeholder groups over recent months. Through this collaborative approach we’re pleased to have pressed to ensure the removal of the previous 10% tree cover scheme, and replaced with a scheme-wide target and a revised Universal Action. Similarly, the overall number of Universal Actions have been reduced from 17 to 12, and Sites of Special Scientific Interest and areas linked to common land grazing rights will now be eligible for a proportion of the Universal Baseline Payment. These are only some changes within the revised scheme and the FUW looks forward to discussing the full proposals further with members over the coming weeks.

Crucially, the announcement earlier this week only marks the end of the beginning, and there remains a high level of detail to work through and confirm. To this end, the updated economic analysis and impact assessments are of crucial importance. The Welsh Government’s commitment to developing a Social Value Payment that reflects the actions Welsh farmers undertake that contribute to all 4 Sustainable Land Management objectives will also be of key importance.

While there have been some significant changes to the scheme, we must now ensure that the associated budget and payment methodology deliver real economic stability for our family farms in Wales as we face a backdrop of many other significant challenges.

FUW President comments on revised Sustainable Farming Scheme outline

Today (25 November), the Deputy First Minister and Cabinet Secretary for Climate Change and Rural Affairs, Huw Irranca-Davies MS, issued a statement alongside a revised Sustainable Farming Scheme (SFS) outline and an executive summary of the Carbon Sequestration Evidence Review Panel findings.

Commenting on the statement, FUW President Ian Rickman said: “The workload of the three stakeholder groups over recent months has been intense as we've worked through and agreed, in principle, a revised Scheme design. We've welcomed the collaboration and opportunity to engage at this level and believe we are now in a better place as a result.

“Alongside other important, ongoing issues such as bovine TB, water quality regulations and inheritance tax relief, revising this Scheme has remained a key priority for the FUW since we fully understand how important farm support is to the viability of our farm businesses, the rural economy and the wider supply chain here in Wales.”

Summarising some of the key changes, Mr Rickman highlighted that the 10% tree cover Scheme Rule has been removed and replaced with a scheme-wide target and a revised Universal Action; the overall number of Universal Actions has been reduced from 17 to 12, and Sites of Special Scientific Interest and areas linked to common land grazing rights will now be eligible for a proportion of the Universal Baseline Payment.

“Today’s announcement, however, only marks the end of the beginning, and there remains a high level of detail to work through and confirm, with the updated economic analysis and impact assessments of crucial importance.

“Central to this is the Welsh Government’s commitment to develop a Social Value Payment that reflects the actions Welsh farmers undertake that contribute to all 4 Sustainable Land Management objectives.

“With a more accessible and flexible Scheme design following significant changes - including the removal of the 10% tree cover Scheme Rule and a reduction in the overall number of Universal Actions - we must now ensure that the associated budget and payment methodology deliver real economic stability for our family farms in Wales as we face a backdrop of many other challenges.” concluded Mr Rickman.

Column: The key importance of our family farms

If you find yourself in a hole, stop digging; advice several politicians should have heeded as temperatures remain high in the farming community following the proposed changes to the inheritance tax. From the First Minister’s unfortunate ‘calm down’ quip, to a former aide of Tony Blair suggesting family farms were 'an industry we could do without’. At a time of worry and frustration, such words do little but rub salt into the wound of an industry already in distress. 

The latter of these comments, and the suggestion that the Government should do battle with family farms in the way Margaret Thatcher did with striking miners, was particularly poignant for us here in Wales. We already know that small family farms are the backbone of Wales’ agricultural sector, with an average farm size of 120 acres - almost half that of a typical English farm (217 acres). The disproportionate prominence of these smaller, family farms, provide an unique feel for Wales’ farming sector and communities - playing a key role in local employment, and maintaining the social fabric of our rural areas, including the Welsh language. In many instances, these farms have been passed from parent to child for centuries, another reason why the Chancellor’s shake-up to inheritance procedures has caused so much hurt over recent weeks. 

Last weekend the Farmers’ Union of Wales welcomed the opportunity to highlight the key importance of the family farms at the Welsh Labour Conference in Llandudno. The conference provided an opportunity to directly discuss the changes to the inheritance tax reform with MP’s and MS’s, as well as meeting the Cabinet Secretary for Rural Affairs, Huw Irranca-Davies MS. Of course, it wasn’t just Labour politicians that assembled in the seaside town either, and we welcomed the opportunity to engage with the significant number of farmers that had congregated to voice their concerns. 

Whilst the changes to the inheritance tax continue to dominate the headlines at Westminster, much of the talk with Labour Senedd Members revolved around the revised Sustainable Farming Scheme (SFS). We expect a statement from the Cabinet Secretary on the proposals next week at the Winter Fair. Whilst the announcement of the revised scheme outline will merely mark the end of the beginning - it will provide an important insight into the expectations and support that will be put forward for farmers in Wales to produce quality, sustainable food alongside other environmental and public goods. The FUW looks forward to engaging with its members once these plans are announced. 

And in mentioning the Winter Fair, do remember to call by the FUW stand near the cattle ring this year. It does promise to be a brilliant event once again - highlighting the very best of rural Wales and showcasing the key importance of our family farms. 

Prominent north Wales business couple win prestigious farming award

The founders of a leading Welsh business were awarded with the Farmers’ Union of Wales (FUW) Lifetime Achievement Award at a special dinner held at The Kinmel, Abergele on Friday 8 November 2024. 

Gareth and Falmai Roberts, founders of the award-winning yoghourt business, Llaeth Y Llan, started their business from a converted calf shed at their farmhouse in Llannefydd, Denbighshire in 1985 - with the first trials of the product undertaken in the back of their airing cupboard!

Over the past three decades, the business has grown from strength to strength with a modern dairy designed and built in 1995 utilising a redundant farm granary and other outbuildings. By 2015, with the brand stocked throughout Wales in 4 major retailers and dozens of independent stores, the old dairy reached maximum capacity, and a larger production facility was designed and built on the Roberts’ farm.  This facility was officially opened in 2017 by Lesley Griffiths AM, then Welsh Government Cabinet Secretary for Environment and Rural Affairs.

The business combines traditional values with modern techniques, producing 14 different flavours, using Welsh milk from the local area.  The yoghourt is sold across Wales and England, with the business previously winning the Wales Food Producer of the Year award at the inaugural Wales Food and Drink Awards in 2022. 

The Farmers’ Union of Wales’ Lifetime Achievement award was presented to Gareth and Falmai Roberts by FUW President, Ian Rickman, with acclaimed Welsh operatic baritone, John Ieuan Jones, also present on the evening to provide entertainment.

Commenting, Ian Rickman, FUW President said:

“The FUW was absolutely unanimous that Gareth and Falmai’s hugely successful business should be acknowledged, and we were delighted to host this dinner to honour their achievements and present them with this award.

From producing their first yoghourt pot, to their current success as one of Wales’ most recognisable food producers, Llaeth Y Llan is an outstanding example of Welsh enterprise, with local farms and food production at the heart of their success.

I congratulate them on this well-deserved achievement, and have no doubt that their business will continue to grow from strength to strength.” 

Profits from the dinner, and the very successful auction, will be presented to the Apel Goffa Dai Jones Memorial Fund, which is administered by the Royal Welsh Agricultural Society. 

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Ca parte a parteneriatului nostru cu FUW, cazinoul nostru online Ice Casino lansează o serie de jocuri cu tematică agricolă, unde o parte din încasări vor merge în sprijinul agriculturii.