Welsh farmers were urged today to check if they have been mis-sold a fixed rate loan account during the period 2006 to 2011.

“There are farmers who are discovering to their detriment that loans taken out during this period are not what they were meant to be,” said Farmers’ Union of Wales business development director Emyr James.

“A Fixed Interest Rate loan is a straightforward retail product whereby a rate of interest for your borrowing is agreed for a fixed period of time. A five per cent rate for 10 years means exactly that, a rate of five per cent fixed for the whole term.

“Problems arose when the clearing banks introduced investment bank products to the retail sector.  In July 2012, the financial regulator branded the conduct of banks in the period running up to the crash as ‘unethical’, saying that in many cases staff at major lenders did not understand the products they were selling.”

The Financial Services Authority (FSA) believes banks suspended normal ethical standards and were selling products that were profitable for the investment banks, not well understood by the banking staff that were introducing them and not at all understood by the customers who were buying them.

“If you think you have been sold a product described as an Interest Rate Swap, Interest Rate Cap or Interest Rate Collar which you assumed to be a straightforward Fixed Interest Rate loan, you should ask your bank for a full explanation and discuss it with professional advisers, an accountant or solicitor,” Mr James added.

“Eleven of the UK’s largest banks, including Barclays, HSBC, Lloyds and RBS Group, have now agreed to compensate businesses where ‘hedging’ products (including Rate Swaps, Caps and Collars) have been mis-sold to small businesses considered to be non-sophisticated borrowers.

“The FSA estimates at least 28,000 such businesses have been sold interest rate swaps since 2001 and the banks have agreed to review their sales of hedging products amid allegations of serious mis-selling.

“I am convinced that there are borrowers within the agricultural sector who have been mis-sold hedging products but are unaware of the fact. If they have any doubts, they should make urgent enquiries and be prepared to make a complaint.

“They should bear in mind the Limitation Rule, which says that formal litigation against the bank for a case of mis-selling has to be made within six years of the date of signing the hedge.

“If they are close to this date they need to have their case assessed quickly and contact a solicitor who can register their claim before time runs out.“

Anglesey farmer Dilwyn Owen, winner of the popular S4C series Fferm Ffactor and a brand new Isuzu D-Max Yukon, has landed himself free vehicle insurance for a whole year - thanks to FUW Insurance.

“Dilwyn has made Anglesey proud by being crowned Fferm Ffactor’s Best Farmer,” said Farmers’ Union of Wales area officer Ann Harries.

“We’re pleased to be associated with his achievement and sponsoring the insurance on his new Isuzu shows our support to young farmers all over Wales,” she added.

Dilwyn, a 34-year-old beef and sheep farmer and contractor, of Llanedwen, beat off stiff competition from finalists Geraint Jenkins, of Talybont, Ceredigion, and Gethin Owen, of Betws yn Rhos, to win the Isuzu pick-up and the Fferm Ffactor title.

“I’m thrilled with my new Isuzu, and getting free insurance really is the icing on the cake,” said Dilwyn.

“On the first day of filming Fferm Ffactor I didn’t really envisage winning but it turned out to be one of the best experiences ever. With the fifth series coming up I’d urge anyone to go for it, it’s a once in a lifetime opportunity,” he added.

Since the first series in 2009 Fferm Ffactor has gone from strength to strength and the fifth series will air in the Autumn 2013.

Producers Cwmni Da of Caernarfon are receiving nominations for candidates until March 31. To enter or to nominate a friend or relative call the Fferm Ffactor team on (01286) 685300 or visit www.s4c.co.uk/ffermffactor

[caption id="attachment_2284" align="aligncenter" width="300"] Dilwyn Owen and Ann Harries with his new Isuzu D-Max Yukon[/caption]

Concerns and priorities over the impact of CAP reform on Welsh farmers were highlighted during a meeting at Builth Wells between Farmers’ Union of Wales officials and staff and Liberal Democrat Westminster and Cardiff politicians.

At the meeting, Brecon and Radnorshire MP Roger Williams and Mid and West Wales AM William Powell - both FUW members - and Ceredigion MP Mark Williams were told the majority of the CAP amendments proposed by the EU’s agriculture committee were to be welcomed and would significantly reduce the adverse impact of the original proposals put forward by the EC.

Afterwards Breconshire farmer Brian Bowen, vice chairman of the FUW’s livestock, wool and marts committee, said: “The MEPs certainly seem to understand agriculture and recognise the need to maintain EU food security far more than the commission and, as such, they have agreed amendments which would significantly reduce the impact of the original proposals for Welsh farmers.”

Mr Bowen said that while the FUW objected to linking “greening” rules to direct payments, the amendments agreed by MEPs were a massive improvement which would lessen the adverse impacts of the original proposals on Wales’ environment and farm businesses.

“Ironically, the commission’s greening proposals would have acted as a disincentive for farmers to enter agri-environment schemes and made farms less self-sufficient.

“The amendments go some way towards reintroducing the original concept of encouraging farms to lessen their environmental impact and their input costs as a part of greening, whereas the original commission proposals would severely limit a farm’s ability to grow its own crops or plant cover crops to help wildlife.”

However, Mr Bowen warned that the devil would be in the detail of the final regulations which are expected to be finalised over the coming months pending agreement over the EU budget.

Mr Bowen also emphasised the FUW’s major concerns over the proposed liberalisation of modulation arrangements. “We understand that the UK Government is seeking to be able to modulate up to 20% of pillar 1 monies in order to pay for pillar 2 underfunding without any obligation to co-fund such monies.

“This would move us further away from the principle of having a more common policy across the EU which underpins the current negotiations. If we want more money for Pillar 2 it should come from securing a fairer share of the EU budget - we currently gets a fraction of what we should get and that is what we should be fighting for.”

Other issues discussed included the CAP budgetary allocation for Wales and the move to a flat rate payment, the potential loss of Welsh farmers’ meat levies to England and the Financial Service Authority’s report into the mis-selling of rate swap products to small businesses by their banks.

“We know there are big changes coming with the move to flat rate payments and we need to ensure that we avoid disruption to any particular sector,” said Mr Bowen.

“There seems little doubt that there will be many winners and losers. The worries over what system is finally adopted will compound concerns over the impact that the terrible weather, collapse in lamb prices and loss of upland support has had on farm incomes.

“Nevertheless, the MEPs’ amendments to the draft CAP regulations, if respected, may provide a number of mechanisms by which to help the Welsh industry.”

[caption id="attachment_2281" align="aligncenter" width="300"] From left, FUW Brecon and Radnor county executive officer Aled Jones, William Powell, Brian Bowen, Mark Williams, Roger Williams and FUW director of policy Nick Fenwick[/caption]

The Farmers' Union of Wales welcomed the Food Standards Agency’s publication today of a meat testing protocol but has called on the watchdog to further refocus its work on tackling fraud and mislabelling.

The call came after the FSA published its protocol for a UK-wide survey of food authenticity in processed meat products drawn up in collaboration with Defra, the devolved administrations and local authorities.

FUW president Emyr Jones said: “The Welsh livestock industry has been disgusted by the recent revelations that horsemeat has been found in products sold as processed beef and similar stories, and the FSA’s publication of a meat testing protocol is welcome.

“However, a real pattern is emerging which should give people confidence that buying local and buying Welsh means you get exactly what is on the label.

"Those involved in and who have profited from fraudulent mis-labelling at every level of the supply chain should be punished.”

Mr Jones said the revelations highlight concerns, expressed by the FUW over many years, that the FSA has been preoccupied with issues which should not fall within its remit while allowing disturbing practices such as this to go on undetected.

“For many years the FUW has expressed concerns regarding the FSA’s drive to see products which form part of a healthy diet, such as red meat, cheese and Marmite, branded as unhealthy.”

He also highlighted the pressures exerted on suppliers of local food such as small abattoirs and butchers during the FSA review of its charging arrangements.

“Businesses are already paying huge charges to comply with food standards requirements and if these were increased they would have a catastrophic impact on small and medium sized businesses, including local butchers.

“Ironically, such charges play straight into the hands of those who have been found to be producing and selling inferior mis-labelled products, as they are undermining the viability of those who produce fully traceable and local Welsh food.

“It’s time for the FSA to refocus its efforts and concentrate on what consumers genuinely regard as food standards.

"I am always proud to remind consumers the official Protected Geographical Indication (PGI) status of Welsh Lamb and Welsh Beef, which protects the reputation of regional food products.

"PGI assures consumers Welsh Lamb and Welsh Beef have full traceability and are guaranteed to be sourced from lambs or cattle born and reared in Wales.”