FUW HOLDS POSITIVE DISCUSSIONS WITH WOOL BOARD

[caption id="attachment_4458" align="aligncenter" width="500"]WOOL BOARD TALKS: From left, FUW vice president Richard Vaughan, Gareth Jones, FUW director of agricultural policy Nick Fenwick and Emyr Jones. WOOL BOARD TALKS: From left, FUW vice president Richard Vaughan, Gareth Jones, FUW director of agricultural policy Nick Fenwick and Emyr Jones.[/caption]

Farmers' Union of Wales officials and staff have met British Wool Marketing Board producer relations manager Gareth Jones to discuss latest developments in the market for Welsh wool.

Following the meeting at Meirionnydd county show, FUW president Emyr Jones said: "We discussed a broad range of issues including the welcome increase in the wool price and those issues which were likely to affect the market over the coming months."

Wool prices have increased significantly in recent years with average prices in 2010 reaching £1.02 per kg compared to 48p/kg in 2009 and 33p/kg in 2008.

Emyr Jones also emphasised his support for the wool board and the central role it plays for the sheep industry.

"The wool board has faced a number of well founded criticisms from the union over the years and it is our duty as producers and farming representatives to bring such concerns to the attention of the board. However, we must not lose sight of the central and important role the board plays for Welsh wool producers.

"Our dairy farming members often lament the demise of the Milk Marketing Board and, while the nature of the dairy industry is very different, it would be disastrous if the wool board was to go the same way as the MMB."

During the meeting, Gareth Jones, who is responsible for developing and maintaining the board's producer relations and communications, said: "The strong demand and increased prices look set to continue, with forecasts for the current season positive.

"The enthusiasm, renewed interest and increased profile of wool as a direct result of the marketing and promotional initiative the 'Campaign for Wool' is encouraging. There has never been a better opportunity for wool as a quality natural fibre and we must all work together to ensure there is a bright future ahead for wool."

Welsh wool producers were also urged to check for any tax implications when selling wool to foreign merchants. "Unless it can be shown that wool has left the UK within three months of the sale, producers may be liable for a VAT charge on their sales," said Emyr Jones.

"If wool does not leave the UK, the transaction is a domestic one and farmers must charge for VAT on their wool and account for this in any information they supply to the Inland Revenue. If it is exported within three months of the sale, the vat rate is zero. The correct documentation is also required by the farmer to show the wool has actually been sold and exported.

"This issue should be carefully considered by farmers when they consider the prices they are offered for their wool and who to sell to."

FUW INVITES ENTRIES FOR ANNUAL £1,000 STUDENT BURSARY SCHEME

New full-time students are being invited to write a 1,000-word essay on one of three topics involving their future career, farming interests or the barriers facing young people entering the industry for the Farmers' Union of Wales annual £1,000 bursary award launched today (Thursday, August 25).

The topics are:

* How I intend to utilise the skills I gain from my course in my future career.

* Outline your interest in a particular topic or project associated with the land-based industries.

* What do you think are the main barriers facing young people entering the land-based industries today?

Last year the adjudicators awarded £700 to the bursary winner, 19-year-old Harper Adams University College student Phillippa Maidment. Phillippa, a keen member of her local young farmers' club, but with no direct link to farming, received her award from then FUW president Gareth Vaughan on the union's stand at the Royal Welsh Winter Fair last December.

The Monmouthshire student, who embarked on a rural property management course at Harper Adams University College, called for agriculture to be taught in schools from primary level, in a bid to improve the image of an industry in which the average age of a farmer in Wales is 59, in a 1,000-word essay submitted with her entry.

Entitled "What should the Welsh farming industry and government do to attract more young people into agriculture?" her essay suggested that as too few young people are choosing a career in agriculture there could be drastic effects on the farming industry.

"As the majority of farmers are members of the older generation there is a lack of new ideas coming into agriculture. This could be preventing farmers from increasing their income," wrote Phillippa, whose home is at Undy, near Caldicot.

A second bursary of £200 was handed to another Harper Adams student, 18-year-old Sion Gwynedd Roberts, of Simdde Hir, Llannefydd, near Denbigh, who is studying agricultural engineering.

And a third bursary of £100 was presented to 18-year-old Aberystwyth University student Gwyn Pierce, of Gelli-Haf, Llangyndeyrn, Carmarthenshire, who is studying agriculture with animal science.

Full details on how to apply for the bursary are included in a leaflet available from the FUW's head office in Aberystwyth (Tel: 01970 820820) or at any of the union's county branch offices.

The closing date for entries is October 1, 2011.

FUW WELCOMES CHEQUES ABOLITION U-TURN

Welsh farmers suffering from unavailable or slow broadband connections today welcomed the Payments Council's U-turn on plans to phase out cheques.

Farmers' Union of Wales president Emyr Jones, who runs a family hill farm near Bala, said: "We welcome the announcement that the Payments Council has scrapped plans to phase out cheques by 2018 and that the Treasury select committee has called for the council to be regulated as it currently lacks public accountability.

"Farmers would agree with the select committee's view that banks must now inform its customers that they will continue to honour cheques 'for the foreseeable future'.

"Even though many farmers may also use plastic debit or credit cards they still need cheques to pay for numerous transactions in connection with their businesses.

"So, at long last, it seems city bankers and politicians are beginning to realise that rural areas, like most of Wales, don't enjoy the same fast access to technology as they do so it is essential that farmers can continue to use cheques in payment for so many essential goods and services.

"With such poor quality broadband connections currently witnessed in many parts of rural Britain it's no surprise that the popularity of cheques as a means of payment still remains high with 1.1bn reportedly issued last year.

"On that basis, and the public assistance banks have been given to help bail them out their financial troubles, we would now expect the banks to be more prepared to give the public what they desire on this issue."

The Forum of Private Business (FPB), welcoming the Payments Council's new plan not to phase out cheque payments until adequate alternatives are in place, has revealed research it carried out at the end of last year showed most of the smaller businesses surveyed want market forces to determine when they should switch payment methods.

A huge 95% of the firms surveyed by the forum said they regularly pay other businesses - including suppliers, utility companies and insurers - by cheque. About 55% said cheques are their most frequent means of payment.

"In fact, about half of all the forum's respondents (48%) believed removing cheque payments within the next seven years would harm their businesses," said Mr Jones.

"Even in a world filled with electronic telecommunications, many small businesses, including start-ups, still rely on cheque payments.

"The banks must take heed of this and allow farmers to continue using cheques, at least until suitable alternatives like quick and easy internet payments are available in our numerous rural broadband black-spots."

FUW HAILS FREE SOIL TESTING IN NORTH WALES

The Farmers' Union of Wales today welcomed efforts by the Environment Agency Wales to work closer with farmers following the extension of a programme providing free soil testing in North Wales.

For the past two years the free soil testing programme was run for farms in the Afon Clwyd catchment area but this has now been extended to farms in other catchment areas where issues with water quality are thought to be linked to agriculture.

The new catchment areas for the scheme are the Wen, near Chwilog; Ystrad, near Denbigh; Hiraethlyn, near Eglwysbach; Afon Bach, near St Asaph; Goch in the City Dulas area; Dolfechlas Brook in the Rhosesmor area, and farms around Llyn Coron on Anglesey.

"This is an excellent initiative by the Environment Agency Wales that has proved very popular among farmers. Rolling it out to further catchment areas in North Wales is a very welcome move," said FUW land use and parliamentary committee chairman Richard Vaughan.

"With the ever-rising price of fertiliser putting financial strain on farmers, it is essential that the correct nutrients are applied at the right time to save money and to avoid any runoff. Soil testing allows a more precise approach to nutrient management.

"This scheme is a win-win situation for all involved and we look forward to it being rolled out across the whole of Wales in the future," added Mr Vaughan.

Nichola Taylor, from Environment Agency Wales, said: "The samples we take are tested for soil pH, phosphorous, potassium and magnesium so we can work out exactly what each field needs in terms of nutrients and liming.

"We are working with farmers to find simple solutions that help the environment but, more importantly for them, to help boost their profits."

Farmers in these areas interested in free soil testing and fertiliser planning should contact Nichola Taylor on 01248 484174 to register their interest. Testing will start in the autumn.

FUW UNDERLINES IMPORTANCE OF EID SLAUGHTER DEROGATION

Farmers' Union of Wales president Emyr Jones has written to deputy agriculture minister Alun Davies emphasising the importance of allowing lambs to be identified by a single ear tag.

Speaking at Merioneth County Show in Bala today (August 24), Mr Jones said the three tagging options available for farmers - full EID, EID slaughter tags and non-EID slaughter tags - allowed farmers to tag appropriately, depending upon the market into which they were selling.

"Different operators within the supply chain have different needs and we have always advised farmers to speak to their customers in order to assess what their needs are," said Mr Jones.

In order to promote understanding of the options available, the FUW has supported the production of a leaflet by Hybu Cig Cymru which has been made available at shows and events throughout Wales.

In his letter to Mr Davies, Mr Jones said: "The current derogation takes account of a number of scenarios, including movements of animals to slaughter directly and via a market, where requiring such animals to be tagged with EID would result in significant extra costs and record keeping requirements for all those involved, while also increasing many fold the risk of unfair penalties being applied to single payments due to technological failings.

"While we are aware that there are some businesses which may currently, or in future, desire all animals to be electronically identified, it is our firm belief that those businesses must provide financial incentives, through the marketplace, which are sufficient to compensate farmers for the extra burden that EID represents, and that the current derogations must remain in place."

Mr Jones' letter also highlighted the importance of ensuring that any concessions allowed in Scotland regarding EID are also made available in Wales.

"While the Scots have announced concessions in relation to tolerances, the exact nature of these remains vague," said Mr Jones.

"However, given the failings of the technology, it is essential that any concessions allowed in other regions of the UK are implemented in Wales."

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