The Farmers’ Union of Wales today hailed the new special tax rules for Furnished Holiday Lets to be included in the 2011 Finance Bill as a step in the right direction.

However, the union believes that the changes to occupancy rates and the way loss relief is applied could adversely affect some accommodation providers in Wales.

The union welcomed the new Government’s decision to retain the special tax rules following intensive lobbying but, during a recent consultation, it highlighted the proposed changes to the criteria relating to the length of time a property is actually let, coupled with changes to loss relief, would disproportionately affect Welsh businesses offering holiday accommodation.

Chairman for the union’s farm diversification committee Deilwen Breese said: "Under the new rules the minimum period which a property is actually let will rise from 70 to 105 days.

"Given the impact of the current economic climate on visitor numbers we fear that some furnished holiday let accommodation providers could have difficulty meeting the increased letting requirements, especially in areas of Wales were there are limited opportunities to extend the tourism season.

"However, we welcome the Treasury’s flexibility which would allow businesses which meet the revised occupancy threshold in one year to elect to be treated as having met it in the two following years, providing certain criteria are met.

"This will mean that those businesses whose occupancy rate is affected by circumstances beyond their control, such as the extreme weather conditions currently being experienced across Wales, will still be eligible to qualify for these special tax rules.

"We are also pleased that the union’s lobbying for the retention of the current capital allowances and a capital gains tax relief has been successful."

Protests by hundreds of farmers at Asda depots across the UK highlight the need for retailers to behave responsibly or face the threat of further action, says the Farmers’ Union of Wales.

The protests, which were coordinated by Farmers For Action in response to milk discounting by the major retailer, took place at depots in Grangemouth, Skelmersdale, and Chepstow, and prompted Asda to take out a Court Injunction against FFA.

“We are assured that FFA has complied with the law and with the terms of the injunction, and producers have every right to protest peacefully against this type of behaviour by the retailers,” said FUW dairy committee chairman Eifion Huws.

But while the protests relate primarily to the issue of milk discounting - which inevitably leads to downward pressure on farmgate milk prices - they highlight a broader need for the retailers to behave responsibly towards their suppliers, and the possibly consequences of not doing so, says Mr Huws.

“The major retailers exert massive downwards pressure on the farmgate prices received by all primary producers, making farming and food production less viable, and reducing the incomes of farming families.

“In the absence of government moves to ensure equality throughout the supply chain, those whose incomes are threatened by the retailers will feel they have no alternative but to protest, as has happened in this case.

“Over the past few weeks we have also heard of retailers severely penalising some vegetable producers due to problems caused by the bad weather. Given the grief and losses that such weather already causes for farm businesses, in my mind that amounts to kicking a man when he is down.
“While other businesses reel from the impact of recession and cutbacks, the profits of the major retailers seem to know no bounds, highlighting the overwhelming imbalance of power within the supply chain."

The Farmers' Union of Wales today welcomed the rural affairs minister Elin Jones' announcement that she will make a full Tir Mynydd payment in 2012.

The minister first revealed her plans at a meeting yesterday with union officials.

Chairman of the FUW's land use and parliamentary committee Richard Vaughan said: “The meeting was held to discuss the next steps forward for Glastir and today’s announcement follows months of lobbying by the union and will give those farmers who have not applied for Glastir this year a bit of added financial security.

“It was a very productive meeting and we hope that the work of the independent panel, coupled with today’s announcement, will prove to be a major step forward.”

At the meeting, the Minister announced that she had decided that all eligible Tir Mynydd farmers will receive 100% of the payment rate per eligible hectare in 2012. This will include Tir Mynydd farmers who will enter Glastir in 2012.

The union will continue to lobby for further transitional arrangements for 2013.

There will be no further Tir Mynydd payments after this.

The change will result in an increased payment to Tir Mynydd farmers and the industry of approximately £2.5m.

[caption id="attachment_5025" align="aligncenter" width="300"] From left, RABI Wales welfare officer Erys Hughes, RABI county chairman Mansel Charles, RABI county president Elfryn Daniels, FUW county chairman Ian Rickman and FUW county executive officer Meinir Bartlett.[/caption]

A sum of £2,660 was raised at an auction of sporting memorabilia and agricultural products plus a raffle during a fund-raising dinner at Parc y Scarlets, Llanelli, organised by the FUW's Carmarthenshire branch to celebrate the Royal Agricultural Benevolent Institution's (RABI) 150th anniversary.

Guest speakers at the dinner were First Minister Carwyn Jones and Rural Affairs Minister Elin Jones. Proceeds of the auction and raffle run by the MC for the evening, former Welsh rugby international player Rupert Moon, were presented to RABI's Carmarthenshire branch.