The Farmers’ Union of Wales (FUW) says that the Scottish Government’s confirmation that direct farm support will continue in Scotland highlights the fundamental flaws inherent in Wales’ Sustainable Farming Scheme (SFS) proposals.

Scottish First Minister Humza Yousaf told NFU Scotland's spring conference on Friday (9th February) that 70% of future support will constitute direct farm payments to support food producers. The remaining 30% will be targeted at environmental measures, a ratio similar to current Scottish arrangements.

“By comparison, the Welsh Government’s proposed SFS, due to be introduced next year, would bring direct farm payments to an end completely while introducing a mountain of costly restrictions and requirements,” said FUW President, Ian Rickman.

“This would mean Welsh farmers competing at a huge disadvantage compared to our counterparts in Scotland, despite both our countries having a similar proportion of disadvantaged land where only livestock farming is possible.”

Around 85% of Scotland is classified as Less Favoured, while the proportion in Wales is 80%. In England it is just 17%.

Mr Yousaf also confirmed that a form of Less Favoured Areas support, which was abandoned in Wales in 2013, would continue in Scotland.

“The Welsh Government’s economic analysis published alongside their SFS consultation paper suggests all the rules and restrictions would lead to an 11% reduction in livestock numbers. It would also see a fall in average Welsh farm incomes of between 25 and 35 percent. This figure would rise to between 48% and 85% in the absence of possible ‘top-up’ payments,” said Mr Rickman.

“Now that we have left the EU, the UK effectively has its own single market but without the common payment rules. If Wales diverges from Scotland in the way proposed by Welsh Government, we would not only be disadvantaging our own farmers by introducing a mountain of rules not present for EU producers, but would also be placing our own industry at a huge competitive disadvantage compared to Scotland and handing business to the Scotts on a plate,” said Mr Rickman.

The FUW was a principled opponent of Brexit and after the vote to leave in 2016, argued for a robust replacement for the Common Agricultural Policy that minimised such unfair competition between UK nations. This was apparent in our comprehensive Filling the Void paper published in July 2018.

“This very sensible and economically advantageous move by the Scottish Government needs to be reflected by the Welsh Government when it considers the vast number of improvements that must be made to its current SFS proposals. What is proposed at present is destructive and economically naive, and would be a massive own goal for Wales’ farms, society, culture and economy.

“As we predicted, Brexit has failed Welsh farmers on many levels and the Welsh Government’s plans would merely add to the challenges we have faced since 2016,” he added. 

Farmers’ Union of Wales President, Ian Rickman, has written to all members urging individuals and businesses to formally respond to the Welsh Government’s Sustainable Farming Scheme (SFS) consultation and to make their voices heard. 

“We need only look at the statistics from the Farm Business Survey to understand the significance of agricultural and rural development funding to our food supply chains and the wider rural economy.

“This is the third and final consultation on the SFS proposals and the importance of getting it right cannot be underestimated.

“We have already spoken directly with over 1500 farmers at our local county meetings across Wales in recent weeks, and our team of farming experts have been pushing for changes and amendments to the Welsh Government’s plans over a number of years. This is a crucial juncture for Welsh agriculture and its future

Modelling on the potential economic effects of the Sustainable Farming Scheme published alongside the consultation suggests:

• a reduction in farm business income of up to £199 million
• a reduction in farm output of £125 million
• 122,000 fewer livestock units
• an 11% decline in on-farm labour requirements.

“The reality is that if the scheme remains in its current form, and if the modelling report is correct, farmers uptake will be minimal and everyone will lose out - Welsh farmers, the environment, the public and ultimately the Welsh Government.

“There is a real worry that even under a scenario where scheme payments come nowhere near to compensating for the loss of the Basic Payment Scheme, there will be some farm businesses that will have no choice other than to participate in the SFS. This will, no doubt, place further pressure on farmers’ workload and mental health.

“The Sustainable Farming Scheme must be accessible by all, and provide long-term stability for farming businesses and the wider rural economy that relies upon agriculture. The SFS needs to provide a meaningful income stream which properly rewards farmers and underpins the importance of a high quality food supply chain, produced here in Wales” said Mr Rickman.

The uncertainty around the future of agricultural support in Wales comes against a backdrop of continuous bovine TB breakdowns and the slaughtering of thousands of Welsh cattle every year. This is in addition to an all-Wales approach to bureaucratic pollution regulations which will cost the industry in excess of £400 million to comply with.

“The recent meetings at Welshpool and Carmarthen livestock markets made a clear statement about the frustration felt by many farmers. It illustrated the groundswell of concern with regards to the current situation and future direction of agricultural policy here in Wales.

“As a farmer myself I fully understand and comprehend the frustrations of many at these meetings. We need to ensure that we work together and that the voice of Welsh farmers is being heard by decision makers in Wales and Westminster. Both farming unions will be meeting with Minister for Rural Affairs, Lesley Griffiths, to discuss the way forward.

“I cannot, however, overstate how important it is for every individual and business that will be affected by these proposals to formally respond to this consultation by the 7th of March. It is absolutely crucial that we all do so.

“I would also ask you to contact your local elected representatives at every opportunity, whether they are county councillors, local and/or regional Members of the Senedd or Members of Parliament at Westminster.

“We need to ensure that they also hear your voice and your concerns in order to ensure that we can continue to bring pressure on the Welsh Government to revise the scheme in a way that promotes a sustainable agriculture industry in Wales and safeguards it for the future.”

Respond to the Sustainable Farming Scheme consultation here:

English: https://www.fuw.org.uk/index.php/en/sfs-consultation

Welsh: https://www.fuw.org.uk/index.php/en/sfs-consultation-cy

The Farmers’ Union of Wales (FUW) has raised £ 17,509 for the Wales Air Ambulance throughout its annual farmhouse breakfast week in January (15 -21 January 2024).

Over 35 events were held across Wales with members and politicians alike enjoying the delicious, nutritious and sustainable breakfast produce on offer, whilst catching up on farming matters with FUW staff and officials.

FUW President Ian Rickman said: “We have enjoyed another successful breakfast week and I thank all the staff, members, volunteers and our politicians across Wales for their incredible support. Together we have raised an incredible amount of money for this very important charity that saves lives across Wales every single day. 

The Farmers’ Union of Wales has welcomed the announcement that support payments will be made available to all fully-certified organic producers in Wales this year, providing much-needed certainty for the sector.

Speaking in response to the announcement, FUW President Ian Rickman said: “This is welcomed news for the Welsh organic sector following the end of the Glastir Organic Scheme and especially for those who continue to face inflationary pressures.

“This support, which will be administered through the SAF process, should enable organic producers to maintain their certified status for this year as we consult with our members on the final details of the Sustainable Farming Scheme and how long-term support for organics will be included.”