The Farmers’ Union of Wales is once again preparing for one of its key events - the annual Farmhouse Breakfast week, which will run from Monday 18 - Sunday 24 January 2021.

Under normal circumstances the FUW would be looking forward to sitting around kitchen tables with friends, family and neighbours up and down the country - sharing our thoughts, worries, concerns and anything else on our mind. Of course, given the on-going Covid-19 restrictions, the  usual way of running this campaign is sadly not an option.

FUW President Glyn Roberts said: “However, the ethos of sitting around the kitchen table to enjoy the wonderful produce our farmers produce from eggs, cheese, bacon, sausages to butters and yoghurts etc, is still very much do-able at home with our closest family.”

As we enter a New Year in which we all hope to return to some kind of normality, the UK’s genuine departure from the European Union after a lengthy divorce suggests 2021 will be anything but normal, irrespective of what progress is made in tackling the current coronavirus pandemic. Having breathed a collective sigh of relief after the UK and EU finally reached agreement on Christmas Eve - thereby avoiding the nightmare of tariffs that would have reduce farmgate prices for some products by 30% or more - from 1 January 2021 we will nevertheless start to see the impacts of non-tariff barriers which will make 2021 difficult to say the least for many Welsh businesses.

As the one-hundred-plus members who joined our Brexit webinar on December 17 learned, the Export Health Certificates required by food manufacturers to export products to the EU will cost around £150 to £200 each, meaning the total UK bill for certificates alone is expected to be between £45 million and £60 million in 2021 if exports continue at current rates. This is equivalent to between 3% and 4% of the value of current UK meat exports. Meanwhile, the additional costs of these and other non-tariff barriers are estimated to be between 4% and 8% - equivalent to a reduction of between 19p and 40p per deadweight kilo based on last year’s SQQ lamb prices.

We also have certainty regarding the budget that will replace our EU Common Agricultural Policy budget: in December 2019, the UK Government announced a Welsh BPS budget that took no account of the 15% Pillar Transfer, leaving a funding gap of £42 million. Then in November this year, they announced a Welsh funding allocation that increases this funding gap for 2021-2022 to £137 million - equivalent to a cut of around 41%.

Welsh farmers and food producers have sighed a huge sigh of relief after it was revealed that the UK and EU are close to agreeing a Free Trade Agreement (FTA) covering key Welsh products.

Speaking after news of the breakthrough broke on Wednesday evening (December 23), FUW President Glyn Roberts said: "The consequences of a no deal for farming and other industries would be catastrophic, so it was always hoped that common sense would prevail.

"However, there was always a risk that refusals to compromise on one or other side could lead to the worst case scenario."

Mr Roberts also welcomed the EU's formal listing of the UK as a 'Third Country' - a move which is essential in terms of allowing Welsh food exports to the EU.

"However, our access to the EU market, which is the destination for three quarters of Welsh food and drink exports, will still face significant barriers after 31st Decembers, with non-tariff barrier costs expected to rise by 4 to 8 percent."

Mr Roberts said the full text of an agreement would have to be scrutinised in order to assess the full impacts and benefits, and a number of concerns existed including in terms of seed potato exports.

"Nevertheless, the Welsh farming industry, like others the length and breadth of Great Britain, will be celebrating Christmas having breathed a huge sigh of relief that a deal seems close to being agreed."

The Farmers’ Union of Wales has welcomed the Welsh Government’s announcement of a direct payment ceiling that will ensure Basic Payments Scheme (BPS) payments in 2021 remain at the same level as in 2020.

Lesley Griffiths, Welsh Government Minister for Environment, Energy and Rural Affairs, announced on Monday (21 December) a total direct payment ceiling of £238 million for the 2021 BPS.

Speaking after the announcement, FUW President Glyn Roberts said: “We very much welcome the Minister’s confirmation that she intends to provide financial security for farming families and the tens of thousands of rural businesses they support at a time of unprecedented uncertainty.”