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Farming

Hard Brexit threat to west Wales’ farmers

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John Davies, NFU Cymru: Priority must be tariff-free trade with EU27

BREXIT threatens major upheaval for Welsh agriculture, with small upland farms particularly threatened.

A report from the Public Policy Institute for Wales (PPIW) suggests that there is a massive risk to west and north Wales.

LIVESTOCK FARMING THREATENED

Its analysis suggests that the most likely changes in trading conditions would tend to disadvantage the competitive position of Welsh agriculture in its main current markets and trading competitors (particularly in sheep and beef).

The report also anticipates generally reduced levels and scope of public funding by comparison with those the sector has enjoyed in recent years.

However, within these challenging probable change scenarios, there are opportunities if farm businesses are enabled to respond adaptively.

Some farms and sectors face much greater challenges than others, which implies uneven structural change across significant areas:

  • a decline in the economic viability of sheep production is likely, with these farm businesses especially vulnerable to changes in both market access arrangements and public funding support – this could increase pressure on rural services;
  • accordingly, north and west Wales are likely to face stronger negative impacts than the south and east, where more potentially positive and diverse impacts can be expected among dairy, horticultural, mixed and other farm types.

MARKET RESPONSE UNCERTAIN

How key food and forestry processors and retailers respond to the Brexit process, and their willingness to invest in Wales and Welsh products, will be an important factor. Their patterns of operation may change in response to shifting economic and market conditions.

Managing the challenges faced is key, to prevent undesirable impacts on natural capital, landscape quality and community identity.

Three policy directions are recommended:

  • Fostering resilience in farm and other land management businesses; supporting successful adaptation, enhanced efficiency, diversification, adding value and intergenerational transfer, as well as some moves from farming into other sectors;
  • Investing in longer-term partnerships between government, food retailers, rural service providers, and commercial lenders to promote stronger business networks and SME infrastructure across Wales;
  • Designing a future funding framework to support natural resource management and rural vitality in Wales.

THINK OUTSIDE THE BOX

Report author Prof Janet Dwyer, from the University of Gloucester, argued that while farming only employs a relatively small proportion of people directly, its success has a ripple effect across rural communities.

“People need to be more willing to think outside the box, to think about working together, think about understanding the way in which one person‘s business affects what other people do because farming affects the landscape, which affects tourism, which is an important sector in Wales, so a lot of these things are connected,” she said.

The CCRI Director and Professor of Rural Policy makes a number of recommendations to overcome these potential challenges. These include investing in better business planning and adjustment; careful succession planning for farms and small rural businesses; and policies to strengthen health and social services for those in the most remote areas.

“Conducting the work made me more aware of the importance of thinking ahead and planning for continued uncertainty, whatever the eventual political and economic outcomes of Brexit” said Professor Dwyer.

REPORT WELCOMED

A Welsh Government spokeswoman said it welcomed the report, saying it highlighted the possible impact of Brexit not just on trade and markets but on people‘s lives.

“However, Brexit also presents the opportunity to put in place new Welsh policy frameworks to help them adjust and thrive,” she said.
“We recognise that many of these changes will impact businesses in different ways and agree the best approach will be on an individual business level.”

She said they have already begun work to develop “sector readiness” programmes to support businesses to prepare for the change.

“We continue to press the UK government on the need for a multi-year transition period to enable all businesses to prepare and for clarity on the level of funding that Wales will receive after Brexit.”

Responding to the report’s findings, Paul Davies AM, Welsh Conservative Shadow Secretary for Rural Affairs, said: “We note with interest the recommendations of the report.

“Following our departure from the EU, more powers over agriculture will be transferred to the Assembly. “The Welsh Government now needs to focus on ensuring that they listen to rural communities and that they actually devolve power to people living in the countryside.”

Mr Davies view of ‘more powers’ being transferred to Wales does not appear to reflect the views of many Conservative Brexit enthusiasts within the UK Parliament, including David TC Davies, who chairs the Welsh Affairs Select Committee and David Jones, the former Secretary of State for Wales, whose appearance in Cardiff this week as a member of the Public Administration and Constitutional Affairs Committee was noticeable for his equivocal approach to the transfer of powers in areas of existing competence back to the Assembly after Brexit.

HARD BREXIT’S SEVERE IMPACT

The report’s publication coincided with the release of the Welsh Government’s own Brexit trade paper, supported by an economic impact analysis from Cardiff Business School, argues the Welsh economy is best protected by retaining full access to the European Single Market and membership of a customs union.

The paper sets out the severe impact a hard Brexit would have on Welsh jobs and the economy. If the UK were to move to World Trade Organisation (WTO) rules, the Welsh economy could shrink by 8% – 10%, which would be the equivalent of between £1,500 and £2,000 per person in Wales.

The trade paper calls on the UK government to provide evidence of how new trade deals would replace the benefits of access to the EU. The Welsh Government also wants decisions on new trading relationships with the EU and the wider world to be taken in partnership with devolved administrations to fully reflect the interests of all parts of the UK.

Launching the document, the First Minister said: “Welsh exports are worth £14.6bn each year, with 61% of Welsh exports and just under half of our imports going to and from the EU. Wales is currently attracting record levels of inward investment, which is largely due to our access to the EU’s 500m customers.

“As our trade paper highlights, moving to WTO rules and the imposition of tariffs could have a catastrophic impact on our lamb sector and on the Welsh shellfish industry, which currently exports around 90% of their produce to the EU.

“These hard facts underline what is at stake if the UK government fails to get the right deal for the UK or we crash out of the EU without one. Leaving the Single Market and the Customs Unions would be hugely damaging for Welsh businesses and jobs, with our agricultural, food producers and automotive sectors being particularly hard hit.

“I urge the UK government to give serious consideration to our proposals and work with us to develop a post-Brexit trade policy which protects Welsh jobs and the economy.”

NFU WELCOMES WG PAPER

Commenting on the document, NFU Cymru President Mr John Davies said: “As the paper rightly acknowledges, the decisions that will be taken about the UK’s future trading relationships with the EU27 and the rest of the world will be significant factors shaping our future prosperity. In my view, nowhere is this more true than in relation to agriculture, with around a third of our lamb crop and around three quarters of Welsh food and drink exports destined for the European market.

“Trade has consistently emerged as a top priority for our members during the Brexit negotiations. As far as I am concerned our future trading relationship must be one which gives us the full and unfettered access to the Single Market that we need, and I welcome the fact that the Welsh Government has made this call once again in today’s policy paper.

“The imposition of tariffs, under a no-deal scenario would impact lamb exports in particular, and under WTO rates chilled lamb carcasses would attract effective tariff rates as high as 46%, effectively shutting us out of European markets.

“Whilst there has been much talk of tariff barriers and the detrimental impact that they can have on trade, I was pleased to see the policy document making extensive references to the negative impact that non-tariff barriers can have on trade, particularly in relation to exports of food. When it comes to food and agricultural produce in particular, non-tariff barriers such as inspections at border posts in order to demonstrate compliance with technical regulations and standards, rule of origin, hygiene, veterinary and phytosanitary controls are all factors which increase costs and hinder trade.

“The paper also rightly acknowledges the damaging impact that the lack of clarity on future trade arrangements with the EU is having for business and nowhere is this truer than in agriculture where production cycles can often span a number of years. That is why we cannot wait much longer for an outline of what our future trading relationship with the EU27 is going to look like, if our members are to start planning for the future.”

Mr Davies concluded: “Although Brexit may well eventually give the UK the freedom to strike its own trade agreements with third countries other than the EU27, speaking as a Welsh farmer, the immediate priority for the UK Government has to be on securing a trade agreement with the EU27 that is free from tariff and non-tariff barriers, and encompasses all sectors including agriculture.”

Farming

£1,000 bursary award available to Pembrokeshire agricultural students

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PEMBROKESHIRE Agricultural Society’s £1,000 Bursary Award is now open for applications from students studying agriculture, veterinary science, agricultural engineering, food technology, forestry or other subjects allied to agriculture.

The Student Bursary Award 2024 is available to students, from Pembrokeshire, who are currently studying or have been accepted to start their studies. They can apply for this financial support to assist with their chosen college or career path.

Last year’s winner of the award was Lottie Wilson from Hayscastle. Lottie was studying agriculture at the University of Nottingham when she applied for the bursary. When she is at home she is a general dairy farm worker as well as a lambing hand and a calving beef herd assistant. In 2021 she was the top agriculture student at Hartpury College.

Robert James, Chairman of the Society’s Bursary Committee said, “I would urge all Pembrokeshire students who study subjects that are clearly aligned to agriculture to apply for this bursary as it won’t only assist with your studies but will also give you great experiences such as undertaking an interview which is a key employment skill. It will also assist in your future career within the agriculture industry.”

“A panel of independent judges will draw up a short list of candidates who will be interviewed and the winning candidate will be asked to give a short presentation at a future meeting of the society’s show council.

“The standard of applications has always been exceptional which gives a lot of heart that there are a lot of very talented young people in our community. We are very much looking forward to receiving applications for this year’s bursary and hearing from the younger generation.”  

Qualifying students must not have won the student bursary on a previous occasion, the applicant must be studying or has been accepted to study agriculture or allied subjects at a UK college or university at A-Level or higher and the applicant’s family home must be in Pembrokeshire.

The bursary is tax free and will be awarded to the student who, in the opinion of the panel of judges, has submitted the best dissertation on how the bursary will assist them to complete their course of study.

Further details and the entry form can be found online: Student Bursary Award | Pembrokeshire County Show | Pembs Agricultural Society (pembsshow.org)  or by calling the show office: 01437 764331. The closing date for applications is noon on Monday, 1 July 2024.

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Farming

Farmers who knowingly kept cattle with bovine TB on farm fined

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THREE members of a Pembrokeshire farming family have been sentenced for deliberately swapping cattle ear tags; actions that saw animals with Bovine Tuberculosis (TB) reactors remain on the farm.

Bovine Tuberculosis is a zoonotic infection that can infect many species, including humans and wildlife, though transmission to humans in the UK is very rare as a result of control measures in place across the agricultural and food industries.

The actions of Edward, Charles and Henry Hartt displayed widespread illegality and created an unacceptable and serious risk to animal health.

The Hartts operate a large scale dairy and beef farming enterprise – Messrs EW Hartt & Sons – at Longford Farm, Clynderwen, comprising about 2800 cattle.

The three men were sentenced at Swansea Crown Court on Monday, March 4th for offences committed under the Cattle Identification (Wales) Regulations 2007; legislation which underpins cattle management, disease control and traceability systems put in place to ensure the safety of the entire farming industry.

All three defendants had previously pleaded guilty to 12 counts on March 25th, 2022.
The court heard that where higher value cattle had tested positive for TB and would be valued for compensation, poorer quality animals would then be sent for slaughter in its place.

This meant that infected animals were kept on the farm with a significant risk of spreading the disease to other animals and jeopardising the success of the TB eradication programme.

Their retention would undoubtedly allow the disease to persist on farm, slowing the progress of eradication within the herd and the general cattle population and increasing costs to the Welsh Government and taxpayer.

The practice would also have resulted in the slaughter of healthy animals not actually infected with TB.
It was also determined that a portion of farm’s milk would have come from TB reactors that should have been removed, which under food safety legislation was banned from entering the food chain.

Where poorer cattle tested positive, evidence showed that they were substituted at valuation for higher value animals, attracting a higher level of compensation – but with the more valuable animals subsequently retained and the lower value TB reactors sent for slaughter.

Each defendant was fined a total of £24,000 – £2,000 for each count on the indictment.

The sentencing reflected the heightened TB risk of reactors remaining on farm, TB lesions present in cattle and a clear risk that misidentified animals could have entered the food chain.

As well as the significant fine, associated action had been taken against the defendants under the Proceeds of Crime Act 2002 (POCA).

This legislation was introduced with the aim of recovering assets, including money, acquired through criminal activity.

The use of POCA is particularly pertinent when it is so manifestly in the public interest to ensure criminal activity is not rewarded.

The criminal benefit arising in connection with the offending would have been derived through a mix of pathways.

This included TB compensation payments, sale of illegal stock, sale of milk from illegally retained stock, as well as the wider benefits gained by the farming enterprise.

The Hartts’ actions enabled a steady and continual expansion of the business, on a stronger financial footing, to the detriment of other farms in a competitive market.

This resulted in confiscation orders of £217,906 against each defendant jointly and severally to reflect the ‘criminal benefit’ associated with the offending.

The court also awarded the Council costs of £94,569.

The case brought by Pembrokeshire County Council followed an in-depth investigation by officers from the Council’s Public Protection Animal Health and Welfare Team, working in conjunction with the Animal and Plant Health Agency veterinary officers and other regulatory partners.

The investigation was triggered following the identification of anomalies at the farm in June 2019.

The subsequent investigations were complex and protracted over the remainder of the year, involving a number of inspections and visits, DNA sampling of milking cows, detailed audit and cross-referencing of farm records, ear tag and freeze brand (markings on the animal) checks, post-mortems and blood samples.

In one instance remarked upon by the Judge, the freeze brand of a milking cow was altered.
It was later discovered that her ear tags had been changed twice. DNA testing later proved that the animal should have previously left the farm.

Of 828 animals checked as part of the investigation, 123 had discrepancies in relation to their origin and identity, equivalent to 15% of the stock.

The extent and nature of the tagging issues and deliberate changes in identity dwarfed anything previously encountered by officers, and highly unlikely to be by error or mistake.
It was subsequently discovered that the farming operation had received TB compensation payments at a level far above most other farms.

The farm was one of only two in Wales to have had TB present for over 20 years. Since 2009 the farm had received more than £3 million in compensation payments, more than any other farm in Wales.

The prosecution maintained that the large scale illegality underpinned the foundations of the entire farming enterprise over a considerable period of time.

In December 2019, Food Standards Agency veterinary officers placed a stop on 19 carcases and associated offal/edible co-products from two lots of cattle sent for slaughter by the farm, that were destined for the human food chain.

This was due to irregularities concerning the identification and origin of certain animals and potential food chain implications.

Following the conclusion of the court case, Cllr Michelle Bateman, Cabinet Member for Housing Operations and Regulatory Services, welcomed the level of sentence.

She said: “This case will have resulted in unnecessary cost and a drain on resources for those involved in the TB eradication programme, including the major use of public money by Welsh Government who fund the implementation of the compensation scheme.
“It also greatly risks the health of neighbouring herds through unnecessary contamination of the environment as well as damaging the farming industry and public confidence in the safety of milk and meat.
“I congratulate our Council officers and all agencies in bringing this case successfully to court. I hope that this action and sentence will send a message that this sort of illegal behaviour will not be tolerated.”

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Farming

Kurtz leads farming protest on the Senedd’s steps

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LOCAL Senedd Member Samuel Kurtz helped lead the largest protest in the history of the Senedd, as thousands of farmers and those from rural Wales descended on Cardiff Bay.

As unrest has grown in farming circles following the publication of the Welsh Labour Government’s consultation on the Sustainable Farming Scheme (SFS), focus has also been drawn on the failing Bovine TB eradication strategy and the all-Wales Nitrate Vulnerable Zone (NVZs).

These three policies, which are directly the responsibility of the Welsh Labour Government, have caused untold stress, frustration and anger in rural Wales, as hundreds from West Wales made the journey in protest.

A Welsh Labour Government commissioned economic assessment showed that the SFS could see 5,500 jobs lost in rural Wales, with an economic hit of over £199 million.  

Samuel Kurtz, the Senedd Member for Carmarthen West and South Pembrokeshire, and Shadow Minister for Rural Affairs, who has long stood against the Welsh Labour Government’s failures, spoke to the protestors from the steps of the Senedd.

Speaking to the protest, Samuel stressed the importance of the rural community, and how the current policies risk both the current and future generations who live in rural Wales.

Following the protest, Samuel added:

“Speaking at the protest outside the Senedd was one of the proudest moments of my life, both as a politician and as a farmer’s son. But it is a sorry state that the Welsh Labour Government have let it get this far.

“The momentum is with the industry now and whomever becomes Wales’ next First Minister, and next Rural Affairs Minister, must work hard on the SFS, NVZs, and Bovine Tb, to repair a broken relationship between government and the agricultural sector.

“Can I thank all those who attended the protest for the respect and order that they showed. It was the largest of its kind and if the message hasn’t got through to the Welsh Government now, I’m not sure it ever will.”

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