Farming

Confidence drops as markets stay volatile

Published

10 years ago

January 5, 2016

British farming has faced massive challenges in 2015: Meurig Raymond

INCREASED volatility and falling commodity prices across the sectors have seen farmers’ confidence drop to lower levels than last year, a new survey by the NFU has revealed. Confidence, specifically in the arable and dairy sectors, has declined significantly from 12 months ago, but farmers across the industry have told NFU that the three-year forecast is much more positive. As part of our sixth annual confidence survey, members told the NFU that they expected negative impacts on their businesses in the coming year relating to regulation and legislation (69%); CAP reform (51%); output prices (56%) and input prices (46%). Output prices are the second most important factor affecting confidence, as members have seen their margins squeezed as a result of the fall in farmgate prices greater than the reduction in their costs of production.
The survey also shows that in the last two years twice as many farmers have seen their profits declining, with 49% of respondents now reporting declining profits (42% last year). Some 7% think their business may not survive – the highest figure in any year so far. Those figures were even more worrying in the dairy sector, where almost 20% of dairy respondents declared that their business may not survive, a rise from 3% in 2014. NFU President Meurig Raymond said: “This year has seen British farming face massive challenges, not least of all falling farmgate prices, particularly within the dairy and arable sectors. “Given the levels of volatility we have seen across the industry it is no surprise that we have seen farmer confidence in the negative.
It shows very clearly that we are absolutely correct to urge Defra and RPA to make every effort to speed delivery of BPS payments and that we press processors and retailers for a fairer return for the highquality food that farmers supply. “Regulation remains the key blocker for our members’ confidence. This gives a clear message that government must to do all that it can to ease regulatory pressure. Confidence is critical because it influences investment and production intentions. If we want our farms to compete in an increasingly global market place and make the most of emerging export opportunities, we need government action rather than rhetoric when it comes to reducing red tape. This is why NFU is calling for action in 2016 to reduce the frequency of farm inspections and improve their coordination.
“Our research has shown that looking forward, farmers have a generally optimistic outlook on their medium-term prospects. The government has a golden opportunity, in its 25-year Food and Farming Strategy, to map the course for a more confident and profitable industry. The NFU urges government, retailers and the public to back British farming to ensure this optimism is not misplaced.” More farmers said they want to invest in diversification, training and energy efficiency in the three years to come. Those intentions are backed by the higher levels of borrowing in agriculture registered for the first nine months of the year.
The volatility of markets was a key part of evidence given by the NFU to House of Lords committee on December 16. The NFU has given evidence to a group of Peers on how agricultural price volatility impacts farm businesses. Head of food and farming Phil Bicknell appeared before the House of Lords Energy and Environment Sub- Committee as part of its enquiry into market prices and wider resilience among farmers. It follows a similar enquiry being held by MPs on the House of Commons Efra Select Committee into farmgate prices.
With volatility characterising most agricultural markets, and the associated pressures on cash flow, profitability and long term business planning, the committee heard about the challenges of price volatility faced by NFU members. Mr Bicknell emphasised that sustained price volatility risks the viability of farm businesses, leads to reduced investment levels, and is a challenge for the whole food supply chain rather than just a farming issue.
He said: “Volatility is an ever increasing characteristic of agricultural markets, particularly as we’ve seen farm policy back away from market management and control to less marketdistorting policy tools. “Farming is a very resilient industry. Our industry is made up of farmers who are past masters at dealing with anything that’s thrown at them – whether that’s periods of low prices or the recent devastating floods that hit farming communities in Northern England. “But it’s important that we’re an industry that thrives rather than just survives and is geared up for future food production. A boom and bust cycle of prices benefits can be damaging in the long run.”

Farming

‘Poor decision’ New Creamston housing condition overturned

Published

5 hours ago

December 4, 2025

Bruce Sinclair - Local Democracy Reporter

A “POOR DECISION” agricultural worker-only imposed nearly 40 years ago has been removed from a Pembrokeshire property by county planners.

In an application recommended to be approved at the December meeting of Pembrokeshire County council’s planning committee, Tim and Cathy Arthur sought permission for the removal of an agricultural worker-only condition at New Creamson, Creamston Road, near Haverfordwest.

An officer report for members said the agricultural condition was imposed when the dwelling was built in 1988/89, with a later certificate of lawful development granted this year after it was proven the site had been occupied for more than 10 years on breach of that condition.

An application for a certificate of lawfulness allows an applicant to stay at a development if they can provide proof of occupancy over a prolonged period.

Speaking at the meeting, agent Andrew Vaughan-Harries of Hayston Developments & Planning Ltd told members the original agriculture-only condition was a poor decision by planners back nearly four decades ago.

“When this application was made in 1988-89 we go back to the Preseli District Council – I was still in school – it was only a 50-acre farm, it should never have been approved as it shouldn’t have been viable.

“The current applicants have owned it for the last 20 years; they’ve tried to grow apples but couldn’t make a go of it and then went in to holiday lets. We can’t enforce redundant conditions from bad decisions made years ago.”

Approval was moved by Cllr Brian Hall and unanimously supported by committee members.

Business

Cwm Deri Vineyard Martletwy holiday lets plans deferred

Published

19 hours ago

December 4, 2025

Bruce Sinclair - Local Democracy Reporter

CALLS to convert a former vineyard restaurant in rural Pembrokeshire which had been recommended for refusal has been given a breathing space by planners.

In an application recommended for refusal at the December meeting of Pembrokeshire County Council’s planning committee, Barry Cadogan sought permission for a farm diversification and expansion of an existing holiday operation through the conversion of the redundant former Cwm Deri vineyard production base and restaurant to three holiday lets at Oaklea, Martletwy.

It was recommended for refusal on the grounds of the open countryside location being contrary to planning policy and there was no evidence submitted that the application would not increase foul flows and that nutrient neutrality in the Pembrokeshire Marine SAC would be achieved within this catchment.

An officer report said that, while the scheme was suggested as a form of farm diversification, no detail had been provided in the form of a business case.

Speaking at the meeting, agent Andrew Vaughan-Harries of Hayston Developments & Planning Ltd, after the committee had enjoyed a seasonal break for mince pies, said of the recommendation for refusal: “I’m a bit grumpy over this one; the client has done everything right, he has talked with the authority and it’s not in retrospect but has had a negative report from your officers.”

He said the former Cwm Deri vineyard had been a very successful business, with a shop and a restaurant catering for ‘100 covers’ before it closed two three years ago when the original owner relocated to Carmarthenshire.

He said Mr Cadogan then bought the site, farming over 36 acres and running a small campsite of 20 spaces, but didn’t wish to run a café or a wine shop; arguing the “beautiful kitchen” and facilities would easily convert to holiday let use.

He said a “common sense approach” showed a septic tank that could cope with a restaurant of “100 covers” could cope with three holiday lets, describing the nitrates issue as “a red herring”.

He suggested a deferral for further information to be provided by the applicant, adding: “This is a big, missed opportunity if we just kick this out today, there’s a building sitting there not creating any jobs.”

On the ‘open countryside’ argument, he said that while many viewed Martletwy as “a little bit in the sticks” there was already permission for the campsite, and the restaurant, and the Bluestone holiday park and the Wild Lakes water park were roughly a mile or so away.

He said converting the former restaurant would “be an asset to bring it over to tourism,” adding: “We don’t all want to stay in Tenby or the Ty Hotel in Milford Haven.”

While Cllr Nick Neuman felt the nutrients issue could be overcome, Cllr Michael Williams warned the application was “clearly outside policy,” recommending it be refused.

A counter-proposal, by Cllr Tony Wilcox, called for a site visit before any decision was made, the application returning to a future committee; members voting seven to three in favour of that.

Farming

Farmers Union of Wales Warns: Labour’s 5G Expansion Risks Rural Blackspots

Published

2 days ago

December 3, 2025

Tom Sinclair

FUW Joins Landowners in Urgent Call to Pause Controversial Telecoms Reforms

THE FUW (Farmers’ Union of Wales) has warned that rural communities face worsening mobile blackspots and farmers risk losing essential income if the Labour Government expands a telecoms policy blamed for stalling Britain’s 5G rollout.

In a letter to Digital Economy Minister Liz Lloyd, the FUW aligns with landowners, investors, and property experts demanding a halt to Part 2 of the Product Security and Telecommunications Infrastructure (PSTI) Act 2022. Extending the 2017 Electronic Communications Code (ECC) would “entrench failure,” the group argues, sparking more stalled renewals, site losses, and legal battles just as Wales needs swifter rural connectivity.

The 2017 reforms empowered operators to cut mast rents—often by 90%—from hosts like farmers, councils, and NHS trusts. Far from boosting rollout, they’ve ignited over 1,000 tribunal cases since 2017, versus 33 in the prior three decades. Rural goodwill has eroded, with hosts now eyeing exits.

“Every lost mast isolates households, schools, and businesses,” the FUW states. “No public subsidy can fix this systemic damage.”

A survey of 559 hosts (via NFU, CLA, BPF) shows:

35% considering full withdrawal.
70% of expired lease holders facing operator legal threats.

Landowner Ted Hobbs in New Tredegar shares the pain: “My 1995 Vodafone lease was £3,500 yearly, renewed in 2010 at the same rate. It expired May 2025—now they demand a slash, backed by the Code. This is confiscation, not partnership.”

Labour’s push forward—despite earlier opposition and a critical consultation—ignores these red flags.

FUW President Ian Rickman adds: “Farmers hosted masts in good faith for rural connectivity. Punishing them with rent cuts sabotages Wales. Halt this now, restore trust, and incentivise real progress.”

The coalition urges ministers to reopen dialogue before deepening rural divides. Wales can’t afford more policy missteps.