Farming

Hard Brexit threat to west Wales’ farmers

Published

8 years ago

February 13, 2018

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

FUW Insurance Services appoints Paul Jameson as non-executive director

Published

1 day ago

December 16, 2025

Tom Sinclair

Experienced insurance and risk specialist joins board as long-serving director retires

FUW INSURANCE SERVICS LTD, Wales’ leading specialist agricultural insurance broker, has announced the appointment of Dr Paul Jameson as a non-executive director.

Dr Jameson brings extensive experience in insurance and risk management, having worked as an actuary and senior executive within subsidiaries of major global insurers including Allianz, Munich Re, Legal & General and Wakam. He has held chief risk officer roles since 2020.

During his career, Dr Jameson has led multidisciplinary teams spanning actuarial services, risk management, compliance, audit, legal and marketing approvals, giving him broad experience in both strategic oversight and operational governance.

Speaking following his appointment, Dr Jameson, who lives in Colwyn Bay, North Wales, said he was looking forward to supporting the farming sector in Wales.

He said: “I am delighted to join FUW Insurance Services and would like to thank Ann, Guto and the rest of the team for their warm welcome.

“I have been impressed by the passion and commitment of the board to the farming community, and by its ambition to grow and diversify the insurance business. I am keen to support the farming profession and help ensure the continued success of the sector in Wales, particularly during periods of economic and geopolitical uncertainty.

“I hope my experience in the insurance sector will help the business build on its successes and continue to grow, especially as it explores new commercial opportunities and innovative avenues for expansion.”

Ann Beynon OBE, chair of the FUW Insurance Services board, said Dr Jameson’s expertise would be a significant asset to the organisation.

She said: “We are delighted to welcome Dr Paul Jameson to the board. His depth of experience in insurance and his understanding of risk management will be invaluable as we continue to develop and diversify our services.

“Paul’s insight and strategic perspective will help us navigate a changing insurance market, identify new opportunities for innovation and growth, and strengthen the services we provide to our customers.”

Dr Jameson’s appointment follows the retirement of Ken Isherwood, who has stepped down from the board after more than a decade of service.

Paying tribute, Ann Beynon said: “Ken’s integrity, wisdom and deep knowledge of the insurance industry have underpinned much of our success.

“It has been a privilege to work alongside him, and we wish him every happiness in his well-earned retirement.”

Community

Badger Trust launches manifesto ahead of 2026 Senedd elections

Published

1 day ago

December 16, 2025

Rieve Nesbitt-Marr

THE BADGER TRUST has published a new Cymru Badger Manifesto calling on candidates standing in the 2026 Senedd elections to commit to a science-led approach to bovine tuberculosis (bTB) and to maintain Wales’ current policy of not culling badgers.

The manifesto, released on Wednesday (Dec 10) as part of the charity’s Badgers Belong Here / Mae Moch Daear yn Perthyn Yma campaign, sets out the organisation’s position on badger protection, wildlife crime and bTB control, and urges politicians to reject calls for the reintroduction of culling in Wales.

Badger Trust argues that political decisions taken during the next Senedd term will be critical to the future of badgers, which it describes as culturally and ecologically significant to Wales. The charity says badgers have been present in Wales for more than 250,000 years and remain part of Welsh folklore, place names and rural identity.

Five key commitments

The manifesto outlines five commitments the charity is asking Senedd candidates to support, including defending what it describes as science-led policy on bTB, challenging misinformation in public debate, strengthening enforcement against wildlife crime, recognising badgers as part of Welsh heritage, and supporting local volunteer badger groups.

According to Badger Trust, 140 incidents of badger-related wildlife crime have been recorded in Wales since 2020, which it says highlights the need for improved reporting and enforcement.

The charity also points to the work of six active badger groups across Wales, which it says assist with rescuing injured animals, monitoring setts, recording road casualties and supporting local authorities.

bTB policy in Wales and England

Wales has not carried out widespread badger culling as part of its bTB control strategy, instead focusing on cattle testing, biosecurity measures and herd management.

Badger Trust claims that new herd incidents of bTB in Wales fell by more than 40% between 2010 and 2024, which it attributes to cattle-based controls rather than wildlife intervention.

The charity contrasts this with England, where it says almost 250,000 badgers have been culled over the past decade as part of bTB control programmes. It argues that bTB rates in England remain higher than in Wales and that the evidence does not show culling alone to be responsible for reductions in disease.

Disputed claims over culling

The manifesto challenges the frequently cited claim that badger culling in England led to a 56% reduction in bTB in cattle. Badger Trust says this figure has been misinterpreted and that studies cited in support of culling also involved additional measures such as enhanced cattle testing and biosecurity.

The charity points to statements from researchers and official correspondence which, it says, indicate that reductions in bTB cannot be attributed solely to culling.

Supporters of culling, including some farming groups, continue to argue that wildlife control should remain an option as part of a wider disease management strategy, particularly in areas with persistent infection. The Welsh Government has previously said it keeps its bTB policy under review in line with emerging evidence.

Call to candidates

Nigel Palmer, CEO of Badger Trust, said Wales demonstrated that bTB could be tackled without killing wildlife.

He said: “Wales is a world-leading example of how to address bovine TB through evidence-based policy. The progress made here shows that culling is not necessary, and we urge Senedd candidates to stand by the science.”

The manifesto is available in both Welsh and English and will be circulated to political parties and candidates ahead of the 2026 election.

Farming

Basic Payment Scheme 2025 balance paid to 95% of Welsh farmers

Published

4 days ago

December 14, 2025

Tom Sinclair

Final year of BPS as transition to Sustainable Farming Scheme begins

The WELSH Government says more than ninety-five per cent of farm businesses have now received their full or balance payment under the final year of the Basic Payment Scheme (BPS), ahead of the introduction of the new Sustainable Farming Scheme (SFS) in 2026.

Announcing the update on Friday (Dec 12), Deputy First Minister and Cabinet Secretary for Climate Change and Rural Affairs, Huw Irranca-Davies, confirmed that over 15,400 Welsh farm businesses have been paid £68.7m. This comes on top of the £160m issued in BPS advance payments since 14 October.

Final round of BPS payments

The Basic Payment Scheme, which has been the backbone of farm support in Wales for a decade, provides direct income support to help farmers plan and manage their businesses. BPS 2025 marks the last year in which full BPS payments will be made before the scheme begins to be phased out.

The Cabinet Secretary said officials would “continue to process the outstanding BPS 2025 claims as soon as possible,” adding that all but the most complex cases should be completed by 30 June 2026.

Payments issued today represent the main balance due to farmers following earlier advances, giving many businesses the cash flow they need during the quieter winter period—traditionally a challenging time in the agricultural calendar.

Shift to Sustainable Farming Scheme in 2026

From 1 January 2026, the Welsh Government will begin rolling out the Sustainable Farming Scheme, a major reform to how agricultural support is delivered. The SFS will reward farmers for environmental outcomes such as habitat management, carbon reduction and biodiversity improvements, alongside continued food production.

The government has argued that the new scheme is essential to meeting Wales’ climate and nature targets while ensuring long-term resilience in the sector. However, the transition has been closely watched by farming unions, who have raised concerns about the administrative burden, income stability, and the speed at which BPS is being phased out.

Mr Irranca-Davies reaffirmed the government’s stance, saying: “This government is steadfastly committed to supporting Welsh farmers to sustainably produce quality food. This is demonstrated today in our payment of the BPS 2025 balance payments and will continue throughout the transition period.”

Sector reaction

Farming unions are expected to scrutinise the detail of today’s announcement, particularly around remaining unpaid cases. Last year, late payments led to frustration in parts of the sector, with unions calling for greater certainty as the industry faces rising input costs, supply chain pressures and continued market volatility.

The move to the SFS remains one of the most significant agricultural policy changes in Wales since devolution. Ministers insist the shift is designed to support both food production and environmental stewardship, while critics warn the transition must not undermine farm viability—especially for family-run livestock farms that dominate rural areas such as Pembrokeshire, Ceredigion and Carmarthenshire.

What happens next

Farmers still awaiting their BPS 2025 balance will continue to be processed “as soon as possible”, the Welsh Government said. Officials will also publish updated guidance on the Sustainable Farming Scheme ahead of its launch.

The coming year will therefore become a pivotal moment for Welsh agriculture, as the long-standing BPS framework—which provided over £200m annually to Welsh farmers—makes way for a new results-based model that will shape the industry for decades to come.