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Farming

Farming budget tops agenda as NFU Cymru meets Welsh Government heads

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IN a meeting this week with the First Minister and Deputy First Minister, NFU Cymru has outlined the importance of a budget for Welsh farming that will help the sector meet its ambitions for food, nature, climate and communities. 

NFU Cymru was pleased to have the opportunity to meet with Eluned Morgan, First Minister of Wales, alongside Deputy First Minister and Cabinet Secretary for Climate Change and Rural Affairs, Huw Irranca-Davies. Top of the agenda was funding for agriculture and progress on the development of the Sustainable Farming Scheme.

Highlighting key challenges

Speaking after the meeting, NFU Cymru Deputy President Abi Reader, said: “I was delighted at the opportunity to have an early meeting with the new heads of Welsh Government, an opportunity for NFU Cymru to highlight some of the challenges that Welsh farming currently faces but more importantly the opportunities we have to be world leaders in the production of climate friendly food.

“We are immensely proud to be the cornerstone of a Welsh food and farming sector worth £9.3 billion to Wales, part of a food and drink industry that employs 228, 500 people, 17% of Wales’s workforce, with over 50,000 employed on farm.

Ambition

“We have an ambition to further grow the sector both in terms of value and jobs. Producing high quality, safe and affordable food, growing established, and building new, markets at home and abroad with Welsh farming being the driving force behind vibrant rural communities.

“Our discussions today focussed on securing a multi-year budget for Welsh farming, a budget that, in totality, needs to increase to around £500m annually just to keep pace with inflation. With the Rural Affairs Budget subject to the largest cuts of any Welsh Government department last autumn, it is imperative that this budget is restored, and inflation taken into account when the Welsh Government draft budget is published later this year. Welsh farmers are being asked to deliver more than ever before in relation to food security, nature and climate, government must provide the funding to ensure we can meet our ambitions.”

The meeting also provided an opportunity to discuss the Sustainable Farming Scheme, Abi Reader said: “We very much recognise the commitment being made by the Deputy First Minister to partnership working and NFU Cymru is pleased to be a part of ongoing discussions within the Ministerial Roundtable, Carbon Sequestration Panel and Officials Working Group, it is vital that the outputs of these groups help deliver a scheme that works for all sectors and all farm types.

BPS maintained for 2025

“We have welcomed the commitment the Cabinet Secretary has made to maintain the BPS for 2025, providing much needed stability and certainty to farmers and all those in the supply chain that rely on Welsh farming for so much of their income. This decision has provided the breathing space to allow for the design of the SFS that must deliver at least the same level of stability for farming, rural communities and the supply chain.”

In conclusion, Abi Reader said: “I was pleased to have positive and constructive dialogue with the new First Minister and Deputy First Minister today. We cannot get away from the challenges we currently face, but I welcome the willingness of the First Minister and Deputy First Minister to want to work with us on these matters. For our part NFU Cymru is committed to continuing to work in partnership to deliver a productive, profitable and progressive food and farming sector for Wales.”

Business

Decision due on development of buildings at Trewern Farm

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A CALL to let a 950-herd north Pembrokeshire dairy farm keep a farm shed built without permission over a decade ago is expected to be approved later this month.

In an application recommended for conditional approval at Pembrokeshire Coast National Park’s development management committee meeting of January 29, Trewern Farms Ltd is seeking permission for the retention of the agricultural building and lay down area at Trewern Farm, Felindre Farchog.

The application is part of a wider complex planning history associated with the site.

A report for Park planners says: “Trewern Farm is operated as a zero grazing style dairy farm with 304 hectares located on two separate parcels of land, one at Trewern with the remainder being at Penpedwast, adjacent to Castell Henllys. The farm has a dairy herd of approximately 950 cows.

“Trewern Farm has expanded significantly over recent years with many of the buildings and structures on site having been erected without the prior benefit of planning permission, and having since been regularised through a combination of retrospective applications and certificates of lawfulness.

“The building subject of this application is believed to have been constructed in 2014. The site currently comprises an agricultural shed immediately adjoining another shed and is used for cubicle housing.

“A slurry lagoon, silage clamps and 12 of the newer agricultural buildings are now lawful as Certificates of Lawfulness were granted for these whilst the Authority was awaiting an Environmental Impact Assessment to be submitted by the applicants for the 2015 planning application to regularise the unauthorised buildings.

“However, this is the last of the outstanding agricultural buildings which are not lawful, and an enforcement notice was served in May 2018 requiring its removal. This notice was appealed in November 2019 and is currently being held in abeyance by the Planning Inspectorate.”

It says the building referred to in the application “is described as being designed to house cattle in a series of cubicles, and forms part of a longer set of buildings running along the southern section of the farming complex,” adding: “The livestock numbers are not proposed for increase as a result of this application but will be as secured [by a planning consent] restricted to no more than 960 milking cows with 1020 maximum excluding calves.”

Local community council Nevern has previously said it has “grave concerns” about the application, asking, amongst other things, how the 960 cattle limit will be policed and important nearby woodland will be protected.

The application was previously recommended for approval at the park’s December meeting, but was deferred as not all received documentation had been published on the national park’s planning website.

The application is now returning to the January meeting, again recommended for conditional approval.

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Farming

Dairy farmers hit hard as average incomes plunge by up to 62%

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DAIRY FARMERS in Wales have suffered a major financial blow, with incomes falling by 62% in real terms between April 2023 and March 2024, according to recent figures. Average farm business income during this period dropped to just £70,900—a significant decline from previous years.

FALLING MILK PRICES

The primary cause of this downturn has been a sharp reduction in farmgate milk prices. After record highs in 2022, milk prices fell dramatically in early 2023, leaving many farmers struggling to make ends meet. This drop in revenue has had a ripple effect across the sector.

RISING COSTS

At the same time, input costs for feed, fertilizer, and fuel have remained stubbornly high. Although there has been some stabilization in feed prices, the overall cost of production continues to strain farm finances. Many farmers report that rising costs are eroding already slim profit margins.

LABOUR CHALLENGES

Labour shortages have also played a role. The dairy sector, which relies heavily on skilled workers, has faced difficulties in recruiting staff, a problem made worse by post-Brexit immigration rules. As a result, many farms have had to pay higher wages, further cutting into their earnings.

REGULATORY BURDENS

Environmental regulations have added another layer of financial stress. Farmers have been required to invest in costly infrastructure, such as improved slurry storage systems, to meet new standards. While these measures aim to protect the environment, they have placed additional pressure on farmers already grappling with tight budgets.

UNPREDICTABLE WEATHER

Weather volatility has also contributed to the challenges. Unpredictable conditions have impacted forage quality and availability, affecting milk yields and increasing costs for supplementary feed.

CALLS FOR SUPPORT

Industry leaders are calling for greater support to help dairy farmers weather the storm. They are urging the government to provide relief measures and address the ongoing issues of market volatility and regulatory costs.

Farmers’ Union of Wales Deputy President, Dai Miles said: “The latest statistics on Farm Business Incomes in Wales demonstrate the economic reality of attempting to maintain levels of profitability against a backdrop of increasing costs and red tape.

“Dairy farms have seen significant declines due to both an average increase of 10% in overall farm business costs coupled with reductions in income.

“Across the board, however, the proportion of farm businesses in Wales generating a negative income continues to increase to over 20%. At the very least, this demonstrates the need for the future Sustainable Farming Scheme to offer an equal level of economic stability, currently provided through the Basic Payment Scheme, the maintenance of which for 2025 has been welcomed by the industry.”

Commenting Liberal Democrat MP for Brecon, Radnor and Cwm Tawe David Chadwick said: “These figures should be a stark reminder for Labour that the idea farmers are all wealthy and should be targeted to punitive tax raids is for the birds.

“Agricultural incomes have been falling for some time. The last Government did not offer much to help and now the new Government risks making things even worse. If they don’t change course, we will see a continued decline in the rural economy and the hallowing out of our rural communities.

“Labour must end their war on the countryside being waged from both Cardiff Bay and Westminster, cancel the family farms tax and reset their relationship with our farmers. Our food security and the economic viability of rural communities depend on it.”

LOOKING AHEAD

Despite the challenges, some industry analysts remain cautiously optimistic, suggesting that stabilizing milk prices and improved market conditions could provide relief in the coming year. However, without significant intervention, many fear that the sector may continue to struggle.

Dairy farming has long been a cornerstone of the Welsh economy, and the current crisis serves as a stark reminder of the need for robust support for this vital industry.

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Farming

Farmers’ Union of Wales responds to Foot and Mouth case in Germany

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THE FARMER’S UNION OF WALES has responded to reports of a confirmed case of Foot and Mouth disease (FMD) in Germany.

The disease was identified on 10 January in a water buffalo on a farm in Märkisch-Oderland, Brandenburg, marking Germany’s first case of FMD in nearly 40 years.

Foot and Mouth disease does not pose a risk to human health or food safety.

In response, the UK Government has implemented a ban on the import of cattle, pigs, and sheep from Germany. Additional measures include the suspension of import health certificates for live animals and fresh meat from species susceptible to Foot and Mouth disease.

Commenting on the development, FUW President Ian Rickman said:

“The recent case of Foot and Mouth disease in Germany will be a source of concern for livestock farmers across Europe.

The news inevitably brings back memories of the devastating impact the disease had on the agriculture sector and the countryside in 2001. This serves as a timely reminder of the importance of stringent border checks to prevent such diseases from entering the UK.

We welcome the proactive steps taken by the German authorities and the UK Government’s decision to ban livestock imports from Germany. As the situation unfolds, we will closely monitor developments and encourage livestock keepers to remain vigilant.”

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