Farming
Dairy farmers hit hard as average incomes plunge by up to 62%
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.
Farming
‘Poor decision’ New Creamston housing condition overturned
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
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
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.
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