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Farmers cautious but resilient as costs remain high across Wales

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Major supplier says confidence lower despite signs of stability returning

FARMERS across Wales are facing another difficult year as input costs remain significantly higher than before the pandemic, according to new industry insight from agricultural supplier Wynnstay Group.

The company, which has deep roots in rural Wales and generates around sixty per cent of its retail revenue in the country, says confidence among farmers is lower than this time last year, with rising costs, policy uncertainty and tightening margins influencing spending decisions.

However, there are also signs of resilience, with many producers focusing on efficiency and forward planning to cope with ongoing pressures.

Wales at heart of business

Wynnstay, originally founded by tenant farmers in Mid Wales in 1918, has grown into a major UK agricultural supplier serving more than 20,000 farming customers through manufacturing sites, stores and on-farm services. The group employs hundreds of staff across the UK and operates a nationwide distribution network supporting livestock and arable producers.

The company says Welsh farming businesses continue to play a central role in its commercial performance and long-term growth strategy.

Cautious investment decisions

According to Wynnstay, farmers are delaying some investment decisions but are increasingly seeking value-driven solutions that improve productivity.

Feed volumes have increased across the company’s Welsh store network over the past year, reflecting demand for blended feeds that offer greater flexibility and cost control. Rather than reducing purchases outright, many farmers are matching spending more closely to performance and output.

Fertiliser demand has also been strong, with sales ahead of last year, although some farmers have delayed buying in the hope prices may fall. Global supply pressures and rising gas costs mean prices are expected to remain firm into the busy spring season.

Costs still far above pre-Covid levels

Industry data shows overall farm input costs remain significantly higher than before 2020, with feed, fertiliser, fuel, electricity and machinery all continuing to put pressure on farm margins.

While some costs have eased from their peaks, they have not returned to previous levels, influencing buying behaviour across the sector.

Margins for livestock and dairy farms were strong last year, but Wynnstay says they are now tightening, particularly in the dairy sector where milk prices have fallen and volatility remains high.

Pressure on family farms

Smaller family-run farms are under greater strain than larger commercial operations, with less financial resilience to absorb rapid market changes. Reports of rising closures among family farms, particularly in dairy, reinforce concerns about the sector’s long-term sustainability.

Government policy changes are also contributing to uncertainty. The transition away from the Basic Payment Scheme and wider tax reforms have led many farmers to postpone larger investments until there is clearer long-term stability.

Local reaction

Pembrokeshire farmer Chris James said the situation reflected what many farmers were experiencing locally.

“We’ve definitely noticed the squeeze over the past year or two,” he said. “Costs for feed, fertiliser and fuel are still much higher than they used to be, and that makes you think twice about every decision. Most farmers I know aren’t cutting back on production — they’re just trying to be more efficient and careful with spending.”

He added: “People want to invest and move forward, but it’s hard when you don’t know exactly what the long-term policy picture will look like.”

NFU Cymru has also warned that rising costs and policy uncertainty continue to weigh heavily on farm businesses across Wales, with confidence affected by concerns over future support schemes and wider economic challenges. The union has called for greater long-term certainty to allow farmers to invest with confidence and maintain domestic food production.

Weather shocks impact behaviour

Extreme weather during 2025 — including a very dry spring followed by periods of intense heat and a challenging wet autumn — also affected purchasing patterns, with farmers spacing orders and prioritising essential inputs as conditions changed.

Ordering behaviour is now returning to more normal patterns as conditions stabilise.

Outlook for 2026

Despite ongoing pressures, Wynnstay says it is cautiously optimistic about the year ahead.

Many farmers are making careful decisions around efficiency, nutrition and planning, and the company believes there are opportunities for businesses to strengthen their position through 2026 with good cost control and smart investment.

Summing up the sector, the company said Welsh agriculture remains resilient, with farmers showing determination and adaptability despite continuing challenges.

 

Business

Plaid energy policy challenged by Labour after Adam Price interview

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LABOUR SAYS MINISTERS MUST EXPLAIN COST AND TIMETABLE FOR PYLON PLANS

PLAID CYMRU’S approach to energy infrastructure has come under scrutiny after Energy Minister Adam Price was challenged over plans to reduce the use of overhead pylons in Wales.

Mr Price defended the Welsh Government’s position during an appearance on BBC Radio Wales’ Sunday Supplement, arguing that communities must have greater confidence in how major grid projects are handled.

Plaid Cymru has pledged to give communities a stronger voice over energy developments and to look more closely at alternatives to overhead transmission lines, including underground cabling where possible.

The issue has become increasingly sensitive in rural parts of Wales, where proposed pylon routes linked to renewable energy schemes have raised concerns about landscape impact, tourism and local consultation.

However, Welsh Labour said the minister had failed to explain when any restriction on pylons would take effect, or who would pay the additional cost of placing cables underground.

A Welsh Labour spokesperson said: “Adam Price keeps saying how clear their manifesto was and yet he won’t say when they’re banning pylons. They won’t say who is paying for the extra cost of undergrounding cables.

“Without certainty, companies won’t invest. That’s thousands of clean, green energy jobs at risk. Plaid need more than a plan to have a plan.”

Labour said the Welsh Government must now set out how its policy would work in practice, including whether it amounts to an outright ban, what exemptions would apply, and how any extra costs would be funded.

The debate highlights the challenge facing ministers as Wales seeks to expand renewable energy generation while addressing public opposition to large-scale grid infrastructure.

 

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Business

New facilities at Haverfordwest Target Shooting Club agreed

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A CALL by a Pembrokeshire shooting club for more disability-friendly facilities has been given the go-ahead by county planners.

In an application to Pembrokeshire County Council, Haverfordwest Target Shooting Club, through agent Andrew Sutton Architecture, sought permission for an extension to existing target shooting club building at The Firing Range, Withybush Road, Haverfordwest to improve accessibility and internal facilities, together with associated landscaping works.

A supporting statement said: “The club’s own published history states it was founded in 1968, moved from the Drill Hall to the old wartime airfield butts at Withybush by the early 1970s, and had developed facilities over time, including the clubhouse by 1999. The established leisure/community use has existed on the site for a number of years and the proposal does not seek to intensify the core activity beyond that already authorised/established.”

It added: “The primary objective of the scheme is to improve inclusive access to the club’s facilities for disabled users and those with reduced mobility. The internal arrangement will provide adequate entrance and lobby space, clear accessible routes and appropriately designed sanitary accommodation, including an accessible wetroom/shower and separate WC.”

It also said accessible parking and surfacing designed to provide a firm, even, slip-resistant route from parking to the principal entrance.

It added: “The Equality Act 2010 places duties on service providers to make reasonable adjustments so that people with additional access needs are not placed at a substantial disadvantage.

“The proposal is therefore a positive enhancement to a community/leisure facility and supports wider policy objectives for inclusive environments.”

It went on to say: “The club operates within a highly controlled environment, and the proposed works will maintain and enhance safety and security measures.”

The application was conditionally approved by planners.

 

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Business

St Davids GP surgery plans lodged with national park

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PLANS to convert a former GP surgery in Pembrokeshire’s only city to a home and holiday let have been lodged with the national park.

In an application to Pembrokeshire Coast National Park, Alice and Danjal Joensen, through agent Oochitecture, seek permission for a change of use of the ground floor of the former GP surgery, Eryl Mor, 36, New Street, St Davids, merging with the existing first-floor apartment to create a larger single dwelling house, along with the creation of an attached short-term holiday let.

The GP surgery is currently vacant, following its closure in October 2024 after new partners could not be secured.

A supporting statement says, prior to being a GP surgery, the two storey element was a single dwelling house.

It adds: “The house would consist of an open plan kitchen-living space to the ground floor, along with a study, lounge and utility room. The first floor includes four double bedrooms with ensuite and main bathroom.

“The new unit of accommodation would form a holiday-let with two double bedrooms, shower room, and an open plan kitchen-living space.

“The GP surgery is currently vacant, following its closure in October 2024 after new partners could not be secured, therefore the proposed change of use will provide a viable long-term future use for the property.”

It says minimal external alterations are proposed to the property with existing entrances utilised for both the main house and holiday-let, adding: “The existing concrete ramp to the front elevation will be retained with proposed works including extending the upper level and steps to provide a connection to the front door, allowing for accessible entrance to the property.

“There will be no changes to vehicular or pedestrian access, with the site continuing to be accessed via the existing entrance from New Street. Parking will be provided for the main house and holiday-let on the existing tarmac driveway off New Street.”

The application will be considered by Park planners at a later date.

 

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