Farming
Confidence drops as markets stay volatile
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
Farmers’ Union recognises lifelong success of leading business founders
THE Farmers’ Union of Wales (FUW) presented its ‘Lifetime Achievement Award’ to the founders of a leading North Wales business during a special dinner held at the Kinmel Hotel, Abergele, on Friday, November 8, 2024.
Gareth and Falmai Roberts, founders of the popular yoghurt business Llaeth Y Llan, started their venture in 1985 from a converted cow shed at their farmhouse in Llannefydd, Denbighshire – with the first product trials carried out at the back of their airing cupboard!
Over the past three decades, the business has gone from strength to strength. In 1995, they moved to a modern dairy designed and built using a disused barn and other farm buildings. By 2015, with their brand stocked across Wales in four major retailers and dozens of independent shops, the old dairy had reached full capacity. A larger production facility was designed and built on the Roberts’ farm and was officially opened in 2017 by Lesley Griffiths MS, the then Welsh Government Cabinet Secretary for Environment and Rural Affairs.
The business combines traditional values with modern techniques, producing 14 different yoghurt flavours using Welsh milk sourced from the local area. The yoghurt is sold across Wales and England, with the business having already won the Food Producer of the Year award at the inaugural Wales Food and Drink Awards in 2022.
The FUW Lifetime Achievement Award was presented to Gareth and Falmai Roberts by FUW President Ian Rickman. The evening also featured entertainment from operatic baritone John Ieuan Jones.
Ian Rickman, President of the Farmers’ Union of Wales, said: “The Farmers’ Union of Wales was unanimous in recognising Gareth and Falmai’s incredibly successful business, and we were delighted to host this dinner to honour their achievements and present this award to them.
From producing their first yoghurt pot to their current success as one of Wales’ most renowned food producers, Llaeth Y Llan is an outstanding example of Welsh entrepreneurship, with local farming and food production at the heart of their success.
I congratulate them on this well-deserved achievement, and I have no doubt that their business will continue to grow from strength to strength.”
Proceeds from the dinner and the highly successful auction will be donated to the Dai Jones Memorial Appeal Fund, administered by the Royal Welsh Agricultural Society.
Farming
Farmers fight back: Inheritance tax row at Welsh Labour conference
THE Welsh Labour conference in Llandudno, Conwy, on Saturday (Nov 16) became the backdrop for a large and impassioned protest by farmers opposing the Labour government’s controversial inheritance tax changes. Hundreds of farmers descended on the venue with tractors and vehicles, voicing their frustration at what they describe as policies that will devastate rural communities and family farms.
The protest was a coordinated effort by Digon yw Digon (“Enough is Enough”), a group advocating for rural communities. Protesters carried signs reading “Labour War on Countryside” and “No Farmers No Food,” while tractors lined the promenade outside Venue Cymru.
Starmer’s absence deepens anger
Farmers had hoped to confront Prime Minister Keir Starmer directly and present their concerns. However, Starmer avoided the protesters, leaving the venue without meeting them. This decision was sharply contrasted by the actions of former Prime Minister Rishi Sunak, who earlier this year attended the Welsh Conservative Conference and took time to speak with farmers about their challenges.
One farmer remarked, “Starmer didn’t have the guts. He left without facing us.”
The farmers’ message
In lieu of a direct meeting, the farmers delivered a strongly worded letter addressed to Starmer, outlining their grievances:
“Dear Prime Minister,
Croeso i Gymru,
Today you can see the depth of feeling and concerns that you are creating as the PM of this country towards the rural areas and farming community.
The outcome of your Budget highlights the government’s incapacity to look at the position as a whole rather than a tick-box exercise to fulfill your selfless ambition.
The inheritance tax debacle highlights this case. This new tax represents a considerable challenge not only for farmers but also the broader agricultural sector. The £1 million threshold is alarmingly low, and many farmers will face impossible decisions to sell portions of their land to cover these costs. This will affect the smaller family farm the most.”
Why farmers are protesting
The changes announced in the Autumn Budget include:
- A new 20% inheritance tax on farms valued over £1 million.
- Modifications to Agricultural Property Relief (APR) and Business Property Relief (BPR), effective from April 2026.
Farmers fear these changes will force many family-run farms to sell land, leading to reduced food production and driving up food prices.
Becky Wall, a farmer at the protest, made an emotional appeal:
“Please support our farmers; they work hard over long hours to feed us. Without them, we have no food. These changes will also impact small businesses connected to farming, posing a serious threat to our economy and our bellies.”
Rural Wales under pressure
The letter also highlighted the cumulative challenges faced by Welsh farmers, including the draconian impact of Nitrate Vulnerable Zone (NVZ) regulations, increasing incidences of bovine tuberculosis (TB), and uncertainty surrounding the Sustainable Farming Scheme (SFS).
“This cumulative approach has created despair in the countryside,” the letter continued. “As food supplies decrease, it will become more expensive, and the poorest in society will suffer the most.”
Gareth Wyn Jones, a farmer and broadcaster, expressed the emotional toll on rural communities:
“They’re destroying an industry already on its knees mentally, emotionally, and physically. We need government support, not hindrance, to feed the nation. Enough is enough.”
A strike as a last resort
As frustration boils over, some farmers have announced plans to go on strike starting Sunday. While economically challenging, the strike reflects the growing anger in the countryside.
The protest in Llandudno is part of a larger movement, with a major demonstration planned for Westminster next Tuesday. The event has already drawn so much support that its location was moved from Trafalgar Square to accommodate the expected turnout.
Starmer defends budget
Inside the conference, Starmer defended the Budget, describing it as a tough but necessary measure to stabilise the economy:
“Make no mistake, I will defend our decisions in the Budget all day long. Tough decisions were necessary to protect the payslips of working people, fix the foundations of our economy, and invest in the future of Wales and Britain.”
Starmer also hailed Labour’s collaboration between Westminster and the Welsh government as a “gamechanger,” promising that communities in Wales would benefit from Labour-led governments pulling in the same direction.
Investments and promises
Despite the protests, the conference included announcements of major investments:
- A £160 million investment zone for Flintshire and Wrexham, described by Starmer as a turning point for the region’s economy.
- An additional £22 million to tackle NHS waiting lists in Wales, adding to the £28 million pledged earlier this year.
- A record £21 billion Budget allocation for Wales in 2025.
First Minister Eluned Morgan touted the “power in partnership” between the two Labour governments and emphasised their commitment to delivering for Welsh communities.
Farmers and rural advocates insist that their voices will not be ignored. The inheritance tax changes have become a flashpoint for broader frustrations with government policies affecting rural areas.
As the protest letter concluded: “Prime Minister, we ask that you revisit the whole approach to farming and rural communities as a matter of urgency. This is a last resort, but growing anger in the countryside has brought us here. The one thing Labour has achieved is uniting farmers, businesses, and rural communities against these policies.”
With protests expected to intensify in the coming days, the farming community’s fight for their livelihoods and the future of rural Wales continues.
Farming
Welsh Government could overturn Ceredigion cattle breeder’s house plans
A CEREDIGION councillor-backed scheme by one of the top breeders of Limousin cattle in the UK to build a home near Lampeter could be overturned following a call for it to be decided by Welsh Government, planners heard.
At the October meeting of Ceredigion County Council’s development management committee, the application, by Mr and Mrs Dylan Davies for a four-bedroom rural enterprise workers’ dwelling at Blaenffynnon, Llanwnnen, Lampeter, where they run a calving and cattle rearing business, was backed despite an officer recommendation for refusal.
One of the issues in the report for members was the financial test of whether the scheme was affordable, based on an estimate the building would cost some £292,000 to construct; at a 25-year mortgage amounting to £20,400 a year.
The size of the proposed building – which the applicants say include a need to entertain and occasionally accommodate clients – was also given as a reason for failing the TAN6 policy test, being larger than affordable housing guidance, at 202 square metres rather than a maximum of 136.
Members have previously heard the applicant breeds high-value show cattle for embryo transplanting at the well-established business, with one bull alone selling for £32,000 last year.
It had previously been recommended for refusal at the September meeting, but was deferred for a ‘cooling-off’ period to seek further details along with potential changes to the size of the scheme.
At the October meeting, members backed approval despite officers saying the size proposed could actually include a two-person bungalow in addition to the normal maximal ‘affordable’ size.
At the start of the November meeting, members heard a request for the scheme to be ‘called-in’ for Welsh Government final decision had been made, meaning Ceredigion planners’ approval could potentially be overturned if the ‘call-in’ is agreed.
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