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Farming

Farm diversification more difficult in Wales

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Diversification: Upland farming makes task difficult

ALMOST half of UK farmers are planning to pursue diversified income streams to support their agricultural businesses, according to new research from leading rural insurer NFU Mutual.
With changes to Government support and the way Britain trades with the rest of the world ahead, farmers are diversifying their businesses to boost profitability and fortify their farms for the future.
Forty-eight per cent of farmers are planning to set up or expand diversification businesses following Brexit, moving into new areas such as tourism, hospitality, retail and renewable energy.
This figure has doubled since NFU Mutual carried out similar research in 2018 and found 23 per cent of farmers were planning to expand or start diversification enterprises.
The sharp increase in diversification comes as agriculture undergoes the biggest change to funding in decades following the UK’s exit from the European Union.
In a report published on Friday (Feb 7) NFU Mutual provides advice on setting up new diversification businesses and looks at case studies of successful schemes from wedding venues and glamping to kefir dairy products and cosmetics.
“The next seven years will be crucial for the farming industry,” explained Chris Walsh, NFU Mutual’s Farm Specialist. “Because of this, many farmers are looking at new business opportunities to spread their risk.
“Farmers have always had to adapt to changing times, and a number have been diversifying for decades. But even more are now deciding to support their agricultural work with new ideas.
“Whether it’s building holiday cottages, launching a wedding venue, or opening a farm shop, not only can these new businesses supplement the existing farm, they often provide other members of the family with a crucial role in the business.
“Our research shows nearly half of UK farmers are either looking into setting up new businesses on their land or expanding existing diversification ideas, with a quarter planning to diversify to create business opportunities for family members.
“There is only room for a certain number of farm shops, holiday cottages and wedding venues so farmers planning to diversify need to do careful research and costings before they start converting cow sheds into cafes.
“Farmers and their families also need to have the right skills – particularly if they’re going to be working with the public. It’s a big change looking after a demanding wedding party if you’re used to being on a hillside with a flock of sheep all day.”
The report stresses the importance of detailed planning to minimise risks to the public and employees and make insurance of new diversification schemes straightforward. It also highlights the importance of looking at the financial implications of setting up non-farming activities to avoid higher Inheritance Tax Bills.
Looking ahead, the report suggests there may be new opportunities for farmers to access Government financial support for diversification schemes as changes to agricultural support are rolled out.
DEFRA statistics show that diversification activity brought in £740m of income in 2018/19 – up 6% on the previous year.
NFU Mutual’s report, together with a series of videos and podcasts produced to help farmers considering diversification, is now available to download at nfumutual.co.uk/diversification
NFU MUTUAL DIVERSIFICATION ADVICE
Diversification means using your farm’s assets, such as its land, buildings or machinery to develop a new business activity. Diversification ventures usually set out to provide additional revenue and can complement the agricultural activity or may even, over time, replace it.
Before you start, consider:
• Do you have the skills, resources and commitment to make it work or would it be a distraction from the core farm business?
• Have you fully reviewed your farm business and identified strengths and areas where you can add value to your existing model?
• What are your assets – from people, land, location, buildings, finance to skills – and have you realised their full potential?
• What market and demand is there for your diversification venture?
• What makes your farm unique and sets you apart from the competition?
• Have you asked the experts for advice? For example, speak to insurers at the planning stage to ensure you understand the risks and have the right level of cover to meet your needs.
DIVERSIFICATION TOUGHER IN WALES
Farming businesses in Wales face many hurdles, such as poor upland land quality, and remoteness from centres of population. These factors severely restrict business resilience and diversification.
Improving farm efficiency, developing non-food and non-crop revenues, participation in agri-environmental schemes, or access to rural development funding and business support, are more difficult in Wales than elsewhere.
When compared with England, Welsh farms are also smaller and less well resourced and receive an average of £3,300 less in funding.
Although diversification on Welsh farms has grown over the past decade, diversification revenues on Welsh farms represented on average only 3.4% of total farm revenues in 2017, compared to an average of 7.7% in England.
That suggests reliance on increased farm diversification to build resilience in Wales remains an optimistic strategy. In the worst-case post-Brexit scenario diversification revenues might need to increase up to tenfold to replace other lost revenues.
Farms in Wales depend on income streams separate from the main farming business.
A range of actions might support the continued growth in diversified income. However, although they could help deliver wider social and environmental public goods, they might not support farming, community identity or build economically sustainable farm businesses.
Welsh Government policy might want to pull in one direction but reality suggests that its goals will be far harder to achieve than sunny optimism and glib soundbites suggest.

Farming

Welsh Conservatives warn climate plans could mean fewer livestock on Welsh farms

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THE WELSH CONSERVATIVES have challenged the Welsh Government over climate change policies they say could lead to reductions in livestock numbers across Wales, raising concerns about the future of Welsh farming.

The row follows the Welsh Government’s decision, alongside Plaid Cymru and the Welsh Liberal Democrats, to support the UK Climate Change Committee’s Fourth Carbon Budget, which sets out the pathway towards Net Zero greenhouse gas emissions by 2050.

The Carbon Budget, produced by the independent Climate Change Committee (CCC), states that meeting Net Zero targets will require a reduction in agricultural emissions, including changes to land use and, in some scenarios, a reduction in livestock numbers.

During questioning in the Senedd, the Welsh Conservatives pressed the Deputy First Minister and Cabinet Secretary for Climate Change and Rural Affairs on whether the Welsh Government supports reducing livestock numbers as part of its climate strategy.

Speaking after the exchange, Welsh Conservative Shadow Cabinet Secretary for Rural Affairs, Samuel Kurtz MS, said the Welsh Government could not distance itself from the implications of the policy it had backed.

Mr Kurtz said: “By voting in favour of these climate change regulations, Labour, Plaid Cymru and the Liberal Democrats have signed up to the UK Climate Change Committee’s call to cut livestock numbers in Wales, and they cannot dodge that reality.

“The Deputy First Minister’s smoke-and-mirrors answers only confirm what farmers already fear: that Labour, along with their budget bedfellows in Plaid and the Lib Dems, are prepared to sacrifice Welsh agriculture in pursuit of climate targets.”

He added that the issue came at a time of growing pressure on the farming sector, pointing to uncertainty over the proposed Sustainable Farming Scheme, the ongoing failure to eradicate bovine TB, nitrogen pollution regulations under the Nitrate Vulnerable Zones (NVZs), and proposed changes to inheritance tax rules affecting family farms.

The Welsh Government has repeatedly said it does not have a target to forcibly reduce livestock numbers and has argued that future emissions reductions will come through a combination of improved farming practices, environmental land management, and changes in land use agreed with farmers.

Ministers have also said the Sustainable Farming Scheme, which is due to replace the Basic Payment Scheme, is intended to reward farmers for food production alongside environmental outcomes, rather than remove land from agriculture.

The UK Climate Change Committee, which advises governments across the UK, has stressed that its pathways are based on modelling rather than fixed quotas, and that devolved governments have flexibility in how targets are met.

However, farming unions and rural groups in Wales have warned that policies focused on emissions reduction risk undermining the viability of livestock farming, particularly in upland and marginal areas where alternatives to grazing are limited.

The debate highlights the growing tension between climate targets and food production in Wales, with livestock farming remaining a central part of the rural economy and Welsh cultural identity.

As discussions continue over the final shape of the Sustainable Farming Scheme and Wales’ long-term climate plans, pressure is mounting on the Welsh Government to reassure farmers that climate policy will not come at the expense of the sector’s survival.

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Farming

FUW Insurance Services appoints Paul Jameson as non-executive director

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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.”

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Community

Badger Trust launches manifesto ahead of 2026 Senedd elections

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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.

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