Why fair farm funding is vital for the survival of rural Wales
Last week was politically very busy for us. We hosted a farm visit for the Shadow Secretary of State for Exiting the European Union Keir Starmer as well as Ogmore MP Chris Elmore and attended the Welsh Conservative party conference.
During the week and our many meetings we explained why #FairFarmFunding is essential and highlighted why clarity on future trade deals is crucial for the survival of rural Wales and its farming communities.
Opening the gates to Flaxland farm, near Cardiff, to show the Shadow Brexit Secretary why Wales needs to keep the same amount of funding as it currently receives and why farmers are so worried about their export market, were FUW Glamorgan County Chairman Richard Walker and his partner Rachel Edwards, and I thank them for taking the time out to welcome us so warmly.
I would also like to thank our members Gill, Charles and Richard Morgan of Gellifeddgaer farm for speaking about the role farming families play in maintaining the countryside. Agriculture is often singled out for criticism in terms of environmental impacts. The reality is that all industries have some form of adverse effects, and agriculture is one of the few which also has huge positive effects – for example in terms of carbon storage, preserving biodiversity and water management.
As with all other industries, we have a duty to improve our performance in order to preserve the planet for future generations, and doing so is a challenge the industry can rise to, provided that governments and others properly understand the need for proportionate approaches which avoid food production being shifted to other countries with far lower environmental standards.
The big question for farmers up and down Wales is where are they going to sell their produce and under what conditions. Most of the lambs born this year will be sold into a post-Brexit market but nobody knows what that market looks like or where it is. Farmers are getting incredibly anxious about the future, with many questioning if it is worth their while to continue producing food at all – just think of the long hours they work every day and the rules and regulations they have to comply with. The paperwork pile keeps getting bigger and the rewards are getting smaller.
Add on top of that the UK Government is considering signing trade deals which would allow cheap food imports to flood our supermarket s, and many food producers will be disheartened. Welsh farmers have to comply with some of the highest animal health and welfare standards in the world, which also comes at a cost. So how can they be expected to produce cheap food, to the same standard, with no market to sell to?
There is also an urgent need for clarity on funding. The FUW has highlighted that Welsh rural communities currently receive around £350m a year through the EU’s Common Agricultural Policy(CAP), with some £260m going to support farmers. A drop in that support could have unpleasant consequences for our rural economy.
A recent report by the Institute for Government (IFG) has laid out some options for a new agricultural support budget. It suggests that cash distribution until 2022 could reflect the current split of the CAP, under which Scotland, Wales and Northern Ireland receive more per capita than England. After 2022, this recent report suggests there could be an opportunity to move away from the unpopular Barnett Formula – an option the FUW would certainly be in favour of, given that Barnett would reduce our funding by around 40%.
And while we acknowledge that the UK Government has said it will match the current EU budget that supports farming and our rural economies, there is no clarity of how much money will actually be received in Wales, despite assurances from Michael Gove that this allocation will be not be calculated using the Barnett formula.
I still worry that if no steps are taken to resolve this issue very quickly then the family farms here in Wales will be seriously disadvantaged. Since the referendum we have recommended that funding for agriculture in Wales should be ring-fenced, because we don’t want to see a situation where health and education is competing for money that would otherwise go to farming. I hope and expect the UK and Welsh Governments to develop a management structure to ensure this does not happen. But we also need clarity on how much money will be available to the Welsh Government for agriculture.