COUNTRY & FARMING
SINCE the EU Referendum the Farmers’ Union of Wales has been lobbying for a fair postBrexit allocation of rural funding for Wales outside the Barnett Formula to ensure Wales does not lose hundreds of millions in annual funding after Brexit.
The issue has been raised consistently with the UK Government and Union officials have given evidence to Parliamentary and Welsh Assembly inquiries highlighting this need.
In July this year, the FUW’s ‘Filling the Void’ document was issued, setting out the arguments for ringfenced national allocations which fairly reflect national needs, as well as other frameworks agreed in partnership with the devolved nations.
We were therefore pleased to hear Secretary of State for Environment, Food and Rural Affairs Michael Gove, during the second reading of Agriculture Bill, say that agricultural funding will not be Barnettised, and the current settlement which allocates money to Wales on rural and agricultural criteria will be maintained.
Secretary of State for Wales Alun Cairns has also reinforced that commitment giving further hope to the farming community in Wales.
An independent advisory panel will now look at what factors should determine the distribution of agricultural funding between England, Scotland, Wales and Northern Ireland in this Parliament.
This will consider each country’s individual circumstances, including environmental, agricultural and socio-economic factors – as called for by the FUW two years ago.
Farm numbers and sizes will also be taken into account to make sure all parts of the UK are treated fairly.
Overall, the appointment of the panel recognises that much of the responsibility for farming belongs to the devolved governments in Wales, Scotland and Northern Ireland.
As such, we welcome the decision to set up a review of allocations based on environmental, agricultural and socio-economic factors, and have already written to Lord Bew seeking a meeting to discuss Wales’ needs and priorities.
Funding – what the panel needs to consider in a Welsh context.
Of course, critical to the functioning of appropriate rural policies is the allocation of fair budgets which reflect the needs of each of the UK nations.
Until 2022, the UK government has promised to match current total EU subsidies.
However, there continues to be ambiguity around the meaning of such commitments in terms of how funding will be allocated, administered and transferred to devolved nations, representing a major obstacle in terms of preparing for Brexit.
The FUW has made it clear that post Brexit national allocations of rural funding should remain at least at current levels, and must be ringfenced to prevent governments diverting funding to other areas in a manner that leads to major differences between national spending.
Given the uncertainties facing each of our nations as a result of Brexit and the political tensions around the issue, the new panel needs to be aware that any reductions in allocations would compound existing challenges.
Moreover, there is a compelling argument for increases in allocations, given the acute problems which could face many of the UK’s agricultural sectors as a result of Brexit.
In the longer term the current historical allocation needs to be superseded by a formula which fairly reflects regional needs without distorting markets.
Under the current EU regime, strict rules govern the proportion of national co-funding which can complement CAP funding; post Brexit, rules also need to be in place which serve the same function in terms of preventing excessive national contributions from distorting markets and introducing unfair advantages.
What outcomes you would like to see in terms of support to the farming sector in Wales post Brexit?:
An overarching goal must be that Wales should receive at least the same level of funding it currently does through the CAP - as promised by Brexit campaigners.
We also need to ensure funding is directed at the active farm businesses which make a contribution to the local economy and Welsh jobs, and that this is done in a fair way.
Unfortunately, ideas set out in the current Welsh consultation seem to be just copied over from England, while the Welsh part of the Agriculture Bill are literally cut and pasted from the English section, which seems to make a mockery of devolution.
Wales needs an allocation which meets its needs, but it also needs to then use that allocation to support farming, jobs, the rural economy, and the environment while growing our industry in order to create prosperity.