THE FARMERS’ UNION OF WALES has welcomed the white paper on Brexit launched by Welsh Government First Minister Carwyn Jones and the leader of Plaid Cymru Leanne Wood.
The joint Welsh Brexit plan calls for continued participation in the Single Market, as well as a ‘balanced approach’ to immigration, linking migration to jobs.
First Minister Carwyn Jones stated that the paper ‘balances the message which the Welsh people gave us’ of the Brexit vote ‘with the economic reality that makes participation in the Single Market so important for the future prosperity of Wales, and indeed the UK as a whole’.
FUW President Glyn Roberts responded to the plans, saying: “I welcome the stance taken by Welsh Government in their Brexit white paper, which acknowledges that ‘continued participation in the Single Market to support the future prosperity of Wales’ is essential.
“The livestock producers which make up the vast majority of Welsh farmers are particularly reliant on exports to the continent, and the FUW has made it clear since the referendum that full and unfettered access is essential to Wales.
“Around 30% of Welsh lambs were exported to continental Europe, and the complexity of pan-EU food supply chains means there are acute threats for other sectors.”
The Brexit white paper also call on the UK Government to make good on promises that Wales would not lose funding as a result of Brexit, as well as calling for recognition that there needs to be a ‘fundamentally different’ relationship between the devolved governments and the UK Government.
The FUW has continually stressed that a transition period of at least 10 years is necessary in order to phase in and allow the industry to adjust to new agricultural policies post-Brexit and, in addition, has argued that agricultural support following our exit from the European Union should be maintained at levels which at least reflect those levels which would have been in place should the UK have voted to remain in the EU.
Furthermore, recognising the different role the Welsh and devolved administrations have to play has been welcomed recently by the FUW.
Speaking about the role the Welsh Government should play in negotiating our exit from the EU, Mr Roberts said: “Devolution should be respected within an overarching UK support framework in the context of making our withdrawal from the European Union and, as such, we welcomed Theresa May’s commitment to work with the devolved administrations and her recognition that Wales is different to the rest of the UK. That call has today been mirrored by Welsh Government and we will continue to work with them to develop a framework that takes Wales’ unique position into account.”
A third of Wales’ population live in rural areas where farming and businesses which rely on agriculture play an important role in local economies; in sparsely populated areas, where centres of population have less than 2,000 people, around 10% of workers are employed in agriculture. That equivalent to 14% of those employed outside the public sector.
“Taking these figures into consideration, the FUW has highlighted for many years the wider role agriculture plays in terms of supporting Wales’ rural and wider economy and that’s why we are stressing the fact that agriculture needs to be allowed to adjust to new policies post-Brexit and that support is maintained in line with other EU countries.
“The chances of a bad trade deal or no deal at all increase the faster the UK Government proceeds, which is why the FUW has consistently called for a lengthy transition period. Otherwise we risk being like lemmings rushing towards a cliff edge.”
Cattle and sheep prices rise
HISTORICALLY high market prices for cattle and sheep are helping to push Wales’ agricultural sector into the black, according to market analysis by Hybu Cig Cymru – Meat Promotion Wales (HCC).
Welsh Government projections, released as part of its ‘Aggregate agricultural output and income’ and ‘Forecast of farm incomes in Wales’ statistical reports, show that agriculture is now worth almost £1.6 billion to the Welsh economy.
Beef and sheep farming – along with the dairy sector – are by far the largest contributors to this value, with the PGI Welsh Lamb and PGI Welsh Beef brands helping to secure millions in sales in the UK and export markets.
According to HCC, strong cattle and sheep prices at market are continuing to help sustain profitability, although the weather has had an impact.
“Market prices for June have continued the trend we’ve seen since the beginning of the year,” said HCC’s Data Analyst Glesni Phillips. “Poor weather in early spring is restricting the number of new season lambs coming on to the market, which has contributed to prices remaining around 10p per kilo higher than last year. Beef cattle prices are also strong, helped by a barbecue boom in the warm month of May.”
However, Glesni noted that average farm incomes were still modest, and that uncertainty over access to vital European markets after Brexit meant that forecasting future price movements was unusually difficult.
“According to Welsh Government figures, average incomes on a beef and sheep enterprise in the Less Favoured Area (LFA – which makes up over 80% of Wales’s agricultural land) are only just over £25,000,” she said. “Given that market prices are unlikely to remain at this level, and that considerable political uncertainty exists over possible levels of exports and imports of red meat, this highlights the need for agricultural businesses to prioritise on-farm efficiency as part of their Brexit preparations.”
TFA calls for Inheritance Tax changes
THE TENANT FARMERS ASSOCIATION (TFA) has called for a radical change in the operation of Agricultural Property Relief (APR) in its response to the call for evidence issued by the Office for Tax Simplification for its Inheritance Tax review.
TFA Chief Executive George Dunn said “For many rural landlords the taxation framework within which they operate has a major influence over the decisions they make about how they manage their land. The TFA believes that the Government should be using this sensitivity as leverage to achieve wider objectives for the resilience and sustainability of the tenanted sector of agriculture”.
The introduction of the Agricultural Tenancies Act 1995 represented a major deregulation of the agricultural let sector. Farm Business Tenancies (FBTs) were ushered in with the intention of improved efficiency of land use, whilst increasing opportunities for both progressing farmers and new entrants within the agricultural sector.
“Over two decades on and the TFA believes that neither of these objectives have been attained. Whilst we saw an increase in the amount of let land through the early years of the new legislation this has, by and large, tailed off. However, the biggest failing has been the perpetuation of short lengths of term leading to inefficiency. Short term tenancies are holding back progression, investment and sustainable land use. FBTs have been too short for too long and now is the time for that to change,” said Mr Dunn.
A big advantage to the taxpaying landlord is the ability to have 100% APR from Inheritance Tax for the agricultural value of their holdings let after the 01 September 1995. However, the TFA questions whether this relief should be so widely available. In circumstances where landlords choose to let for short lengths of term, there is little in the national interest to be gained from providing landlords with such a generous tax advantage.
“There needs to be a radical reform of the Inheritance Tax framework for agricultural land as it applies to landlords. Allowing for exemptions for specialist cropping lets on a rotational basis, APR should be abolished except in relation to land let for 10 years or more without a landlord’s break clause,” said Mr Dunn.
“Using changes in APR to improve the average length of term on FBTs will impact positively on the productivity, resilience and sustainability of the tenanted sector of agriculture, which is now responsible for farming around a third of the agricultural area of the country,” said Mr Dunn
Royal Welsh to be blooming great
THE ROYAL WELSH AGRICULTURAL SOCIETY has announced it will be holding ‘The Great Royal Welsh Bloom Off’ competition during the main show on July 23-26.
Have you got a wedding coming up? This would be the perfect opportunity to learn how to arrange wedding flowers and win a wedding bouquet designed and arranged by renowned, award winning florist, Jonathan Lloyd-Davies.
Designed and sponsored by Johnathan of Johnathan’s Flowers, the competition, taking place in the Horticulture Marquee on the Tuesday (Jul 24) of the show, is open to anyone who has not previously competed in the floral art section of the Royal Welsh Show or Winter Fair, and who is interested in learning how to arrange flowers for an upcoming wedding.
Competitors do not need any previous experience (No NAFAS members), there will be no entry fee and all materials will be provided. But hurry, entries must be made in advance as spaces are limited.
The competition will follow the lines of the popular ‘Great British Bake Off’ programme, with contestants, in this instance, first taught to delicately arrange wedding style button holes, with the successful competitors proceeding to the next round to create a beautiful bridal bouquet under Johnathan’s watchful eye.
Jonathan established his business, Jonathan’s Flowers (www.jonathansflowers.co.uk), back in 1993 and has since gone on to provide an inspirational and personal florist service to South Wales and beyond. Specialising in floral designs to weddings and corporate clients, Johnathan has an impressive list of happy clients, including Catherine Zeta Jones, Bonnie Tyler, leading hotels in both Cardiff and Swansea, Glorious Goodwood, Royal Ascot and Wentworth Golf Club, to name just a few.
This exciting competition is just one of the many floral extravaganzas you will find in the Horticulture Marquee at the Royal Welsh Show. Packed full of fruits, vegetables, floral art displays, cut flowers, pot plants, window boxes and planters, a children’s decorated wheelbarrow competition, demonstrations, gardening question time, and the Welsh National Honey Show, amongst other delights… it really is worth a visit!
For more details and entry forms for ‘The Great Royal Welsh Bloom Off’, please contact: 01982 554409 / email@example.com
The pinnacle event in the British agricultural calendar, the Royal Welsh Show, will be held on July 23 – 26 at the showground in Llanelwedd, Builth Wells.
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