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Farming

Pressing questions on farm funding’s future

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Screen Shot 2016-08-16 at 14.03.27FOLLOWING a debate in the House of Commons, the attitude of Welsh politicians in the UK Parliament was thrown into sharp focus by comments made by both Conservative minister Guto Bebb and Wrexham’s Labour MP Ian Lucas. 

It was Mr Lucas’ remarks which attracted the most notable reaction by Welsh politicians in the first instance.

He asked Mr Bebb: “Does the Minister agree that leaving the European Union offers a golden opportunity to assess the level of subsidy paid to farming in Wales to see whether that money can be more effectively and efficiently spent in other areas?”

The inference to be drawn from the question was crystal clear and was pounced upon by Plaid Cymru.

CALL FOR COMMITMENT ON AGRICULTURE 

Carmarthenshire’s Jonathan Edwards MP, who was sitting in front of Ian Lucas MP in the Commons, called for Labour to urgently clarify whether it will cut financial support for Welsh farmers.

Plaid Cymru Shadow Cabinet Secretary for Rural Affairs, Simon Thomas, said: “Ahead of the Referendum, the people of Wales were promised that no funding would be lost by leaving the European Union. Since then, Plaid Cymru has made it our duty to fight to protect the funding that Wales receives, but Labour seems to view it as a chance for a smash and grab on Wales’ funding.

“We know that 80% of Welsh farms are dependent on European funding to support their businesses, but Labour has shown complete disregard for the interests of the people of Wales and its agriculture sector.

“Labour really has let the mask slip. Whilst Plaid Cymru is focusing on protecting the interests of Welsh communities, Labour is plotting to cut their funding.”

Mr Edwards said: “Labour’s blatant and worrying attack on Welsh agriculture is yet another sign that the Labour party simply does not understand the Welsh agriculture sector or the challenges faced by our rural communities.

“The Welsh family farm is not only a core component of the Welsh agricultural sector and the Welsh economy, but is the main channel through which we as a nation can achieve food and environmental security.

“This expression of contempt for our agricultural sector is utterly unjustified. Welsh farmers face tremendous financial challenges in selling their produce and Labour should be focusing their efforts on facilitating Welsh agricultural exports, rather than marking them as a target for austerity and cuts.

“The Labour MP’s constituency partner, the Cabinet Secretary for Environment and Rural Affairs Lesley Griffiths, urgently needs to answer whether her constituency’s partner’s question reflects official Labour Party policy.”

FARMERS ARE ‘WEALTHY LANDOWNERS’ 

The Labour MP was unrepentant about his remarks and has gone on to further criticise the Welsh farming community, stated that Welsh farmers are ‘wealthy landowners’.

The Herald invited the Cabinet Secretary for Environment and Rural Affairs to respond to her Westminster colleague’s remarks.

A spokesperson for the Welsh Government told us: “The First Minister made it clear to the Prime Minister earlier this week he is seeking assurances that Welsh farmers do not lose out financially as a result of Brexit. This means every penny currently received from the EU being replaced by the UK Government. The Cabinet Secretary for Environment and Rural Affairs also reiterated this to the UK Government’s Farming Minister.

“As we prepare to withdraw from the European Union, we must use the opportunity over the coming years to assess the specific needs of the farming industry in Wales and identify how we can forge distinctly Welsh policies that will enable Welsh farming to prosper in a post-Brexit world.”

‘NOT A PENNY LESS’ 

Welsh Liberal Democrat William Powell told The Herald: “In the economic conditions that we now face as a country, pressure on the public purse will be all the more acute. The Welsh Liberal Democrats are supporting the ‘Not a Penny Less’ campaign in terms of farm support, and this has proved popular on our stand at this year’s Royal Welsh Show.

“However, it is more important than ever for farmers to engage in the public debate, so that there is a better understanding of the vital contribution that they make as custodians of the land, in terms both of maintaining biodiversity, but also to the whole tourist sector, which we know is such a critical part of the wider rural economy.

“However, more important than anything for Welsh farming is securing long -term access to the European Single Market for our quality farm exports – and making that an essential element in the permanent post Referendum settlement. And with Andrea Leadsom MP’s comments about hill farmers ‘looking after the butterflies ’, betraying an evident lack of understanding and empathy for Welsh farming, it is vital that Wales retains a robust and distinct farming policy. Welsh Liberal Democrats will be fighting for this in the time to come.”

LABOUR INSULTS RURAL COMMUNITIES

Andrew RT Davies was trenchant in his criticism both of Mr Lucas and Lesley Griffiths: “These comments once again highlight Labour’s attitude towards rural communities, and it is remarkable that their MPs are actively lobbying to give less money to farmers.

“It follows comments from Leslie Griffiths, the Cabinet Secretary who insulted Welsh farmers by suggesting that they don’t make good business owners. Now they want to take their money away.

“During the campaign, senior UK government ministers gave guarantees that Welsh farmers would not be worse off after the UK leaves the EU, and I will continue to work with those colleagues to ensure that those promises are delivered.”

THE LESS CERTAIN MR BEBB

However, an examination of Guto Bebb’s responses to Commons questions on Wales’ farming sector reveals a less certain picture.

The Undersecretary of State was questioned repeatedly on the impact of Brexit on the funding provided to Welsh farmers.

In response to Ian Lucas’s question, rather than giving a ringing ‘no’ and committing the UK Government to maintaining funding levels, Mr Bebb said (emphases added): “We need to look at the way in which Government spend money. IF there is to be a funding mechanism in the future for Welsh agriculture, it MUST BE LOOKED at in the totality of Government spending.”

That is some way short of promises made by senior UK Government ministers that Wales’ farmers would not be worse off.

And to further underline how conditional UK Government’s support is, responding to a question from Liz Saville-Roberts, Plaid’s MP for Dwyfor Meiryonnydd, the limited reassurance given was an ‘assurance to the farming unions that the current funding situation is in place until 2018’.

That echoed a previous response to Mark Williams, Liberal Democrat MP for Ceredigion, in which the conditionality of UK Government support for Welsh agriculture was again underlined: “… The ongoing support for Welsh farming will be subject to agreements involving this Government, the way in which we exit the European Union and the decisions taken by the future Prime Minister.”

That is, again, a long way short of Andrew RT Davies’s reference to a promise that Welsh farmers would not be worse off.

The reluctance to commit to a definitive answer is striking, bearing in mind that in the same questions to the Welsh Office, Mr Bebb stated that: “The farming sector is the economic backbone of the Welsh rural economy. The total income from farming in Wales is estimated at more than £175 million, but more important is the contribution that Welsh agriculture makes to our rural communities.”

He also remarked that: “More than 60,000 jobs in Wales are dependent on the agriculture sector, and it would be short-sighted in the extreme for any Government to turn their back on a sector that puts Wales on the international map.”

‘FARMING IS WALES’ BEDROCK’

Speaking at the Royal Welsh Show last week, Glyn Roberts, President of the FUW, made a series of emphatic observations on the importance of Wales’s agricultural sector: “There are almost as many people engaged in the milk industry in Pembrokeshire as there are people making a living in our Welsh steel industry. Yet there is a clear imbalance in political focus for supporting these two very important industries – an imbalance which also extends to all our agricultural sectors.”

He added that his aspiration and, indeed, the intention of the Farmers’ Union of Wales is to change this.

“We want to see the value and importance of the rural economy truly recognised, and to build a visible and valued Rural Powerhouse – not something that attracts industrial focus in a small geographic area, like the north-east Wales ‘powerhouse’ built around foreign manufacturing; what is needed is recognition of the fact that 80% of our land mass is rural; that more than a third of Wales’ population live in rural areas; and that farming is the bedrock of our rural communities, without which vast direct and indirect contributions to Wales’ economy as a whole would disappear.”

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Farming

FUW criticise Assembly Committee

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Committee naive: Gavin Williams, FUW

ACCORDING to the FUW, a National Assembly for Wales committee has been misled into making a draconian recommendation that would play into the hands of multi-billion pound telecommunication companies.

The union has also suggested that the committee may have been naive in not identifying the true motives of those advocating such moves.

The National Assembly for Wales’ Economy, Infrastructure and Skills Committee published a report entitled Digital Infrastructure in Wales, which included a recommendation that ‘The Welsh Government should consider making future public subsidy conditional on supporting government policy to improve digital infrastructure, and to ensure that it meets the needs of consumers in the future, in particular any likely convergence between broadband and mobile internet connectivity.’

Responding to the report in a letter to Committee Chair Russell George AM, Gavin Williams, chairman of the FUW’s Land Use and Parliamentary Committee, said: “The Farmers’ Union of Wales has long been a proponent of increasing both broadband and mobile phone coverage in Wales, and has worked closely with Ofcom and others for more than a decade to highlight the needs of Wales’ communities in terms of both.”

Mr Williams goes on to highlight the fact that the union is unaware of any instances where farmers have refused to enter into a fair agreement with commercial companies responsible for digital infrastructure – but is aware of many cases where agreement has been reached between farmers and communication companies but planning permission has been refused, and of instances where companies have behaved in unacceptable and unprofessional ways in order to try and install communication infrastructure on private land.

“There may well be a handful of cases where landowners have been uncooperative, but we would suggest that members of the Economy, Infrastructure and Skills Committee have been misled if they believe this is so widespread that it warrants a draconian recommendation to Government, said Mr Williams.

“Rather, we would suggest that the underlying motive for those who have suggested such a barrier exists at any scale is the wish to boost company profits by seeking changes which would allow farmers and landowners to be bullied into signing contracts which do not represent the commercial nature of work and installations.”

Mr Williams concludes his letter by saying, “We share the Committee’s frustrations regarding barriers to broadband and mobile coverage, but find it wholly unacceptable that a National Assembly for Wales committee has been led to believe – some would say naively – that it would be desirable to see multi-billion pound commercial companies boosting their profits by forcing family farms to accept one-sided agreements that in no way reflect the commercial nature of mobile and broadband infrastructure.”

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Farming

Lynx trial decision near

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Eurasian lynx: Could be introduced next year

THE NATIONAL SHEEP ASSOCIATION (NSA) is concerned to hear rumours that Secretary of State for the Environment Michael Gove may be prepared to fast-track a decision on lynx release.

It is calling on representative farming bodies and individuals to unite and take action to voice unanimous concerns over the proposals.

NSA is aware the Lynx UK Trust is continuing its campaign work while the application is considered, and feels it is essential Mr Gove appreciates the substantial and widespread concerns rural communities have around the proposed lynx release.

Lynx became extinct in the UK around 1,300 year ago.

The medium-sized cats can grow to around 1.3m, are apex predators in their environments, and hunt by ambush in forest habitats.

Phil Stocker, NSA Chief Executive, said: “I know Mr Gove is interested in these proposals and I am certain now is the time for individual farmers, land managers and their representative organisations to make their feelings heard. I would go as far as urging every farmer who has views over this to write to the Secretary of State so he can appreciate the strength of stakeholder concerns, which go way beyond the losses that will be suffered by sheep farmers.”

A verdict on whether lynx should be released in Kielder Forest, Northumberland, is still pending after Lynx UK Trust submitted a formal application to Natural England earlier this year. The Government advisory body is currently reviewing information, and is expected to announce a decision in the coming months.

The Trust has also asked landowners in Wales if they would be happy to allow lynx to roam their properties and its chief scientific advisor, Dr Paul O’Donoghue, claims that five Welsh landowners have expressed an interest in lynx being placed on their land.
Dr O’Donoghue said in Europe, the kill rate was 0.4 sheep per lynx per year.

Mr Stocker continued: “The risks to landscape and wildlife, heavily invested in for years, are real. Alongside disease and welfare risks, coupled with concerns around whether any lynx population could be genetically sustainable on our heavily populated island. This of course in addition to the resultant losses and stress on farmers.

“It is not a simple matter of a compensation package putting everything right. We know from sheep farmers in Finland, Norway and elsewhere that losses go way beyond those predicted. I simply cannot accept that the conscious release of a high-level predator is compatible with the high level of animal welfare expected of British farmers.”

The Lynx UK Trust has announced an agreement with Lloyds Syndicate ARK Speciality Programs, which they say will insure the entire sheep population against lynx attacks throughout the period of a trial – if it goes ahead.

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Farming

Brexit trade agreement attacked by US

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WTO members: Object to EU and UK deal

AN ADVANCE in the Brexit negotiations between the European Union and the UK Government has been rejected by the US Government and other major agricultural exporters.

EU negotiators had reached a tentative agreement with the UK to establish a single approach to dividing up their relationship with other members of the World Trade Organization post-Brexit.

At the moment, the UK is a joint member of the WTO with the other 27 EU members.

The British economy accounts for about 16 percent of the EU economy but its share of EU imports from other WTO countries at preferential tariffs varies according to products.

As the UK quits the EU in 2019, it will need to separate out its share of the EU’s overall quotas for farm goods that can be imported from countries such as New Zealand and Australia.

According to Reuters, neither the remaining EU states nor Britain want to have to accept greater quantities of low- or zero-duty farm imports from the rest of the world to avoid increasing competition for their own producers. But determining where such goods currently end up being consumed inside the EU customs union is problematic.

In an interview with Bloomberg News, International Trade Secretary Liam Fox said: “We have come to an agreement on the methodology of splitting EU quotas as we move forward,”

The Cabinet Minister described the agreement as ‘a step in the right direction’, but not a final agreement.

However, the agreement reached on quotas has been rejected by seven members of the WTO, including the USA.

Those signing a joint letter objecting to the agreement are US, Canada, New Zealand, Argentina, Uruguay, Brazil and Thailand.

The letter from the objectors states they were not consulted and the deal would disrupt “the delicate balance of concessions and entitlements that is fundamental to the global trade architecture today.”

It continues: “We are aware of media reports suggesting the possibility of a bilateral agreement between the United Kingdom and the European Union 27 countries about splitting Tariff Relief Quotas based on historical averages,

“We would like to record that such an outcome would not be consistent with the principle of leaving other WTO members no worse off, nor fully honour the existing TRQ access commitments.

“Thus, we cannot accept such an agreement.”

A spokesperson for the UK Government promised to coordinate with the complainants: “The UK wants to ensure a smooth transition which minimizes the disruption to our trading relationships with other WTO members and tariff rate quotas are one of the issues that we are discussing with the EU, and with WTO members.”

But New Zealand’s Deputy Trade Secretary tweeted: “Sorry that key partners assume a deal they strike between them will suit the rest of the world.”

And the US Government said: “Ensuring that US exporters of food and agricultural products have the market access in Europe due to them even after Brexit is a high priority for the administration.”

In a response to Brexit, exporters to the EU will want to redress what they regard as an imbalance in quotas by seeking larger export quotas for their own goods. That move could spell disaster for UK farmers, as goods could be dumped on to the UK market, potentially pushing already pressed British farmers out of business.

The British-EU proposal is expected to be debated during the WTO’s week of agricultural talks later this month and at the WTO ministerial conference in Buenos Aires in December.

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