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Farming

Hard Brexit threat to west Wales’ farmers

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John Davies, NFU Cymru: Priority must be tariff-free trade with EU27

BREXIT threatens major upheaval for Welsh agriculture, with small upland farms particularly threatened.

A report from the Public Policy Institute for Wales (PPIW) suggests that there is a massive risk to west and north Wales.

LIVESTOCK FARMING THREATENED

Its analysis suggests that the most likely changes in trading conditions would tend to disadvantage the competitive position of Welsh agriculture in its main current markets and trading competitors (particularly in sheep and beef).

The report also anticipates generally reduced levels and scope of public funding by comparison with those the sector has enjoyed in recent years.

However, within these challenging probable change scenarios, there are opportunities if farm businesses are enabled to respond adaptively.

Some farms and sectors face much greater challenges than others, which implies uneven structural change across significant areas:

  • a decline in the economic viability of sheep production is likely, with these farm businesses especially vulnerable to changes in both market access arrangements and public funding support – this could increase pressure on rural services;
  • accordingly, north and west Wales are likely to face stronger negative impacts than the south and east, where more potentially positive and diverse impacts can be expected among dairy, horticultural, mixed and other farm types.

MARKET RESPONSE UNCERTAIN

How key food and forestry processors and retailers respond to the Brexit process, and their willingness to invest in Wales and Welsh products, will be an important factor. Their patterns of operation may change in response to shifting economic and market conditions.

Managing the challenges faced is key, to prevent undesirable impacts on natural capital, landscape quality and community identity.

Three policy directions are recommended:

  • Fostering resilience in farm and other land management businesses; supporting successful adaptation, enhanced efficiency, diversification, adding value and intergenerational transfer, as well as some moves from farming into other sectors;
  • Investing in longer-term partnerships between government, food retailers, rural service providers, and commercial lenders to promote stronger business networks and SME infrastructure across Wales;
  • Designing a future funding framework to support natural resource management and rural vitality in Wales.

THINK OUTSIDE THE BOX

Report author Prof Janet Dwyer, from the University of Gloucester, argued that while farming only employs a relatively small proportion of people directly, its success has a ripple effect across rural communities.

“People need to be more willing to think outside the box, to think about working together, think about understanding the way in which one person‘s business affects what other people do because farming affects the landscape, which affects tourism, which is an important sector in Wales, so a lot of these things are connected,” she said.

The CCRI Director and Professor of Rural Policy makes a number of recommendations to overcome these potential challenges. These include investing in better business planning and adjustment; careful succession planning for farms and small rural businesses; and policies to strengthen health and social services for those in the most remote areas.

“Conducting the work made me more aware of the importance of thinking ahead and planning for continued uncertainty, whatever the eventual political and economic outcomes of Brexit” said Professor Dwyer.

REPORT WELCOMED

A Welsh Government spokeswoman said it welcomed the report, saying it highlighted the possible impact of Brexit not just on trade and markets but on people‘s lives.

“However, Brexit also presents the opportunity to put in place new Welsh policy frameworks to help them adjust and thrive,” she said.

“We recognise that many of these changes will impact businesses in different ways and agree the best approach will be on an individual business level.”

She said they have already begun work to develop “sector readiness” programmes to support businesses to prepare for the change.

“We continue to press the UK government on the need for a multi-year transition period to enable all businesses to prepare and for clarity on the level of funding that Wales will receive after Brexit.”

Responding to the report’s findings, Paul Davies AM, Welsh Conservative Shadow Secretary for Rural Affairs, said: “We note with interest the recommendations of the report.

“Following our departure from the EU, more powers over agriculture will be transferred to the Assembly. “The Welsh Government now needs to focus on ensuring that they listen to rural communities and that they actually devolve power to people living in the countryside.”

Mr Davies view of ‘more powers’ being transferred to Wales does not appear to reflect the views of many Conservative Brexit enthusiasts within the UK Parliament, including David TC Davies, who chairs the Welsh Affairs Select Committee and David Jones, the former Secretary of State for Wales, whose appearance in Cardiff this week as a member of the Public Administration and Constitutional Affairs Committee was noticeable for his equivocal approach to the transfer of powers in areas of existing competence back to the Assembly after Brexit.

HARD BREXIT’S SEVERE IMPACT

The report’s publication coincided with the release of the Welsh Government’s own Brexit trade paper, supported by an economic impact analysis from Cardiff Business School, argues the Welsh economy is best protected by retaining full access to the European Single Market and membership of a customs union.

The paper sets out the severe impact a hard Brexit would have on Welsh jobs and the economy. If the UK were to move to World Trade Organisation (WTO) rules, the Welsh economy could shrink by 8% – 10%, which would be the equivalent of between £1,500 and £2,000 per person in Wales.

The trade paper calls on the UK government to provide evidence of how new trade deals would replace the benefits of access to the EU. The Welsh Government also wants decisions on new trading relationships with the EU and the wider world to be taken in partnership with devolved administrations to fully reflect the interests of all parts of the UK.

Launching the document, the First Minister said: “Welsh exports are worth £14.6bn each year, with 61% of Welsh exports and just under half of our imports going to and from the EU. Wales is currently attracting record levels of inward investment, which is largely due to our access to the EU’s 500m customers.

“As our trade paper highlights, moving to WTO rules and the imposition of tariffs could have a catastrophic impact on our lamb sector and on the Welsh shellfish industry, which currently exports around 90% of their produce to the EU.

“These hard facts underline what is at stake if the UK government fails to get the right deal for the UK or we crash out of the EU without one. Leaving the Single Market and the Customs Unions would be hugely damaging for Welsh businesses and jobs, with our agricultural, food producers and automotive sectors being particularly hard hit.

“I urge the UK government to give serious consideration to our proposals and work with us to develop a post-Brexit trade policy which protects Welsh jobs and the economy.”

NFU WELCOMES WG PAPER

Commenting on the document, NFU Cymru President Mr John Davies said: “As the paper rightly acknowledges, the decisions that will be taken about the UK’s future trading relationships with the EU27 and the rest of the world will be significant factors shaping our future prosperity. In my view, nowhere is this more true than in relation to agriculture, with around a third of our lamb crop and around three quarters of Welsh food and drink exports destined for the European market.

“Trade has consistently emerged as a top priority for our members during the Brexit negotiations. As far as I am concerned our future trading relationship must be one which gives us the full and unfettered access to the Single Market that we need, and I welcome the fact that the Welsh Government has made this call once again in today’s policy paper.

“The imposition of tariffs, under a no-deal scenario would impact lamb exports in particular, and under WTO rates chilled lamb carcasses would attract effective tariff rates as high as 46%, effectively shutting us out of European markets.

“Whilst there has been much talk of tariff barriers and the detrimental impact that they can have on trade, I was pleased to see the policy document making extensive references to the negative impact that non-tariff barriers can have on trade, particularly in relation to exports of food. When it comes to food and agricultural produce in particular, non-tariff barriers such as inspections at border posts in order to demonstrate compliance with technical regulations and standards, rule of origin, hygiene, veterinary and phytosanitary controls are all factors which increase costs and hinder trade.

“The paper also rightly acknowledges the damaging impact that the lack of clarity on future trade arrangements with the EU is having for business and nowhere is this truer than in agriculture where production cycles can often span a number of years. That is why we cannot wait much longer for an outline of what our future trading relationship with the EU27 is going to look like, if our members are to start planning for the future.”

Mr Davies concluded: “Although Brexit may well eventually give the UK the freedom to strike its own trade agreements with third countries other than the EU27, speaking as a Welsh farmer, the immediate priority for the UK Government has to be on securing a trade agreement with the EU27 that is free from tariff and non-tariff barriers, and encompasses all sectors including agriculture.”

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Farming

Minister kicks access issue into long grass

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No clarity on access to land: Government rejects fresh legislation

THE SUSTAINABLE M​ANAGEMENT of Natural Resources Consultation process has finally concluded, but there’s no sign of progress, according to Rebecca Williams, Director of CLA Cymru.

Saying that the time has come to make decisions, Ms Williams said: “How we manage our natural resources, must form part of our vision for a vibrant, sustainable, competitive rural economy delivering against a range of public goods.

Responding to the Welsh Government Environment Minister, Hannah Blythyn AM’s statement summarising the responses to the Sustainable Management of Natural Resources (SMNR) consultation, Rebecca Williams, Director CLA Cymru, said: “We have a unique opportunity to define the future of land management in Wales. Our government processes really must deliver better and faster results. We need to find answers to the vital questions in land management about how the Welsh Government’s Five Core Principles be delivered as a working plan.”

“Last year’s SMNR consultation addressed a very broad range of issues many of which were complex, others seemed disjointed from the main theme. This was an unwieldy and demanding exercise both for organisations and for individuals. The process was protracted, the outcome has been delayed. The substantial number of responses may be encouraging to the Government, but it does also bear witness to the level of concern about the potential vital impact the proposals may have on rural business and the countryside community. There is no doubt that greater subtlety and engagement is required in stakeholder-management.”

While there were over 19,000 responses to the consultation, over 16,000 of those were focussed on one issue – access to land. Of those 16,000 responses, only around 450 answered the questions posed by the consultation and there was a massive number of responses from individuals and campaign groups in favour of widening access to the countryside.

The Welsh Government has, however, shied away from specific legislation to provide greater rights for ramblers, canoeists, cyclists, and other groups in favour of achieving more access to Wales’ countryside.

In a written statement delivered to the Assembly on June 19, Environment Minister Hannah Blythyn said: “There were strong but differing views on how best to reform access legislation. We therefore believe that now is not the right time for substantive reform. But we are committed to exploring selected aspects of change where there was greater consensus, including on some of the administrative arrangements and multi-use paths. We will continue to facilitate further discussions through established groups such as the National Access Forum.”

Those remarks have been met with disappointment from Ramblers Cymru, the charitable organisation and campaign group that fights for walkers’ access to land.

Angela Charlton, Director of Ramblers Cymru told The Herald: “‘As Wales’ walking charity working to protect and expand the places people love to walk, Ramblers Cymru is disappointed that a year after this consultation was held, we are no clearer about Welsh Government’s ultimate vision for improving access to the Welsh outdoors.”

Ms Charlton drew attention to consultations not producing positive results in terms of policy or legislation, continuing: “We have had 2 major consultations on these issues in the last 3 years, and now face further consultation on as yet undefined changes.

“Through our campaign over 2,500 people took the time to support our call for increased and improved access and protection of our paths, and it is frustrating that we seem no closer to seeing the changes needed. We are however, pleased to continue engaging with Welsh Government to ensure Wales is a world class country for walking and will continue putting proposals forward to help achieve this.”

While the NFU noted the strength of the responses regarding access to land, NFU Cymru President, John Davies said: “The consultation contained a number of proposals that were extremely worrying to farmers including granting higher access rights which would have enabled cycling and horse riding on footpaths as well as extending and amending the list of restrictions on CRoW land. We, therefore, welcome the announcement from the Environment Minister that now is not the right time for substantive reform.”

John Davies continued: “We note, however, the Welsh Government is committed to exploring aspects of change where the consultation process showed greater consensus including some of the administrative arrangements and multi-use paths. We await information on what these specific areas will be and would highlight that, given 80% of the land area of Wales is agricultural land, farmers are key providers of the landscape and countryside upon which many access and recreational activities depend. Any reforms must consider the safety of access users and should not result in increased costs, burden and liabilities being placed on farmers in Wales.

“We are pleased that the consultation process revealed consensus in the area of keeping dogs on fixed length leads in the vicinity of livestock, which was a generally accepted proposal. The worrying of livestock by dogs is a key concern to our members and we would hope this is an area that can be progressed in the near future.”

FUW President Glyn Roberts said: ” The FUW welcome the news that the Welsh Government have decided now is not the right time for a substantive review to reform access legislation.

“Wales has approximately 16,200 miles of footpaths, 3,100 miles of bridle-paths, and 1,200 miles of byways, and since 1998 the area of land accessible by right to the public has increased threefold. The evidence makes it clear people are not using what is already there, so any changes should focus on increasing responsible use of existing access.”

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Farming

‘Be seen on farm’: FUW

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Reflective arm band: A practical addition for farmers and families

THE FARMERS’ Union of Wales has launched new reflective armbands as part of its commitment to promote farm safety.

The new armbands can be worn by all family members to help them to be seen better in the dark and will be available from all FUW stands during the show season.

FUW Marketing Manager Meryl Roberts said: “If we are seen we are much safer and these armbands are a practical addition to any farm outfit. Of course, it won’t fix all of the problems but it might just help a little, given that most farm clothes are dark and farming doesn’t stop just because the sun has gone down.

“The armbands are functional and can be worn in all types of weather. And above all, they support our commitment as a Union to promote farm safety in any way we can. Being seen is the first step to keeping safe after all, so get in touch with your local FUW office to get your free armband today or come see us at your local county show!”

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Farming

Passionate young farmers wanted!

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The Lord Mayor's Show: Competition now open

A GROUP of enthusiastic young farmers, who are making a real difference within farming and have great stories to tell, are being sought to join the NFU in one of the most popular historic civic pageants in the world.

The NFU has launched a competition to find eight young farmers who will land starring roles representing British farming in the 2018 Lord Mayor’s show and take the Back British Farming message to the streets of the City of London.

The 803rd parade takes place on Saturday, November 10, and is featured in a live BBC broadcast. The NFU will be joined by Massey Ferguson to support the Worshipful Company of Farmers in this year’s show. The entry will incorporate a tractor, combine harvester and food with the participants providing the heart and soul of the exhibit.

As an additional prize this year, Massey Ferguson is inviting one of the young farmers on a special trip to Beauvais in Northern France as a guest to tour the factory and enjoy an overnight stay.

NFU Cymru President, John Davies said: “It’s always great fun having the young farmers with us at the Lord Mayor’s Show as it provides the perfect platform to engage with the watching crowds and let them know about farming’s role in producing their food and looking after the iconic British countryside.

“We are hoping this competition, with the added incentive of a trip to the Massey Ferguson factory in France, will help showcase another group of young farmers who’re all enthusiastic and passionate about what they do – producing the nation’s food.”

NFU Cymru member, Tom Rees, who was part of the young farmer group last year, said: “For me, participating in the Lord Mayor’s Show as the NFU Cymru representative was a once in a lifetime experience – a particular highlight was seeing the enthusiasm the British public had for British farmers – it was fantastic to see everyone fully support the campaign and message we were promoting.

“It’s so important that we, as the future generation of farmers, open a dialogue with the public about the provenance of their food and the Lord Mayor’s Show is an excellent way to do so.

“If you are a young farmer who is passionate about the future of our industry then I would encourage you to apply and get your voice heard.”

The NFU is asking for nominations for young farmers, aged 18-30, who have made an outstanding contribution to the farming sector and who are passionate about the industry. Please include as much information as possible on why you think your nominee deserves to represent British farming and the wider farming industry at this year’s Lord Mayor’s Show.

Nominations close on Sunday 19 August and a shortlist of finalists will be drawn up for 31 August by a panel of farming experts

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