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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

Local farmer sentenced for animal welfare offences

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ON JULY 10, Dylan Williams of Neuaddlwyd Uchaf, Neuaddlwyd, Ciliau Aeron appeared before magistrates at Aberystwyth Justice Centre and was sentenced for animal by-products and animal welfare offences.

Mr Williams, 47, had previously appeared at the Aberystwyth Magistrates Court where he entered pleas of guilty to the four offences brought before the court by Ceredigion County Council.

On 11 April 2018, 47 sheep carcasses in various states of decomposition were found on Mr Williams’ land, and these were accessible to live sheep and their young lambs. This formed the basis of the offence brought under The Animal By-Products Regulations which requires carcasses to be disposed of without undue delay, due to the risk to animal and public health.

The majority of the flock inspected on the day were seen with severe wool loss and irritated skin which are signs of sheep scab. Sheep scab is a debilitating condition which can lead to weight loss and thickened skin with scabs due to the intense, uncomfortable itching caused by the condition.

There were three separate offences under the Animal Welfare Act 2006, two of which were for causing unnecessary suffering to two ewes. One ewe was suffering from severe weakness due to scab infestation. Another ewe was found unconscious on the land with her intestines protruding from her flank, likely due to predation as she had also suffered from scab over a prolonged period.

Another offence related to Mr Williams’ failure to ensure the welfare needs of his flock were met by his failure to properly inspect the flock and to manage and treat the sheep scab effectively.

Magistrates sentenced Mr Williams to a community order with a requirement that he carried out 250 hours of unpaid work in the community, he was also ordered to pay the investigation and legal costs of the council which amounted to £1648.

Alun Williams, Ceredigion County Council’s Corporate Lead Officer with responsibility for Policy and Performance said, “The council is deeply saddened that yet another serious animal health offence has been committed within the county. It is to the credit of our staff that they have undertaken a successful prosecution of this case.

Our animal welfare officers and our legal team had no option but to carry the prosecution due to the seriousness of the offences committed. I would urge individual farmers who are facing difficulties in caring for their stock to seek advice from the County Council and the Farming Unions.”

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Farming

Aeron Valley farmers thinking creatively for their future

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A RESEARCH STUDY called Pweru’r Dyffryn delivered by Gweithgor Dyffryn Aeron cyf is looking into the feasibility of powering businesses and households in the Aeron Valley.

The study is looking into creating a community body to develop local renewable energy sources which would aim to create a source of income for powering the economy of mid Ceredigion. The study is also looking into creating a sustainable source of income to develop the local economy of the Aeron Valley.

The feasibility study is funded through Welsh Government Rural Communities – Rural Development Programme 2014-2020. This is funded by the European Agricultural Fund for Rural Development and the Welsh Government.

The concept of Pweru’r Dyffryn (Powering the Valley) was developed by the Gweithgor Dyffryn Aeron cyf. Many members of the Gweithgor are young farmers in the area. They want to not only secure a way of life and affordable energy, but also invest in their future.

The farmers of Dyffryn Aeron first set up the community cooperative company Gweithgor Dyffryn Aeron cyf in response to the closure of dairy factories in the valley. The Gweithgor helped a local company to re-open the site of one factory as a centre of local employment.

Through this they found that energy costs were high in the area and could threaten the long term sustainability of businesses in the area.

Euros Lewis is a Director of Gweithgor Dyffryn Aeron cyf and is Pweru’r Dyffryn’s Project Manager. He said: “Responding creatively is the way forward and that’s what these young farmers have done.”

From here the concept of Pweru’r Dyffryn was developed, which began with local consultations across the whole of the Aeron Valley. It asked local communities what form of renewable energy they did and didn’t want to see developed in the area and how would they want revenue from any potential scheme to be spent. The purpose of the consultations were to develop a model that will meet the needs and potential of the local communities first and foremost.

The feasibility scheme received LEADER support through the Cynnal y Cardi Local Action Group, which is administered by Ceredigion County Council.

The next step for Gweithgor Dyffryn Aeron cyf is the publication of a comprehensive report of the local consultation and its findings for future potential developments. The consultation’s early findings include that large scale wind turbines would not be welcome, while there is support for further research as to the potential of waterways and solar power for the generation of local, sustainable energy.

The development of the scheme will be long-term with challenges along the way but Euros Lewis believes to change the lives of the local people and to develop the local economy ‘that the basic principle is to act for ourselves and this is what we are doing.’

Councillor Rhodri Evans is Ceredigion County Council’s Cabinet member with responsibility for Economy and Regeneration. He said: “It’s very encouraging to see rural society in Ceredigion ambitiously looking to the future. Cynnal y Cardi supports them closely and I’m sure they wil see success in the future.”

All ideas are welcome on a rolling basis and project officers are at hand to assist you. The closing dates in 2019 for submission of expressions of interest are 9 September and 11 November. All submissions are welcome in Welsh or English.

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Farming

Farming faces zero carbon challenge

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AN AMBITIOUS new target to reduce greenhouse gas emissions to zero by 2050 will lead to significant changes in farming practices over the coming decades, according to a leading agri-environment specialist.

Professor Iain Donnison, Head of the Institute of Biological, Environmental & Rural Sciences (IBERS) at Aberystwyth University, was responding to the publication of ‘Net Zero: The UK’s contribution to stopping global warming’ published by the UK Government Committee on Climate Change.

Professor Donnison is an expert on agriculture and land use, which feature in the report in terms of targets for one-fifth of agricultural land to be used for forestry, bioenergy crops and peatland restoration.

According to Professor Donnison, such a reduction is very ambitious but achievable in Wales and the wider UK. “Land use can positively contribute towards achieving the net zero targets, but there are challenges in relation to emissions from agriculture especially associated with red meat and dairy,” said Professor Donnison.

“In IBERS we are already working on how to make livestock agriculture less carbon intensive and developing new diversification options for the farming of carbon. For example, net zero targets could provide significant diversification opportunities for both farmers and industries that make use of biomass and wood for the production of energy, materials including in construction and for wider environmental benefits.”

Professor Donnison added: “The report gives a clear message regarding the importance of the task and the role that the UK can play to compensate for past emissions and to help play a leadership role in creating a greener future.

“The report says it seeks to be based on current technologies that can be deployed and achievable targets. One-fifth of agricultural land is a very ambitious target but I believe that through the approaches proposed it is achievable (e.g. for bioenergy crops it fits in with published targets for the UK). This is based on the knowledge and technologies we have now regarding how to do this, and because right now in the UK we are developing a new agricultural policy that looks beyond the common agriculture policy (CAP). For example, the 25-year Environment plan published by Defra envisages payment for public goods which could provide a policy mechanism to help ensure that the appropriate approaches are implemented in the appropriate places.

“The scale of the change, however, should not be underestimated, although agriculture is a sector that has previously successfully responded to challenges such as for increased food production. The additional challenge will be to ensure that we deliver all the benefits we wish to see from land: food, carbon and greenhouse gas (GHG) management and wider environmental benefits, whilst managing the challenge of the impacts of climate change.

“The link is made between healthy diets with less red meat consumption and future reductions in greenhouse gas emissions from agriculture. This reflects that agriculture will likely go through significant change over the coming decades as a result of changes in consumer diets.

“Net Zero targets, however, could provide significant diversification opportunities for both farmers and industries that make use of biomass and wood for the production of energy, materials including in construction and for wider environmental benefits.”

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