This week, submissions closed for the Welsh Affairs Committee’s inquiry into the challenges and opportunities facing farming in Wales. The Farmers’ Union of Wales welcomed the opportunity to contribute to this inquiry, highlighting the perfect storm of challenges facing Welsh farmers from a UK Government perspective.

The ongoing concern over the ill-thought-out changes to Agriculture Property Relief (APR) played a prominent part in our submission. As the FUW warned HM Treasury in our meeting in February, these changes could have a significant impact on our rural communities and food production.

Whilst the Prime Minister previously insisted that a “vast majority” of Welsh farmers would not be affected by the changes, our analysis suggests 48% of BPS recipients in Wales could be subject to the new inheritance tax proposals. Our submission therefore provided an opportunity to highlight this disproportionate impact and outline our alternative proposals. These alternatives include advocating for transitional arrangements for those in these impossible circumstances and the establishment of a UK-wide working group to agree on a dataset that accurately represents the extent and impact of this change in policy.

The inquiry also provided an opportunity for the FUW to once again voice our concern over the UK Government’s decision to ‘Barnettise’ future agricultural funding.

Historically, Wales has received around 9.4% of the total UK EU Common Agriculture Policy (CAP) budget - this allocation was based on a need-based formula, which reflected Welsh farm and rural characteristics. The UK Government’s Autumn Budget however saw a change; with future adjustments to the Welsh agricultural budget now being subject to the Barnett Formula. This will result in a fall from 9.4% to 5% of any proportional uplifts (or reductions) the UK agriculture budget receives.

Whilst this point may seem technical, it could have a drastic impact on the amount of funding Welsh Government receives for agriculture in future. At a time when Welsh farmers are expected to deliver an ever increasing range of sustainability and environmental objectives, while also producing food, the FUW believes that the previous needs-based allocation formula, which reflects Welsh farm and rural characteristics, should be restored for future consequential adjustments.

The inquiry also provided an opportunity to consider the impact of leaving the EU on Welsh farms. This again provided an opportunity to relay our concerns that successive UK Governments have not held agriculture and rural development in as high regard as the EU Commission continues to do for its Member States through the Common Agricultural Policy.

The FUW’s full evidence submission can be found on the FUW website.