NFU Cymru Conference returns today on Thursday 3 November amid a time of significant uncertainty, with the Coronavirus pandemic, the war in Ukraine, significant policy overhaul, huge hikes in input prices and the cost-of-living crisis all impacting the Welsh farming sector. It is poignant, then, that today’s NFU Cymru Conference is themed ‘Planning for Change’ and will hear from a variety of speakers providing insight and analysis into the current turbulence.
Healthy, safe, affordable and sustainable food
NFU Cymru President Aled Jones will use his opening speech at the NFU Cymru Conference to emphasise that governments in Cardiff Bay and Westminster must help the industry weather current storms and continue to support the production of healthy, safe, affordable and sustainable food.
He will say: “Competing challenges mean farmers' resilience is perhaps being tested now as much as it has ever been before. Farm businesses, like the rest of society, have had to deal with severe inflation. The latest Defra statistics show that the price index for agricultural inputs increased by 30.7% in the 12 months to August 2022. Whilst commodity prices have remained firm over this period, the crippling rises in input costs have eroded margins and this, alongside the impact of the summer drought, has put pressure on all sectors.
NFU Cymru poll
“Our poll of over 700 farmers from across Wales earlier this year showed that 71% of Welsh farmers intend to reduce production as a consequence of these increased costs and other factors. I am particularly concerned to hear that over half of beef farmers intended to reduce stock numbers, averaging out at an estimated 10% cut in cattle numbers alongside an estimated 7% reduction in sheep numbers. We need to ensure that returns in the sector can cover the increasing cost of producing high quality, safe and fully traceable food from Wales.
“Just over a month ago Welsh Government introduced its draft Agriculture (Wales) Bill to the Senedd, and I welcome the progress that has been made since Welsh Government began its consultation process with us back in 2018. I am pleased that food production is now a part of Welsh Government thinking alongside climate and environmental objectives.
Strengthening the Agriculture Bill
Member survey on input costs
“I am clear, however, that the bill must be strengthened further to recognise our global responsibility to maintain, and enhance where possible, the production of food from Wales. I want the bill to better recognise that our countryside, our cultural resources, and our language can only be preserved and enhanced if Welsh farming businesses are economically viable.
“We are living through a period of unprecedented political instability but at this time I want to make it clear to politicians in Westminster and Cardiff that commitments made to maintain funding for Welsh farming must be honoured and that this means, we expect, as a minimum, the £374 million that is currently provided through the CAP legacy schemes to be available annually through the Sustainable Farming Scheme.
“We welcome the Minister’s commitment to maintain the BPS in 2023 and we now look to Lesley Griffiths MS to provide certainty and stability to Welsh farming for 2024. We ask that the Minister makes an early commitment to maintain the BPS at current funding levels for 2024, alongside an extension to Glastir management agreements for 2024 to prevent a cliff edge in environmental support.”
