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The first Assembly elections on 6th May 1999 represented a major landmark in the history of Wales and, irrespective of our views on the success or otherwise of the National Assembly during its first term, we must remember that we now have a national body dedicated to looking after the affairs of Wales and its people. The past four years have been extremely difficult for agriculture, and have also been turbulent ones for the Assembly. The foot and mouth disease crisis destroyed the livelihoods of farmers, tourist operators, and rural businesses, and dominated the agricultural agenda during 2001 and much of 2002. There has been a great deal of debate over the lessons to be learned from this tragic episode, and one lesson which we sincerely hope the Richard Commission will address is that of granting the Assembly legislative parity with Scotland. During the course of the FMD outbreak, a number of decisions crucial to Wales were either delayed or implemented ineffectively by DEFRA due to a lack of understanding of the nature of Welsh agriculture - decisions which could have been taken by the Assembly had they had the same legislative authority as the Scottish Parliament.

Agriculture is the cornerstone of the rural economy of Wales, with up to 20% of the labour force in some areas being either directly or indirectly involved with farming. It is no exaggeration to say that, if farming fails, the entire rural economy of Wales is under threat. The decline in farming fortunes since the mid '90s has been the worst in living memory, with official Government statistics confirming that most family farmers are having to survive on an annual income which is less than the Government's minimum wage. This situation cannot continue, and we must now look to our prospective Assembly candidates for a firm commitment to reverse the continuing trend of declining farm incomes.

Many farmers, particularly in North Wales, have expressed their frustration that the Assembly is a Cardiff-based body, unwilling to take on the problems afflicting wider Wales. Whilst I think this criticism is sometimes unfair, the Assembly must show a greater willingness to locate key staff and services outside Cardiff and build on the commitments which have already been given in this direction.

The FUW is a forward-thinking organisation. We supported the "Yes" campaign in the referendum on devolution and fervently hope that, by extending the Assembly's powers, the hopes and aspirations of Wales' rural communities can be better addressed. The FUW is not affiliated to any political party, and our concern is to ensure that farmers and everyone who depend on agriculture are given a fair deal. For that reason, we have prepared this manifesto covering some of the key points which we believe are important if the traditional family farm of Wales is to survive into the next decade.

R G PARRY OBE President

THE TRUE VALUE OF FARMING TO WALES - FUW

EVERY single farm in Wales makes a significant contribution to the rural economy, helping to maintain wealth and employment in the countryside.

These are the findings of a survey conducted by members of the Farmers' Union of Wales for the union's tional Assembly election manifesto.

Three family farmers opened their accounts to reveal how much money is redistributed from their businesses to local firms employing local labour.

The results are illuminating. The figures that the farms in the snapshot survey pay out an average of £900 a year to each local business, helping to keep the rural economy afloat. The findings show that far from staying on the farm, the majority of income in Wales - including European subsidies - is redistributed to companies throughout the countryside.

The exercise was initiated by former FUW Brecon and Radnor chairman Richard Joyce, who runs a dairy and sheep farm near Kington with his wife Cynthia.

He instigated a detailed analysis of income and expenditure on their 72 acre dairy and sheep farm after commentators derided the value of agriculture to the economy following the foot and mouth epidemic of 2001.

While the majority of the public were sympathetic to the troubles facing farmers at the time, some politicians and other commentators belittled agriculture's contribution to the economy. Many compared it unfavourably with the contribution made by tourism, for example, ignoring the way that money passes through farms and benefits ancillary industries and services.

Mr Joyce said: "The financial figures clearly show how farm money is redistributed to create wealth in the countryside."

During 2002, a total of £89,319 was paid out by Mr and Mrs Joyce through their farm account to 94 separate companies, with each business receiving an average of £950.

When the exercise was repeated by Chris Lewis, a beef and sheep farmer of Cwmbach, Builth Wells and Rob and Jan Healey sheep farmers of Gwenddwr, Builth Wells, similar results were obtained.

Mr Lewis said that 62 businesses had been paid out of his farm account, each one receiving an average of £864 in 2002, while Mr and Mrs Healey had done business with 41 different firms during the same period, with each business receiving an average of £956.

They then attempted to estimate how many people were entirely employed by the various companies in handling the transactions. Mr Joyce believed the number of employees at the 94 businesses with which he is associated with to stand at 300, while Mr Lewis said 173 were involved with his farm and Mr and Mrs Healey estimated the figure in their case to be 107.

"These figures are obviously speculative, but we wanted to give some idea of the number of people whose work depends on a thriving family farm network in Wales," said Mr Joyce. "I believe it is vital that all the candidates in the National Assembly election fully understand the crucial role played by farmers in maintaining a healthy and vibrant economy in rural Wales.

"I also trust that those who are successful in the elections will bear this information in mind when they formulate policy for farming and the countryside over the next four years."

THE SINISTER TRUTH BEHIND FARM 'RESTRUCTURING'

"RESTRUCTURING"is a word loved by politicians and economists when they talk about the future of the agricultural industry - but for the ordinary family farmer the word has a more sinister meaning.

"When politicians talk about restructuring the farming industry, they invariably mean creating bigger and bigger farms as part of a national or multi-national agribusiness," said Richard Joyce. "By doing so they turn their backs on traditional family farms and the enormous benefits they bring to the environment and economy of rural areas."

Mr Joyce, a former chairman of the FUW's Brecon and Radnor branch, represents the typical view of the union's members, the majority of whom are family farmers. He made his comments during today's launch of the union's manifesto for the forthcoming National Assembly elections on May 1.

The FUW has been steadfast in its support for family farms, and the economic benefits they bring to the entire rural economy. Money that goes into these farms gets redistributed to other businesses in the local community.

"I believe that family farms provide a stable and happy environment in which to raise a family whilst supporting the economic and social fabric of rural areas," explained Mr Joyce. "This opportunity should exist for the maximum number of people.

"Our farms are also our homes, and we all know and respect our neighbours - at busy times we often work together. The environmental aspect is also important because the landscape which we all know and love and which attracts hundreds of thousands of tourists every year would not look the same without the many farmsteads dotted across the working countryside.

"If the move towards a bland, faceless agribusiness future is allowed to gather momentum it would inevitably force the traditional family farm out of business. This will mean that the rural economy will suffer, the social life of our towns and villages will be greatly undermined, and rural depopulation will accelerate," said Mr Joyce.

FUW president Bob Parry said: "A move away from the traditional family farm towards the larger, ranch-style farms advocated by economists in their support of agribusinesses would deal a severe blow to the future well-being of rural Wales."

I 'm often asked by people who have little or no connection with farming to explain what the attraction is. We as farmers have had more than our fair share of problems in recent years, from BSE and foot and mouth, to falling commodity prices putting extreme
pressure on our ability to live from one day to the next.

Both my wife and I regularly work very long hours every single day, with any time away from the farm having to be bought with part time help.

We have a deep emotional commitment to life on the land, and to understand that you must first understand our background.

My wife and I have devoted our lives to farming. We both grew up on local farms and spent our childhoods working the stock and fields. We met at school and married when we were 20. After attending agricultural college we spent two years at my home farm before working for other farmers in our neighbourhood whilst building pig houses at the farm cottage where we lived.

We moved to our present home in 1971 - a house, barn and 32 acres which cost all our savings, a very large bank overdraft and a lot of help from our family- and we were overjoyed.

At the time I also worked for Midland Shires Farmers eventually progressing to sales manager for Montgomery, Shropshire and Staffordshire. Meanwhile my wife, two small children and I worked all the spare hours at home concreting and building up a 40 sow pig unit whilst letting out the land.

We gradually expanded over the years, adding a small flock of Beulah sheep before moving into dairy farming in 1983 with the purchase of 15 Jerseys. A milk quota for 32 cows was initially awarded to us, and since then we increased the herd to 65 having spent a great deal of money on milk quota - to the detriment of house comforts and planned buildings.

In 2002, a neighbour offered us 40 acres of adjoining land and, thanks to friends and family, this has become a reality. We are now setting about extending the sheep flock and we know that many long hours lie ahead.

In this day and age, when so many young people feel forced out of farming because of the prospect of low incomes, I'm happy that both our son and daughter remain in farming. Our daughter married a young farmer and continues to do our farm records and accounts while our son is an agricultural lecturer and works for one day each and every week on our family farm, where he almost single-handedly looks after the sheep.

We are often told quota is "tied" or "attached" to the land. Family farmers are similarly attached to the land and to their farms. In many cases, several generations of a family have worked the very same fields and buildings that their sons and daughters now care for. So the ties and attachment to farming and the country way of life is cemented deep within their very beings, and more often than not nothing will take that farm from them other than the severe trauma of financial loss.

Politicians need to ponder these things when they talk of "restructuring" agriculture, letting farms and farmers to "go out" of business in a way that only goes to show their absolute ignorance of the countryside. That is why we are determined not to allow any "restructuring" to ruin us.

RICHARD JOYCE

The Farmers' Union of Wales (FUW) was established as an independent farming union to represent and promote the best interests of traditional family farms in Wales. Its policies are determined by its grass-roots membership and are never compromised to satisfy the differing aspirations of farmers outside Wales, though it has developed links with organisations in other parts of the UK and the EU with similar views.

The FUW was the only farming organisation to pledge its support for the National Assembly for Wales in advance of the referendum, believing that the interests of farmers and the rural economy of Wales would be best served by policies determined and fashioned, where possible, by the elected representatives of the National Assembly who, the Union was confident, would be more attuned to the particular concerns and needs of Wales' rural areas.

To demonstrate the FUW's total commitment to the success of the Assembly, the Union has a Policy Officer based in Cardiff, Mr Sion Aron, who keeps Assembly members fully informed of the views and aspirations of FUW members.

The FUW looks to all Assembly members, irrespective of constituency or political affiliation, to ensure that rural Wales receives a fair deal. There must be a robust and properly financed commitment to agriculture and rural Wales. It is important that the distinctiveness of Welsh rural life is preserved for the benefit of the whole of Wales.

THE IMPORTANCE OF AGRICULTURE TO THE RURAL ECONOMY

The range of primary agricultural production in Wales is largely limited to milk, beef, and sheep production (87 per cent of gross output of Welsh agriculture), although the scope for diversification into other areas, such as tourism, is possible for some.

The net income generated from farming provides the spending of farm householders on goods and services which, in turn, provides further income and employment beyond the farm gate in the wider rural community. The purchase of intermediate outputs, such as feed, fertilisers, veterinary medicines, machinery, etc, is financed from enterprise revenue, and further activity is stimulated by the transporting, marketing and distribution of primary products.

Farm output also provides the raw material for the processing industries. It is because of these linkages that the economic prosperity of the farming industry has such far-reaching implications in terms of its ripple or multiplier effect on the employment and incomes of other ancillary industries.

Sustainable agriculture is dependent on retaining traditional and indigenous skills within the countryside. In the current economic climate, employment prospects within the land-based industries are poor. This lack of opportunity, coupled with low incomes, has resulted in the younger generation migrating from rural areas in search of employment. As a consequence, the age structure of the rural population has deteriorated. Priority must be given to stemming this outward flow by the provision of a range of employment opportunities.

The recent trend in the polarisation of farm holdings has caused a concomitant increase in the number of larger holdings, which has made it harder for young people to enter the agricultural industry. It is imperative that the Assembly addresses these problems, otherwise the sustainability of agriculture and the rural economy is in jeopardy.

THE FUW'S EXPECTATIONS

The FUW recognises that the Assembly will have an important role in designing secondary legislation to meet Welsh needs and in implementing discretionary measures. The following paragraphs outline a range of crucially important issues for farming and the rural economy which will immediately face Assembly members.

· CAP Reform - the Mid-Term Review of Agenda 2000

The mid-term review of the Agenda 2000 agreement has resulted in the European Commission proposing one of the most fundamental, far-reaching policy changes which has ever faced European farmers. The proposal to decouple support payments from production is likely to have a profound effect on economic activity in rural Wales as support payments would no longer be linked to the number of animals kept or arable hectares grown. There is a real danger that, unless this change is handled properly, decoupling could encourage speculative trading in land and reference quantities by institutions outside agriculture and will result in a substantial reduction in the output from Welsh farming. This, in turn, will have a major impact on a range of rural industries, and, in the light of these factors, the FUW believes the Assembly's priorities in terms of the reform negotiations should be as follows: -

*Maximising the number of viable units in Wales so as to sustain family farms - the backbone of Wales' rural areas - and to retain as many workers on the land as is economically possible without favouring measures to inhibit the trend towards the polarisation of farms into small and large amalgamated units.

*Ensuring that the Welsh Assembly Government is represented at negotiations in Brussels, and that the Minister plays a full part in shaping the UK negotiating position in Brussels.

*Resisting greater subsidiarity and discretionary measures as they are likely to distort competition within the EU and enable some member states to flout the concept of a single market.

*Ensuring sufficient resources for Rural Development Plan (RDP) schemes to fund current initiatives such as Tir Gofal. Current proposals to increase the scope of accompanying and non-accompanying measures to include initiatives targeted at farmers will mean that, without a substantial increase in RDP funding, Pillar II schemes will be woefully underfunded.

*Ensuring that, in the event of decoupled payments being adopted, mechanisms are in place in Wales to provide a reference quantity for new entrants and those who, for reasons beyond their control, were unable to obtain an adequate historical payment.

· Tir Mynydd Payments

The future of Tir Mynydd payments is crucial to Welsh farmers, given that 80% of Wales is designated by the EU as 'less favoured area'. The conversion of these socio-economic payments from headage to hectarage based payments systems has resulted in financial hardship for many farmers. Whilst the transitional arrangements in the form of a safety-net have gone some way towards alleviating the losses of those who were most affected by the change, these arrangements end in 2003 despite the efforts of the Union to introduce safeguards for those farmers worst affected. A recent consultation on the future of the Tir Mynydd scheme concluded that change would be inappropriate until such time as the mid-term review proposals had been concluded.

The FUW believes that the Assembly must further evaluate the Tir Mynydd scheme following the conclusion of the CAP reform process, and target adequate resources at the scheme to ensure that all Tir Mynydd claimants are treated fairly.

· Early Retirement/Young Farmers

The FUW has long advocated a properly-funded early retirement scheme to enable restructuring of the age profile of the agricultural industry. The Union was disappointed that the Assembly did not take advantage of the early retirement/young farmer elements of the rural development package during its first term, and believes that the deteriorating age profile of farmers warrants the introduction of available EU measures to encourage the younger generation into agriculture.

The FUW remains firmly of the view that incentives available at a European level to assist young farmers into the industry should be given serious consideration by the Assembly, thereby emulating other regions of the EU.

· Animal Health and Welfare

The integrity of the livestock industry, on which Welsh agriculture is so dependent, requires that standards of animal health and welfare are consistently maintained at the highest standards. The FUW believes that the next administration will need to ensure that:

*Welsh farmers are not placed at a competitive disadvantage by gold plating EU legislation designed to harmonise standards throughout the EU. The impracticality of current EU proposals regarding the double tagging of sheep must also be clearly conveyed to the Commission.

*The TB issue is tackled as a matter or urgency. Welsh farmers have a proud record in TB eradication. Carmarthenshire was the first fully TB-accredited county in England and Wales, followed by Pembrokeshire and Cardiganshire. Farmers are dismayed at the deteriorating situation, with the number of new TB incidents almost doubling in the period 2000-2002. The Assembly must therefore be prepared to review TB control measures as a matter or urgency, and must be willing to look at the role of wildlife in spreading the disease.

*A solution is found to the fallen stock issue which represents a major problem in Wales due to livestock densities and the limited number of available knacker/rendering facilities.

*The lifting of the Over Thirty Months Scheme ban is done in a manner which safeguards both consumers and producers, and the Assembly must contribute fully to the debate on the best approach to phasing in alternative measures.

· Food Strategy

A high proportion of rural Wales' output is processed or has value added outside Wales. We are currently exporting our economic advantage and the scope to regenerate rural communities. The FUW fully supports the development of the Welsh Food Strategy and believes that public procurement policies which support the purchase of local products must be a priority for the new administration.

· Tenancy issues

A third of holdings in Wales are tenanted, and this sector has an integral and vital role in the structure of the Welsh agricultural industry. The farm business tenancy legislation was rigorously opposed by the FUW because it was envisaged that a move from lifetime tenancies to one with tenancies which offered little security was too radical and would be retrograde, particularly for those seeking to become established in the industry.

The FUW supports the fostering and continuation of County Council smallholdings as a first step on the farming ladder. Clear directions should therefore be given to County Councils on the letting of their smallholding estates. The rights of tenants must also be central to the Assembly's position on the reform of the CAP and support payments must be targeted at the producer and not the landowner.

· Burden of costs and bureaucracy

A host of direct charges has increasingly fallen on domestic primary producers, with costs imposed for inspection and licensing higher up the marketing chain reflecting back down in reduced prices paid to farmers.

These crippling costs have fallen disproportionately hard on smaller family farms and small businesses where returns are insufficient to mitigate the escalating level of charges. These businesses have also endured an escalating burden of paperwork despite past government reviews on the impact of red tape on agriculture. The Assembly must examine, as a matter of extreme urgency, the proliferation of charges being foisted on the industry and take urgent steps to limit the burdens of cost and bureaucracy which have had an increasingly impact on Welsh farmers.

ACCESS

The introduction of a statutory right of access under the provisions of the Countryside and Rights of Way Act continues to be a major concern for farmers in Wales. Whilst the Union recognises that the countryside represents a place for the enjoyment of leisure pursuits, it is also a place of work for farmers and those involved in ancillary industries.

We would therefore call on the Assembly to:

- Use secondary legislation to ensure that farmers in Wales have adequate safeguards to avoid undue disruption to farming activities.

- Ensure that its current "big bang" approach to rolling out the new access provisions following consultation is maintained, rather than adopting the piecemeal approach advocated in England.

- Provide effective and sufficient wardening staff to ensure that extended access is managed with minimum disturbance to land managers.

- Look to the powers accorded to them under secondary legislation to minimise the impact of dogs in areas where livestock are kept.

STRUCTURAL FUNDS

The accreditation of a substantial portion of rural Wales with Objective 1 status in recognition of its lower than average level of GDP has provided a lifeline for rural development in terms of structural adjustment in this area. Indeed, the Farming Connect Scheme has highlighted how these resources have been targeted at the farming sector.

However, following enlargement of the European Union from 2004, West Wales and the Valleys are unlikely to qualify for Objective 1 as their per capita income will be higher than 75% of the revised European average.

In order to ensure that Wales is not totally disadvantaged post 2006, the Assembly needs to be actively engaged in discussions at UK and European levels on both the transitional arrangements and indeed future eligibility criteria of structural funds post 2006.

· Agri-Environment

The popularity of agri-environment schemes such as Tir Gofal demonstrates how farmers are fundamentally involved in the stewardship and protection of the Welsh countryside.

However, the FUW is concerned that a rapidly expanding volume of environmental legislation and designations is being imposed on land managers, reducing their capacity to run viable businesses. Particular examples causing concern are Nitrate Vulnerable Zones, Environmental Impact Regulations and the designation and extension of existing SSSIs to meet the obligations of the European Habitats Directive.

Whilst the FUW recognises the need for environmental protection, it believes that regulations should be proportionate to the problem. To this end, avoiding "the gold plating" of European legislation is fundamental, and whilst the FUW acknowledges the Assembly's willingness to adopt differing positions from the UK Government on some issues, there is a range of policies, such as the European Habitats Directive, where, due mainly to the stewardship of farmers, disproportionate tracts of rural Wales are being designated. The Union fears that this could have the long term effect of stagnating development in some rural areas. The FUW urges Assembly members to consider how the social and economic well being of these large designated areas can be fostered under the auspices of the legislatory frameworks.

As all farmers are subjected to increased levels of modulation, it is vital to ensure that maximum numbers are able to access schemes funded by these resources.

Whilst the Union welcomes the Assembly's proposals for a base entry level agri-environment scheme for farmers, it is vital to ensure that sufficient funding is put in place prior to its commencement, so that expectations on the ground are not tempered by long lists of farmers awaiting entry to a scheme with insufficient resources, as seen in the case of the Tir Gofal scheme.