FUW GENERAL ELECTION MANIFESTO 2010

Dear Colleague,

While the current financial crisis clearly warrants the attention received from all political parties, there is also a clear need for recognition of the longer term challenges that will affect the lives of UK citizens for years to come.

Over recent years, politicians and policy advisors have, albeit belatedly, become increasingly aware of the importance of agriculture in terms of tackling the major challenges facing our generation, not least climate change and food security.

In reality, however, we have only begun to scratch at the surface of such issues, and many of the policies that have been mooted regarding agriculture’s role in tackling key challenges have utterly failed to recognise the full picture.

That picture transcends all scales, from the central role farming plays in maintaining our natural environment and rural communities at a local level, to the role of global trade in feeding the world’s populations.

But at the centre of the picture lies a key entity that has too often been overlooked and undervalued by our political leaders, namely the family farm.

Whatever the political issue, whether it is climate change, animal health and welfare, the negotiation of global trade agreements, or any of the other agriculturally related topics that affect the electorate, the family farm has a central role to play, and those politicians who ignore this do so at our peril.

While advances in the devolution process have reduced the number of Welsh agricultural issues over which our Members of Parliament have a direct influence, there remain numerous overarching policies that are of relevance for Welsh rural communities, and the FUW’s concerns and aspirations regarding the most significant of these are highlighted in this manifesto.

Many of these topics will be the subject of detailed consideration during the next Parliament, and the decisions that follow will have major implications for the agricultural industry and indeed all UK citizens over the coming years.

The FUW is not affiliated to any political party and therefore has a duty to work with both the Government of the day and the opposition parties, irrespective of their political persuasions.

For the period of the next Parliament and beyond the FUW is therefore committed to lobbying all those in Westminster to ensure that agriculture and family farms receive the attention and respect that they warrant – for the sake of all our futures.

Yours sincerely

Gareth Vaughan ARAgS

President

THE FUTURE OF THE COMMON AGRICULTURE POLICY

In 2007 and 2008 countries around the globe suffered conflict and social unrest due to food shortages. In some developed countries major retailers even rationed certain foodstuffs, and in July 2008, a discussion paper issued by Defra concluded that 'the current global food security situation is a cause for deep concern', listing high energy prices, poor harvests, rising demand, biofuels and food export bans in some countries as main factors.

With the world population expected to rise to between nine and ten billion by 2050, and predicted reductions in global agricultural productivity per hectare, there is clearly a need for appropriate action that balances food production against environmental considerations, and mitigating climate change without compromising food security is one of the most significant long term challenges facing mankind.

There can be little doubt that joined up policies between Governments are needed to address these issues, and the Common Agricultural Policy (CAP), by design, provides just such a framework, allowing Europe to react to the imminent challenges that growing populations, global warming, rising sea levels, and peak oil represent in terms of food security.

While UK politicians battle over the May 2010 election, discussions regarding the future of the Common Agricultural Policy are the focus of discussions at a European level, and the outcome of these may be as influential over the long term welfare of UK citizens as the forthcoming election.

The FUW therefore looks to a future Government which would

Support the Common Agricultural Policy and its core objectives, with a particular emphasis on ensuring the availability of agricultural produce to EU citizens and a fair standard of living for the agricultural community, as described under Article 39 of the Treaty of Rome.

Recognise the central importance of the CAP as a mechanism by which the major environmental and food production challenges of our age can be addressed

Support the provision of a CAP budget that properly reflects this importance

Press the European Union for a compulsory pan-European scheme to help and encourage young entrants to the industry

Support a compulsory Less Favoured Area scheme which requires Member States to properly recognise both socio-economic and environmental handicaps faced by farmers in many areas

Advocate a revision of CAP Regulations which ensures all penalties are proportionate, and that administrative errors are properly recognised

Support a policy which proactively supports family farms, recognising their central role in protecting our natural environment and rural communities

Recognise the importance of Milk Quotas as a mechanism which supports milk production within the UK and by which supply can be properly controlled and monitored

Reject the calls to renationalise agricultural spending within the EU in order to ensure a genuine common policy across Europe

WORLD TRADE

International commerce, through trade agreements and other mechanisms, has brought huge advantages to many of the World’s nations and peoples, and has served to significantly stabilise international relationships over the past sixty years.

However, globalisation at the pace seen over recent years has also brought with it many problems, not least the accelerated destruction of some of the world’s most precious habitats and an increase in greenhouse gas emissions, and the belief that rapid and uncontrolled trade liberalisation is, by definition, a force for good has been shown to be naïve.

In 2009, Belfast’s Food and Agricultural Policy Research analysed the likely impact for UK agriculture of liberalising current EU rules on food imports. Their work predicted falls in UK farm incomes and food production which would cause utter devastation for our rural communities, completely undermine our food security, and accelerate global deforestation and food transportation.

The FUW does not believe that such impacts are in the interests of the UK, Europe, or the globe, and would therefore urge a future Government to

Abandon current UK policies that advocate such trade liberalisation

Ensure that food security, rural incomes, and local food production needs are a priority for Europe at future World Trade Organisation negotiations

Advocate trade policies which promote appropriate global commerce which provides fair incomes for all rural communities and empowers family farms, as opposed to multinational companies

SUPPLY CHAINS

Successive changes to policies which govern competition within supply chains have resulted in large companies such as supermarkets dominating supply chains in a way that is grossly detrimental to all others along the supply chain, particularly primary producers.

Not only is there significant evidence to suggest that such dominance has in many cases been abused, to the detriment of suppliers and local economies; studies have suggested that the disproportionate bargaining power that major retailers exert within the marketplace, combined with their ability to dictate upper price limits, allows them in some cases to secure almost 90 per cent of total supply chain profits.

The FUW has therefore campaigned for an enforceable and robust supermarket Code of Conduct and the introduction of a supply chain ombudsman for the past decade, and has, on numerous occasions, provided evidence supporting these calls to the Competition Commission and Office of Fair Trading.

The cross-party support for the introduction of a supermarket ombudsman is therefore to be welcomed. However, the FUW believes that there are also significant grounds for changes to competition rules both within the UK and across the European Union.

At a European level, moves to address imbalances along the supply chain have been more proactive, and discussions have focussed on promoting a better functioning, more equitable and transparent supply chain, with the central objective of ensuring that consumers pay appropriate prices for food, while farmers, food producers and distributors, get fairer payments for their activities.

The FUW believes that any such moves are welcome and long overdue, and that the next Government should

Support the early introduction of a Supermarket Ombudsman, with a view to extending the Ombudsman’s role to encompass the entire supply chain

Review current UK competition rules, with a view to redressing the imbalance of power that exist along the domestic supply chain in a manner that benefits primary producers

Support moves at a European level to promote a better functioning, more equitable and transparent supply chain, in order to ensure that consumers pay appropriate prices for food, and that all those along the food chain receive equitable payments for their products and services

SCIENCE AND TECHNOLOGY

Research and Development has always been a vital component of a thriving agricultural sector. In future, the need for technological advancement to improve production, to feed an expanding population, whilst reducing inputs, and to mitigate climate change underlines the need for significant public investment into agricultural research.

However, such investment has fallen significantly over recent decades, leading in some cases to the loss of entire research facilities and research groups whose importance in terms of food production and the environment is only now being properly recognised.

Whilst the private sector has played an increasingly important role in meeting the investment gap, there is concern that some areas, for example genetically modified organisms (GMOs), are dominated by the agrochemical multinationals. This has often led to concerns that research priorities could be profit, rather than public benefit, driven, particularly through the copywriting of genetic sequences and the binding agreements that accompany the use of GMO seeds.

The FUW believes that the genetic modification of organisms is an exciting area of research that may lead to major advances in agriculture. However, the major concerns that exist in terms of the impact that the premature release of such organisms into the environment will have, and the significant power that the technology affords major agrichemical companies over the farming industry warrants a significant review of current Government policy.

In light of these concerns, the FUW believes that the next Government should:

Boost research into all areas of agriculture in a manner that properly reflects the importance of agriculture in terms of food security, the environment and climate change

Move to curb the dominance of the major agrochemical companies over important areas of research such as GMOs by providing public funding for research into areas that are public-benefit rather than profit driven

Bolster efforts to properly and independently scrutinise the long-term impact of the release of GMOs into the environment

ENVIRONMENT

The popularity of the Welsh countryside as a tourist destination is testament to farming’s role in protecting and managing the land, the landscape and the myriad of habitats and biodiversity.

Over three quarters of the Welsh countryside has some environmental or conservation designation and this highlights the important role farming has in maintaining the rural heartlands.

Nearly 80% of Wales is designated by the EU as ‘Less favoured area’, the withdrawal of the Tir Mynydd, hill farming compensation scheme in favour of the new Glastir land management scheme, has severe implications for the future viability of upland areas and it is extremely important to ensure that the current LFA boundary discussions should not result in a shrinkage of the current LFA area in Wales.

The European ‘Challenge Agenda’ has highlighted the policy priorities of Rural Development into the future, climate change will be a challenge, but Welsh farming is placed in a strong position to play its role in adapting to changing weather patterns, embracing alternative energy solutions and making a contribution to carbon storage and sequestration.

The Water Framework Directive poses significant challenges for both the agricultural industry and others as they adapt to new methods of managing water resources.

The Union urges the incoming Government to:

Work pro-actively with the industry in ensuring realistic Water Framework Directive goals are set, which are achievable by sustainable farming practices, whilst maintaining water quality standards

Ensure that as all farmers are subject to modulation, they are able to access simple, agri-environment provision and are given sufficient support and guidance to do so easily

Ensure that Environmental Regulation, if required, is proportionate and realistic avoiding any gold plating of European Legislation

Ensure that working partnerships and collaborative working between Government and its Agencies should be prioritised to reduce bureaucracy and to encourage positive engagement with the industry

Ensure targets climate change mitigation targets set for the Farming industry are fair and proportionate, recognising the contribution the industry makes to carbon sequestration and food security

Consider the emerging evidence on controlling methane through improved grazing regimes rather than reducing livestock numbers

Channel more Government support for new and emerging markets in biofuels and anaerobic digestion, to encourage farmers to consider investing in these embryonic technologies

RURAL ECONOMY

Farming remains the bedrock of rural areas, in terms of the multiplier effects of farm incomes on the local economy. Over recent years, farm incomes have been low and this has had a profound effect on the viability of farms as well as the many secondary businesses which rely on them.

A sustainable and vibrant rural economy is reliant on the agricultural industry which provides employment, both on farm and off farm as labour or contractors and wider employment opportunities from diversified activities.

Rural areas have structural weaknesses stemming from higher housing costs, fuel prices for travel and heating, coupled with lower than average wages, higher competition for available employment and the costs of travelling to work.

The FUW calls on the next Government to

Address the issue of disproportionate vehicle taxation in rural areas by introducing a system that properly distinguishes between those who drive four-by-four vehicles as a matter of necessity, and those who do so as a lifestyle choice.

Deliver an immediate cut in fuel tax. Rural areas have suffered disproportionately from the fuel tax escalator which means increased costs for all those who live and work in the countryside.

Increase the thresholds for inheritance tax and allowances

Increase capital allowances for expenditure on plant and machinery

Make the roll out of broadband in all current blackspots a priority

Recognise the difficulties of online submissions for many in rural areas and allow alternative arrangements for the foreseeable future

Urgently reinstate the income tax and Capital gains tax rules for Furnished Holiday Lettings (FHL)

RED TAPE AND BUREAUCRACY

In January 2008, the Welsh Minister for Rural Affairs announced a review of Red Tape designed to reduce the excessive bureaucratic burden placed on the Welsh farming industry.

However, the Welsh Assembly Government’s ability to reduce red tape is severely inhibited by the continuing emergence of disproportionate Regulations from the European Union, such that the positive moves made by the Red Tape Stakeholder Group fade into insignificance alongside incoming requirements.

Examples introduced over the past twelve months alone include the requirement for all sheep to be electronically identified, and for all animals to be accompanied by Food Chain Information declarations, both of which represent costs of many scores of millions for the farming industry and the taxpayer.

Agricultural trade now operates on a global scale, and Welsh farmers are currently hindered by onerous regulations and administration costs which do not exist in the countries against which we compete, despite the requirement for ‘equivalence’ for food imported into the EU.

However, the blame for the ever-increasing burden of regulation cannot always be laid at the door of the European Union, and it is often the case that Regulations are compounded by the ‘gold-plating’ of EU legislation, forcing additional measures onto Welsh and UK agriculture relative to other Member States.

The FUW therefore believes that the next Government should:

Work closely with other Member States to reduce current unnecessary bureaucracy, such as sheep EID, and to prevent the introduction of further unnecessary and burdensome EU Regulations

Press the European Union to enforce requirements of “equivalence” for all produce imported into the EU, in order to reduce unfair competition

Increase communication between Whitehall, the Welsh Assembly Government, Local Authorities and other statutory bodies in order to share collated information and reduce the number of inspections for farm businesses

Examine and evaluate the current costs being imposed on the primary producer, with a view to reducing unnecessary and disproportionate regulation

Make a concerted effort to ensure that all new and existing legislation is subject to greater scrutiny in order to minimise the competitive disadvantage conferred upon Welsh farmers competing in a European market against Member States where directives are implemented more liberally

ANIMAL HEALTH AND WELFARE

Welsh farming remains proud of its consistently high standards of animal health and welfare, and the industry contributes substantially to the overall cost of animal health and welfare in Wales.

However, in recent years, despite increasing input costs and low profitability, primary producers have had to bear an increasing share of costs relating to public health and EU bureaucracy, for example through the transfer from Government of the cost of BSE testing and disproportionate fallen-stock legislation.

The FUW maintains that costs to industry should be minimised and remains fundamentally opposed to the current cost-sharing agenda, particularly given the Government’s track record in terms of the management and control of exotic disease, including the importation of Foot and Mouth to the UK in 2001, and the bio-security failures observed in 2007 during the Pirbright Foot and Mouth Disease leak.

Defra recently published a draft Animal Health Bill which proposes the establishment of an English Animal Health Organisation, and, if enacted, would establish separate UK, Wales and English Chief Veterinary Officers (CVOs).

Such an Act would see the UK CVO representing all devolved administrations at European level, and the FUW is naturally concerned that such a representative may not properly represent the interests of the Welsh agricultural sector, and would undermine the devolution of Animal Health responsibilities which has proved to be so successful for Wales.

The publication of the draft Animal Health Bill was accompanied by outline proposals to introduce a Finance Bill which would effectively introduce a tax for farmers in order to pay for Animal Health running costs and future disease outbreaks.

Over the past decade, an overwhelming proportion of the costs incurred by the taxpayer in relation to animal health have been a direct result of Government failures, for example in relation to bovine TB and Foot and Mouth disease, and the Union therefore objects wholeheartedly to plans to reduce Animal Health funding in Wales and tax farmers in order to fund animal health expenditure.

The FUW therefore calls on the next UK administration to

Recognise the high standards of animal health and welfare which exist in Wales, and ensure that costs pertaining to animal health, and any associated bureaucracy, do not disadvantage Welsh producers in the European market

Review those parts of the Draft Animal Health Bill which relate to Wales, to ensure that the devolution of animal health powers is properly recognised, and that Welsh interests can be properly represented at a European level

Abandon plans to reduce the monies allocated to Wales for animal health spending

Abandon plans to tax farmers in order to fund animal health and disease outbreak costs, in light of the current high contribution that farmers make towards animal health, and past Government failures to manage disease outbreaks

Introduce border controls which will significantly reduce the likelihood of exotic diseases, such as Foot and Mouth disease, being introduced to the UK

Press the European Union to introduce measures to better control the importation of foodstuffs from Third Countries where exotic diseases may be present

BOVINE TB

While devolution has allowed Wales to make significant progress in terms of implementing bTB policy that targets all major sources of the disease, any failures in bTB policies implemented in England by the UK Government pose a threat to every farm in the UK and to the disease status of the Island as a whole.

As the waters regarding the impact of badger culling continue to be muddied by those who oppose a cull, the scientific evidence from the UK and the Republic of Ireland clearly demonstrates that culling, when carried out in the right conditions, can reduce bTB incidences significantly.

The potential impact of vaccination, on the other hand, remains completely unknown, and while the FUW fully supports all research on vaccination, and in particular the development of an oral vaccine, it believes that the scale of the bTB epidemic in England requires immediate and decisive action by the next Government in the form of a badger cull in order to complement, rather than hinder, the work being undertaken in the rest of the UK.

LOCAL PROCUREMENT

Procurement of agricultural produce by Government departments, Local Authorities, and other publicly funded authorities has improved significantly over recent years, but there remain significant numbers of administrations which fail to support British agriculture, choosing instead to accept produce from countries which often fail to meet the UK’s high production standards.

While the FUW recognises the problems that state aid rules represent in terms of encouraging public procurement of local produce, these have been significantly exaggerated by many bodies in order to avoid local procurement, and the implementation of local procurement initiatives by public bodies both within the UK and across the EU supports this view. Moreover, Defra has clarified that model contract clauses can be used to encourage local sourcing, and many EU Member States have long used such clauses to ensure sourcing of local food.

The FUW believes that the next Government should:

Recognise that local procurement represents an investment in UK businesses and raises the profile of UK produce in the eyes of consumers

Proactively encourage and facilitate public and private sector procurement of UK produce in a manner that supports small, medium and large processors and cooperatives

Instigate procurement policies which encourage the creation of new companies and cooperatives, in order to bring benefits in terms of local employment and redressing imbalances that currently exist throughout the supply chain

Do so in a way which raises awareness of and confidence in UK produce, both amongst UK citizens and visitors to the UK

Allow consumers to make honestly informed opinions regarding the provenance of the food they buy by supporting moves to make clear country of origin food labelling a legal requirement

Click here to download a Word version of the FUW's 2010 Manifesto

Click here to download a PDF version of the FUW's 2010 Manifesto