[caption id="attachment_5069" align="aligncenter" width="225"] Welsh Government farm liaison officer Rita Jones with FUW Carmarthenshire county chairman Brian Richards.[/caption]

An open meeting focusing on the changes to farm payments and the Common Agricultural Policy (CAP) has been held by the Carmarthenshire branch of the Farmers’ Union of Wales.

The meeting, held on Monday March 2 at Llanarthney Village Hall, attracted a large attendance from members in the county and Welsh Government farm liaison officer Rita Jones gave a presentation on the changes to the Single Application Form and CAP.

The presentation by Mrs Jones was followed by a lively debate and provided members with the opportunity to ask some pertinent questions.

FUW Carmarthenshire county executive officer David Waters said: “2015 is a critical year in which new Basic Payment entitlements will be created and new rules have changed both eligibility for payments and land management requirements and so I would like to thank Mrs Jones for the informative presentation she gave at our meeting, which shed light on some of the questions our members had regarding the mine-field that is SAF and CAP.”

[caption id="attachment_5061" align="aligncenter" width="300"] FUW senior policy officer Dr Hazel Wright[/caption]

The Farmers’ Union of Wales has given oral evidence on dairy farming in Wales at a one-off Welsh Affairs Committee session, held earlier this month in London.

The evidence session explored issues such as the impact of recent dairy commodity price falls and price volatility on Welsh dairy farmers, the challenges particular to Welsh dairy farmers and the competitiveness of Welsh dairy farms in comparison to farms in the EU and beyond.  The session also explored the relationship between Welsh dairy farmers and major milk processors and purchasers.

FUW senior policy officer Dr Hazel Wright, who represented the union, said: “The Welsh Affairs Committee session provided the FUW with the opportunity to discuss some of the most important issues facing the Welsh dairy sector directly with MPs.  Given the current level of volatility in the dairy sector it was essential that the FUW provide MPs with information on those issues which we believe could help mitigate some of the current problems faced by producers.”

Dr Wright told MPs that the Welsh dairy sector is one of the most efficient in the EU and that the current situation has functioned to devalue a product of high nutritional benefit.

“The union was given the chance to discuss the impact of changes to the Basic Payment Scheme on dairy producers in Wales, alongside issues such as the problems that could occur following the abolition of milk quotas in a few weeks, and the impact of the Voluntary Code of Practice.

“Amongst other issues, MPs were told that the Groceries Code Adjudicator should be able to launch investigations, rather than waiting for producers to provide sufficient evidence, and that indirect suppliers should also be covered by the adjudicator’s remit,” added Dr Wright.

MPs further heard that transparency was essential in the dairy supply chain and needed to improve in order to allow producers and processors to be well placed to  maximise those opportunities that will arise in the export market.

The evidence session further included evidence from Parliamentary Under-Secretary of State for Farming, Food, and the Marine Environment, George Eustice.

The evidence session can be viewed on UK parliament TV: http://www.parliament.uk/business/committees/committees-a-z/commons-select/welsh-affairs-committee/news/dairy-farming-in-wales/

[caption id="attachment_5058" align="aligncenter" width="169"] FUW arable, horticulture and cropping committee chairman John Savins[/caption]

Pembrokeshire farmer John Savins has been elected as the new chairman of the Farmers’ Union of Wales arable, horticulture and cropping committee at a recent meeting held in Aberystwyth.  

John, 48, who is also the union’s Pembrokeshire county president, runs a herd of 200 store cattle on his 530-acre farm at Boncath, Pembrokeshire, and farms around 130-acres of barley.  

He was born and raised on the family farm in North Pembrokeshire and attended Ysgol Y Preseli followed by Gelli Aur Agricultural College after which he returned home to farm with his parents. 

John first became involved with the FUW when he was voted on to the county committee as the representative for Crymych and since then has served as county vice chairman and then as county chairman, as well as vice chairman for the arable, horticulture and cropping committee.   

“The arable, horticultural and cropping committee covers a wide variety of issues, such as pesticide usage, the growing of feed crops for home use and selling off-farm, and of more immediate concern the implications of the new greening requirements of the new Basic Payment Scheme.  

“I look forward to leading the committee and to continue to represent, support and promote our industry regarding these important issues on behalf of the union,” said Mr Savins.

Figures released today by the Welsh Government predicting dramatic falls in farm incomes this financial year highlight the need for a greater emphasis on improving farm incomes under the 2014-2020 Rural Development Plan.

“Forecasts of Farm Incomes in Wales 2014-15” published today (February 26) by the Welsh Government’s statistics and research division predicts a 24% drop in farm business income for all Welsh farms, down from £29,300 in 2013-14 to £22,200 in 2014-15. Average farm business income on hill livestock farms is forecast to decrease by 22 per cent from £19,200 in 2013-14 to £15,000 in 2014-15, while the equivalent figures for lowland livestock and dairy farms is expected to be -19% and -23% respectively.

The report attributes the falls in incomes to reductions in what farmers receive for their produce and reductions in the value of the Single Farm Payment.

FUW President Emyr Jones said: “The combined impact of reduced farmgate prices, the Welsh Government’s 15% Pillar Transfer, a reduced CAP budget and a Single Payment exchange rate of £0.7773/€1 has had a catastrophic impact on farm incomes.

“The fact that sterling is continuing to strengthen against the Euro means there is ongoing pressure on prices, with the situation in relation to Greece not helping.”

Mr Jones said that the Union’s vociferous objection to the reduction of direct farm payments by 15% (the ‘15% pillar transfer’) was well publicised, but the decision could not now be overturned.

“We cannot control the exchange rate, and despite our fierce lobbying against it, the decision to transfer 15% has been made. The only area where there is flexibility to act is in terms of ensuring Rural Development funds are directed at bringing farm incomes back up, and not squandered.”

Mr Jones said that further changes to direct payment rates which would be decided upon over the coming months would also add to uncertainty and disruption for the industry, and would inevitably put further downwards pressure on many farm incomes.

“The figures announced today should come as a wake-up call to all those within Welsh Government who have not yet recognised the need for an RDP which is totally focussed on boosting the efficiency and profitability of farms.”