On Wednesday this week (4 June), the Farmers’ Union of Wales (FUW) presented evidence to the Welsh Affairs Committee on its inquiry into the challenges and opportunities of farming in Wales in 2025.

The FUW was represented byGareth Parry , a longstanding FUW staff member, and the Union’s Head of Policy since 2024.

As part of the session, Mr Parry was questioned by MPs on a number of the ongoing challenges facing Welsh agriculture; including the UK’s withdrawal from the European Union, the changes to agricultural and business property relief, and how changes to the UK Government’s funding for Welsh agriculture will impact the sustainability of the sector.

Speaking during the evidence session, Gareth Parry, FUW Head of Policy said: “Brexit has presented us with a situation whereby UK Governments are moving away from the core policy principles of the EU’s Common Agricultural Policy, such as the supply of affordable food and the provision of fair incomes for farmers, and towards measures primarily designed to tackle the nature and climate crises.

“These crises are often being referred to as justification for this fundamental shift in agricultural policy and yet there remains no legislative mechanism to determine if - or when - the UK faces a food crisis. If it’s measured by the availability of food on supermarket shelves, it’ll be too late.”

The UK’s departure from the EU has also led to the loss of the intermediate-term stability provided by the EU’s seven year Multiannual Financial Framework. The lack of such replacement financial frameworks has allowed the UK Government to apply the Barnett Formula to any future adjustments to Welsh agricultural funding, meaning that Wales will receive subsequent uplifts based on a historical share of the UK population as opposed to rural needs.

“We have been absolutely clear since the referendum: if Governments provide economic sustainability to farming businesses, the cultural, societal and environmental contributions they make will naturally continue.

“However, what we are seeing is a clear appetite from the previous and current UK Governments to sign trade agreements rather than underpinning domestic food production through appropriately designed policies.”

Members of the Committee heard how the previous and current UK Governments have claimed to have protected the UK’s high food standards within their trade agreements. Yet, there has been little mention of the differences between food safety and food production standards.

“By opening the door to agricultural products from other countries where food is produced at a cheaper cost due to differences in production methods and regulatory requirements, is the UK Government undermining our domestic food producers? Yes, 100%.

“Crucially, after operating under favourable EU CAP principles for decades, the UK Government cannot ultimately pull the rug from beneath us by reforming agricultural policies and replacing domestic food production with imports, without seriously considering the economic viability of farming businesses.

“Both the UK and Welsh Governments must therefore empower the agricultural sector as a world leader in sustainable food production first and foremost, but to do so, both Governments must work collaboratively.”

Several questions during the session focused on the proposed inheritance tax reforms, with Mr Parry relaying the latest figures from Family Business UK and CBI Economics on the potential impacts for the UK economy.

“As highlighted earlier this week, the latest figures demonstrate the HM Treasury’s failure to consider the wider economic and social impacts of the proposed changes.

“It has been clear since the Budget announcement that HM Treasury Officials have had no intention of even acknowledging our concerns. They have slammed the door on the industry and thrown away the key.

“With the latest figures showing catastrophic impacts for UK family businesses and a fiscal loss of £1.9 billion for the Treasury over the next five years; with UK Government and HM Treasury Officials claiming that the policy reforms are fair, the question has to be asked; fair for who?

“We are not calling for the policy to be scrapped. Rather, we seek an opportunity to design a policy with the HM Treasury that works for genuine family businesses and closes the loopholes that currently exist.”