image expired

• A 10% cut to the EU’s overall CAP budget
• The Welsh Government’s decision to reduce the amount of money paid directly to farmers by 15% (by moving money from Pillar 1 to Pillar 2)
• Excessive bureaucracy such as the six day standstill rule on moving animals
• Welsh Government proposals to introduce a crude and inflexible valuation system for bovine TB compensation
• A 20% reduction in the farmgate price of milk
• Substantial drops in the price of lamb and beef
• The exchange rate has fallen by 7%.

It has been estimated that a farmer receiving £10,000 in 2013 would see their payment drop by over 20% to £7,879.

Llyr Gruffydd said:

“Farmers are facing a catalogue of challenges that are creating a perfect storm for the agriculture sector in Wales. Some of these factors are beyond the government’s control, such as the particularly poor exchange rate, but many of them are of the Welsh Government’s own making, and they need to be rectified.

“The Welsh Government’s decision to cut the amount of money paid directly to farmers by 15% has created untold concern. Taking nearly a quarter of a billion pounds out of the pockets of farmers at such a financially challenging time is making a bad situation worse. This, on top of the 10% cut to the agriculture budget that the Labour and Tory parties supported at an EU level, will add to this.

“Given the unprecedented challenges facing the industry in Wales the Deputy Minister must now accelerate Government action to cut red tape in the sector. She must allow farmers to get on with the job of farming and give them more flexibility to ensure their businesses endure. This should include scrapping the six day standstill rule which locks up a farm for six days every time an animal is brought on the holding.

“We also need to better support Welsh dairy and meat. Changing procurement rules at an EU level means Wales will be able to do more to encourage people to source local meat and dairy, boosting the industry and keeping prices fair. The Deputy Minister’s decision not to introduce a scheme under the Rural Development Programme to support those farming the more difficult land known as Areas of Natural Constraint is also a blow to the industry – especially when they see other parts of the UK utilising this support.

“The Welsh Government needs to act early. A harsh winter is predicted and a panicked response to severe weather could be avoided by making some key changes now.”

Dairy Sector

Responding to the announcement of a review into the Welsh Dairy Sector by the Welsh Government, Plaid Cymru Shadow Agriculture Minister Llyr Gruffydd AM said:

“Welsh dairy farmers don’t need another review, they need action by Government to get to grips with key issues facing the industry.

“Plaid Cymru has already demanded the Welsh Government supports the strengthening of the Dairy Code. We also need to see accelerated action on reducing red tape starting with the lifting of the six day standstill rule. Plaid Cymru has also led the charge against the introduction of tabular valuation for bovine TB compensation in Wales.

“The Government must enhance procurement policy and better use the RDP to strengthen supply chains and improve local processing. Everyone knows the Government should encourage supermarkets to do more to support the agricultural sector. We all know what needs to be done – now is the time for action.

“This announcement will only delay decisions that are needed to solve problems today.

“If the Deputy Minister thinks putting off any decisions until the review is concluded is sufficient then she is woefully deluded.”