The Welsh Affairs Committee has launched an inquiry into the challenges and opportunities for farming in Wales.
The cross-party Committee will examine what support the Welsh farming sector requires from the UK Government, and what support is currently being provided.
Among the issues Committee members are likely to explore is the potential impact of the Government’s proposed inheritance tax reforms on Welsh farming.
The Committee will also investigate whether the UK’s withdrawal from the European Union has affected Welsh agricultural export trade, given that over 80% of Welsh food and animal exports went to the EU in 2018. The Committee will also explore how the UK Government’s intended ‘reset’ in UK-EU relations will affect the trade of agricultural goods to the EU.
The Committee will also consider how changes to the UK Government’s funding for Welsh agriculture will affect farmers. In last year’s Autumn Budget, the UK Government removed ring-fencing for Welsh agricultural funding. Future allocations will no longer be protected from competing with other needs but rolled into the overall pot of money the Welsh Government receives from Westminster. Some in the sector are concerned this will mean Wales receives less funding for agriculture.
The inquiry follows two reports published by predecessor Committees: ‘Brexit: priorities for Welsh agriculture’ published in 2018 and ‘the economic and cultural impacts of trade and environmental policy on family farms in Wales’ published in 2022.
Ruth Jones, Chair of the Welsh Affairs Committee, said:
“Farming is a cornerstone of Wales’s economy and culture. But the sector is currently under strain from funding pressures, increasing energy costs, and new trading relationships to navigate. With over 50,000 people working in Wales’s agricultural sector, we need to make sure farmers have the right support and funding.
“The inquiry will be an opportunity to understand the challenges ahead and what the UK Government can do to support Welsh farmers. We want to understand how we can ensure the longevity of the industry and put farming on a firmer footing well into the future.”
