Questions to the Minister for Environment, Energy and Rural Affairs: Farm Income (15/05/2019)

Janet:

Will the Minister make a statement on the Welsh Government's response to the forecasted decrease in farm income?

 

Lesley Griffiths AM, Minister for Environment, Energy and Rural Affairs:

Thank you. Volatility is a feature of the farming sector, and businesses need to be resilient to deal with price and cost fluctuations. Welsh Government continues to support and equip farming businesses with tools to improve their understanding and control their cost of production.

 

Janet:

Thank you. The recently published forecasts of farm incomes in Wales provides very worrying information about the sector. It reports that the average farm business income for the combined all-farm types is expected to decrease by 15 per cent to £29,500 per farm from the previous year. The situation is even more serious for dairy farmers, who are forecasted—sorry, I need my specs—a 23 per cent fall, and lowland cattle and sheep farmers, who are expected to have an average income of just £17,000. As John Davies, National Farmers Union Cymru president stated, the forecasts show the volatility all farm types in Wales are subjected to and reinforce the need for future agricultural policy in Wales to include a central volatility stability component. Will you consider introducing an agricultural volatility grant that farmers can turn to for support when market changes render continued business operation and food production financially perilous? Thank you

 

Minister:

Thank you. I'm obviously very aware of the information that was published. I think there's been a call—. Since we went out to consultation on 'Brexit and our land' last year—the first consultation—there's certainly been a call to have a component for volatility. I think it also shows that the basic payment scheme hasn't provided that cushion that farmers want to see. Members will be aware that I'm doing an oral statement very soon around the first consultation from 'Brexit and our land', and I have committed to go into a second consultation ahead of the Royal Welsh Show. So, obviously, these are things that can all be considered in that consultation.