Farming leaders have praised a new parliamentary report that accuses the UK Government of being “complacent” about the long-term impact of its policies on farming in Wales.
A Welsh Affairs Committee report published ahead of the autumn budget warns that Westminster has repeatedly failed to recognize the unique needs of Welsh agriculture.
The findings follow an inquiry launched in March 2025 into the future of agriculture in Wales, which drew evidence from FUW and other farming bodies.
Although the population of Wales is less than 5% of the total population, agriculture in Wales covers over 90% of the country and employs 11% of the UK’s agricultural workforce.
Despite contributing more than £9.3 billion to the Welsh economy, the sector continues to face a decline in workforce, income and livestock numbers.
The report says Welsh agriculture is “resilient but under significant strain” and operates within a policy framework that “too often overlooks the unique nature of Welsh agriculture”.
The Committee expressed particular concern about the proposed inheritance tax reform, warning that the lack of clarity could expose elderly and terminally ill farmers to unexpected financial burdens.
The report criticized ministers for failing to assess the potential impact of the changes and creating “an atmosphere of unnecessary uncertainty and disruption in an industry that is central to the cultural, environmental and economic fabric of rural Wales”.
The report calls on the Government to delay implementation until a Wales-specific impact assessment is completed.
Members are also concerned about the decision to “barnettise” Wales’ agricultural funding, merging it into Welsh Government block grants and removing the protected multi-annual budget previously allocated to agricultural support.
The Farmers’ Union of Wales (FUW) has warned that this is effectively equivalent to a real funding cut. The Committee called on the Treasury and the Wales Office to work with the Welsh Government to ensure that the changes do not reduce support for Welsh farmers.
Further findings highlight the disproportionate impact of free trade agreements with Australia and New Zealand on Welsh livestock producers, and the risks posed by future trade negotiations.
The report calls for a long-term vision for Welsh agriculture, increased support for new entrants, and stronger food security and sustainable farming, reflecting recommendations from FUW’s Future Farmer Mission report.
Committee members said ministers must “take specific account of the unique cultural, environmental and economic circumstances of agriculture in Wales when making future policy decisions”. They recommended that any such decision be “accompanied by a Wales-specific impact assessment led by the Wales Office”.
FUW chairman Ian Rickman said the report sent a clear message that Welsh agriculture “cannot continue to be treated as an afterthought in Whitehall”.
He added: “The committee has rightly recognized the unique nature of Welsh agriculture – its size, its contribution to the economy and its important role in sustaining rural communities. But too often UK policy fails to take these unique circumstances into account.”
He warned that proposed inheritance tax reforms and the “barnettization” of farm funding both risked undermining family farming at a time of rising costs and market volatility.
“As we approach the autumn Budget, the First Minister must take these findings seriously and ensure that future decisions truly protect our family farms, strengthen food security and ensure a sustainable future for Welsh agriculture,” he said.
Mr Rickman thanked committee members for what he described as an “accurate and balanced report” which highlighted the urgent need for “the unique characteristics of rural Wales to be given some consideration in policy-making”.
FUW said it hoped the report would be a turning point in how the City of Westminster shapes policy for the future of Welsh agriculture.
