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Farmers react to Budget

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Absence of broadband announcement disappointing: Meurig Raymond

Absence of broadband announcement disappointing: Meurig Raymond

THE CHANCELLOR’S Budget has been received with mixed reaction by farmers and the food industry.

Delivered on Wednesday, (Mar 16), George Osborne’s financial plans have been received with mixed reaction by farmers and the food industry.

In what will probably grab the biggest headlines across the industry, the Chancellor has announced a sugary drink levy on soft drinks manufacturers. The Government will consult on how the levy will work and which products will be covered, but there was some re-assurance that it wouldn’t include milk based drinks or pure fruit juices.

Elsewhere a continued focus on corporation tax cuts does nothing to help the 90% of UK farm businesses who are unincorporated and are struggling in the current economic climate. For the next generation of farmers, news that the Government will top up a new ISA saving system (£1 given for every £4 saved) until the saver is 50 will be welcome for those who are in a position to save.

NFU President Meurig Raymond said : “I had really hoped that the Chancellor would have recognised by now that all parts of the economy should benefit from tax simplification, as it is there is little support for capital investment on farm for buildings and reservoirs.”

Mr Raymond continued: “We are disappointed that nothing new was announced to boost the provision of superfast broadband to the last 5%, who are predominantly farmers and those living in rural communities. It’s particularly disappointing that the Chancellor has announced nothing to help mitigate the additional costs and pace of introducing the national living wage from April this year.

“News that the country will invest £700m more in its flood defences will be welcomed by the many farmers and their families who have faced devastating damage this winter. But we should be clear this is funded by an increase in insurance premiums for all. I am also seeking assurance that the planned £40m per year increase in maintenance expenditure will protect deserving rural communities as well as urban areas.”

He added: “We will study the implications of the proposed levy on sugary drinks and respond to the Government’s planned consultation, but it is reassuring that the Chancellor confirmed that neither milk based nor pure fruit juices will be included in the levy.”

Responding to the headline grabbing tax on sugary drinks, FUW President Glyn Roberts said: “This is very welcome news as we aim to have a healthier population. Current levels of obesity are unsustainable and the obesity problem among young people is so bad that the present generation of parents may be the first to bury their children.”

“As such we advocate a healthy lifestyle with a balanced diet and milk has a part to play in that.

“In light of this we welcome that milk-based drinks are excluded from the sugar tax and encourage parents to ensure that their children get to drink the recommended amount of milk per day,” he added.

The Union further welcomed that fuel duty is to be frozen for the sixth year in a row as a rise could have a devastating effect on the Welsh farming industry.

“Fuel price rises could have a devastating result for farmers and all the rural communities in general as a car is essential in the countryside with public transport being so poor,” said Mr Roberts.

Commenting on the Capital Gains Tax cut from 28 % to 20 %, and from 18 % to 10 % for basic-rate taxpayers, FUW Director of Finance David Parker said: “This is a positive move for any farmers who are selling any or all of their farm.

“We must also welcome the Commercial stamp duty 0% rate on purchases up to £150,000, 2 % on next £100,000 and 5 % top rate above £250,000.

“The young person’s ISA is of importance to self-employed people enabling up to £4000 p.a. to be saved tax free up to the age of 50 with government adding 25 % bonus to savings.

“This is possibly where the wider pensions market will be heading over the next few years with tax relief on the receipt of pensions rather than tax relief at the point of saving.

“This provides a new vehicle for younger self-employed people to commence pension savings aided by the government contribution and must be welcomed,” he added.

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Farming

Payment commitment sought from minister

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NFU CYMRU has asked the Minister for Environment, Energy and Rural Affairs to make an early commitment to maintaining the Basic Payment Scheme in Wales for 2021.
In a meeting this week NFU Cymru President John Davies asked the Minister, Lesley Griffiths AM, to commit to maintaining the Basic Payment Scheme unchanged for 2021.
Speaking after the meeting, John Davies said: “The events in Westminster these last few days mean that our future relationship with the EU remains as uncertain as it has ever been, with the prospect of a general election in the not too distant future, this means further political upheaval, and by extension more uncertainty. The fact that the UK Government’s Agriculture Bill was not carried forward when parliament was prorogued means that the intended legal basis for setting Welsh agricultural policy has now also disappeared, and we are now essentially back to square one.
“At the end of last year, Welsh Government announced that the Basic Payment Scheme would remain unchanged in 2020; we welcomed that announcement as it offered Welsh farming some stability at a critical time. The uncertainty in the intervening period has only intensified, NFU Cymru considers the possibility of a disorderly Brexit to be a very live possibility, either after a failure to reach an agreement at the end of any extended Article 50 period, or alternatively if the UK fails to agree on a future trading relationship with the EU27 during the transition period.
“There are many factors completely outside of our control which considered individually or collectively would have a very detrimental impact on Welsh agriculture. NFU Cymru is very much of the view that this calls for a cautious and restrained approach from the Welsh Government when it comes to developing future agricultural policy. We would urge Welsh Government to take its time and not to hasten to move away from the present arrangements until we have a far clearer picture of the sort of future trading relationship we will have with the EU27.
“We fully respect that the timing and nature of Brexit, the general election and the fate of the Agriculture Bill are all outside the hands of Welsh Government, but what we do ask for is the support of Welsh Government on the areas that sit within its remit. In our meeting with the Minister, we have asked if she will make an early commitment to the continuation of the BPS unchanged for 2021.
“We have also asked the Minister to ensure that the additional £5.2 million per year for the next two years made as part of the UK Government’s response to the Lord Bew review last month is used as a top-up to the BPS. This funding has been allocated to Wales because average Pillar 1 payments have historically been lower in Wales than in some other parts of the UK. We therefore firmly believe that as the Lord Bew review was about correcting this matter then the additional money should be made as a top-up to the BPS and not spent elsewhere.”

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Farming

Public want food standards maintained post-Brexit

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THE GOVERNMENT should ensure that all imported food meets the same high animal welfare and environmental standards in place on British farms.
That’s the overwhelming view of the public according to new research carried out by ComRes on behalf of the British Guild of Agricultural Journalists (BGAJ).
ComRes surveyed the public in September and found 84% support the view that imports should match British standards as Brexit threatens to open the door to imports from low cost producing, de-regulated markets across the globe.
The study found that just 16% would buy food they know is produced to lower animal welfare standards if it was cheaper than food produced to a high standard.
BGAJ President Baroness Rosie Boycott said: “The results of this study are a stark reminder to the government that the public values the high standards of British farming.
“There will always be countries able to produce cheaper food than Britain but it always comes at a cost. It could be the safety of the food, the farmer, an animal or the environment.
“With Brexit on the horizon, we’re on the brink of potentially seeing lower quality food imports flooding into the country.
“The survey resoundingly shows there’s no appetite for it and it’s the responsibility of government and the entire supply chain to put the safeguards in place to protect both British farmers and the consumer, whose heads may still be turned by attractive price deals in tough economic conditions, despite how they have responded.”
The results of the study come at a critical time for British agriculture – a sector which stands to lose more than most if the protection provided by the European Union’s single market is not replicated post-Brexit.
British standards of food and farming are among the best in the world thanks to decades of progress in the areas of production that matter most to consumers.
Many countries which can produce food cheaper than Britain often use production methods which are illegal here and across Europe; chlorine-washed chicken and hormone-injected beef being two well-reported examples.
Professor of Food Policy at the University of London, Tim Lang, said: “An overwhelming 84% want imported food to be of the same standard as home-produced food. Gung-ho supporters of yoking the UK to the USA post-Brexit should note this
“The survey suggests the UK public almost certainly recognises the need for the UK farming to tick lots of boxes. It’s got the message that farming is multi-functional. But have the politicians?”
FOOD PRODUCTION
84% of GB adults agree the government should ensure all imported food meets the same environmental and animal welfare standards as food produced in the UK. Only 2% disagree
A majority (53%) of GB adults would not buy food that is produced to lower animal welfare standards if it’s cheaper than food produced to a high standard of animal welfare. Only around one in six (16%) agree
Younger people are less likely to disagree with the statement than older people – it seems attitude to the trade-off between animal welfare and price swings towards animal welfare the older we get (45% disagree 18-34; 52% 35-54; 61% 55+)
62% of the public agree that UK farmers should receive financial support from the taxpayer to ensure a continued supply of food produced by British farmers post-Brexit, compared to just one in ten (10%) who disagree. 68 per cent of rural and 61 per cent of urban respondents agreed
Two in five (39%) GB adults agree that a UK farmer’s primary purpose should be to produce food rather than carry out environmental work, although just under a third (29%) disagree. 33% were not clear (26% neither, 7% don’t know)
CLIMATE CHANGE AND TECHNOLOGY
62% of the public agree farmers have an important role to play in generating renewable electricity from technologies such as wind turbines and solar panels, while around one in twelve (8%) disagree
Just under half (48%) of GB adults agree that a climate change levy should be charged on food with a higher carbon footprint, with the proceeds spent on encouraging carbon-friendly farming methods, compared to fewer than one in five (17%) who disagree
34% agree new plant-breeding technologies, such as genetically modified and gene-edited crops, should be used to grow food in the UK, compared to more than a quarter (27%) who disagree. Young people aged 18-24 are more likely to agree (46%) with the statement than any other age group
Retail and UK marketplace
Only 24% agree UK farmers receive a fair share of the profits made by retailers on the food that they produce, compared to more than a third (36%) who disagree. Rural respondents were more likely to disagree than urban respondents (43% rural vs 35% urban)
ACCESS TO THE COUNTRYSIDE
Almost two thirds (62%) of GB adults agree the public has adequate access to the UK countryside in terms of rights of way and footpaths, compared to just one in 10 (11%) who disagree. Londoners and those in the West Midlands were the least likely to agree with the statement (54% and 55% respectively), whereas those in Wales and the North East were the most likely to agree (both 70%)
Four in five (79%) adults are proud of the British countryside and the rural communities which sustain it, compared to just 3% who disagree. While urban respondents still have a high level of agreement with the statement (77%), almost nine in ten (88%) of rural respondents agree

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Farming

NFU plans for New Horizons

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NFU CYMRU’s annual conference takes place on Thursday, November 7, at 10 am with another stellar line-up of speakers.
To be held at the Metropole Hotel, Llandrindod Wells, the conference, titled, Welsh Farming: New Horizons, will focus on future opportunities for Welsh agriculture.
NFU Cymru President, John Davies said: “We are, once again, looking forward to welcoming hundreds of members to our annual conference. With so much uncertainty within the industry at the moment, this conference will be an opportunity for members to look beyond the horizon line towards future opportunities for the industry.
“Our annual conference has continued to grow and become the must-attend event of its kind in Wales, consistently attracting world-class speakers – and this year is no exception.
“At NFU Cymru we are both passionate and ambitious about the future of Welsh food and farming. We believe that given the right support from the government, we can continue to develop a profitable, productive and progressive agricultural industry. I hope that our expert line-up of speakers will help inspire members and allow them to head home with some thoughts and ideas on how to take their own farming businesses forward.
“We will also use the conference to present the first-ever NFU Cymru Sustainable Agriculture Award, kindly sponsored by Wynnstay. This award seeks to recognise the unparalleled contribution Welsh farming enterprises make to the economic, environmental, social and cultural well-being of Wales, and I’m very much looking forward to presenting this award to the very worthy winner.”
Speakers on the day include:
Lesley Griffiths AM, Minister for Environment, Energy and Rural Affairs, Welsh Government
Heather Hancock DL LVO, Chair, Food Standards Agency
Professor Robert Pickard, Food and Nutrition Expert
Professor Michael Lee, Sustainable Agriculture Expert
Dmitry Grozoubinski, Founder and Lead Trainer, ExplainTrade.com
Breffni Carpenter, Agriculture Counsellor, Permanent Representation of Ireland to the European Union
Sam Watson Jones, Co-Founder, Small Robot Company
Dr Andrea Graham, Head of Policy Services, NFU and ‘The Future of Food 2040’ Author
Campbell Mauchan, Head of UK Operations, AgriWebb

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