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Agriculture Bill passes Commons

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THE CONSERVATIVE Party used its Commons majority to ram through its Agriculture Bill on Monday, October 12.
Along the way, it voted down amendments which would have forced Boris Johnson’s government to uphold its manifesto promises on food production standards and animal welfare.
The Government’s actions, combined with its procedural manoeuvre to block an attempt to give a proposed trade watchdog teeth, have drawn universal condemnation from farming unions and organisations.
Fourteen Conservative MPs opposed the Government, including former DEFRA Secretary of State Theresa Villiers. Every Welsh Conservative MP voted against safeguarding farmingstandards.
The Wildlife Trusts of Wales and England described the vote as: “[T]he clearest signal yet that the Government do not intend to uphold their election manifesto commitment to maintain the UK’s high environmental protection, animal welfare and food standards in trade negotiations.”
Phil Stocker of the NSA commented: “There is now the very real risk, despite Government’s assurances, that the UK’s standards that our nation’s farmers are proud to work to, could be undermined by lower standard imports.”

‘DISAPPOINTMENT AN UNDERSTATEMENT’


Speaking to The Herald after the vote, TFA Chief Executive George Dunn said: “To say that the events which took place in the House of Commons last night were a disappointment, would be a major understatement. For the Government to whip its MPs to vote against an amendment entirely in line with its own policy has created a breach of trust in believing its rhetoric around protecting our high environmental, animal welfare and food safety standards in future international trade agreements.”
“It was also shocking that the Government used a procedural manoeuvre to deny MPs the opportunity of voting on a crucial House of Lords amendment that would have improved the operation of the newly appointed Trade and Agriculture Commission,” Mr Dunn told us. 
He continued: “This was a shocking piece of political chicanery which prevented MPs from even debating this important piece of legislation. Over a million people signed a petition earlier in the year calling on the Government to ensure the strongest standards in trade and it is an issue for which there has been cross-party support. Expanding the role and remit of the Trade and Agriculture Commission would not, as the Government claimed, tie its hands but merely ensure that its future trade policy had proper scrutiny and support from an expert panel.”
Mr Dunn concluded by drawing attention to the erosion of trust between the Conservative Government and the agriculture industry: “Day after day we hear Government Ministers declare that they will not jeopardise our high environmental, animal welfare and consumer safety standards in trade. Sadly, their words say one thing, but their actions say another. Unless we have strong legislation in this area, the fine words are just empty promises.”


‘WARM WORDS WON’T WASH’


Carmarthen East & Dinefwr MP Jonathan Edwards told this newspaper: “The Agriculture Bill was a missed opportunity to safeguard in law food product standards and in particular food production standards.
“Warm words from the British Government that they won’t allow Welsh farmers to be undercut by lower standard food in trade deals won’t wash.
“The fact that the British Government have gone out of their way to stop democratic accountability over trade deals does not fill me with confidence.
“Wales should have a veto over trade deals negotiated by the British Government in the same way that every single member of the European Union could veto trade deals negotiated by the EU.
“The reality is that the future of Welsh farming is in the hands of a British Government who I fear will be conceding access to food markets in order to gain concessions for London banks.”


NFU DISMAY


NFU Cymru expressed dismay but vowed to continue lobbying for binding commitments to safeguard farming’s high standards in future trade deals
NFU Cymru Deputy President Aled Jones said: “It is a blow that the Grantchester amendment (on animal welfare) was not adopted by a majority of MPs, nor did MPs have the chance to vote on the Curry amendment (strengthening the Trade & Agriculture Commission). However, NFU Cymru remains steadfast in its belief that Welsh farmers must not be undermined by imported products produced to lower standards than those observed here in the UK.”
Adopting an upbeat approach which suggested NFU Cymru was prepared to take government promises and MPs’ words at face value, Mr Jones continued: “We were encouraged to hear so many MPs in last night’s debate expressing their support for those high standards – standards that consumers in this country have come to expect – and we thank those MPs who spoke up in favour of this important cause. 
“This ongoing debate around food standards is matter of a huge importance for Britain’s farmers and Britain’s consumers, also. We simply cannot risk any trade scenario which could result in food imports coming into this country that would be illegal if produced here.”
Looking forward to the next stage of the Bill’s passage to the statute books, Aled Jones added: “With the Agriculture Bill set to return to the House of Lords, this gives peers another opportunity to put forward amendments that we hope will bring about the changes we want to see – UK farming’s high standards protected and enshrined in law, while also giving more power to the elbow of the Trade and Agriculture Commission.”


LACK OF COMMITMENT ‘SPEAKS VOLUMES’

Plaid Cymru’s Shadow Rural Affairs Minister, Llyr Gruffydd MS, told us: “Last night, Plaid Cymru supported amendments that would have protected food standards in future trade deals and strengthened parliamentary scrutiny of trade negotiations.
“Yet again, the Conservatives let down Welsh farmers when given the chance to protect their livelihoods. Despite all their promises and manifesto commitments, the Government defeated the amendments, exposing our farmers to cheap produce in future trade deals.
“Plaid Cymru will continue to put forward a positive vision for our food producers based on a greater say for our devolved governments and the protection of food standards. This is not because we not only believe them necessary now, but because they are fundamental to our farmers and food producers in the future.”
Lesley Griffiths, Wales’ Minister for Rural Affairs, said: “Although UK Ministers continue to insist they will maintain existing high standards of food safety and animal welfare in any new trade deals, their rejection of the opportunity to put this commitment into statute speaks volumes – especially given the fact that the amendments put forward by the Lords gave them a prime opportunity to do so.
“Food safety and welfare are devolved matters, and we have been clear that we would resist any clauses in the Internal Market Bill which would allow Westminster to start a race to the bottom in terms of standards – a move which would not just impact consumers, but also risk farm businesses across Wales as they face international competition from companies willing to forego the standards to which they adhere.”

WIDER REACTION

Prominent farmer and TV presenter Gareth Wyn Jones tweeted: ‘Very disappointed this morning after last night’s government defeated amendments to the #AgricultureBill which would have protected our #food & #farming standards. Don’t forget they’ve not only sold the farming community out but the health of our nation. @BorisJohnson’
Conservation groups and environmental campaigners also expressed their concern at the government’s unwillingness to commit to anything more than warm sentiment over environmental standards and welfare measures.
The RSPB said: “The UK Government must now say how it will meet its manifesto commitment to maintain standards in future trade deals, as confidence in them to do so is now at a chronically low ebb.”
RSPCA Chief Executive Chris Sherwood also underlined the Government’s failure to put meat on its manifesto promise.
Chris Sherwood said: “The Government once again failed to make good their manifesto promise that they will not sell out the UK’s animal welfare for a quick trade deal. The vote shows a disregard for the British public, 83% of whom said they did not want lower standard imports coming in from the US when we leave the EU.”
Nature Friendly Farming Network UK Chair, Martin Lines, observed: “Despite manifesto commitments and repeated assurances from successive governments not to lessen standards in trade, the government has instead passed on one of the final opportunities to enshrine our high-quality environmental and animal welfare standards in law and to protect the UK farmingindustry.”
James Russell, BVA President, said: “This result is a severe blow for animal welfare and a betrayal of the Government’s own manifesto commitment to maintain and improve on health and welfare standards. 
“We have long argued that the UK cannot commit to raising the bar domestically while allowing in goods that don’t meet the high standards that British consumers rightly want and expect.
“If the government won’t legislate to protect our standards it is vital that the Trade and Agriculture Commission is given more powers and stature to safeguard them in future trade deals.”
CLA President Mark Bridgeman sounded a warning note: “Government Ministers have successfully convinced MPs they can be trusted to protect food production standards without the need for legislation.
“Time and again Ministers have promised to protect British farmers from a flood of cheap imports produced to animal welfare and environmental standards far below our own.
“Farmers across the country will be watching Government’s every move very closely from hereon in.”

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Farming

NFU Cymru President’s New Year message

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NFU Cymru President John Davies provides his New Year message, looking back over an unprecedented 12 months and assessing what lies ahead in 2021.

“2020 was a year the likes of which we’ve never seen. The Coronavirus pandemic has challenged all of society. My condolences go out to all of those who’ve lost loved ones to this disease. My thoughts are with all whose livelihoods have been affected by the knock-on effects that the pandemic has had on businesses and our general way of life. I’d like to place on record my heartfelt thanks to our NHS workers and those supporting them on the front line for their courage in tackling this global health emergency. So often the term ‘hero’ is attached to those in films or on the sporting stage, but if this year has taught us anything it’s that, in fact, the real heroes are those people in our communities who have gone to work – putting themselves at risk – to care for the sick and keep the rest of us safe. Diolch yn fawr iawn pawb.

“The initial impact of the Covid-19 outbreak and the overnight closure of the hospitality sector had severe consequences for the food supply chain. The resilience of those systems was stretched to the limit as the supply chain frantically sought to redirect produce that would usually be destined for the out-of-home market to the retail sector, where panic-buying had resulted in empty shelves in many stores. I thank all our farmers who have worked throughout the chaos of the Covid-19 fallout to keep the nation fed. I know that for many businesses and sectors this hasn’t always been easy and some experienced significant losses as those supply chains struggled to adapt to new demands. However, the role the entire industry has played during such a fraught period will live long in the memory of many, and indeed recent polls suggests farmers’ favourability with the consumer is higher than it has been in a decade.

“I very much hope that lessons can be learned from this tumultuous year and if the past few months have taught us anything, it’s that the safe, reliable supply of high quality affordable food is now of paramount importance to the public. As farmers we are ready and committed to ensuring that the nation remains fed during this difficult time and through future challenges, too. Our farming systems, underpinned by a fantastic, natural asset base, mean we are well equipped to be the providers of the most climate friendly food in the world. NFU Cymru will continue to lobby Welsh Government to see the importance of food production recognised and protected as a cornerstone of future policy.

“Looking ahead and, with significant changes to how Wales and the UK trades with the EU and the rest of the world, one of the biggest challenges for 2021 is going to be making sure that Welsh farmers have the widest possible range of markets freely open to them, on the best possible terms. We are, of course, relieved that that a deal has finally been agreed between the UK and the European Union, providing some much-needed certainty for the farming sector and allowing Wales’ farmers to continue to send products to the EU27 free of both tariffs and quotas. All efforts must be now be focussed on finding ways of minimising the impact of red tape on the movement of our produce to the EU.

“A heartfelt thanks must go to the one million people from all walks of life who backed our food standards campaign. Their support was instrumental in delivering legislation to ensure that food standards will now have a ‘stronger voice in UK trade policy’.

“Of course, away from the pandemic and agricultural policy, there are still major issues that are affecting the nation’s farmers every day. Bovine TB continues to blight so many businesses across Wales – all too many times this year I have again learned of families’ heartbreak and herds, generations in the making, being decimated due to this horrific disease. Please be assured that NFU Cymru will continue to pressure government to act upon the science and take notice of the proven strategies adopted by so many other countries – an approach that seeks to tackle bovine TB across all its vectors.

“NFU Cymru maintains that a heavy-handed and inflexible approach to water quality through the proposed all Wales Nitrate Vulnerable Zone (NVZ) designation will not deliver the enhancements to water quality that we all want to see. NFU Cymru is committed to helping to deliver these improvements via an effective and proportionate framework that supports farmers to take action to improve water quality where it is needed. I am heartened that our Minister has recognised that these are not regulations to introduce at a time of crisis.

“Climate change remains a major challenge for all of us in society and the farming industry is putting its best foot forward to deliver on its net zero 2040 ambition. With the prestigious COP26 summit rescheduled to be held in Glasgow in 2021, it is clear this topic will, rightly, remain high on the news agenda next year. As a farmer, it’s important to me that farming’s contribution to mitigating the effects of climate change is fairly reflected in this debate. Recent research has pointed to the fact that Welsh livestock production systems are amongst the most sustainable in the world, but we know that there is much more we can and will do.

“With a Senedd election scheduled for May 2021 we will be speaking to candidates from across the political spectrum to push home the importance of Welsh food and farming. We are committed to working with the next government to deliver our ambitions for a productive, profitable and progressive farming sector that delivers for the people and communities of Wales.

“It has been a year like no other. With the vaccine rollout now underway I hope we will soon be able to consign the last pandemic-hit year to the history books and return to some form of normality, where we can soon meet at the agricultural shows and events that we all hold dear to our heart. Let us look ahead to 2021 and what we hope will be a bright, healthy and safe future.

“Blwyddyn Newydd dda.”

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Farmers face hidden tax hike

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POTENTIAL changes to rules on Capital Gains Tax could lead to a tax hike for those inheriting farmland and assets, financial advisers at NFU Mutual have warned.

Many farmers can potentially pass on farms to their children free from Inheritance Tax due to Agricultural Property Relief and Business Property Relief.

As capital gains are wiped away on death, children inheriting can sell and only face Capital Gains Tax on any rise in value between the date of death and a sale.

However, in a review ordered by Chancellor Rishi Sunak, the Office of Tax Simplification has recommended that gains should no longer be wiped away on death where the estate has claimed Agricultural or Business Property relief to reduce Inheritance tax.

Sean McCann, Chartered Financial Planner at NFU Mutual, said: “Many farmers choose to hold on to their farming assets until death on the basis that not only might they be free of Inheritance tax, but also escape Capital Gains Tax if sold shortly after death.

“The Office of Tax Simplification’s recommendation that gains should no longer be wiped on death where Agricultural or Business Property relief has been claimed to reduce inheritance tax will mean bigger tax bills for some farming families.

“The biggest impact will be on those who sell farming assets they’ve recently inherited. Those that retain the assets and continue to farm won’t face any immediate tax liability under the proposed changes.

“The Office of Tax Simplification also recommended a hike in Capital Gains Tax rates that would align them to Income Tax rates, leading to larger tax bills.

“However, it’s likely that any change would be accompanied by an allowance to take account of the rise in value caused by general inflation, so any tax is only levied on ‘real’ gains.

“It’s important to stress Rishi Sunak has not yet confirmed he will agree to these recommendations, but many farming families will be watching the March Budget with interest.”

EXAMPLE

A farmer owns a farm worth £1m which he bought 25 years ago for £300,000. He dies and leaves it to his children, who sell for £1m shortly after his death. Under current rules, if he met the criteria for 100% Agricultural and Business Property relief, they would pay no inheritance tax on the £1m and no Capital Gains Tax on the sale.

Under the proposal to abolish the tax-free update on death, while there would still be no inheritance tax due – if the farmer’s children sold shortly after his death, they would face a Capital Gains Tax bill on the £700,000 gain. Based on the existing rate (20%) that would trigger a Capital Gains Tax bill of £140,000.

“It’s important to stress Rishi Sunak has not yet confirmed he will agree to these recommendations, but many farming families will be watching the March Budget with interest.”

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Consumers ‘sleepwalking’ away from meat

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A LACK of inspiration, rather than a conscious reaction to trends such as veganism, was at the heart of the pre-Covid-19 reduction in meat, fish and poultry consumption, new AHDB research has suggested.
Before the pandemic struck, some 7.8 million (35%) households in Great Britain had unwittingly purchased less meat, fish and poultry products, according to AHDB analysis of Kantar data [52 w/e 26 January]. This figure accounted for 99% of the 1.3% volume drop in retail sales.

However, the twenty per cent of households which had at least one ‘conscious meat reducer’ accounted for just 1% of the losses, with the majority citing other reasons for reducing consumption.

The unconscious reducers were said by the report to mostly be of retirement age and living with fewer people. They were found to be much less likely to experiment with cooking or refer to themselves as a ‘foodie’, preferring more traditional dishes. They were also found to be unsatisfied with shopping for meat, with just 29% of the unconscious reducer group saying they enjoyed browsing meat aisles and only 31% find them to be inspiring.

The report urged the meat industry to focus its efforts on winning this group back as they offered a better route to boosting meat consumption than conscious reducers.

“How unconscious reducers think and feel about meat isn’t any different to those people who are actually increasing their meat consumption – they’re not turning away on purpose so there is a chance to re-engage them with the category,” explained one of the report’s authors, AHDB senior retail insight manager Kim Malley.

“The biggest opportunity is at the point of purchase. The key thing the report highlights is those people are wanting a better in-store experience. There could be simple messaging in-store to remind people why they enjoy meat, give them a bit of inspiration and remind them it’s versatile and convenient.”

Malley added the meat-free category is “excelling” in innovation and convenience through ready-meal and marinated NPD – products which the report said the meat industry had invested less heavily in.

She also praised the packaging of meat alternatives, which tended to be “very colourful and brought recipes and flavours to life” for shoppers, and urged the meat industry to do its own innovation in these areas in a bid to win back “distracted” consumers.

According to the report, distractions included negative media coverage of the meat industry and the prominence of plant-based ranges in stores.

But in positive news for the sector, it found the coronavirus pandemic had seen sales volumes of meat, fish and poultry rise 8% year-on-year in the 52 weeks to 6 September. Unconscious reducers were discovered to have accounted for 35% of this uplift.

Malley said meat “benefited massively” from the rise in in-home occasions this year and consumers thinking more about their food choices. “It has highlighted that it’s quite easy to re-engage people,” she said.

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