<p>EU Farming Subsidies</p>

1. 1. Questions to the Cabinet Secretary for Environment and Rural Affairs – in the Senedd on 5 April 2017.

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Photo of Jenny Rathbone Jenny Rathbone Labour

(Translated)

7. What contingencies are in place to deal with the potential of there being no replacement of EU farming subsidies from the UK government after Brexit? OAQ(5)0126(ERA)

Photo of Jane Hutt Jane Hutt Labour 2:06, 5 April 2017

There’s a clear need for the UK Government to provide the long-term commitment to replace the vital EU funding that currently comes to Wales. However, we are working with stakeholders on possible post-Brexit scenarios, and our engagement with the round table is a critical part of this work.

Photo of Jenny Rathbone Jenny Rathbone Labour

I’m sure the leader of the house will be aware that this is a major food security issue, that any Government needs to be able to guarantee everybody access to fresh, unadulterated food. There are many issues involved here, not just the food miles that might be required to deliver food if we saw the collapse of our agricultural industry—the well-being of citizens, which would have a huge impact on NHS budgets. So, I just wondered what specifically is being done to ensure the resilience of rural communities in light of the fact that most farmers rely on up to 80 per cent of their income from the current basic payments.

Photo of Jane Hutt Jane Hutt Labour 2:07, 5 April 2017

I thank Jenny Rathbone for that question, because it is important, food security is important to us in Wales, and I think I’ve mentioned that round table discussions are a key engagement—key stakeholders working together to submit a proposal to the rural development plan as part of the co-operation and supply chain development scheme, which will build on, for example, the work of Horticulture Wales, which is very important. I think the recognition that diversification opportunities can allow additional family members to engage in the farming business, providing greater security for the future of family businesses, which, of course, is going to come as a result of that approach—. But it is important, I think, to recognise that the Cabinet Secretary has given a boost to rural communities with the £223 million boost in terms of the opportunities for the rural development programme, which will help to address those issues.

Photo of Leanne Wood Leanne Wood Plaid Cymru 2:08, 5 April 2017

Plaid Cymru’s entire approach to the exiting of the European Union is to make sure that no-one in Wales is worse off than they were before. Now, the agricultural industry could be one of the big losers in any post-Brexit settlement. In 2014-15, direct payments from EU funding accounted for an average of 81 per cent of net farm profit for all farm types in Wales. The UK Government has confirmed that funding for agriculture will continue at its current level until 2020 and, following that, farmers in Wales will have no certainty that there will be a replacement of EU farming subsidies. Plaid Cymru believes that the UK Government owes the agricultural sector the same level of funding, post leaving the EU, as is currently delivered under the common agricultural policy, as was promised by those people who campaigned to leave the European Union. Future funding must be delivered through the block grant, and the Welsh Government must also commit to using this funding to support agriculture and the rural economy. Can the Cabinet Secretary give assurances that, as well as representing the interests of Wales’s farmers as strongly as possible in negotiations with her Westminster counterparts, the department has begun working on a comprehensive plan covering the various eventualities regarding funding to ensure that we have a secure future for farming in Wales?

Photo of Jane Hutt Jane Hutt Labour 2:10, 5 April 2017

I thank Leanne Wood for that question, because it also brings us back to important points of discussion in recent days and weeks. The First Minister, indeed, has also expressed his significant concern that we still have no long-term commitment from the UK Government to replace the vital funding that currently comes to Wales from the EU. Can I also say that it was good to see Paul Davies, the Conservative shadow agriculture secretary, fighting to get the best Brexit deal for farming? So, we can work together on this.

But it is very important, in terms of the leader of Plaid Cymru’s points, and very much expressed in our White Paper, that we not only fight for assurance about the funding that will follow 2020, but also that we are working, as I said, to ensure that we have future prospects for our agriculture sector in Wales. That is where we are getting a great deal of support, and I think that’s been very clearly recognised from farming unions and other stakeholders.

Photo of Paul Davies Paul Davies Conservative 2:11, 5 April 2017

I’m grateful to the leader of the house for those very kind comments. Now, farming subsidies are, of course, essential to support farmers, and are crucial for the sustainability of the agricultural industry. And, Llywydd, I should declare an interest, given that my parents-in-law run a dairy farm. Now, given the importance of these payments, can you therefore tell us what specific research the Welsh Government has carried out since the referendum result regarding the current levels of subsidies received by farmers across Wales?

Photo of Jane Hutt Jane Hutt Labour

Well, clarity on future funding arrangements is a key issue that’s been raised at the Brexit round table meetings and workshops, which started straight after the outcome of the referendum. I think, in terms of resilience for the post-EU transition period, this is crucial for farmers, food producers, landowners and all those who live in our communities. The schemes that we’re looking at, of course, are farm business grants, Glastir Advanced, the food business investment scheme, co-operation and supply chain development, Glastir Woodland Creation, and the rural community development fund. That’s why, also, in terms of resilience and this period of transition, the Cabinet Secretary has fully committed the remaining EU element of the rural development fund. But what we need is more than the guarantee, and that’s where I now challenge you, the Welsh Conservatives and the shadow agriculture Secretary, to ensure that your voice, as well as our voice, is heard very clearly, and that that voice is clearly heard in the UK Government and we get those commitments for our farmers in Wales.