The Cost Crisis in Agriculture

2. Questions to the Minister for Rural Affairs and North Wales – in the Senedd on 25 May 2022.

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Photo of Rhun ap Iorwerth Rhun ap Iorwerth Plaid Cymru

(Translated)

5. What steps is the Welsh Government taking to respond to the cost crisis in agriculture? OQ58105

Photo of Lesley Griffiths Lesley Griffiths Labour 2:44, 25 May 2022

Thank you. The UK agriculture market monitoring group meets regularly to assess inflation rates of input costs. On 1 April I announced a package of support for farmers, foresters, land managers and food businesses worth over £227 million over the next three years, supporting the resilience of agriculture and the rural economy.

Photo of Rhun ap Iorwerth Rhun ap Iorwerth Plaid Cymru

(Translated)

Thank you very much. With costs increasing so much, it's more important than ever that agriculture can be as productive as possible, and making the best use of the best land is part of that. I'm pleased, in the context of bids for solar schemes, that there is a strengthening view now that we need to retain our best and most versatile land for agriculture. And perhaps the Minister could confirm that, as we in Anglesey face a high number of applications for solar developments. 

But following on from Mabon ap Gwynfor's question, I wonder whether the Minister can tell us whether that is also relevant as the Government considers where to plant trees. The Government has been purchasing land for some years now, and, having understood that land in Tyn y Mynydd in Penmynydd on Anglesey has been purchased by the Government for tree planting, can the Minister tell us whether that is BMV land or not, because surely the same principle should apply there too?

Photo of Lesley Griffiths Lesley Griffiths Labour 2:45, 25 May 2022

So, I haven't had any specific conversation with the climate change Ministers around solar farms and where they're being placed, but I will certainly do so, and I will write to the Member with further information. 

Photo of Tom Giffard Tom Giffard Conservative

According to statistics from the Office for National Statistics thankfully inflation rates for food are actually lower in the UK than in both the euro area and the EU, but that doesn't mean farmers aren't seeing considerable increases in their costs in this country too, and, over the last few months, we've seen increases in prices of fuel, food and fertiliser, resulting in huge additional pressures on the industry. This is creating serious concern within the agricultural sector within my region and has left many worried about their businesses, where it will impact small farmers in particular, bringing with it the real potential of some of these businesses to row back on the amount of food they produce or some going bankrupt altogether. Given the seriousness of the situation, and with the real possibility of some foods not being available as readily in the short term as they have been in the past, this is now the time to take significant action. We need to ensure the sustainable growth of the food sector to create jobs and attract investment and to ensure that sustainable local food producers have access to adequate support and incentives. International factors, most notably the war in Ukraine, have meant now more than ever we need to ensure that we sustainably produce more food than ever here in Wales. So, with that in mind, what consideration is the Welsh Government giving to backing my colleague Peter Fox's food Bill, which would achieve exactly that? 

Photo of Lesley Griffiths Lesley Griffiths Labour 2:46, 25 May 2022

Well, as you're aware, the Welsh Government is not backing Peter Fox's food Bill. Peter and I have met, and Peter's very well aware of the reasons why we're not backing the food Bill. I believe a lot of Peter's suggestions, which are very good, we can do without legislation, and I'd be very happy to continue to work with him and with Plaid Cymru as part of the co-operation agreement, taking forward the community food strategy, which I think will encompass a lot of the proposals in Peter Fox's Bill. You asked your question with no sense of irony. I have to say inflation is at a level that is causing a huge amount of concern; it's at a higher level than we've seen in this country for many, many years, and that's why it's really important the UK Government really get a handle on this cost-of-living crisis. 

Photo of Jane Dodds Jane Dodds Liberal Democrat 2:47, 25 May 2022

Good afternoon, Minister. May I just start by asking you to pass on thanks to the First Minister for joining me in a farm visit to Merthyr Cynog, where we heard about many of the pressures facing farmers and the farm sector? But I want to touch on one of the key topics that we've heard about in this session, which is about the pressure on farmers right now in terms of the real crisis that there is. And I wrote to you, along with my colleagues Sam Kurtz and Mabon ap Gwynfor, following meetings that we had with the FUW, earlier this month. We've heard about the incredible costs facing our farmers and our farm businesses across Wales, and I can see, to date, that some of the action you have been asked to take just falls outside of your powers and outside of the Welsh Government, but there are maybe some ideas and issues that could be taken up by the Welsh Government. So, in our letter we've asked you to consider an urgent round-table on the cost crisis facing agriculture and farmers, and I just hope you would consider going ahead with that in order to hear some of the ideas and suggestions that there might be. Thank you. Diolch yn fawr iawn. 

Photo of Lesley Griffiths Lesley Griffiths Labour 2:48, 25 May 2022

Thank you. I'm not aware I've had sight of that letter from the three of you, but I will certainly, once I get it, consider its contents and respond accordingly.