2. Questions to the Minister for Rural Affairs and North Wales – in the Senedd on 25 May 2022.
8. What consideration has the Welsh Government given to providing incentives to boost agricultural productivity in Wales in light of increasing inflation? OQ58091
Thank you. Farming Connect provides a programme of knowledge transfer, specialist advice and innovation, and supports farm businesses to reduce costs and maximise efficiencies. On 1 April, I announced a package of support worth over £227 million over the next three financial years to support resilience in the rural economy.
Thank you, Minister. Andrew Bailey, the Governor of the Bank of England, has warned of—I can never say this—
Apocalyptic.
I can never say that word. Yes—global food price rises. In fact, prices are rising at the fastest rate in 30 years. I don't think that the Governor is entirely right that we are helpless in the face of surging inflation. There are steps that we can take here to try and mitigate some of the inflation on the cost of food. We could ramp up food productivity here in Wales. David Edwards, NFU Cymru county chairman for Monmouthshire, wants to see the Welsh Government recognise that the continued supply of affordable, high-quality, domestically produced food is a strategic national priority. Now, on 11 March, I asked if you would support Welsh arable farmers to plough any land set aside, given the impact of the war in Ukraine on grain, and you responded the same month stating,
'we currently have no plans to support Welsh arable farmers to plough land set aside under the Glastir scheme'.
Will you consider that request again, Minister, so that farmers could be asked to plough this land that's set aside so that we can then boost domestically produced food here in Wales? Diolch.
I'm not as optimistic as Janet Finch-Saunders is, unfortunately, that the Governor of the Bank of England isn't correct. Unfortunately, all the evidence we're seeing is of a significant increase, and even UK Government Ministers, I'm afraid, shrug their shoulders when you talk about rising food prices, and they just seem to think that that is what's going to happen.
I mentioned the £227 million that we've announced for the next three years to support our agricultural sector, and there are several windows already open. There was another window opened this week and, over the next couple of months, that will take us up to nine different grants and schemes. Maybe as part of those we can look at what we can do. There's certainly a specific window that's already open around horticulture, for instance.