FUW reminds Benn of case for foot-mouth payout

Feb 19 2008 by Gareth Vaughan, Western Mail

THANKS to the assistance of former Secretary of State for Wales Peter Hain, I was able to meet Defra Secretary of State Hilary Benn face to face last week to raise several issues affecting the Welsh farming sector.

Accompanied by the FUW’s deputy president Emyr Jones and senior policy staff we met the Minister at Defra headquarters in Westminster for almost an hour and among the issues discussed were the case for FMD compensation, CAP reform proposals, bluetongue disease, and Defra’s cost-sharing agenda.

We made it clear to the Minister that while FMD seems a distant memory to some, its effects are ongoing for the livestock industry with every bank statement, bill and rent-demand acting as a harsh reminder of the damage done by the biosecurity lapse at Pirbright, and central government’s moral obligation to repay the industry for the damage caused.

We also pointed out that more should be done to ensure that supermarkets and government bodies support the industry, particularly during a crisis as occurred in the late summer and autumn.

During that period, while prices received by farmers fell by 30 or 40%, there was little change in prices on the supermarket shelves, and farmers were galled to see a glut of foreign meat in some stores at a time when we needed support. Similarly, there was little change in government body procurement policies. Meanwhile, on-farm costs of production increased with wheat prices 97% higher in August 2007, compared with August 2006, and straw and fertiliser up by 25% and 10%.

We also highlighted to Mr Benn the very real threat that farmers could refuse the armed forces access to their land for training purposes unless government procurement policies become more loyal to domestic producers.

The union highlighted its concerns over the current review of the CAP which will shape Welsh and European agriculture up to and well beyond 2013.

With Welsh Assembly Government statistics for the 2006-07 financial year showing a dramatic drop in average incomes for livestock producers to levels in the £10,000 to £15,000 range, it is clear that the industry was in a poor state even before August’s FMD outbreak.

We emphasised to the Minister that, with sheep and cattle production costs well in excess of market returns, the industry is heavily reliant on the CAP, and is not in a position to take the impact of major changes unless market returns become what they should be.

The Minister must therefore consider the impact for all UK farmers of any proposals negotiated with other EC Ministers.

However, there are some issues that are mostly out of our hands, such as the spread of bluetongue virus. We emphasised the importance of accessing all resources to minimise the impact of the disease, while keeping costs down by allowing farmers to administer vaccines themselves.

It is also essential that Wales is free to act in its best interests in order to keep this disease out of our clean country.

On the issue of cost-sharing, we expressed our sincere concerns at the current consultation proposals and the fact that we have yet to see any of Defra’s accounts despite discussions having been ongoing for 18 months or so.

Gareth Vaughan is president of the Farmers’ Union of Wales, and a livestock farmer near Newtown