The impact of market volatility on farming businesses and the ongoing difficulties in the dairy sector were high on the agenda when Ceredigion NFU Cymru officeholders met recently with their local MP Mark Williams at an on-farm meeting held in Tynygraig.
Ceredigion NFU Cymru Chairman Wyn Evans said, “As farmers we’re facing significant challenges to our businesses with the impacts of price volatility being felt across all the main agricultural commodity sectors, in particular for our dairy farmers. This in turn is having a knock-on effect on the confidence of farmers to make the necessary investments in their businesses to build for the future.
“I appreciate that many of the factors impacting on the price we receive for our goods are global in nature and are outside the control of the Westminster government, however there are several levers that the UK government can use to support our businesses during these volatile times. With an upcoming budget statement due in mid-March we have impressed upon Mark Williams how the tax regime could better support farmers. For example, having a system in place that allows for income tax averaging over a five year period, similar to how it operates in the Republic of Ireland, would help ease cashflow difficulties and support farm businesses to deal with market volatility.”
Mr Evans continued, “Another example of how the UK government could use taxation tools to support farm businesses would be through making the current investment allowance for plant and machinery, which is due to end in 2016, a permanent arrangement and to also extend this for capital infrastructure investment. We hear much talk about the need to add resilience and balance to the economy and we reminded Mark Williams that farmers need to invest in capital items such as farm buildings, and not just plant and machinery.”
Mr Evans concluded, “We’re grateful to Mark Williams for coming out on-farm to meet with us and to hear our concerns. The agricultural industry forms the backbone of the local economy and sustains our rural communities in Ceredigion. As farmers we urge our MP to help argue our corner and to convince the UK government of the need to deliver fiscal policies that can help support farming and food production through the volatility that’s affecting our businesses here in Ceredigion and throughout the rest of Wales and the UK.”
