The government must do more to help farmers 'weather the current storms' impacting the industry, NFU Cymru will say at its conference amid a poll showing that some producers intend to reduce production.
The annual conference returns (3 November) amid a time of significant uncertainty, with the legacy of the pandemic, the war in Ukraine, policy overhaul, hikes in input prices and the cost-of-living crisis all impacting farmers.
The latest Defra statistics show that the price index for agricultural inputs increased by 30.7% in the 12 months to August 2022.
Whilst commodity prices have remained firm over this period, NFU Cymru will warn that the rises in input costs have eroded margins and this, alongside the impact of the summer drought, has put pressure on all sectors.
The union's conference, themed ‘planning for change’, will hear from a variety of government and industry speakers providing insight into the current turbulence.
NFU Cymru President Aled Jones will use his opening speech to emphasise that governments in Cardiff Bay and Westminster must ensure that the production of food is maintained.
He will say: “Competing challenges mean farmers' resilience is perhaps being tested now as much as it has ever been before. Farm businesses, like the rest of society, have had to deal with severe inflation."
NFU Cymru's poll of over 700 farmers earlier this year showed that 71% intended to reduce production as a consequence of these increased costs and other factors.
Over half of beef farmers said they would reduce stock numbers, averaging out at an estimated 10% cut in cattle numbers alongside an estimated 7% reduction in sheep numbers.
Mr Jones will say that returns in the sector must cover the increasing cost of producing "high quality, safe and fully traceable food from Wales".
He will also call for the Welsh government to strengthen the draft Agriculture (Wales) Bill to "maintain, and enhance where possible, the production of food from Wales".
"I want the bill to better recognise that our countryside, our cultural resources, and our language can only be preserved and enhanced if Welsh farming businesses are economically viable."
Mr Jones will say the industry is living through a period of unprecedented political instability, adding "but at this time I want to make it clear to politicians in Westminster and Cardiff that commitments made to maintain funding for Welsh farming must be honoured".
"This means, we expect, as a minimum, the £374 million that is currently provided through the CAP legacy schemes to be available annually through the Sustainable Farming Scheme," he will say.
“We welcome the Minister’s commitment to maintain the BPS in 2023 and we now look to [Welsh Rural Affairs Minister] Lesley Griffiths MS to provide certainty and stability to Welsh farming for 2024.
"We ask that the Minister makes an early commitment to maintain the BPS at current funding levels for 2024, alongside an extension to Glastir management agreements for 2024 to prevent a cliff edge in environmental support.”
