Farm leaders have praised a new parliamentary report that accuses the UK government of “complacency” over the long-term effects of its policies on Welsh agriculture.
Published ahead of the autumn budget, the Welsh Affairs Committee report warns that Westminster has repeatedly failed to recognise the unique needs of Wales’s farming industry.
The findings follow an inquiry launched in March 2025 into the future of Welsh farming, which drew evidence from the FUW and other agricultural bodies.
Welsh agriculture covers over 90% of the nation’s land area and employs 11% of the UK’s farming workforce, even though Wales accounts for less than 5% of the total population.
Despite contributing more than £9.3 billion to the Welsh economy, the sector continues to face a falling workforce, lower incomes, and declining livestock numbers.
The report describes Welsh farming as “resilient but under heavy strain” and operating within a policy framework that “too often overlooks the distinct nature of farming in Wales.”
The Committee raised particular concern about proposed inheritance tax reforms, warning that a lack of clarity could leave elderly and terminally ill farmers exposed to unexpected financial burdens.
It criticised ministers for failing to assess the potential impact of the changes, creating what it called “an unnecessary climate of uncertainty and confusion… in an industry central to the cultural, environmental and economic fabric of rural Wales.”
The report urges the government to delay implementation until a Wales-specific impact assessment is completed.
Members also concerns over the decision to ‘Barnettise’ Welsh agricultural funding — merging it into the Welsh government’s block grant and removing the protected multiannual budget previously allocated to farm support.
The Farmers' Union of Wales (FUW) had warned that this effectively amounts to a real-terms funding cut. The Committee urged the Treasury and the Wales Office to work with the Welsh government to ensure the change does not reduce support for Welsh farmers.
Further findings highlight the disproportionate impact of free trade agreements with Australia and New Zealand on Welsh livestock producers, as well as the risks posed by future trade negotiations.
The report calls for a long-term vision for Welsh agriculture, greater support for new entrants, and stronger emphasis on food security and sustainable farming — echoing recommendations from the FUW’s Mandate for Future Farmers report.
Committee members said ministers must “take specific account of the unique cultural, environmental and economic circumstances of farming in Wales when making future policy decisions.” They recommended that any such decisions “be accompanied by a Wales-specific impact assessment led by the Wales Office.”
FUW President Ian Rickman said the report sends a clear message that Welsh farming “cannot continue to be treated as an afterthought in Whitehall.”
He added: “The Committee has rightly recognised the unique nature of agriculture in Wales — its scale, its contribution to our economy, and its vital role in sustaining our rural communities. Yet too often, UK policy fails to take those distinct circumstances into account.”
He warned that both the proposed inheritance tax reforms and the “Barnettisation” of agricultural funding risk undermining family farms at a time of soaring costs and volatile markets.
“As we approach the autumn budget, the chancellor must take these findings seriously and ensure that future decisions genuinely protect our family farms, strengthen food security, and secure a sustainable future for Welsh agriculture,” he said.
Rickman thanked Committee members for what he described as “an accurate and well-balanced report” that highlights the urgent need for the “unique characteristics of rural Wales to receive certain consideration when policy decisions are made.”
The FUW said it hopes the report marks a turning point in how Westminster shapes policy for the future of Welsh farming.
