The Farmers’ Union of Wales (FUW) is calling time on the barriers holding back young farmers with a new report demanding urgent action to secure the future of Welsh agriculture.
The union has set out nearly 40 detailed recommendations aimed at the UK and Welsh governments to secure a sustainable future for farming in Wales.
Central to the report, entitled 'A Mandate for Future Farmers', is the urgent need to attract and retain young talent within farming.
The FUW says this is essential not only for safeguarding food security but also for sustaining vibrant rural economies and communities, as well as preserving vital rural and land-management skills.
These factors are crucial to ensuring Wales’ land can meet the needs of future generations in an increasingly challenging environment.
The report draws attention to significant barriers faced by young farmers, including an ageing workforce, with the median age of a ‘key decision maker’ farmer in Wales now 61.
Alarmingly, only 3% of ‘head of holding’ farmers are under 35. Prohibitive land prices and difficulties accessing finance are also major hurdles, compounded by low incomes and unpredictable cash flow, which restrict the ability of newcomers to buy land or secure rental agreements.
Additionally, growing competition for land from natural capital investors, forestry projects, lifestyle buyers, charities, government bodies, and renewable energy developers further exacerbates the issue.
Short and insecure tenancies are another problem, the report states. The average term for new Farm Business Tenancies (FBTs) is just over three years, with 80% lasting five years or less. This discourages long-term investment and planning.
The sale of County Council farms has further reduced available land, with council-owned farmland in Wales shrinking by 25% (approximately 13,000 hectares) in the last decade.
Succession planning is also flagged as a serious concern, with one recent study finding that 21% of farmers surveyed have no intention of retiring.
The FUW proposes a multi-pronged approach to support the next generation of farmers, urging both Welsh and UK governments to take action.
Recommendations for the Welsh government include introducing quarterly Sustainable Farming Scheme (SFS) payments and prioritising new entrants and young farmers.
The FUW also calls for a loan or guarantor scheme via the Development Bank of Wales to alleviate financial pressures, alongside increased capital cost contributions and upfront payments for newcomers.
Further recommendations include reinstating the Agri Academy Rural Leadership Programme, supporting youth networking groups, implementing policies on SFS accessibility, bovine TB eradication, and promoting public procurement of Welsh produce.
The report advocates enabling joint SFS applications by landlords and tenants, encouraging investment in skills, promoting diverse farming careers, supporting agricultural colleges, reducing bureaucracy, and continuing to champion Welsh food and drink.
On the UK government front, the FUW urges a rethink of proposed changes to agricultural property relief (APR), arguing that farming assets should only be taxed on sale rather than when passed between generations.
It also backs recommendations from the 2022 Rock Review to encourage longer, more secure FBTs with rents reflecting productivity rather than just land value.
The report calls on existing farmers and landowners to offer longer-term and more secure tenancy agreements, ‘trial’ years for new entrants, share farming, contract farming, joint ventures, and mentoring.
It stresses the importance of proactive succession planning, supported by Farming Connect and professional advice. The FUW also encourages lending machinery, leasing livestock, and continued support for Wales’ Young Farmers’ Clubs.
Speaking about the report, FUW Policy Officer Teleri Fielden said: "A Mandate for Future Farmers is a clear call to action for governments and the industry.
"The future of Welsh agriculture, and indeed our ability to respond to wider challenges as a nation, hinges on our ability to support and empower the next generation.
"We must remove the barriers, create genuine opportunities, and invest in the talent that will ensure our family farms continue to thrive for decades to come, providing food, managing biodiverse and climate resilient farms, and sustaining our rural communities."
FUW President Ian Rickman added: "This report is more than just a list of recommendations; it's a blueprint for a resilient and thriving future for Welsh farming, ensuring that the heart of our rural communities continues to beat strong for generations to come."
