Farming in Wales in 2025: Challenges and Opportunities

Welsh Affairs Committee Open Inquiry
Opened: 10 Mar 2025 Parliament page
Wales has a long tradition of farming, and the sector is integral to the Welsh economy. In 2022, agriculture, fishing and forestry accounted for 1.8% of total employment in Wales and over 90% of the land area of Wales is utilised for farming. Our predecessor Committee reported that in 2020, … Read more
8 Recommendations
17 Conclusions
2 Reports
2 Oral sessions
11 Letters
2 Events
Activity timeline 18 events
25 Mar
2026
Correspondence
25 Mar
2026
Correspondence
11 Mar
2026
Correspondence
30 Jan
2026
Report published
7 Jan
2026
Correspondence
12 Nov
2025
Report published
12 Nov
2025
Report published
4 Sep
2025
Correspondence
17 Jul
2025
Correspondence
17 Jul
2025
Correspondence
17 Jul
2025
Correspondence
17 Jul
2025
Correspondence
Oral evidence sessions 2 sessions
16 Jul 2025
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Oral evidence
Ceri Morgan CBE · Department for Environment, Food and Rural Affairs Daniel Zeichner MP · Department for Environment, Food and Rural Affairs Tessa Jones · Department for Environment, Food and Rural Affairs
4 Jun 2025
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Oral evidence
Aled Jones · National Farmers Union Cymru Dominic Hampson-Smith · Wales Young Farmers Clubs Gareth Parry · Farmers’ Union of Wales (FUW)
Recommendations & Conclusions
6 results
Clear
3 Conclusion Accepted
2nd Report - Farming in Wales in 2…
Support the objective of reforming property reliefs to close tax avoidance loopholes.
We support the objective of reforming Agricultural Property Relief (APR) and Business Property Relief (BPR) to close the loophole that encouraged wealthy investors to purchase agricultural land as a means of avoiding tax. (Conclusion, Paragraph 49)
Government Response
The government details its announced reforms to Agricultural Property Relief and Business Property Relief, effective from April 2026, including an increase in the 100% relief allowance from £1 million to £2.5 million to protect more farms and businesses.
Wales Office
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10 Conclusion Accepted
2nd Report - Farming in Wales in 2…
Devolution principle requires Welsh Government autonomy over its budget, free from ring-fencing.
It is a fundamental principle of devolution that decisions affecting Wales should be made in Wales and that the Welsh Government should have autonomy over its budget, without ring-fencing imposed by the UK Government. (Conclusion, Paragraph 66)
Government Response
The government confirms that agriculture and fisheries funding is no longer ringfenced and devolved governments, including Wales, now have autonomy to decide how to spend this funding from 2025-26.
Wales Office
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14 Conclusion Accepted
2nd Report - Farming in Wales in 2…
Lack of clear timeline concerning for UK-EU Sanitary/Phyto-Sanitary (SPS) zone establishment.
We welcome the foundational agreement between the UK and EU to establish a common Sanitary/Phyto-Sanitary (SPS) zone. However, we are concerned about the lack of a clear timeline for when an SPS zone will be established. (Conclusion, Paragraph 80)
Government Response
The government states negotiations for a Sanitary and Phytosanitary (SPS) Agreement with the EU have commenced and aims to conclude discussions and have legislative arrangements in place no later than 2027.
Wales Office
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17 Recommendation Accepted
2nd Report - Farming in Wales in 2…
Ensure Free Trade Agreements do not undermine the viability of farming in Wales
We are concerned that Free Trade Agreements have been entered into in the full knowledge that Wales’ agricultural industry may be negatively impacted. The Government must ensure that FTAs do not act as a ‘Trojan Horse’ that, overtime, will undermine … Read more
Government Response
The government states it carefully monitors trade data and sees no evidence that FTAs with Australia and New Zealand have negatively impacted Welsh beef or lamb production, as imports are primarily displacing EU imports. It highlights existing safeguards within the agreements.
Wales Office
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19 Conclusion Accepted
2nd Report - Farming in Wales in 2…
Disparity in production standards threatens competitiveness of Welsh farming
We are concerned about the perceived disparity in production standards and the levels of financial support received by farmers in countries that the UK Government is negotiating trade agreements with. We are also concerned that lower-cost imports produced to less … Read more
Government Response
The government states it carefully monitors trade data and has found no evidence that trade agreements with Australia and New Zealand have negatively impacted Welsh beef or lamb production, with imports mainly displacing EU products. It highlights existing safeguards within the agreements.
Wales Office
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24 Conclusion Accepted
2nd Report - Farming in Wales in 2…
Wales Office has not adequately represented Welsh farming needs in Whitehall
Farming practices and conditions in Wales differ significantly from those in England, and it is essential that these differences are fully understood by policy makers in Westminster. In its discussions with the UK Government, it is incumbent upon the Welsh … Read more
Government Response
The government states that the Wales Office already supports UK Government departments in designing policies that reflect Wales' needs and works with them to assess policy impact in the agricultural sector.
Wales Office
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Government Response AI assessment · 23 of 8 classified
Accepted 6
Accepted in Part 3
Acknowledged 8
Not Addressed 2
Rejected 4
Total 8 recs + 17 conclusions
Correspondence 11 letters
25 Mar 2026 Correspondence to and from Department of Business and Trade, relating to the Government response to the Farming in Wales report, dated 3 February and 13 March 2026
Parliament page
25 Mar 2026 Correspondence to and from the Home Office, relating to withdrawal of the visa concession for temporary employment as sheep shearers, dated 2 March and 13 March 2026
Parliament page
11 Mar 2026 Correspondence to and from HM Treasury, relating to Farming in Wales in 2025, dated 3 and 25 February
Parliament page
7 Jan 2026 Correspondence from the Department for Environment, Food and Rural Affairs relating to reforms of Agricultural Property Relief and Business Property Relief, dated 23 December.
Parliament page
4 Sep 2025 Correspondence from the Deputy First Minister and Cabinet Secretary for Climate Change and Rural Affairs dated 18 August 2025 relating to Farming in Wales in 2025: Challenges and Opportunities
Parliament page
17 Jul 2025 Correspondence from the Wales Young Farmers Clubs to the Chair relating to the 4 June evidence session
Parliament page
17 Jul 2025 Correspondence from the Farmers’ Union of Wales to the Chair dated 26 June 2025 relating to the 4 June evidence session
Parliament page
17 Jul 2025 Correspondence from the Chair to NFU Cymru dated 9 June 2025 relating to the 4 June evidence session
Parliament page
17 Jul 2025 Correspondence from the Chair to the Wales Young Farmers Clubs dated 9 June 2025 relating to the 4 June evidence session
Parliament page
17 Jul 2025 Correspondence from NFU Cymru to the Chair dated 26 June 2025 relating to the 4 June evidence session
Parliament page
17 Jul 2025 Correspondence from the Chair to the Farmers’ Union of Wales dated 9 June 2025 relating to the 4 June evidence session
Parliament page