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
8 results
Clear
1 Conclusion Acknowledged
2nd Report - Farming in Wales in 2…
Welsh farming remains a vital but low-income and demanding profession.
In Wales, farming is a vital profession, central to the preservation of the Welsh language and rural culture. Despite its significance, it remains a physically demanding, low-income sector, largely made up of small, family- run livestock farms with an average … Read more
Government Response
The government acknowledges the essential role of the farming sector in Wales, recognizing its importance to the Welsh economy, life, and identity.
Wales Office
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2 Conclusion Acknowledged
2nd Report - Farming in Wales in 2…
Welsh farms are culturally significant, sustaining communities and the Welsh language.
We re-emphasise the cultural importance of Welsh farms, which not only produce food but are the foundation stones of local communities and help sustain the Welsh language. A higher proportion of Welsh speakers work in agriculture compared to the general … Read more
Government Response
The government acknowledges the essential role of the Welsh farming sector in supporting its Growth Mission and contributing to Welsh life and identity.
Wales Office
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9 Conclusion Acknowledged
2nd Report - Farming in Wales in 2…
UK Government removed agricultural funding ring-fencing at Welsh Government's request.
We acknowledge that the UK Government’s decision to remove the ring- fencing and apply the Barnett Formula to future agricultural funding was made in response to a request from the Welsh Government. We note that the Welsh Government’s view on … Read more
Government Response
The government confirms that agriculture and fisheries funding is now added to devolved governments' baseline, maintained in cash terms, and is no longer ringfenced, with the Welsh Government responsible for its expenditure.
Wales Office
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11 Conclusion Acknowledged
2nd Report - Farming in Wales in 2…
No evidence indicates decline in Welsh agricultural funding after ring-fencing removal.
We note the concerns raised by stakeholders during our oral evidence sessions about the potential for this change to lead to a reduction in Welsh agricultural funding. The evidence we received from the UK and Welsh Governments does not suggest … Read more
Government Response
The government confirms agriculture and fisheries funding has been added to the devolved governments’ baseline from 2025-26, maintained in cash terms, and is no longer ringfenced, with the Welsh Government responsible for spending decisions.
Wales Office
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13 Recommendation Acknowledged
2nd Report - Farming in Wales in 2…
Ensure baselining of agricultural funding does not lead to real-terms decline for Wales.
We recommend that the Treasury and Wales Office work collaboratively with the Welsh Government to ensure that the baselining of agricultural funding into the Welsh Government’s block grant, alongside the application of the Barnett Formula to future allocations, does not … Read more
Government Response
The government states that agriculture and fisheries funding will be added to devolved governments’ baseline funding from 2025-26, maintained in cash terms, and no longer ringfenced, with the Welsh Government responsible for spending decisions. It does not commit to preventing a real-terms decline.
Wales Office
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21 Conclusion Acknowledged
2nd Report - Farming in Wales in 2…
UK Government fails to recognise tenant farming's vital role for new Welsh entrants
We support a long-term vision for farming in which generational transition within the sector is more actively supported. This includes creating clear and viable pathways for new entrants into farming, while ensuring that older farmers feel confident and assured to … Read more
Government Response
The government acknowledges the importance of supporting new entrants and tenant farmers in Wales, stating that Defra officials continue to work closely with the Welsh Government to develop programmes.
Wales Office
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22 Recommendation Acknowledged
2nd Report - Farming in Wales in 2…
Develop targeted support and upskilling for new Welsh farmers, protecting tenant farming
The UK Government should work in close partnership with the Welsh Government to develop more targeted support and technical upskilling programmes for young and new entrants into the Welsh farming sector. In doing so, it must actively promote and protect … Read more
Government Response
The government recognizes the importance and states that Defra officials continue to work closely with the Welsh Government on shared challenges, remaining committed to constructive engagement as both governments develop programmes.
Wales Office
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25 Recommendation Acknowledged
2nd Report - Farming in Wales in 2…
Conduct Wales-specific impact assessments for all future policy decisions affecting Welsh farming
The UK Government needs to take specific account of the unique cultural, environmental and economic circumstances of farming in Wales when making future policy decisions which have direct implications for the agricultural sector in Wales. We recommend that any future … Read more
Government Response
The government states the Wales Office supports departments in designing policies that reflect Welsh needs and works with them to assess policy impact as appropriate, but does not specifically commit to Wales-specific impact assessments led by the Wales Office.
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