Lib Dems call on Welsh Government to ‘reset relationship with farmers’

Emily Price

The Liberal Democrats have called on the Welsh Government to reset their relationship  with farmers after new statistics revealed that farming incomes in Wales have fallen by 34%.

The data – derived from the annual Farm Business Survey for April 2023 to March 2024 – showed that estimated dairy farm income had dropped by 59% to £67,500,  drastically reducing from an all-time high in 2022-23.

It also showed a drop in income for cattle and sheep for farms in less favoured areas – falling by 9% to £22,000.

The Farmers’ Union of Wales said the figures demonstrate “the economic reality” of attempting to maintain levels of profitability “against a backdrop of increasing costs and red tape”.

The fall in incomes comes amid spiralling energy prices and associated inflation in products like fertilisers.

The Lib Dem Wales spokesperson in Westminster, David Chadwick, says that recent policy failures by both governments at either end of the M4 are damaging agriculture and the wider rural economy in Wales.

The new figures come after the UK Government announced changes to inheritance tax for farmers.

From April 2026, a tax of 20% will be raised on the value of inherited farming assets above £1 million.

While this still represents a tax relief of 50% compared with the standard rate, the move has been attacked by farming unions who have argued it would make the UK more reliant on imports.

The Lib Dems say the tax will only continue to add pressure on a sector that is already struggling to cope.

Welsh language

The party has argued that the changes, alongside economic pressure and bullying from supermarkets will lead to more farmers leaving the profession – further hollowing out rural communities that are already struggling to cope with ageing populations.

The Welsh Lib Dems have also raised concerns about the risk the policies could pose to the Welsh language.

43% of agricultural workers speak Welsh – well above the average within the general population.

The Lib Dems say that community survival of the language declines if people leave farming and rural areas suffer increased depopulation.

MP for Brecon, Radnor and Cwm Tawe David Chadwick said: “These figures should be a stark reminder for Labour that the idea farmers are all wealthy and should be targeted to punitive tax raids is for the birds.

“Agricultural incomes have been falling for some time. The last Government did not offer much to help and now the new Government risks making things even worse. If they don’t change course, we will see a continued decline in the rural economy and the hallowing out of our rural communities.

“Labour must end their war on the countryside being waged from both Cardiff Bay and Westminster, cancel the family farms tax and reset their relationship with our farmers. Our food security and the economic viability of rural communities depend on it.”

Historical data

The Welsh Government says the latest year figures should be considered in the context of historical data spanning back over the past decade.

Whilst it is true that farm income has decreased overall in 2023-24 – it is also true that the figures have returned closer to the historic average following an exceptional year in 2022-23.

Exceptionally high levels of rainfall last year created significant challenges for Welsh farmer with a delayed harvest, resulting in reduced yields and mixed production estimates.

A Welsh Government spokesperson, said: “We are seeking to support a vibrant and resilient agricultural industry in Wales, supporting the long term sustainability of the industry, farms and farmers in Wales.

“We announced updated outline plans for the Sustainable Farming Scheme in November and the changes address the needs of Welsh farmers, while supporting the ongoing sustainable production of food, as well as climate change and nature commitments.

“We will continue to collaborate with the sector and we remain committed to listening to and working with our stakeholders.  By working together we can ensure a prosperous and sustainable farming industry now and for future generations of Welsh farmers.”