Will Labour’s win signal better times for Welsh farming?

The political “blame game” so often played at the Royal Welsh Show, as Welsh government ministers seek to score points over Westminster on everything from bovine TB to farm support, was notably absent this year.

As politicians and industry leaders gathered for the biggest event in the Welsh farming calendar, just three weeks had passed since the general election and, with it, a transition of power to Labour.

Since then, there has been a marked mood change, a shift from the division that existed between Cardiff Bay and the previous Conservative government in Westminster.

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Ian Rickman, president of the Farmers’ Union of Wales, who met ministers at the Royal Welsh Show to press for a better deal for Welsh farmers, is feeling more “hopeful”.

“Throughout the election process, the rural affairs minister’s [Huw Irranca-Davies’] pitch to farmers was that we could expect better relations with the UK government if Labour got in,’’ says Mr Rickman.

Political upheaval

But since Labour’s victory, a shadow was cast over that hoped for period of stability, with the resignation of Wales’ first minister Vaughan Gething.

“There is huge upheaval in the Welsh government at the moment. What we need is stability, but what we have had is more instability, not less,” says Mr Rickman.

The fractious relationship between the Conservatives in Westminster and Labour in the Senedd ramped up in 2020 when the farm funding settlement for Wales was 35% or so short of what had been received from the EU.

The government had pledged in its manifesto to fully replace funding received from Europe to support farming.

The £240m annual budget allocated for farming had to cover environmental, community, forestry and other projects, as well as direct payments to farmers.

Reneging on the manifesto commitment was seen as a betrayal by Welsh Labour – and by Welsh farmers.

Stability

Like Mr Rickman, Anglesey dairy farmer Richard Rogers is hoping the change of government will bring more stability for Welsh agriculture.

He suggests that politicians have no long-term vision for the industry and the result of that has been volatility.

“Farming doesn’t need more of the same short-term reactive policies,” says Mr Rogers, who produces milk from 900 spring-calving cows.

“Give us the same priority given to other industries like the financial sector.’’

Farming near Borth in Ceredigion, Martin Griffiths says the new regime must allow Wales a greater say on trade deals.

“If the new government takes the same approach with any new trade agreements as the Conservatives did with the New Zealand and Australia deals, then farming is stuffed,” reckons Mr Griffiths, a dairy farmer.

A more joined-up approach to decision making between the UK and Welsh governments would make sense, he adds, but worries that won’t happen.

“I can see challenges with that. Welsh Labour are definitely their own brand compared to New Labour under Sir Keir Starmer,” says Mr Griffiths.

Upbeat

But Wales’ rural affairs minister Huw Irranca-Davies is sounding more upbeat. He told Farmers Weekly that he believes there is a “really positive way forward’’.

Under the previous government, he was frustrated by what he saw as a lack of commitment from Westminster to Wales.

“In the first weeks of my appointment, when I was trying to work really constructively with the previous Conservative government, there were two meetings set up which were inter-ministerial meetings on a UK level,” says Mr Irranca-Davies, speaking at the Royal Welsh Show.

Both of these were cancelled at the last minute. “That is not the way to do good inter-ministerial,” the minister insists.

Change

He reckons everything changed within 48 hours of the new UK government being established.

“Not only did Keir Starmer appear here in Wales, and went to all other parts of the UK with a serious message of intent to work together, but within 48 hours I had had that phone call and discussion with Steve Reed, the Defra secretary of state,” he says.

“We talked about farming and many other things and we intend to keep that regular, reliable rhythm of meetings, where there is not only a UK agenda being told to us, but a Welsh agenda which is shared with those UK ministers as well.

“I think we have got a real opportunity here going forward, where you have got four governments across the UK who want to work together. That gives me hope for the future.”

Cheque book

But if farmers believe the governments in Westminster and Cardiff have an open cheque book for agriculture, they could be building themselves up for disappointment.

Speaking at the Royal Welsh Show, outgoing first minister Mr Gething explains agriculture will have to compete with other industries, including education, manufacturing sectors and apprenticeships for its share of funding.

“I don’t expect there’s going to be an ocean of money unleashed by the UK government,” he says.

But he adds that industries that can make a “compelling argument” that more resource in their area of interest would deliver real benefits to the country, could benefit most.

Food and drink

Statistics published by the Welsh government this week showed the food and drink industry in Wales grew by 10% in 2023, with a total turnover of £24.6bn (up from £22.3bn in 2022) – figures which Mr Gething says the industry should be proud of.

He says there are real opportunities for the first year of this new UK Labour government to have stability internally and improve relations with the EU to allow farmers to go back into markets they used to access.

Labour’s manifesto commitment to negotiate a veterinary agreement with the EU to reduce trade barriers will be a key aspect of this, he notes.

Mr Gething admits the “churn” of ministers in Wales in recent years has not helped, but he argues that “having a plan you do not agree with is better than having no plan at all”.

“We need to have a period of stability in our government here in Wales, stability in the UK government, and a plan that people can buy into,” he says.