Senedd Cymru
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Welsh Parliament
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Pwyllgor yr Economi, Masnach a Materion Gwledig
|
Economy, Trade, and Rural Affairs Committee
|
Bil Amaethyddiaeth (Cymru)
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Agriculture (Wales) Bill
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AGR-37
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Ymateb gan: NFU Cymru
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Evidence from: NFU Cymru
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Dear
Committee
The
Agriculture (Wales) Bill
Introduction
NFU Cymru
champions Welsh farming and represents farmers throughout Wales and
across all sectors. NFU Cymru’s vision is for a
productive, profitable, and progressive farming sector producing
world renowned climate-friendly food in an environment and
landscape that provides habitats for our nature to thrive. Welsh
food and farming delivering economic, environmental, cultural, and
social benefits for all the people of Wales whilst meeting our
ambition for net zero agriculture by 2040.
The Agriculture
Bill is a once in a generation piece of legislation which for the
first time in our history gives Wales the opportunity to devise and
implement its own food and farming policy, made in Wales for Wales.
In terms of its potential impact on Welsh farmers, this bill is the
most important piece of legislation that our sector has seen since
the 1947 Agriculture Act.
The
Union’s members throughout Wales therefore have a significant
interest in the Agriculture Bill and its provisions as they will of
course, amongst other things provide Welsh Ministers with the
powers they need in order to operate the proposed Sustainable
Farming Scheme in Wales.
NFU Cymru
welcomes the opportunity to provide the Committee with a written
submission as part of its Stage 1 consideration of the Bill, and we
thank the Committee for the opportunity to provide oral evidence on
the 12th October.
As with our
appearance before the Committee last month, our views as outlined
below are based on our current understanding of the Agriculture
Bill as introduced, and these views may well evolve further as our
knowledge and understanding develops and also as the Bill itself is
amended as part of the scrutiny process.
We look forward
to working with the Senedd over the coming weeks and months as this
very significant piece of legislation journeys through its various
legislative stages
NFU Cymru Policy Priorities for the Agriculture (Wales)
Bill
In July 2022,
NFU Cymru published its document 'Shaping
Welsh Farming's Future'
identifying some
key asks of the Agriculture (Wales) Bill so that Welsh farming is
able to meet our ambition to sustainably grow our contribution to
Welsh society, these asks included:-
Redefining Sustainable Land Management- Welsh Government must ensure
equal emphasis is placed on the delivery of economic,
environmental, social, and cultural outcomes within the Agriculture
(Wales) Bill through revising its definition of sustainable land
management.
Securing continued supplies of safe, high-quality food
- As a key objective
the Agriculture (Wales) Bill should underpin the production of a
stable supply of safe, high quality, affordable food in Wales and
the bill should include mechanisms to ensure levels of domestic
food production are assessed, maintained, and enhanced alongside
climate, biodiversity, and broader environmental
objectives.
Securing rural livelihoods - As a key objective the
Agriculture (Wales) Bill should secure rural livelihoods through
the provision of stability measures as part of the long-term
agricultural policy framework.
Sustainably growing the farming sector - As a key objective, the
Agriculture (Wales) Bill should include an ambition to sustainably
grow the farming sector and include measures that fund productivity
improvements on Welsh farms including advice, knowledge exchange
and investment support for farm infrastructure and the latest
innovations and technology
Broader SLM outcomes - In line with the revised
definition of sustainable land management, the Agriculture (Wales)
Bill should specify a comprehensive suite of SLM outcomes that
includes rural vitality, food security, on-farm productivity, and
the Welsh language.
Targeting active farmers - The Agriculture (Wales) Bill
should provide the framework to ensure funding is targeted at
active farmers taking the risks associated with food
production.
Equivalent levels of funding - A long-term, multi-annual
commitment to funding is needed that ring-fences, as a minimum,
equivalent levels of funding for Welsh farming to those received
currently also reflecting the scale of ambition reflected in the
policy and inflationary pressures
Stability through the transition- Welsh Government should commit
to providing a smooth transition to new schemes with at least the
same level of stability, as that provided by the CAP, for farm
businesses through the Sustainable Farming Scheme and the
Agriculture (Wales) Bill.
Executive Summary, Key issues and Recommendations
NFU Cymru
welcomes the opportunity to contribute to Stage 1 of the
legislative process. The Agriculture Bill is a once in a generation
piece of legislation which for the first time in our history gives
Wales the opportunity to devise and implement its own food and
farming policy.
Food production
should feature at front and centre of an Agriculture Bill. We
are pleased that the production of food is included within the
first Sustainable Land Objective (SLM). This objective should be
strengthened further to recognise our global responsibility to
maintain and enhance where possible, the production of climate
friendly food. (Clause
1)
The fourth SLM
objective should be amended to recognise that the countryside, our
cultural resources, and Welsh language can only be conserved and
enhanced if Welsh farming is productive and profitable. The
objective should be amended to highlight the importance of
supporting farmers to achieve this objective. (Clause 1)
A fifth SLM
objective should be added to the Bill to reflect the importance of
a vibrant, economically active farming sector. The new fifth
objective should seek to safeguard rural livelihoods and
communities, recognising the importance of sustainable and viable
farming businesses and agricultural production to the rural
economy. (Clause
1)
The SLM
objectives need to give consideration to how they support and
enhance the productivity and resilience of agricultural businesses.
(Clause 1)
NFU Cymru does
not agree with the Welsh Government’s definition of
Sustainable Land Management (SLM) as set out on page 20 of the
Bill’s explanatory memorandum. Instead, NFU Cymru agrees with
the following definition of SLM from the World Bank:
A knowledge-based procedure
that helps integrate land, water, biodiversity, and environmental
management to meet rising food and fibre demands whilst sustaining
ecosystem services and livelihoods.
Sustainable land
management indicators and targets set should be realistic and
achievable within the defined timescale. (Clause 4)
There needs to
be the establishment of a mechanism for reporting on domestic food
production. (Clause
5)
We are
encouraged that support can be provided in connection with
encouraging the production of
food in an environmentally sustainable manner. In line
with the goals set out in the Well-Being of Future Generations
(Wales) Act 2015, this should be amended to reflect sustainability
in its true sense, and this should read ‘encouraging the production of food in an
environmentally, economically, socially and culturally sustainable
manner’. (Clause
8)
The purposes for
which Welsh Ministers may provide support should be extended to
include on-farm productivity and helping new entrants into the
industry. (Clause
8).
The purposes for
which Welsh Ministers may provide support should also be extended
to include rural vitality and food security. These outcomes align
with the Institute of European
Environmental
Policy description of public goods arising from farming.
(Clause 8)
Farming supports
the highest proportion of Welsh speakers of any sector so the Welsh
language should also be included as an outcome. (Clause 8)
The Bill should
have a provision that requires Welsh Government to undertake a
multi-annual financial assistance plan setting out the
government’s strategic priorities for giving financial
assistance during the specified period as well as providing details
of any existing financial assistance schemes. It would show a
long-term vision and commitment by Welsh Government to agricultural
support, providing certainty to farmers, and help make the case to
both the UK Treasury and Welsh Treasury of the need to maintain, as
a minimum, equivalent levels of funding for Welsh farming.
(New Clause within Part 1 Chapter
2)
Welsh farmers
need a stable and well-planed transition from the CAP to a new
agricultural policy for Wales. It is important that Welsh
Government in designing and implementing new schemes use the powers
that they will have to provide stability and certainty to Welsh
farming communities which deliver multiple benefits for society.
The current CAP legacy schemes should not be phased out until there
is clear evidence that replacement schemes can deliver at least the
same level of stability to farm businesses, the supply chain, and
our rural communities. (Clause
15, 16, 18)
Powers for Welsh
Ministers to act in relation to exceptional market conditions are
essential. Welsh Ministers should be mindful not just of farmgate
prices for agricultural products, but also of increased input
costs, which can constitute exceptional market conditions.
(Clause 20 &
21)
Welsh Government
proposes to take powers to amend the Agricultural Holdings Act 1986
to extend dispute resolution provisions to encompass disputes which
make it more difficult or prevent the tenant for accessing
financial assistance schemes. The same provision for dispute
resolution should be made to the 1995 Act. (Clause 23)
NFU Cymru is
concerned about some of the data gathering and possible data
publication provisions within the Bill as drafted and we would urge
Welsh Ministers to introduce a range of safeguards in relation to
data. (Part 3 Chapter
1)
Agriculture
should be defined non-exhaustively so that if the need arises in
future, activities which are not currently listed can be
incorporated as required. (Clause
48)
The scope of
ancillary activities listed at Clause 49(a)(i), (ii) and (iii)
should be narrowed further so that these ancillary activities can
only be carried out by producers
of agricultural products. We would like to see the class
of ancillary activities at 49(b) tightened so that the products
referenced are derived from Welsh agriculture as opposed to
just ‘agriculture’ (Clause 49)
Welsh Ministers
may amend the definition of agriculture and ancillary activities by
regulation. Both definitions are of fundamental importance to
the Bill, and whilst neither definition should ever be immutable,
it is a concern that it will be open to Welsh Ministers to amend
both definitions by regulation, with no engagement with the
agricultural sector and very little Senedd involvement. We
believe the exercise of these powers should be made subject to a
duty to consult. (Clause
50)
NFU Cymru will
consider the Bill’s provisions in sequence
Clause 1 – The Sustainable Land Management
Objectives
- NFU Cymru notes
the publication of the four sustainable land management (SLM)
objectives.
- The Union
believes that the first objective reflects the considerable
progress which has been made in Welsh Government thinking since the
original ‘Brexit and Our Land’ consultation four years
ago which made little mention of food.
- It should go
without saying that food production ought to feature at the front
and centre of an Agriculture Bill. We are pleased to note
that the production of food is included within the first
objective. We would like to see this objective strengthened
further to recognise our global responsibility to maintain and
enhance where possible, the production of climate friendly
food.
- NFU Cymru does
not agree with the Welsh Government’s definition of
Sustainable Land Management (SLM) as set out on page 20 of the
Bill’s explanatory memorandum. Instead, NFU Cymru
agrees with the following definition of SLM from the World
Bank:
‘A knowledge-based procedure that helps integrate land,
water, biodiversity, and environmental management to meet rising
food and fibre demands whilst sustaining ecosystem services and
livelihoods.’
- Our view is that
the World Bank definition better defines sustainability,
recognising the needs of current and future generations -taking
into account the environment, food production and the role of
agriculture in underpinning rural communities and the wider
economy.
- NFU Cymru would
like to see the fourth objective amended to recognise that the
countryside, our cultural resources, and Welsh language can only be
conserved and enhanced if Welsh farming is productive and
profitable. The fourth objective should be amended to highlight the
importance of supporting farmers to achieve this
objective.
- The fourth
objective includes reference to public access, we would be keen to
understand more regarding the Welsh Government’s thinking as
regards the inclusion of public access within this objective. Wales
already offers very significant access provision including 16000
miles of footpaths, 3000 miles bridleways, 1200 miles of cycle
network, and 460,000 hectares of open access land. It is our
view that the focus should be on the effective maintenance and
management of existing access opportunities. Any new access should
be permissive and funded from outside the current agricultural
budget.
- A fifth
objective should be added to the Bill to reflect the importance of
a vibrant, economically active farming sector. The new fifth
objective should seek to safeguard rural livelihoods and
communities, recognising the importance of sustainable and viable
farming businesses and agricultural production to the rural
economy.
- It is our view
that the SLM objectives need to consider how they support and
enhance the productivity and resilience of agricultural
businesses.
- In summary it is
NFU Cymru’s view that the SLM Objectives need to be amended
to recognise the important role Wales has to play in global food
security, and that Wales’ countryside, communities, language,
and a large part of our national economy depend on the economic,
environmental, social and cultural activity taking place by Welsh
farmers and their families.
Clause 4 – Sustainable Land Management Indicators and
Targets
- In considering
the duties of Welsh Ministers to set out indicators and targets it
is first of all important to make clear NFU Cymru’s view that
any indicators used, and targets set should be realistic and
achievable within the defined timescale. For example, many of
the measures proposed to be supported through the Sustainable
Farming Scheme are long term aspirations and so indicators and
targets must properly account for this.
- It is unclear
whether targets will focus on food production linked to the
sustainability of the sector or whether they will look at
environmental sustainability with the production of food secondary
to this.
- NFU Cymru
believe Welsh Government should monitor the overall number of farms
and farm types involved in the scheme. NFU Cymru is clear that
future schemes must be accessible for all farm sectors, farm types
and areas of Wales. It is important that Welsh Government are able
to quickly assess whether there might be factors leading to
differential rates of participation across the different farm types
and take remedial action if necessary.
- It is NFU
Cymru’s view that the Bill should impose a duty on Welsh
Ministers to consult with those likely to be impacted by the
targets set, particularly in relation to how Welsh Government
intend to monitor and report on these targets.
- At 4(6) it is
indicated that a target may relate to Wales or any part of
Wales. NFU Cymru has always advocated that support
should be available to all farmers, irrespective of geographic
location or which sector(s) they might operate in. We
re-iterate our opposition to any sort of
‘postcode’ lottery when it comes to support.
Welsh Ministers should therefore avoid the creation of any sort of
postcode lottery in terms of support, either on the face of the
Bill or through any policy developed under its
provisions.
Clause 5 - Steps to be taken in preparing or revising indicators
and targets
- NFU Cymru notes
that when it comes to the preparation of a statement under Clause
4, Clause 5 obliges Welsh Ministers must have regard to the matters
set out in Clause 5 subsection 2, and consult the persons set out
in Clause 5 subsection 3.
- The Union is
concerned that subsection 2 does not require Welsh Ministers to
‘have regard to’ available information regarding food
production levels. There needs to be the establishment of a
mechanism for reporting on domestic food production, with Welsh
Ministers then obliged to have regard to levels of domestic food
production under the provision of subsection 2 when it comes to the
preparation or revision of indicators and targets.
- We would suggest
that Welsh Ministers should be under a statutory obligation to
consult relevant stakeholders under Clause 5 subsection
3.
Clause 8 – Welsh Ministers’ power to provide
support
- In NFU
Cymru’s Shaping Welsh Farming’s Future
document, published in July 2022 we advocated that sustainable
land management outcomes should be expanded to include rural
vitality, food security, on-farm productivity, and the Welsh
language. We maintain that those outcomes should be
included within the Agriculture Bill, and in our commentary on
Clause 1 of the Bill we suggest that this should be done through
amendments to the first and fourth SLM objectives and the addition
of a new fifth objective.
- We are
encouraged at 8(2)a that support can be provided in connection with
encouraging the production of
food in an environmentally sustainable manner, something
which was missing from previous consultations. We would however
make the point that, in line with the goals set out in the
Well-Being of Future Generations (Wales) Act 2015, this should be
amended to reflect sustainability in its true sense, and this
should read ‘encouraging
the production of food in an environmentally, economic, socially
and culturally sustainable manner’
- Overall, the
purposes for which Welsh Ministers may provide support are
primarily environmental. We believe it is inaccurate to assume that
supporting farmers to deliver environmental outcomes alone can
ensure the delivery of wider outcomes for society. As a
result, NFU Cymru is clear that the powers to support should also
be extended to include rural vitality, food security and on farm
productivity. These outcomes align with the Institute of European
Environmental Policy description of public goods arising from
farming. Farming supports the highest proportion of Welsh speakers
of any sector so the Welsh language should also be included as a
purpose for which support can be provided.
- Improving on
farm productivity is central to the future competitiveness and
resilience of Welsh farms. It will enable farmers to produce the
same quantity of food, or more, with fewer inputs, in smarter ways.
This, in turn, will enable the sector to reduce its greenhouse gas
emissions and make a positive environmental contribution. An
additional power to support for starting and improving on-farm
productivity should be added. The emphasis on
‘starting’ is important given the lack of support for
young people/new entrants within the Bill.
- The Bill will
confer powers on Welsh Ministers to add, remove or alter the
description of a purpose in the list at section 8. NFU Cymru
would suggest that this power should only be used following
consultation with relevant stakeholders.
- The Bill is a
framework bill and ultimately whether it will deliver the support
that our agricultural sector needs will turn on the willingness of
Welsh Government to introduce schemes under the Bill which will
support Welsh farming, whether they are sufficiently attractive to
all sectors, areas and farm types and are adequately funded.
It is vital that Wales’ farmers can remain
competitive with farmers across the UK, EU and
worldwide.
Clause 9 – Further provisions about support under part
8
- Clause 9 (5)
introduces the possibility of support to third party scheme
operators. Bringing in third party scheme operators raises
questions about matters such as whether such operators will have
the aptitude and experience to devise and/or operate schemes, what
agendas they might import, and whether the scheme funds risk being
swallowed up in bureaucracy and administration. NFU Cymru has
reservations about the use of third-party scheme
operators.
Clause 10 – Power to make provision about the publication of
information about support
- We believe that
if the Welsh Government is intent on publishing this sort of
information, then there is merit in considering introducing a
de minimis threshold
of £1, 250, with information on recipients of sums below this
threshold published in an anonymised format only.
Clause 11 – Power to make provision about checking
eligibility for support etc
- Section 11
equips Welsh Ministers with regulation making powers to make checks
around eligibility for support. NFU Cymru understands
and accepts the fact that where public money is being spent there
must be mechanisms to ensure that it is spent correctly, and this
will on occasion involve the use of appropriate checks.
Checks should not be conducted in an insensitive or heavy-handed
manner, and we would also make the point that any checks and
penalties applied should be proportionate.
- We would be
particularly nervous about the prospect of powers to check
eligibility for support being conferred upon third parties.
This is not something that we would support as we see too many
examples of third parties having a specific policy agenda that they
may wish to pursue.
Clause 12 - Annual reports about support provided under section
8
- At Clause 12 the
Bill mandates Welsh Ministers to prepare a report relating to the
support provided during the reporting period. We believe it is
important that as part of this process that any such report covers
the costs of administering any scheme by Welsh Government and if
applicable, a third party.
- Historically,
Pillar 1 schemes under the Common Agricultural Policy have been run
at a fraction of the cost of Pillar 2 Schemes. With the SFS as
currently designed more closely resembling a Pillar 2 scheme than a
Pillar 1 scheme, there is a legitimate concern about the possible
levels of administrative costs, and we would like to see maximum
transparency in relation to scheme delivery costs.
Clause 13 – Impact Report & Clause 14 – Steps to be
taken in preparing reports under section 13
- NFU Cymru
supports the production of impact reports as they should assess how
well support schemes are performing against their objectives and
should also provide an evidence base which could be used as a
starting point for future reforms.
- At Clause 14 we
would suggest that Welsh Ministers should have regard to the impact
of the schemes on the productive capacity of agriculture in
Wales.
Support for agriculture and multi-annual financial assistance
plans
- Under Chapter 1,
Section 4 of the UK Agriculture Act 2020, the Defra Secretary of
State is required to prepare a multi-annual financial assistance
plan setting out the government’s strategic priorities for
giving financial assistance during the specified period as well as
providing details of any existing financial assistance schemes.
This section further provides that the first plan must cover a
seven-year period, with subsequent plans covering a minimum of five
years.
- NFU Cymru
believes that the Agriculture (Wales) Bill should make similar
provisions in order to give the sector some reassurance as regards
the short to medium term proposed direction of travel regarding
Welsh Government funding to the sector. The need for the
agricultural sector to have the maximum possible levels of
certainty as regards financial assistance is particularly acute
owing to the long production cycles involved in the production of
livestock and crops.
- Importantly it
would also show a long-term vision and commitment by Welsh
Government to agricultural support and help make the case to both
the UK Treasury and Welsh Treasury of the need to maintain, as a
minimum, equivalent levels of funding for Welsh
farming.
Clause 15 – Powers to Modify legislation governing the basic
payment scheme; Clause 16- Power to modify legislation relating to
the common agricultural policy; Clause 18- Power to modify
legislation relating to direct support for rural
development
- Welsh farmers
need a stable and well-planed transition from the CAP to a new
agricultural policy for Wales. It is important that Welsh
Government in designing and implementing new schemes use the powers
that they will take for themselves to provide stability and
certainty to Welsh farming communities which deliver multiple
benefits for society. NFU Cymru is clear that the current CAP
legacy schemes should not be phased out until there is clear
evidence that replacement schemes can deliver at least the same
level of stability to farm businesses, the supply chain, and our
rural communities. The aim being to minimise harmful impacts and
disruption for individual farm businesses, sectors, and
regions.
- NFU Cymru
support the provisions within these clauses that allow for the
continuation of current schemes and for a transition period. NFU
Cymru would not support any amendments that proposed placing a time
limit on the operation of legacy schemes or length of a transition
period. To ensure stability and to be able to cope with all
eventualities the Bill must provide maximum flexibility to Welsh
Government in relation to the continuation of current schemes and
funding and transition to the Sustainable Farming Scheme.
Clause 20 – Declaration relating to exceptional market
conditions & Clause 21 – Exceptional Market Conditions
– Powers available to Welsh Ministers
- Powers for Welsh
Ministers to act in relation to exceptional market conditions are
essential. Clauses 20 and 21 equip Welsh Ministers with powers to
declare that there are exceptional market conditions, and to
provide financial support to agricultural producers when such a
declaration is in effect. This is on a very similar basis to the
powers conferred on UK Government Ministers via the Agriculture Act
2020.
- Despite this, we
do note that there is a strong degree of subjectivity with regard
to the use of these powers (i.e., their use will turn on there
being what Welsh Ministers consider to be exceptional market
conditions) and furthermore the powers equip Welsh Ministers with a
discretion to declare
exceptional conditions and a discretion to provide financial
assistance. Whether any assistance can therefore be provided
to the sector in the event of exceptional market conditions will
therefore be contingent on the willingness of Welsh Ministers to
make use of these powers.
- The definition
of exceptional market conditions is based on a ‘severe
disturbance,’ NFU Cymru would suggest that this definition
should perhaps consider whether there is a
‘significant’ as opposed to ‘severe’
disturbance.
- We would also
add that whilst it is right to consider the prices achievable for
agricultural products in the context of exceptional market
conditions, this is not the only measure of whether there are
exceptional market conditions, and increases in the cost of
production, where such increased costs have not been reflected in
the market prices achievable for agricultural products, are also an
exceptional market condition. Clause 20 should be amended to
reflect this.
- Welsh Ministers
cannot of course be naïve to market disturbances occurring
elsewhere in the UK, the EU and further afield and they will need
to keep a close eye on what is happening in other jurisdictions in
terms of market conditions and the deployment of any financial
assistance.
- NFU Cymru is
alive to the risk of differential approaches to market disturbance
in each of the UK home nations, and in order to mitigate this risk
we see an important role of the UK Agriculture Market Monitoring
Group in terms of keep a close eye on the situation in four UK home
nations and where necessary agreeing to co-ordinated approaches and
interventions.
Clause 23 – Agricultural Holdings – Dispute Resolution
relating to financial support
44. At Clause 23 the Welsh
Government proposes to take powers to amend the Agricultural
Holdings Act 1986 to extend dispute resolution provisions to
encompass disputes which make it more difficult or prevent the
tenant for accessing support schemes under the Bill. NFU
Cymru welcomes this provision as it will potentially assist tenants
who want to enter into financial assistance schemes.
45. NFU Cymru would be
interested to know why the Welsh Government has decided not to make
corresponding amendments to The Agricultural Tenancies Act 1995.
NFU Cymru has recently held meetings with our Tenant farming
members who believed that the 1995 Act should be amended to include
the same provisions as being made within the 1986 Act for dispute
resolution.
46. We would emphasise that
the challenges facing tenants in terms of entering schemes are
various and complex. Although this proposed amendment is
welcome, we would caution against any notion Welsh Government may
hold, that the amendment represents a solution to the issues faced
by tenants.
47. NFU Cymru continues
to have serious reservations over the ability of tenant farmers to
enter the Sustainable Farming Scheme from 2025 based on the
information published by Welsh Government to date. This matter can
only be addressed through the development of a suite of sustainable
agriculture measures that can be undertaken on an annual basis.
Part 3, Chapter 1 – The
collection and sharing of data (Clauses 24-31)
- Part 3, Chapter
1 confers powers on Welsh Ministers in relation to the collection
and sharing of data. NFU Cymru recognises that there may from
time to time be various reasons making it necessary to collect and
share data on agri-food supply chains.
- As a Union we do
have some concerns about the exercise of these powers by Welsh
Ministers. We would as a starting point impose a duty
on Welsh Ministers to consult with organisations representing the
agricultural sector in Wales prior to using the powers set out in
Clause 24 subsection (2)
- In order to help
protect data gathered under the provisions of Part 3, NFU Cymru
would welcome a writing into the Bill of the data protection
provision found at Section 49 of the Agriculture Act 2020. This
seeks to ensure that disclosure or use of information does not
contravene data protection legislation.
- In conjunction
with this a watchful eye needs to be kept on the status of the Data
Protection Act 2018 (the UK’s implementation of the General
Data Protection Regulation) as it is not entirely clear what the UK
Government’s intentions are with regard to retained EU
law.
- Clause 30 deals
with the provision of required information and limitations on its
processing. At 30(5)(a)e the possibility arises of Welsh
Ministers mandating the provision of information to persons other
than the Welsh Ministers, and we would be very concerned if for
example individuals and businesses were compelled to provide
information to non-governmental organisations. We are
also concerned by the possibility introduced at 30(10) that Welsh
Ministers may disclose information other than in an anonymised
form.
Clause 32 – Marketing Standards
- NFU Cymru notes
that Welsh Ministers will take a range of powers relating to
marketing standards. As a Union we are mindful of the
intersect (and therefore potential tensions) between the exercise
of powers taken by Welsh Ministers in relation to marketing
standards and the provisions of the Internal Market Act
2020.
- Our members are
proud of the high standards of production which underpin Welsh
agricultural production, standards which we perceive to have come
under a degree of threat as a result of Brexit, and we would regard
the desire to uphold our high standards as commendable.
- The reality
however is that although Wales will be able to make its own policy
choices with regard to the marketing and production of agricultural
produce, when it does this it cannot disregard what is happening in
England, the other UK home nations, the EU27 and further afield.
- It is of course
open to Welsh Government to insist on certain (higher) standards
from Welsh farmers. If for example farmers in England were
subject to lower standards of production or less exacting marketing
standards, in terms of costs of production, England’s farmers
would enjoy a competitive advantage over and above their Welsh
counterparts as the provisions of the Internal Market Act 2020
would mean that Welsh Government would be unable to exclude
products produced to different (lower) standards from being
marketed and sold within Wales’ borders.
57. NFU Cymru therefore
recognises that the practical real-world corollary of the
combination of the sheer size of the English agricultural economy
relative to those of the other home nations, and the Internal
Market Act, is likely to be the effective foreclosing of some
devolved policy choices.
58. We therefore urge Welsh
Government to continue to work with Governments in the other UK
home nations to ensure that high standards are upheld and resist
any race to the bottom when it comes standards.
Clause 48 – Meaning of
‘agriculture’ and related references
59. At Clause 48 the Act
seeks to define agriculture. The definition used is quite
broad and the use of the formulation ‘agriculture
means’ (rather than ‘agriculture includes’)
suggests that the definition the Welsh Government has opted for is
intended to be exhaustive, something which would appear to conflict
with the explanatory notes, which appear to suggest that the Welsh
Governments’ chosen definition is not intended to be
exhaustive (page 77, paragraph 3.298).
60. It may be desirable to
ensure that agriculture is defined non-exhaustively so that there
is the potential to encompass activities which are not currently on
the list. This would bring the Bill into line with its
explanatory notes which would appear to suggest that the list is
not intended to be exhaustive.
Clause 49 – Meaning of
‘ancillary activity’
61. Turning our attention to
the meaning of ancillary activities set out at Clause 49. It
would appear that two categories of ancillary activity are in the
contemplation of Welsh Ministers, the first relating to
environmental land management and the second relating to activities
such as packaging, selling, and distributing agricultural
products.
62. We do have concerns about
the environmental focus of the first category of ancillary
activities. That said, we consider it positive that the Clause
49(a)(i),(ii) and (iii) ancillary activities have to be carried out
on agricultural land, however NFU Cymru would go further and would
introduce a requirement that these ancillary activities are
conducted by producers of
agricultural products.
63. Turning to the ancillary
activities listed at 49(b), NFU Cymru is of the view that it would
be helpful to make it clear on the face of the Bill that products
sold, marketed, prepared, packaged, processed, or distributed
should derive from Welsh agriculture.
64. Reference is made to
ancillary activities in many parts of the draft bill, and so it is
important to arrive at a definition which is acceptable to all
relevant stakeholders.
Clause 50 – Power to
amend sections 48 and 49
65. At Clause 50 Welsh
Ministers take powers to amend the definitions of
‘agriculture’ and ‘ancillary activities’ by
regulation. NFU Cymru considers these definitions to be
integral to the Bill and its aims.
66. Although it is reassuring
that the affirmative procedure will be used in relation to any
alterations to the definitions of ‘agriculture’ and
‘ancillary activities’ it remains a significant concern
that it will be open to Welsh Minister to amend these definitions
with no engagement with the agricultural sector, and with very
limited involvement for the Senedd. NFU Cymru is
of the view that it would be sensible to require Welsh Ministers to
consult before amending the definitions of agriculture or ancillary
activity.