Source · Select Committees · Welsh Affairs Committee
2nd Report - Farming in Wales in 2025: Challenges and Opportunities
Welsh Affairs Committee
HC 785
Published 12 November 2025
Recommendations
17
Accepted
Ensure Free Trade Agreements do not undermine the viability of farming in Wales
Recommendation
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 …
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Government Response Summary
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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Conclusions (5)
3
Conclusion
Accepted
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 Summary
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.
10
Conclusion
Accepted
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 Summary
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.
14
Conclusion
Accepted
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 Summary
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.
19
Conclusion
Accepted
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 stringent standards could enter the UK market at prices below …
Government Response Summary
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.
24
Conclusion
Accepted
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 Government to make the case for Welsh farming, but it …
Government Response Summary
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.