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
13
Acknowledged
Ensure baselining of agricultural funding does not lead to real-terms decline for Wales.
Recommendation
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 …
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Government Response Summary
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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22
Acknowledged
Develop targeted support and upskilling for new Welsh farmers, protecting tenant farming
Recommendation
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 …
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Government Response Summary
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
Acknowledged
Conduct Wales-specific impact assessments for all future policy decisions affecting Welsh farming
Recommendation
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 …
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Government Response Summary
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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Conclusions (5)
1
Conclusion
Acknowledged
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 annual income of around £22,000. We acknowledge that remuneration is …
Government Response Summary
The government acknowledges the essential role of the farming sector in Wales, recognizing its importance to the Welsh economy, life, and identity.
2
Conclusion
Acknowledged
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 Welsh population, making the sector a linguistic stronghold. (Conclusion, Paragraph …
Government Response Summary
The government acknowledges the essential role of the Welsh farming sector in supporting its Growth Mission and contributing to Welsh life and identity.
9
Conclusion
Acknowledged
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 this decision has evolved over time. (Conclusion, Paragraph 65) 41
Government Response Summary
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.
11
Conclusion
Acknowledged
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 that Welsh agricultural funding will decline following the removal of …
Government Response Summary
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.
21
Conclusion
Acknowledged
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 pass on their farms to a new generation of farmers. …
Government Response Summary
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.