Agriculture and Government: Agriculture and Government: An OverviewAn Overview

FUW Annual General MeetingAberystwyth16th June 2014

Gareth JonesDirector GeneralSustainable Futures

Derek JonesPermanent Secretary

Derek JonesPermanent Secretary

Gareth JonesDirector General

Sustainable Futures

Gareth JonesDirector General

Sustainable Futures

Dean Medcraft

SF Operations

Dean Medcraft

SF Operations

John HowellsHousing &

Regeneration

John HowellsHousing &

Regeneration

Huw BrodieCulture &

Sport

Huw BrodieCulture &

Sport

Christianne GlossopOCVO

Christianne GlossopOCVO

Matthew Quinn

Environment

Matthew Quinn

Environment

Andrew Slade Agriculture,

Food & Marine

Andrew Slade Agriculture,

Food & Marine

Alun DaviesMinister for Natural

Resources and Food

Alun DaviesMinister for Natural

Resources and Food

John GriffithsMinister for Culture

and Sport

John GriffithsMinister for Culture

and Sport

Carl SargentMinister for Housing and Regeneration

Carl SargentMinister for Housing and Regeneration

Big picture contextBig picture context

Global – 11bn people by 2100, pressure on natural resources (esp energy and water), climate change, Southern Hemisphere getting wealthier, territorial instability, technological change

EU – new programme period (CAP and investment funds), new Commission and Parliament, further enlargement, budget cuts, UK in/out?, EU reform?

UK – economy picking up, depressed public finances (at least till early-2020s), Scottish independence referendum (new constitutional settlement?), 2015 General Election

Wales – Silk I & II, Williams Review, tightening budgets, and pressure on key services (health, care, education), Assembly Election (2016)

Wales and the EUWales and the EU

Wales is net beneficiary from EU in funding terms, and benefits significantly from the Single Market – effective engagement is vital to our interests

On key policy areas (CAP and investment funding) we already have a strong voice in EU discussions, both through the UK and directly; we are developing influence in other areas too (eg environment and science/innovation), and building links with the European Investment Bank

New arrangements give European Parliament far more say in direction of EU; Welsh Government has worked well with Welsh MEPS on range of issues

Recent EP elections demonstrated a desire – not just across the UK – to see reform in how the EU works (but note, despite headlines, balance of power in the Parliament remains with the main centre-right and centre-left parties)

EU’s ‘Europe 2020’ strategy – achieving smart, sustainable, inclusive growth – aligns closely with Welsh Government priorities

Welsh Government: top Welsh Government: top prioritiespriorities

Economy – growth and jobs

Education – improving attainment

Supporting children and families – tackling poverty, addressing the chronic problem of workless households

Health and health services – improving outcomes

Comprehensive Programme for Government

Natural Resources and Food Natural Resources and Food Department – key principlesDepartment – key principles

Pursuing ‘green growth’

Increasing the resilience of businesses and communities

Improving resource efficiency

Tackling poverty

In the context of farming, looking towards: a confident, resilient and profitable Welsh agriculture that protects and enhances our natural resources, is achieving sustainable growth, and supports vibrant rural communities

Welsh agriculture and food Welsh agriculture and food & drink – some statistics& drink – some statistics

1.8m ha agricultural area

58,000 people directly or indirectly employed on-farm

Annual EU CAP income (Pillars 1 and 2) c £400m

28% of UK sheep flock

Over 75% of agricultural land in upland areas

£1.3 bn GVA from agriculture in Wales

£4 bn GVA from food supply chain

170,000 jobs in the supply chain

92% of total food and drink exports are to EU destinations

Exports increased by 113% between 1999 and 2013 (to £280m)

Pluses and minusesPluses and minuses

Excellence and expertise in agriculture

Abundance of temperate grassland (and water…)

Great potential/resource for renewable energy

Beautiful landscape – and a strong food and drink identity linked to it

Strong cultural ties to agriculture and food across the country

Heavy dependence on CAP subsidy

Wide gaps in technical and business performance within and between sectors

Decline in some of our natural resources

Some key habitats under significant pressure

Peripherality and infrastructure – edge of UK and of the EU

Minister’s vision for the Minister’s vision for the futurefuture

Modern, business-focussed, and profitable farms at the heart of rural communities

More use of R&D and technological improvement, more emphasis on learning from the best in class – continuous professional development

Stronger supply chain thinking – focussed on market development at home and abroad

More formal and informal cooperation between farmers

More efficient and effective use of our natural resources – and better natural resource management planning

A dynamic industry – with more movement in, through and out from the sector

A real partnership – industry and government – to deliver for Wales plc: and a more forward-looking relationship

Government support for Government support for change in agriculturechange in agriculture

CAP reform – direct payments and major investment through the new RDP

Better regulation, guidance and enforcement

Strengthened extension and advisory services

Broader ‘Working Smarter’ approach – inc more on-line channels for service delivery (eg RPW Online)

Investing in our agricultural infrastructure – R&D, universities and colleges, veterinary/scientific provision, HCC

Using influence at home and abroad to develop markets – inc export development, and market returns for environmental services

Developing new approaches to natural resource management, working with river catchments and whole ecosystems

Helping facilitate and join things up (‘convening power’) across Wales

Welsh Government policy Welsh Government policy aims for the reformed CAPaims for the reformed CAP

In line with the Programme for Government:

Pillar 1 – support for farming communities (balancing the interests of past CAP recipients and new ones, and the needs of hard-pressed areas with the competitiveness of our most productive areas) *

- but we also know the CAP is getting smaller and we are too reliant on EU subsidy, so

Pillar 2 – underpinning the change process (investing in the future of our agricultural industry & rural communities, helping Welsh farming meet the challenges/opportunities ahead, strengthening supply chains, & ensuring a more integrated approach with the natural environment) *

* = must be deliverable and efficient to administer…

The new Rural Development The new Rural Development Programme (RDP) – ’15-’20Programme (RDP) – ’15-’20

Biggest and most ambitious Programme in Wales’ history – nearly £1bn to invest in the future of our rural areas

£300m from EU, £244m from Pillar 1 transfer & over £400m coming from Welsh Government (at a time of severe &increasing pressures on public expenditure)

Major consultation process undertaken, aimed at developing a joined-up, simplified and streamlined Programme, with investments that meet multiple economic, environmental and social objectives

Key aim is to improve the competitiveness and resilience of Welsh agriculture and improve farming’s use of our natural resources

Significant investments in skills and knowledge, business development, physical capital, land-based measures, and local economic development

Minister announcing new approach to Glastir in the Assembly this week; announcement on wider RDP to follow next month

The new Rural Development The new Rural Development Programme – initial Programme – initial proposed allocations of proposed allocations of funding (£ million)funding (£ million)

Looking ahead – coming Looking ahead – coming monthsmonths

Developing a new Future Agriculture programme – together in partnership with the industry

Confirming remaining CAP reform detail - and then implementation

Creating the detailed investment measures within the new RDP, and new supporting delivery mechanisms for the Programme

Implementing the new Strategic Action Plan for Food and Drink (30% increase in turnover targeted by 2020)

Preparing the new Environment Bill

Taking forward the new Animal Health and Welfare Strategy framework

Work on EID and On-line services, and carry forward other Working Smarter actions (inc 6 day standstill quarantine proposals)

Any questions..?

Gareth JonesDirector GeneralSustainable Futures