LFA Incomes Drastically Declined

UK - Net Farm Incomes on Cattle and sheep farms in Wales’ Less Favoured Area (LFA) saw a further 21% decline in the year up to February 2007.
calendar icon 7 December 2007
clock icon 2 minute read

"The industry appears to be caught in a vacuum between central and devolved government"
John Owen, Chairman of NFU Cymru

Since then LFA support has been slashed by a third in Wales and Foot and Mouth disease has wreaked economic havoc on Welsh Livestock Farmers. NFU Cymru has calculated the cost at £40 million and rising.

John Owen, Chairman of NFU Cymru’s LFA board said, “Figures just released by the Welsh Assembly confirm that last year, on average, LFA cattle and sheep income fell to just £8,100 the lowest level for five years and when Foot and Mouth disease had last wreaked havoc on the farming industry in Wales.

He went on to say, “The gravity of the economic position would this year be made worse by the fact that LFA support to mitigate the permanent handicaps of farming in LFA areas has been slashed by the Welsh Assembly Government by £12million and the peak trading period for sheep farmers has this autumn been wrecked by FMD released from a government licensed laboratory.

These two issues, both of which lay firmly in the hands of government, were heaping economic ruin on the countryside. Eighty percent of Wales was designated as Less Favoured which illustrated the magnitude of the problem.

John Owen said, “The industry appears to be caught in a vacuum between central and devolved government, whilst they argue over whose responsibility it is to get the industry out of the mess caused by the leaked FMD virus but the industry can not withstand this stalemate for any longer without irreparable damage to Wales’ hill and upland areas. The Assembly Government has to come to the industry’s assistance immediately and continue its battle with Treasury in its own time for the industry simply can not afford to wait.”

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