Farmers in west Wales are as well placed as any other industry to survive the recession, says business lobby group CBI Wales.
But speaking to farmers this week, CBI Wales director David Rosser warned that the “very dramatic” way the world economy had been turned on its head was affecting every county and every sector of business.
Mr Rosser said: “Forecasts are worthless at the moment. No one knows how long this is going to last, but I can see 2009 is going to be very difficult for businesses.
“Even with the worst forecast, 90% of those employed in this country will still have a job at the end of this current credit crunch.
“But, those 90% aren’t sure whether they will still have a job and the lack of confidence will not help us get out of recession. The collapse in confidence is driving this recession.”
He warned that the Welsh Assembly government was not well placed to meet the financial implications of climate change targets.
It would mean a real squeeze on the budget in coming years.
Carmarthenshire NFU county chairman, Bernard Llewellyn, agreed that Welsh assembly funding would be an issue with regard to climate change targets.
He added: “Climate change is going to be one of the issues requiring future support and I think if there is a way in which we can change some of our farming patterns to help mitigate climate change and sequester carbon we will need encouragement.
“As an individual I would like to directly link agriculture with industry in terms of climate change and bypass government, as with some water companies in the north of England which pay farmers to avoid phosphates leaching into water courses.”