Prior to the FUW, the National Farmers' Union (NFU) was the only organisation representing farming businesses in Wales.

[1] This was added to the recent increase in Welsh nationalist sentiment into the mid-20th century,[2] as well as anger at the cost of the new NFU headquarters at Knightsbridge[1] These grievances culminated in 1955 when JB Evans and Ivor Davies agreed to canvass support for a new organisation.

John Morris had originally only planned to take legal work for the NFU for a few months, but stayed in the position for three years.

[5] During the Lib–Lab pact government, Liberal agricultural spokesman Geraint Howells pushed for official recognition of the FUW.

[6][independent source needed] The FUW nominates one of the two employers' representatives on the seven-member Agricultural Advisory Panel for Wales.