Agriculture: Government Support

Wednesday 29th April 2026 Westminster Hall

10:59

[Karl Turner (in the Chair)]

Richard Foord will move the motion. I will then call the Minster to respond. I remind Members that they may make a speech only with the prior permission of the Member in charge of the debate and the Minister. There will not be an opportunity for the Member in charge to wind up, as is the convention for a 30-minute debate.

[Richard Foord (Honiton and Sidmouth) (LD)]

I beg to move,

That this House has considered Government support for agriculture.

It is a pleasure to serve under you in the Chair, Mr Turner. It is good to have the Minister in her place. I hope she will forgive me if I take a direct tone. It was a direct tone that members of the National Farmers’ Union in my area of Honiton and Sidmouth took with me when we met last Friday in Devon.

Food security is fundamental to our national resilience. At a time of global instability, farming underpins the rural economy, although we tend to take the produce for granted.

[Sarah Gibson (Chippenham) (LD)]

Farmers across Wiltshire, especially in my constituency of Chippenham, say that Government support is not working. They are disappointed that Labour is compounding the damage left by the Conservatives, with an underspend of millions in the farming budget. Shockingly, the Government’s own statistics say that in 2023-24, between 17% and 29% of farming families did not turn a profit.

[Karl Turner (in the Chair)]

Order. I remind Members that interventions should be short.

[Sarah Gibson]

Absolutely. I just wanted to ensure that my colleague agreed with me that we would like the Minister to consider farming.

[Richard Foord]

My hon. Friend rightly mentioned farming profitability. Minette Batters, the former president of the NFU, conducted a review of farming profitability in December and came up with more than 50 recommendations. It would be interesting to hear from the Minister the Government’s reflections and progress on fulfilling some of those.

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Member on securing this debate. On profitability, the Treasury has treated agriculture support as a discretionary expense. Does he agree that we need an increased, ringfenced, multi-annual farm support budget that is fully inflation-proof, taking into account the fact that otherwise we cannot expect our farmers to meet world-leading animal welfare standards?

[Richard Foord]

The hon. Member is right to talk of inflation-proof, because we have seen costs skyrocket in recent months. Fuel and fertiliser costs have shot up, while the price of feed for livestock is set to follow. Farmers are facing volatile international markets, while being told constantly that support is under review or “being monitored”.

[Wendy Chamberlain (North East Fife) (LD)]

I agree with my hon. Friend about sustainability. We are in a cost of living crisis, but also a cost of producing food crisis. It took the Government seven weeks to respond to my written question about fertiliser costs. Does he agree that the Government need to be much more on the front foot on these issues?

[Richard Foord]

My hon. Friend is absolutely right. Farming is not just another sector; it is critical national infrastructure, just like power stations and data centres. Too often, it is an afterthought—under-supported, neglected and left exposed to global shocks.

I want to focus my remarks on international trade, tax and planning, drawing on the conversation I had with Devon farmers last Friday. At a time when uncertainty on the international stage continues, food and farming policy should be about resilience. Instead, the Government preside over continued dependence on imports, higher costs and a system of support that is unpredictable and bureaucratic. Farmers are being asked to bear the brunt of shocks at a time when many of them are struggling to make ends meet.

Let us begin by talking about trade. The UK is far from self-sufficient in food. We import about 40% of the food we eat, and an astonishing 78% of our fruit and veg. Food security is measured not only by the produce on supermarket shelves; it is also about the inputs that farmers require to grow the food.

As was mentioned earlier, fertiliser is increasing in price, such that some of the farmers I spoke with last week are seeing an additional £60,000 cost to their farming businesses this year in anticipation of next, with fertiliser prices having gone up that much. That is because of the products that fertiliser is made up of. It requires nitrogen, phosphorus and ammonia, some of which are sorely lacking in the UK. We are only 40% self-sufficient in fertiliser requirements.

Between a quarter and a third of the raw materials required for fertiliser would typically pass through the strait of Hormuz. We are heavily dependent on imported ammonia. Only 45% comes from places other than Algeria; we are heavily dependent on north Africa for ammonia. This is not resilience. This is vulnerability in an uncertain world.

Global instability over the last few years, from Ukraine to the middle east, has already pushed fertiliser prices significantly higher. Tom Bradshaw, president of the National Farmers Union, has warned that farmers are having to shoulder increased costs of inputs. Too often, they are only made aware of the price that they might have to pay for them once they arrive at the farm gate, such is the volatility of the market right now.

Red diesel tells another concerning story. Prices of red diesel in recent months have doubled, rising from 69p a litre at the start of the middle east conflict, to well over £1.23 a litre on 7 April. Responding to questions on this in recent weeks, both the Prime Minister and the Chancellor have stated that the situation is “under review” or “being monitored” by the Competition and Markets Authority. For many farmers, fuel and fertiliser prices have soared simultaneously, hitting their finances incredibly hard across the board, so monitoring does not really help.

We Liberal Democrats are calling for an emergency fuel duty cut that would bring down the cost of red diesel used by UK farmers by around £5 million over the next three months, to remedy the rising cost.

[Peter Prinsley (Bury St Edmunds and Stowmarket) (Lab)]

I am grateful to the hon. Member for securing this debate. I am concerned about the mental health of farmers. There is about one suicide a week among UK farmers. Does he agree that we must do everything we can to support the mental health of our farmers?

[Richard Foord]

Absolutely. Farming can be a very lonely business, and that does not need to be compounded with the stress of farm profitability, or the lack thereof.

Looming over all this are the Government’s efforts to secure a comprehensive agreement with the European Union on exports. We encourage the Government to conclude an agreement on sanitary and phytosanitary standards, but they need to do so in a way that does result in a cliff edge. We heard recently from the Chair of the Environment, Food and Rural Affairs Committee, my right hon. Friend the Member for Orkney and Shetland (Mr Carmichael), that such a cliff edge would be very harmful for farmers if there is very little notice.

[Adam Dance (Yeovil) (LD)]

Rural crime, particularly equipment theft, continues to cost our farmers huge sums. Will my hon. Friend join me in urging the Government to do more?

[Richard Foord]

My hon. Friend is absolutely right to draw attention to the plight of farmers facing crime. Some police forces do not consider this issue nearly enough. I am glad that in Devon and Cornwall we have a force that is quite alert to rural crime and has a particular focus on it, but I know that in other constituencies and other constabularies, sufficient attention is not paid to rural crime.

On trade, the Liberal Democrats believe that we need a comprehensive agreement with the European Union that guarantees enhanced access for UK food and animal products to the European single market, with minimal needs for checks or documentation.

The second area I want to focus on is the balance of tax and incentives for the farming industry. Government policy is undermining the viability of many of our family farms. Farmers are not seeking to get rich; they dedicate their lives to the intense labour required to manage their farms, and ask for some stability in return—predictable costs, fair taxes and support systems that reward their productivity.

[Tim Farron (Westmorland and Lonsdale) (LD)]

Does my hon. Friend share my concern that the 4,000 farmers in England who farm on common land, mostly in the uplands, are not able to get any funding at all because the Rural Payments Agency software prevents applications? Does he agree that the Government should change their approach so that farmers in the uplands on common land can make those claims?

[Richard Foord]

If I were an uplands farmer represented by my hon. Friend, I would know that I had a fervent advocate in him. He is right to raise the issue of commoners; I spoke with one last Friday who said that the sustainable farming incentive IT system has yet to be adapted for payments to people who farm on common land. I had the same experience with people who I represent in Luppitt on the Blackdown hills in Devon.

[Caroline Voaden (South Devon) (LD)]

Many farmers are relying on SFI, but it closed to new applications in March and is yet to reopen, and there is no clarity about the future budget. Delays in payments to those who have agreements have caused significant concern to many of my constituents who have faced cash-flow issues. Does my hon. Friend agree that greater clarity must be provided to farmers on the future offer across various environmental schemes, as well as a commitment to improve the efficiency of payments?

[Richard Foord]

I am grateful to my hon. Friend for drawing attention to that issue. Last year, farmers were devastated by the overnight closure of the sustainable farming incentive, which came with no notice. I welcome the Secretary of State’s pledge at the Oxford farming conference in January that there would be no further unexpected closures of that scheme, but I did not get the sense in my conversation last week that confidence has been restored fully since that overnight closure of SFI.

Small producers are disproportionately disadvantaged under the new SFI scheme. Payment caps raise serious issues about long-term farm profitability. The system appears not to have been designed around farmers and what they want, but rather around bureaucracy and administrative convenience. The Liberal Democrats would invest in agriculture, including an additional £1 billion a year to support sustainable, domestic food production, improving our skills, resilience and supply, rather than leaving our farmers at the mercy of global markets.

Thirdly, I would like to talk about planning concerns. As I understand it, there are delays in the planning systems across local authorities that are preventing farmers from doing the right thing. Last week, I talked to one who had applied for a cover on a slurry store and was still waiting, eight months later, for a verdict on whether he could go ahead and make the modification.

[Dr Danny Chambers (Winchester) (LD)]

I was speaking to farmers in Winchester just two weeks ago, and planning is a huge issue, whether they want to put in a new slurry lagoon or repurpose a barn, with a wait of more than 18 months. The process is very opaque and there is no set timeline. It is impossible to make business decisions if no timeline is given as to when they might even be told when they will have to supply information to get the planning permission.

[Richard Foord]

My hon. Friend is right. From what I understand, there is a national shortage of planning officers, and many of them are stretched across a number of things; they might be looking at applications for big housing developments. Sometimes, farm improvements that are geared towards improving environmental practices are quite low down the list for some of those planning officers. I question whether we might have dedicated planning officers who specifically look at some of the applications from farms. That would make a huge difference by improving the contribution of farmers to the environment.

To recap, we are calling on the Government to reduce exposure to volatile global inputs by supporting domestic fertiliser production. We are calling for a tax policy that recognises that family farms need stability, rather than the Government adding to global shocks with one or two of their own. We need farm support schemes that are predictable, accessible and fair, alongside systems for planning developments that work towards following clear timetables, rather than deadlines that continue to slip.

Farmers are doing their best in very trying circumstances. They are adapting and innovating, and trying to produce food for all of us while under immense economic pressure. They do not need warm words from the Government—they do not need “monitoring”. What they need now is a Government that are prepared to take action to match their rhetoric. I look forward to the Minister’s response.

11:15

[The Minister for Food Security and Rural Affairs (Dame Angela Eagle)]

It is a pleasure to serve under your chairmanship, Mr Turner, for what I think is the first time in Westminster Hall. I congratulate the hon. Member for Honiton and Sidmouth (Richard Foord)—and his crew, I have to say, after that performance—on securing this debate. I thank all Members who have made contributions. We know that farming matters to every constituency because it not only supports rural jobs and communities but produces the food we rely on and underpins our national resilience.

I recognise the pressures many farm businesses face. Input costs can rise quickly and global markets, as we have seen recently, can shift overnight. That uncertainty makes it harder to plan, invest and employ, which is why the approach of the Department for Environment, Food and Rural Affairs is both long term and practical: stable funding, and simpler, fairer schemes designed to make farming more resilient and sustainable in the future—sustainable both environmentally and financially.

I will first address fertiliser, because I appreciate it is the major input in an arable setting. It is a cost that is a real worry for farmers. Recent market volatility has seen a 40% increase in prices for some fertiliser products and DEFRA is monitoring the impact on agricultural supply chains. We have direct lines open with domestic fertiliser suppliers, commodity traders and farming stakeholders, including the National Farmers’ Union—in fact, I have just been in a meeting with Tom Bradshaw. We all do our bit to meet as many of our farmers and their representatives as possible to know exactly what is going on where, so that it can inform our decision making.

Better information helps farmers make decisions that are up to date with the current situation, which is obviously in great flux. That is why we asked the Agriculture and Horticulture Development Board to increase the frequency of fertiliser price reporting, and welcome its move to publish price data weekly, giving farmers more timely and transparent information. We also recently ran a survey to understand how the rise in fertiliser prices and supply issues are impacting our farmers and land managers on the ground. Responses are being reviewed alongside other industry intelligence to guide how we shape future support.

DEFRA’s new nutrient management planning tool is supporting farmers by matching nutrients to crop and soil needs, enabling them to make the most of nutrient sources, reducing their reliance on artificial fertilisers. Over 500 farms have used this since it was launched. We are also consulting and gathering evidence to modernise fertiliser product regulations, improving future supply options and resilience.

The pressures imposed by events in the middle east only underline the importance of increasing the efficiency of fertiliser use. Whether through more effective use of technology or adoption of more sustainable farming practices, we can better equip our farmers and growers to produce food in a more resilient way. The Government stand ready to help farmers do just that, whether through our innovation funds and equipment grants, or our continued shift from area-based subsidy to environmental land management schemes.

[Tim Farron]

I want to press the Minister on the common land issue. She will be aware that the transition has made it very difficult. There are parcels of land in the uplands and the common land that are thousands of hectares, so I understand the problem. Has the Minister thought of having an offline system to allow commoners to bid for funds, so that they can maintain the beauty of our uplands and produce food?

[Dame Angela Eagle]

I certainly am well aware that the SFI that we have inherited is not particularly well suited to the uplands. That is why we are doing work with Hilary Cottam to see what we can do to provide a different method of support that is much more community based. I recognise the issue that the hon. Gentleman raises about common land, but I would want to see whether we can make some changes to the higher level schemes, which I think are probably more suited to supporting farmers in that kind of setting. Not everything, all the time, has to go into SFI. I am looking to see whether we can create a more coherent structure for upland farmers and also, obviously, commoners in that circumstance. I am quite happy to keep the hon. Gentleman in touch with how that is going. I am sure that, given that Hilary Cottam is doing some work in his own area, he will be at least as in touch with it as I am.

Fuel is another issue that was raised in the debate. Price spikes can feed straight into farm costs, particularly for those who rely on red diesel. Red diesel continues to benefit from an 80% discount, saving farmers almost £300 million a year. There is also a 5p fuel duty cut in place from March until September. Where concerns have been raised about price transparency, we have raised them with the Competition and Markets Authority, which is monitoring petrol and supply prices closely. Industry bodies have been clear with us that fuel production and imports are continuing across the UK as usual. The Government continue to monitor sales, deliveries and stock levels, and well-established contingency plans exist should they ever be required.

The hon. Member for Honiton and Sidmouth raised farming schemes and grants. I understand the pressure that the uncertainty we are now facing in the world because of what is happening in the middle east applies to farmers, coming as it does after the impacts of climate change-related extreme weather in recent years, which have damaged harvests. This Government will work with farmers to deliver long-term solutions to the risks of extreme wet and dry weather, and to increase profitability, because when farmers can run profitable businesses, it is good for the whole economy and vital for our food security.

[Wendy Chamberlain]

The Minister talks about profitability, but there is no doubt that the Government’s failed family farm tax has had a huge impact. She also talks about building resilience for the future with schemes, but does she accept that we need next generation schemes to attract young people into the industry, because from a family perspective many of them are leaving?

[Dame Angela Eagle]

Entrance into the industry is a really important issue. Often, it is an issue of access to land to farm at all, and I am certainly thinking very carefully about what we might do with respect to that. If the hon. Lady has any insights from her own constituency, I am happy for her to share them with me, and we can see whether we can deal with the issue of how to get younger people into farming and get them some land to farm.

We have allocated a record £11.8 billion to sustainable farming and food production over this Parliament. Overall, farmers and land managers will benefit from an average of £2.3 billion a year through the farming and countryside programme. We are increasing investment in environmental land management schemes, rising towards £2 billion by 2028-29, because profitable farming depends on the fundamentals, which are healthy soils, clean water and resilient ecosystems.

We are also improving how support is delivered. I recognise some of the issues—

[Adam Dance]

On support, will the Minister give way?

[Dame Angela Eagle]

Let me finish my sentence. I recognise some of the issues that have been raised about the uncertainty around the schemes.

[Adam Dance]

Jack is a lad from my constituency with autism, obsessive-compulsive disorder and sensory issues, and he has a great ambition to work on a dairy farm. Will the Minister look into what she and colleagues can do to give support and confidence to farmers so that they can support passionate young people with special educational needs and disabilities, like Jack, into farming?

[Dame Angela Eagle]

It is really important that we try to give a younger generation of people the chances given by access to land so that they can farm. I certainly think that we have not had a look at farming education and the ways into the sector for a very long time. I would certainly like to be able to do that.

[Sarah Gibson]

On the subject of getting young people into farming, my local agricultural college tells me that when it tries to send students to help on farms, the farmers find it extremely difficult to find a use for them, because getting a licence to drive high-level agricultural equipment is so expensive that students from lower-income families are unable to get one. Therefore, when they arrive on the farms, there is not a lot they can do with them. Will the Minister consider looking at the cost to entry for people who do not have a background in farming?

[Dame Angela Eagle]

I think I have just said that that is precisely what I want to do. Again, if the hon. Member has any insights that she wishes to share, I am more than happy to hear them.

When I visited Harper Adams University recently, I noted that it now has a campus in an urban area. Consequently, people are likely to come across it in a way they were unlikely to come across that venerable old institution’s original building, which of course it still inhabits. That extension of the university into an urban area is a good idea.

I can see that the hon. Member for South Devon (Caroline Voaden) wants to intervene, so I will give way to her.

[Caroline Voaden]

I just wanted to make a brief intervention on the issue of entry into farming. Devon county council has several farms and it is very keen to use them as a way to get young people into farming, especially those who do not have a family farm of their own. It is quite worrying what might happen to those county farms if Devon county council is divided up in the local government reorganisation process. Is there is any way that they could be protected through the decimation of Devon, which might happen over the next year through LGR?

[Dame Angela Eagle]

I will not get into the decimation of Devon; I will leave that to the hon. Lady. I have clocked the existence of county farms. I think they are a good thing and I have sought some advice on what we can do to support them sensibly, because they are a way for people to get into farming that we should cherish.

I have taken a lot of interventions, so I will now press on and say a little about the future vision for farming, because supporting farmers is also about building more profitable businesses and stronger partnerships from farm to fork. We are doing that by modernising capital grants, which will be open to apply for from July, with £225 million available, which is 50% more than in 2025. These grants will help farmers to upgrade infrastructure and deliver practical improvements, including to hedgerows, water quality and natural flood management. This year, £120 million will be available in farming grants to boost productivity innovation, consisting of £70 million through the farming innovation programme and £50 million through the farming equipment and technology fund.

I also want to talk about the Batters review and its 57 recommendations. We have already announced that we will take forward a number of the review’s recommendations, including the formation of a Farming and Food Partnership Board. Indeed, that board has already met and decided that horticulture will be the first agricultural sector to have a sector growth plan, which will be developed as part of the board’s work. I agree with the hon. Member for Honiton and Sidmouth that we need to consider what we can do make the growing of fruit and vegetables more resilient; he pointed out that that is the sector where we have the most difficulty in generating resilience. The Farming and Food Partnership Board is also looking at the poultry sector.

We will continue to develop our farming road map, which will be published later this year alongside our formal response to the rest of the recommendations of the Batters review. This road map will set the course for farming in England up to 2050, setting out how farming will evolve in response to changing markets, technologies and environmental pressures. In developing the road map, we have held workshops, meetings and listening sessions across the country, to ensure that it reflects what farmers need on the ground to plan for the future.

I think that this is the first time since the second world war that a Government have tried to set more of a Government direction for agriculture, so that we can work with the farming sector to ensure that we can increase resilience and give food security the proper priority it deserves. By definition, some of that work means that we have to look through the near-term pressures and problems that the hon. Member for Honiton and Sidmouth has raised today. However, it is important strategically that we are able to do that.

I also want to respond to the concern raised by my hon. Friend the Member for Bury St Edmunds and Stowmarket (Peter Prinsley). The Government take the issue of mental health support for farmers very seriously. We are tripling the previous funding for mental health and wellbeing support for farmers, and a new fund, which overall will be worth £1.5 million over three years, will be introduced. We want this investment to help farmers to deal with the pressures and potential isolation that they face. It builds on our commitment to improve business resilience through the £30 million farmer collaboration fund, because we think that self-help and peer help are often the most important ways to get through to farmers.

That has been a very quick look around the system, Mr Turner, but I hope that it gives some idea of the work that DEFRA is doing for farming.

Question put and agreed to.

11:30

Sitting suspended.