Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
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The Minister of State, Department for Environment, Food and Rural Affairs (Stephen Morgan)
It is a pleasure to serve with you in the Chair, Mr Turner. I congratulate my hon. Friend the Member for North Northumberland (David Smith) on securing this important debate and thank all those who have made contributions this afternoon.
I am delighted to see the excellent Labour rural research group here in force. Their speaking with such insight and passion is a reminder to me of the real champions for rural affairs issues who we have on our Benches. What a shame that so few Conservatives are here! Maybe that is a reminder of their disastrous election result in 2024.
I want to pay tribute to my predecessor, my hon. Friend the Member for Wallasey (Dame Angela Eagle), for her hard work and dedication to the role. Her ambition for farming and food security will make her a tough act to follow. I have already had the opportunity to meet a range of stakeholders from across the sector and visit a range of farms and farmers across the country, which has reinforced to me the importance of farming. It matters to our country, supports rural jobs and communities, provides the food we rely on and underpins our national resilience.
As I mentioned earlier, today we published our farming road map, which sets out our plan for farming up to 2050. The road map sets out a clear direction towards a future for farming. It will give businesses in the sector confidence to invest, grow, plan for the future and secure farms for the next generation. The road map will help our food and farming system to become more resilient to global crises, adopt nature-friendly methods that support profitable food production in the long term and shore up food supplies. It sets a direction for agriculture that involves clearer, fairer routes to market, with better access to the tools, technology, skills and supply chains that farmers need to run sustainable businesses.
Alongside the road map, today we published our full response to Baroness Minette Batters’s independent farming profitability review. The vast majority of her recommendations are either already under way or are being implemented soon, including the formulation of the farming and food partnership board, which has already met twice. Today, we announced that we will be taking a number of additional actions to create an environment for profitable farm businesses to thrive. That includes an additional £53 million investment for the farming innovation programme to help farmers to harness new technology that improves productivity, reduces reliance on inputs and improves long-term resilience. It also includes investment in the skills and people that the sector needs. By supporting training and new entrants, farmers’ hard-earned knowledge will be passed down to the next generation.
I also want to recognise the pressures that many farm businesses face—a theme that has come out very clearly in the debate. Input costs rise quickly, and global markets can shift overnight; that uncertainty makes it harder to plan, invest and employ. That is why I want to reiterate this Government’s long-term and practical approach to farming, our commitment to stable funding, and our simpler and fairer funding schemes, which are designed to make farming more resilient and sustainable for the future.
James Naish (Rushcliffe) (Lab)
The Minister may well know that it was only a few years ago that the UK met 40% of its own nitrogen and fertiliser needs. Would he commit to working with the Minister for Industry to look at how we can get our domestic production to grow once again, given that under the Conservative party it disappeared altogether?
Stephen Morgan
I thank my hon. Friend for his reminder of the Conservative party’s record of failing rural Britain. I am very happy to take away the action he suggested. If we are to deliver our road map successfully, it will require lots of cross-Government working, and I am very committed to making that happen.
Let me address the fertiliser issue; I appreciate that major input costs are real source of worry for farmers. We are very conscious of the increases in fertiliser prices that have occurred because of the middle east conflict, and we are working actively to monitor the impacts on the agricultural supply chains. We have regular communication with domestic fertiliser suppliers, commodity traders and farming stakeholders, including the National Farmers Union, and we have been clear that we are committed to ensuring that markets function fairly.
We continue actively to monitor developments in the middle east, as well as other impacts on our food and farming sectors, including through ongoing engagement with industry leaders. My Department is aware that there are signs of some pressures easing but that prices still are above pre-conflict levels.
We recognise that these costs continue to be a significant issue for farmers; that issue was raised with me on my first day in this role, when I met with the NFU. The pressures that it is imposing are absolutely worth considering further. Whether through more effective use of technology or the adoption of more sustainable farming practices, we can better equip our farmers and growers to produce good food in a more resilient way, and this Government stand ready to help farmers to do that.
Greg Smith
Does the Minister accept that it is a choice made by this Government—maybe not by DEFRA, but by the Treasury—to bring in the carbon tax from 1 January? The Government cannot change events in the middle east, but they could choose to delay or scrap that tax.
Stephen Morgan
I remind Members that we currently have a good supply of fertiliser and are keen to support domestic production. The Government are live to the other issues that the hon. Gentleman raises; I will take them back to the Department, and am happy to write to him on his concerns.
The Government are also sharing information and guidance to support farmers to diversify sources of nutrients to reduce reliance on artificial fertilisers and strengthen long-term resilience by managing more effectively. DEFRA’s new nutrient management planning tool is already supporting our farmers by matching nutrients to crop and soil needs. That enables farmers to make the most of nutrient sources and to reduce their reliance on artificial fertilisers. More than 500 farms have used the tool since it was launched.
DEFRA has launched a consultation and call for evidence to inform how the Government modernise fertiliser production and the regulations around it, which will further improve future fertiliser supply options. We will continue to work with farmers to ensure that they become more resilient, through our innovation funds and equipment grants or our continued shift from area-based subsidy to environmental land management schemes.
Another issue raised in today’s debate was about fuel. Farmers have told the Government how important manageable fuel prices are to the financial sustainability of the farming sector and food security, and we have listened. While the shadow Minister, the hon. Member for Keighley and Ilkley (Robbie Moore), worries about his selfies for social media, we are focused on taking decisive action to support farmers by slashing the fuel duty rate on red diesel from 10.18p to 6.48p per litre—its lowest rate in 20 years. That means that red diesel now benefits from an 88% tax discount, saving farmers more than £300 million a year.
We have also extended the 5p fuel duty cut until the end of this year, keeping taxes at a 16-year low and saving the average driver £120. My Department will continue to work actively with others to monitor developments in the middle east, including their impact on the supply and price of red diesel. We are committed to ensuring that the market functions fairly, and will continue our discussions with industry leaders, including the NFU and farming stakeholders.
There are real, recent issues that need to be addressed; I have heard from the stakeholders I have already met that additional pressures are affecting farmers. The Government are well aware of the impact of climate change -related extreme weather on the financial sustainability of farms in recent years—this week’s heatwave is a reminder of that. We are committed to working with farmers to deliver long-term solutions to the risks associated with extreme wet or dry weather, and to increase profitability, because farmers being able to run profitable businesses is good for the whole economy and vital for food security. That is why we are investing in farming schemes and grants to make farming more resilient to economic and environmental shocks, and to safeguard our long-term food security.
We have allocated a record £11.8 billion over this Parliament to sustainable farming and food production. Overall, farmers and land managers will benefit from an average of £2.3 billion a year through our farming and countryside programme.
Rebecca Smith
On that point specifically, I raised Dartmoor and invited the Minister to visit my constituency. He has about 30 seconds left to speak, but could he respond to that point?
Stephen Morgan
I am happy to write formally to the hon. Lady to respond to her questions.
The message I leave with Members is simple: this Government believe that food security is national security. We are standing alongside farmers through global uncertainty, and supporting them by equipping them to manage volatility more effectively. We have already responded to the real pressures around fertilisers and fuel that farmers face and are backing British farming with record investment, improving schemes to make them simpler and fairer and supporting productivity and innovation. We are proud to work with British farmers as we grow the future of farming together.