Farming Families

Earl of Caithness Excerpts

Thursday 21st November 2024 Lords Chamber

[The Earl of Caithness (Con)]

My Lords, the Budget is notable for kicking an industry that is already stressed as it adapts to the new farming regime. It is not just the bombshell announcement of the change in inheritance tax that is causing so much anger and distress in the farming community. Besides climate change, they are having to cope with accelerated BPS reduction, costing a modest-sized arable farm between £30,000 and £40,000 a year in subsidy income; minimum wage and NI increases; carbon tax on fertiliser imports; and now the less-publicised changes to double-cab pick-up tax status. Trade deals are allowing cheaper imports of products of lower standards than they are required to meet. In September this year, average earnings were £651 a week in this country. In agriculture, the average was almost 25% less at £507 a week. While the farming budget of £2.4 billion—a reduction in real terms—was confirmed, it is only for one year, making planning for farmers that much harder.

To meet their net-zero and biodiversity targets, the Government must rely on land manager and farmer engagement. That requires incentives, consistency and trust. The Government have just shattered that and will not get it back. They clearly do not understand that you cannot farm green if you are in the red. The uplands, with their many family farms, are particularly at risk, with few options within the current ELMS. It could be that these farmers decide to sell out to carbon farming, given the payments offered, which would be detrimental to other public goods and to communities, associated employment and businesses, as well as putting food security and nature recovery more at risk.

Many good, well-run family farms, especially those on our less good land, are currently not making any return and are often living on overdrafts. The Budget proposals have already resulted in banks reducing lending facilities and increasing lending rates to farmers. As a very good farmer put it to me yesterday:

“Right now I have no wish to pass the farm down to my children. Growing food is a thankless task, every year we are taking a gamble when we put seeds in soil, and each year the odds are more and more against us. The risk/reward is just not there anymore. I tell my kids to pursue other more rewarding work, where you get paid holidays, sick pay and are reasonably certain of your income”.


The Government are sacrificing the farming industry, all in the hope of raising half a billion pounds in tax revenue—that is 0.3% of the NHS budget.