Small Farms and Family Businesses

Lord Harlech Excerpts

Thursday 12th December 2024 Lords Chamber

[Lord Harlech (Con)]

My Lords, it is a great pleasure to follow the noble Lord, Lord Bilimoria. I pay tribute to my noble friend Lady Cumberlege for her eloquent valedictory speech. I have been moved by so many speeches in today’s debate, including those of the noble Lord, Lord Cameron of Dillington, and the right reverend Prelate the Bishop of Norwich, but in particular by that of the noble Baroness, Lady Mallalieu, who put her head above the parapet to call her own party to account on the disastrous situation facing family farms and businesses. I declare my interests as a Welsh farmer, as set out in the register.

I want to address these rural economy issues, which go to the very fabric of our communities, and the impact of the Government’s recent Budget proposals. Small farms and family-run enterprises are the lifeblood of many regions in our country. They contribute to the agricultural sector and are pivotal in sustaining local economies, creating jobs and preserving our rural landscapes. However, recent proposals from the Government have put these and many businesses like them under unprecedented strain, threatening their survival and, by extension, the very essence of rural life.

The Budget includes changes to agricultural funding and the ongoing transition away from the common agricultural policy. While the Government have repeatedly assured us that the reforms ensure a fairer and more sustainable future for farmers, there is growing concern that the current pace of change is leaving too many behind.

Moreover, as we have heard today, many farmers are operating on razor-thin margins given the continuing rise in input costs, including of feed, fertiliser and fuel. The Government’s Budget proposals, particularly the lack of direct support for those facing these rising costs, will result in many farms facing the impossible choice of scaling back or closing down entirely. For family farms, this is not just a financial issue; often, generations of history, pride and identity are at risk.

Let us also consider the issue of access to finance. Small farmers and rural entrepreneurs often struggle to access the capital they need to invest in their businesses, particularly in a climate where traditional lending institutions are reluctant to take on risk. We need to stimulate this growth. Without easy access to affordable credit and loans, these businesses cannot expand, innovate or weather the financial storms that inevitably come.

Small farms and family-run businesses are major employers in many rural areas. A reduction in support for these sectors will lead to a loss of local jobs, further exacerbating the rural/urban divide. As larger corporations dominate the marketplace, the social fabric of our rural communities will fray, leading to a rise in economic inequality and a depletion of rural services.

The Government must change course now. I think that we on these Benches always suspected that the mask would slip, but we have just been surprised by how quickly. To any farmers or others in rural communities listening to or watching this debate: the Government do not understand you and they do not care about you. Worse still, they want what is yours—or they want the Deputy Prime Minister to bulldoze it.