Agriculture and Food Industry
Debate between Lord Williams of Elvel and Earl of Caithness(10 years, 4 months ago)
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The Earl of Caithness (Con)
My Lords, I declare my interests as on the register. With other noble Lords, I thank my noble friend Lord Plumb for initiating the debate. He rightly said that it followed on well from the previous debate. I add that it also follows on well from a debate we had not so long ago on investment in the rural economy, which is hugely important. In that debate we discussed broadband, which is crucial to the agricultural industry, particularly for those who live in remote, out-of-the-way places.
I congratulate and thank all our landowners and farmers. Their ability to survive and adapt is extraordinary and quite unlike any other industry. I agree with the noble Lord, Lord Bilimoria, who said we need to promote and trumpet our successes and achievements more. Farmers are unable to plan ahead with any certainty. The noble Lord, Lord Palmer, said it is a lot down to luck, and how right he is. Noble Lords have mentioned the vagrancies of the weather, not only in this country, but worldwide. If Texas has a terrific harvest this year because the weather has been right, that is going to affect prices here. We also have to consider droughts, floods and the control of water to farmland, which will have to be more strictly controlled for farm use in future.
Farmers have to put up with price volatility. My noble friend the Duke of Montrose mentioned sheep; I was going to major on the price of wheat, but my noble friend Lord Marlesford has done that for me. He quoted the price today of about £120 a tonne for wheat. If he takes the price back to 1999 and brings it forward to what it should be in real terms, the price today ought to be more than £200 a tonne. Farmers are losing out.
There are low profits in farming. Even in an average year, let alone a bad year, some farmers are earning the equivalent of only two-thirds of the minimum wage. Is my noble friend on the Front Bench content with that situation? Is she really happy that some farmers, who are producing so much for the economy and who keep us alive, receive about two-thirds of the minimum wage? Is my noble friend also happy with the differential between farm gate prices and retail prices? In particular, the price of beef has changed hugely. While retail prices are creeping up, farm gate prices are dropping. What is she going to do to solve that situation?
The other problem for farmers is that the value of their asset—their land—bears no economic relationship to the return they can get from farming it. There are huge pressures on agricultural land. We cannot make any more of it in the world. There has to be more development and more houses in this country, as we have discussed; agricultural land will have to be taken for that. There will have to be more forestry; agricultural land will have to go for that. There is an increase in use of agricultural land for growing crops that are going to be used for energy rather than for food, yet, as noble Lords have said, the population is rising and, as the noble Baroness, Lady Miller, said, the soil structure is a continual worry.
Perhaps I may ask my noble friend the Minister some more questions about self-sufficiency. It reached a peak of 75% in the early 1990s and has now dropped to about 61%. What figure are the Government happy with? If they are not happy with 61%, what does she think it should be?
I want to ask her, too, about seasonal workers. This is a huge problem for farmers this year, following the abolition of the seasonal agricultural workers scheme—it will affect my noble friend Lord Selborne in respect of fruit. We are already getting reports that fruit and vegetables are being left unpicked in the fields because there is a shortage of workers. What proposals do the Government have for producing an alternative to the seasonal agricultural workers scheme?
I turn finally to Scotland. Besides all the difficulties that I have mentioned, farmers have to put up with the biggest menace of all, and that is us—the interfering politicians. First, we have the common agricultural policy. What a disaster that reform has been. It is not helping the farmers and it will not help food production. On a specific point, will my noble friend say that farmers will still be allowed to use paper as input rather than having to rely on broadband, as the regulations seem to demand, particularly when farmers do not have broadband in the more remote rural areas? To have confidence, farmers need stability, yet in Scotland we have the report of the land reform review group being published and proposals on the right to buy.
Perhaps the noble Lord, Lord Grantchester, could answer the following question. The Scottish National Party and the Labour Party in Scotland have said that the direction of travel is a limit on the amount of land that anybody can own, an absolute right to buy for tenants and an ability to purchase land from you if it is in the public interest—and the public interest is, of course, defined by us politicians. If the noble Lord, Lord Grantchester, cannot say that the English Labour Party categorically opposes that, we must assume that that will be its policy. It is a terrifying thought.
On the absolute right to buy for tenants, tenants need to be aware that, as tenants, they are loved. The tenancy is what has allowed farmers and young people to come on to the farming ladder, but the moment they stop being tenants and buy their farm, they will be hated because they will be an owner.
The Earl of Caithness
No, I do not have time. I am sorry; this is a time-limited debate.
If that person buys another piece of land because it will lead to economies of scale and lower costs, they will be even more hated. To owners, I would say this: do not let any land. But if that is the case, we are undermining what has been the structure of farming and has served this country so well. That will be a threat to our food production and to the British economy.