Common Agricultural Policy

Andrew George Excerpts

Thursday 8th March 2012 Westminster Hall

[Miss McIntosh]

That is an excellent intervention. If the hon. Gentleman bears with me, I shall come on to those very concerns.

Under successive Governments, UK farmers have been expected to meet higher standards on animal welfare than farmers elsewhere. We have unilaterally applied the sow stalls and tether ban, which only comes into play in 2013 across the rest of the European Union. Those standards impose extra costs on our producers and make them less competitive globally. Direct payments provide a means to pay for those higher standards. Without them, society—the community—runs the risk of EU farmers going out of business while exporting the social and environmental impacts elsewhere. In the longer term, the European Union must argue more strongly for a recognition of production standards in trade agreements. We conclude that DEFRA must set out more clearly how it will reduce reliance on direct payments, including the policy tools needed.

[Andrew George (St Ives) (LD)]

On direct payments, the hon. Lady will know—I know that the Select Committee has considered this issue—the definition of what an active farmer is. The Government entirely support the principle of that. Does she not also agree with the Government’s approach, which is that the definition of what is and is not an active farmer surely must be decided at a member state level?

[Miss McIntosh]

I will come on to say a bit about that if time permits. I have personal reasons that relate to constituency interests—apologies for not mentioning it earlier but, as declared in the register, I farm two fields in partnership with my brother—for believing that tenant farmers in this country risk being in a very difficult position. I am very grateful to the Minister for having heard me out on my personal concerns in that regard.

During the course of compiling the report, the Minister told us that DEFRA would like direct payments to be phased out over the next financial period—in other words by 2020—and to end shortly thereafter. If DEFRA wishes to achieve that, we would like to see a plan to make farming in the European Union more competitive and less dependent on subsidy, otherwise the Department’s position does not seem credible and risks alienating farmers and weakening DEFRA’s influence in Brussels. From the evidence the Minister gave us, there seemed to be no new ideas on how to make UK farming more competitive. The Committee is not convinced by the Department’s arguments that rising prices for some commodities will necessarily deliver long-term improvements in farm incomes, for example, because of pressure from supermarkets on farmers.