UK Dairy Sector

Baroness Hayman of Ullock Excerpts

Wednesday 20th April 2016 Westminster Hall

[Sue Hayman (Workington) (Lab)]

It is a pleasure to serve under your chairmanship, Ms Ryan. I also want to thank the hon. Member for Ceredigion (Mr Williams) for securing this debate, which is important. I want to say a few words about the situation in Cumbria, where local farmers tell me it is the worst they have ever known it to be. We have heard about the price paid for milk not covering the cost of production, but in Cumbria we have the added costs of transportation to the processors. One farmer told me that in the past financial year he made £26,000 from selling his milk. This year he estimates £12,000. That reduction in income is simply unsustainable. I have a friend who has decided to sell his herd because he cannot even make enough money to pay for the renting of the milking machines.

I have been told that at Carlisle market 11,000 dairy cows have been sold since January this year. That has a knock-on effect on the wider rural economy. Feed merchants, fertiliser merchants, machinery sellers and vets all feel the impact of the pressures on our dairy industry. A major issue for the farmers who have contacted me—I am sure nobody here will be surprised—is the fact that they have not yet received their basic payment scheme money, which should have been paid in December. In my area, where many of the farms have been flooded, the situation is desperate. The Rural Payments Agency said it would prioritise farms that had suffered from flooding, but that has simply not happened. One farmer, Susan Tyson, has contacted me. She farms at Underskiddaw near Keswick and she has had nothing, although her application went in last May. She said that every time she asks about it, she is told that

“there is nothing wrong with your claim but we don’t know when you will be paid”.

How on earth are farmers supposed to manage? They have taken out loans and have paid their tax bills. The situation is simply not acceptable.

Farmers need to know what is happening with their money. How else can they budget, invest and plan for the future of their farms? This is made particularly difficult in an industry where the cost of what is being sold is dictated by the consumer. We have talked about the Groceries Code Adjudicator, and I am really pleased that we have that. I agree with hon. Members who have said that now that that is up for review, we need to make sure that it is strengthened and extended and that the adjudicator has real teeth to be able to help particularly the small farmers who fall out of the system.

Farmers are asking me what else they are supposed to do. Farmers whose families have farmed the land for generations now face the prospect not just of selling their herds, but of selling their land, which is absolutely heart-breaking. I also want to draw Members’ attention to the fact that members of the farming industry are three times more likely to take their own lives than people in any other industry. A farmer in my constituency recently collapsed and died at a sale. How much of that was down to stress? He was only in his 40s. The stress that people are under is unacceptable.

I am sure the Minister, who represents Penrith and The Border, is aware of the situations I am talking about in Cumbria, so I urge him to get the Government to work with farmers, processors and supermarkets to find a solution, but we also need advice and support to help farmers cope in these difficult times. Finally, just get the RPA to make the payments.