Farming and Rural Communities

Baroness Shephard of Northwold Excerpts

Thursday 3rd April 2025 Lords Chamber

[Baroness Shephard of Northwold (Con)]

My Lords, I congratulate my noble friend Lord Roborough on calling this debate. It is, as ever, a pleasure to follow the right reverend Prelate, who brings a depth of knowledge and experience to this subject.

It is right that the Government be held to account for the seemingly reckless way in which they are dealing with the farming industry and rural communities. As the right reverend Prelate said, they are home to nearly one-quarter of our population. The other issue I wish to raise is the danger to our food security at this unprecedented moment for global trade.

The Labour manifesto promised to champion British farming. Instead, from the farmer’s point of view and the point of view of rural communities, Labour seems to have launched a series of crippling blows on farming, starting with the Budget changes to inheritance tax for farmers. That is going to cripple British farming and prevent investment and growth in the rural communities.

The noble Lord, Lord Davies, raised a really interesting point about assets and their taxation. I certainly believe that the so-called assets of land, machinery and livestock are not an indication of farmers’ wealth but the essentially means for them to earn a living. You cannot have a farmer without him owning or renting land. They care for 70% of our countryside and grow 60% of our food, as has already been mentioned in the debate.

I do not want to blame the Minister; I never do. She and I know where the real culprit lies, but the effect for farming and the rural community is the same. The latest bombshell was dropped on 11 March this year, with 30 minutes’ notice, announcing that the sustainable farming initiative was closed to new applications. This was at a moment when many farmers were still preparing their applications, having been assured by Defra that if there was to be any change in the procedure, six weeks’ notice would be given—another broken commitment.

The SFI was launched in 2017. It had all-party support. Its purpose was to help farmers transition from straight subsidies to grants for introducing more sustainable methods. In 2022, Daniel Zeichner MP—then shadow Minister for Agriculture—castigated the then Government for dragging their feet, demanding a commitment to long-term funding for it and a guarantee that goalposts would not be moved. Daniel Zeichner MP is now the Minister for Agriculture in the other place, and I am not sure what he is saying now. Have the Government scrapped the SFI? Do they intend to? If so, what is to replace it?

I hope the Minister will be able to enlighten us on that and, in particular, on how the Government plan to support our agricultural productivity and resilience when climate change, environmental insecurity, geopolitical events and now in particular tariffs make the whole issue of our food security a major concern. On the day after “liberation day”, will she be able to explain to noble Lords how her Government propose to deal with tariffs if, as seems likely, they will affect agriculture? Was Nigel Farage MP telling us something when he said last week that he welcomed the import of chlorinated chicken?

If the Government are planning for such eventualities, why, by their taxation and other policies already raised by noble Lords, are they reducing farm incomes, prosperity and growth in our rural communities? They should be supporting the vital stability of our food security, not diminishing it. I hope the Minister can reassure the House. She always listens carefully and takes note of the argument. Dare I wish her a happy Easter?