Farming

Debate between Ben Lake and Richard Foord

Monday 4th March 2024 Commons Chamber

[Ben Lake]

The hon. Gentleman is right to state the fears of his farmers, which are very much aligned with those expressed to me by farmers in Ceredigion, that the potential change in this policy is, frankly, a matter of life and death for their businesses. He tempts me to comment on the plans of my colleagues in the Senedd. I will resist that temptation, but I will say that it is important, given the gravity of the situation facing the Welsh agricultural industry, that the sustainable farming scheme should be changed. I would suggest that it should be paused to begin with, so that we have time to devise a proper policy that is fit for the 21st century. If my colleagues decide that they need to use every possible lever, I will say all power to their elbow, and if that means the demise of the co-operation agreement, I will certainly not be mourning its passing.

The point is that direct support for many of our farm businesses is crucial. The hon. Member for North Herefordshire (Sir Bill Wiggin) said earlier that much of the reality of that support is to ensure that the price of food on our supermarket shelves is controlled in a manner.

[Richard Foord (Tiverton and Honiton) (LD)]

The hon. Gentleman is talking about direct support to farmers, and on that subject I want to ask him about direct support for local planning authorities, given how vital it is that farmers get quick answers from those authorities. My experience in Mid Devon and East Devon is that they are earnest in their desire to prevent agricultural pollution from affecting our streams and rivers, but I have one farmer who has waited 20 months for a decision on a planning application in relation to the construction of a slurry store. Does the hon. Gentleman agree that we need the Westminster Government also to help local planning authorities so that our farmers can get rapid answers?

[Ben Lake]

The hon. Gentleman is quite right. That is something we face in Wales as well, where some farm improvements and developments, sometimes involving changes to comply with regulations, find obstacles and delays in planning. It is only right that planning authorities should be sufficiently resourced to ensure that none of those obstacles is put in the way of progress.

I want briefly to turn to some of the wider issues that impact on domestic production, including the weaknesses of the current grocery supply code of practice and enforcement regime, and trade policy. I do not need to remind the House about this because I can see so many learned Members here this evening, but farming is a long-term industry, and these decisions have to be made on a very long-term basis. When it comes to the way in which the grocery supply chain operates, I am afraid that many retailers have found themselves in a position where they can exert undue influence and have an impact on farmers and growers to shift short-term risk on to their shoulders—much to the detriment of the wider industry.

It was stated in last month’s Westminster Hall debate that 95% of the food consumed in the UK is sold by just 12 retailers, which affords them a dominant position in the supply chain. This means that farmers and growers receive a paltry margin compared with the margins enjoyed by many retailers. Again, that point was made far more eloquently by the hon. Member for North Herefordshire. In addition to short-term inflation spikes and rising import costs, farmers are currently exposed to unfair trading practices arising from this imbalance.

Last month, many Members present debated a petition started by the Riverford farming campaign, calling on the Government: to strengthen the Groceries Code Adjudicator by empowering it to take effective and punitive action against those committing unfair trading practices; to lower the turnover threshold so that the code applies to a greater number of retailers; and to enshrine the simple principle that retailers should give suppliers certainty that they will buy what they have agreed to buy, that they will pay what they have agreed to pay and that they will pay on time. That basic fairness would more evenly spread out across the supply chain some of the risks and profits inherent in the food supply system.

The impact of trade policy has already been mentioned, so I will not go into detail. Concerns have been raised about the impact of the Australia free trade deal on the sector in Wales and the UK. All I will add is that, in their approach to future trade policy, the UK Government should urgently establish a set of core production standards for all food consumed in the UK to ensure that our farmers and growers are not disadvantaged by any future trade agreements. These standards could safeguard high-quality, climate-friendly markets that are open to imports from countries whose standards may differ from our own.

In addition to the food security index, the Government could look to establish an annual free trade agreement assessment to quantify the cumulative impact of free trade agreements on trade balance, sourcing, standards and domestic food production. The farming unions in Wales would very much support such a measure.

Food security is a challenge with which we will soon need to grapple. By not only maintaining but increasing domestic production, so that we gain greater self-sufficiency, we will in turn gain greater resilience to climate change and to shocks in a very uncertain world.