Support for Farmers

Calum Miller Excerpts

Wednesday 21st October 2026 Commons Chamber

[Josh Newbury]

I do agree with my hon. Friend. I wonder whether there was a hesitancy about creating too much demand on the pretty inadequate IT system in one go, but that will always be the case, as long as people know the date. I think that we should have much earlier notice and that the system should take account of the realities of farming, which I am afraid this year’s scheme did not.

A farmer should not have to be the quickest with a keyboard and mouse to secure vital cash for margins or pastures. Let us not throw the baby out with the bathwater when it comes to the SFI, but we also must not shy away from asking fundamental questions about its structure and communication.

[Calum Miller (Bicester and Woodstock) (LD)]

Will the hon. Gentleman give way?

[Josh Newbury]

In the interests of time, I am afraid I will not, because I know that many Liberal Democrat colleagues want to get in.

I also want to raise the wider contribution that farmers make to rural communities. During severe weather, they are often the first to spring into action. I admire the example set by the last Welsh Labour Government in financially recognising what farmers do for our communities, particularly during heavy snow, fires or other emergencies. As we set out to improve the SFI, I hope we will place greater emphasis on measures that promote resilience to extreme weather, and perhaps even flag those to farmers in badly affected parts of the country. The Government could also take measures to support farms of all shapes and sizes ahead of SFI27, such as the Treasury-backed loans that the National Farmers Union is calling for in next week’s Budget. I hope that the DEFRA team are making the case for rapid, flexible assistance, given the myriad pressures that have come this year.

I am optimistic about the future of British farming because of the ingenuity, determination and passion of the people who work in it, whom I will continue to listen to and champion. We will have our differences in this place, but I believe there is a consensus in the House on much of what needs to happen to support our brilliant British farmers. I hope we can bear that in mind in the months ahead, because they are getting on with their job and it is time for us to find common ground so that we can get on with ours.

--- Later in debate ---

[Olly Glover]

I do join my hon. Friend in calling for that. It was a shame that that, too, was missing from the shadow Minister’s speech.

When designing the sustainable farming initiative and the system for allocating it, it would appear that the Ministers and officials concerned may have spent too much time here in Parliament, where Members wanting to get slots for some types of Bill have to become proficient in efficient use of Microsoft Outlook. That is similar to the bidding contest for SFI, which becomes as much about mastering process, IT savviness and a race against the clock as about the substance. This is a particular problem for smaller farms, where farmers will often have to be out on their land and not sat at their computer at a time convenient for DEFRA.

[Calum Miller]

My hon. Friend is making a good case about the shortcomings of the SFI system. One of my farmers told me this week that he is facing a choice between seeking SFI for direct drilling and seeking SFI for preserving waterways by having a grass verge before we get to the waterway. Does he agree that pitting carbon sequestration against the protection of our waterways from nitrate is not a good way to proceed and that we should instead be supporting both these environmental objectives through the allocation of the SFI funds in future rounds?

[Olly Glover]

My hon. Friend has clearly been listening carefully to farmers in his constituency and makes some strong points.

The Government have said that SFI will be offered again in 2027 and that it will work with farming organisations on potential changes to the scheme. However, a timetable, budget and detailed arrangements for SFI 2027 have yet to be announced. As well as ending the bidding war process for SFI, they need to move beyond an annual settlement. Investment in farms and agriculture is not an annual exercise. It is a multi-year and often multi-decade labour of love that requires hard work, forward planning and long-term thinking. That is why the Government should look at some good practice that they have implemented elsewhere, such as moving to multi-year local government funding settlements, and embrace the same approach for SFI.

The Government have an opportunity to in part make amends in the forthcoming Budget, and I hope that it is one that they will seize. There are many requests from the sector for the Budget, and I will talk about three briefly. One is to increase the annual investment allowance to at least £5 million and extend its scope to include assets qualifying for the structures and buildings allowance. This would support longer-term investments in efficiency and productivity improvements, including with regard to energy and water usage. The annual investment allowance allows businesses to reduce their tax bill by deducting the full cost of qualifying purchases—plant and machinery—from their profits. Currently, such buildings and fixed structures do not qualify for AIA and instead generally qualify for the structures and buildings allowance, which provides relief at 3% per annum on qualifying expenditure. This does not incentivise investment in farm buildings when other forms of investment are relieved at a much faster rate. Similar reliefs are offered in competitor countries. For example, in Ireland such farm buildings can be written off over a period of seven years, and in the USA 100% relief is currently available for five-year periods.

Our second ask of the Government relates to what we have already said about the approach to the carbon border adjustment mechanism introduction. The National Farmers’ Union estimates that fertiliser inclusion in UK CBAM will add up to £70 per metric tonne in extra costs.

Finally, the Government could provide or underwrite the capital required for a temporary programme of interest-free farm crisis loans. That would really help the sector as it is suffering from current crises to do with inflation. It could be delivered through accredited commercial lenders and targeted at viable agricultural businesses that are suffering temporary cash flow pressure because of the current situation. I hope that the Government will listen to those requests and use the Budget to help our farmers and get SFI in a much better state for 2027.