Farming

Debate between Charlotte Cane and Alistair Carmichael

Thursday 13th March 2025 Commons Chamber

[Mr Alistair Carmichael (Orkney and Shetland) (LD) [R]]

I beg to move,

That this House has considered the future of farming.

First, I remind the House of my entry in the Register of Members’ Financial Interests and place on record my appreciation for the Backbench Business Committee in allowing us this time in the Chamber. It might be helpful first just to explain to the House why I thought this was an important time to have a debate of this sort, and that was before I knew anything about what happened earlier in the week. The Select Committee that I chair has an inquiry titled “The future of farming”, and I had thought that this would be an opportunity for Members and others to shape the course of that debate and to contribute to the work of the inquiry. I still very much hope that is the case. I had also privately hoped that this might be an occasion when we could look beyond some of the changes that have occupied so much of the bandwidth in our political debate since the Budget, including the removal of the basic payment scheme and the changes to inheritance tax, double cab pick-ups and the ringfencing of agricultural budgets for devolved nations.

This debate is an opportunity for us to remind people just what we have got going with British farming, because there are some tremendous positives. We have the farmers here again today in Westminster, demonstrating how much they care about their industry and their community. For those who see this debate, whether in the Gallery or outside, I hope the message will go to them loud and clear that there are those of us in this House who want to see them stick at their efforts, because we are on their side, and it is worth it. Agriculture has one of the most resilient and resourceful workforces to be found anywhere. There is apparently an active debate within Government on how we make work pay and what the value of work is. If anybody wants to see the work ethic in action, they should go and spend a few days on a farm, because that is where they will see it clearer than anything.

We have heard a lot of concern in recent years about the balance to be struck between imported food and food produced domestically. Some of the trade deals were apparently underpinned by a thinking or an agenda that we did not need to produce as much or indeed any of our food domestically, and that we could rely on imports. Then, of course, Vladimir Putin invaded Ukraine and we had a rather rude wake-up call. Since then, we have seen Donald Trump back in the White House talking about trade and tariff changes. Surely those things alone should make us understand the importance of a healthy, home-grown agricultural sector. We should not be offshoring to other parts of the world our standards of animal welfare or environmental protection.

Climate change is so often held up as some sort of stick with which to beat our farmers, but there is a real opportunity. Those areas of the world from which we are importing food are also undergoing the changes that come from climate change, and they will not be as able to produce the food that they would wish to export to us in years to come. In this country, we still have a good temperate climate, which is absolutely suited to that.

[Charlotte Cane (Ely and East Cambridgeshire) (LD)]

Farmers in Ely and East Cambridgeshire face the threats of flood and drought, which are made infinitely worse by the climate change that my right hon. Friend is talking about, in addition to all the other challenges that farmers are facing. Does he agree that the Government should invest in rural flood management and water storage, and work with farmers to help them manage water on their farms?

[Mr Carmichael]

I absolutely do, and my hon. Friend puts it perfectly when she talks about working with farmers. It seems that—this is as true for Governments north of the border as it is for those south of it—so much of what passes for agricultural policy is something that is done to farmers, rather than in partnership with them.

To get to the bright future that I believe farming can have, we have to get past the present. The decision to close the sustainable farming incentive scheme on Tuesday without any notice has provoked predictable and justifiable fury, but doing it with a press release that sought to present it as some sort of triumph added insult to injury. It was almost like a return to the glory days of the Soviet Union, when the Politburo would boast about their advances in meeting their targets in the five-year plan for tractor production. The Government have pulled the rug out from under farmers across England, and that comes on the back of the accelerated removal of the basic payment scheme in the Budget.

I am afraid that the Minister’s defence in the House yesterday around an uncapped budget is not adequate and does not tell the whole story. On 14 January this year, the director general for food, biosecurity and trade told the Environment, Food and Rural Affairs Committee that they had had almost 11,000 applications to the SFI, with 7,000 contracts offered. She said:

“If that continues at that scale there may come a point where the budget comes under pressure and we have to consider taking action.”

What has been happening in DEFRA since that time? The permanent secretary was open with the Select Committee. She said that future funding hinged on the spending review. How did we get from that point, where officials seemed to be warning us, to the point we got to on Tuesday, when we saw the scheme closed without notice?

The press notice announcing the closure of the SFI specified the budget as £1.05 billion capped. That is the first time I have been able to discover that that figure has been put into the public domain. Without that transparency, how on earth can farmers and their representatives possibly hope to regulate their behaviour, or know when the money will be running down and when they should be getting their applications in?

The frustration is that for some, this situation did not come out of a clear blue sky. It had been rumoured for some time, and it is well known that land agents, consultants and others had been quietly advising clients to get applications in to beat the deadline and the exhaustion of the pot. That is fine if a farm is big enough to employ a land agent or a consultant, but this is a busy time of year for small family farms, upland farmers and others. Those are the people who deserve and need the assistance more than ever, and they are the ones who have again been left behind.

Tom Bradshaw described DEFRA as “a failing Department”. That is strong language from a man not given to hyperbole, but the Minister would do well to take heed. In that evidence session on 14 January, we heard evidence from the permanent secretary, the director general for food, biosecurity and trade and the deputy director of policy, engagement and strategy. The Committee has not formally expressed an opinion, but it is fair to say from the informal discussions that followed that that session left few of us, if any, with the impression that it was an impressive leadership team entirely in command of their brief.

It was clear that the team understood the target and where they wanted to get to, but it was unclear how they would achieve their targets. We saw that with the various false starts and missteps on the road to the environmental land management schemes, although I acknowledge that much of the responsibility for that lies with Ministers from the previous Government. The permanent secretary called it an iterative process, which to my mind just seems to be another way for people to say that it is okay to get things wrong and to make it up as they go along. I am afraid that in the minds and eyes of farmers across the country, Tuesday’s announcement on the SFI simply reinforces that impression.

The future of farming could be bright, but we have to give farmers the confidence to invest and banks the confidence to lend. The Government have to acknowledge the damage that was done to that confidence by the Budget changes, especially in relation to agricultural property relief and business property relief. Anecdotal evidence has been growing for months. We have seen the closure of agricultural merchants and machinery dealers, and we have seen the number of first registrations of tractors fall. This week, we have the publication of the National Farmers Union’s confidence survey.