Support for British Farming

Daniel Zeichner Excerpts

Wednesday 23rd November 2022 Westminster Hall

[Daniel Zeichner (Cambridge) (Lab)]

It is a pleasure to serve with you in the Chair, Sir Gary. I congratulate the hon. Member for East Devon (Simon Jupp) for securing this debate. We had many positive contributions from across the floor. They echo many of the points that have been made from Labour Benches over the last few years, whether that be on labour supply, trade deals or the importance of food production. I particularly congratulate my hon. Friend the Member for Barnsley Central (Dan Jarvis) on echoing Labour’s cry to make, buy and sell more in Britain, and milk from the Hills will certainly be part of that. I congratulate the hon. Member for South Dorset (Richard Drax) on convening his farmers groups. I wish him luck with the Minister. Should he be unlucky, I am very happy to oblige whenever he requires.

I will come to the future later, but let us start with the present. What are we seeing, and where is the support for British farming? Frankly, farming is hurting at the moment. There may be good prices for some, but there is still no respite, particularly for those in the pig sector. It is a very grim time for poultry farmers. Avian flu is horrible, and we know the APHA is struggling. As mentioned by my hon. Friend the Member for Barnsley Central and the hon. Member for Penrith and The Border (Dr Hudson), I am afraid that last week the Secretary of State ducked my question of what happens if we get another disease outbreak. Crossing fingers and hoping it does not happen does not constitute a plan.

We should not allow avian flu to be a cover for the longer term problems egg producers have been highlighting for many months. Back in the spring, egg producers warned retailers that costs were running ahead of prices. At the egg and poultry fair, retailers failed to show up. They were replaced with cardboard cut-outs. It is a failure in the food system. What have the Government done? Nothing. The Agriculture Act was supposed to produce action on supply chain fairness, but all we have had is consultations and no outcomes.

I ask the Minister once again: where is the dairy code? Where is the pork supply chain code? Can he confirm that the daft proposal to move the Grocery Code Adjudicator into the Competition and Markets Authority is dead? Or is that yet another thing that the “Department for Running Away From Any Problem”—DEFRA as it was formerly known—does not know the answer to? At first I thought the points the hon. Member for West Dorset (Chris Loder) made about the GCA were slightly unfair, but he pointed out that it does not have the powers it needs, exactly as we argued during the passage of the Agriculture Act.

On trade, we know about the lack of support for British farming, because the former Secretary of State, the right hon. Member for Camborne and Redruth (George Eustice), did not mince his words last week. He said that

“overall, the truth of the matter is that the UK gave away far too much for far too little in return…We did not need to give Australia or New Zealand full liberalisation in beef and sheep—it was not in our economic interest to do so, and neither Australia nor New Zealand had anything to offer”—[Official Report, 14 November 2022; Vol. 722, c. 424.]

I admire his candour. I just wish he had listened to the many organisations, including the Opposition, that made exactly the same points at the time, not many months after the Conservatives sold out British farming. No wonder so many are so furious; they are right to be.

There are more made in Britain—or rather made in Marsham Street—gaffes that are undermining British farming. Look at the meat export sector. I was at Lancaster auction mart last week to see the sheep auctions and to hear from farmers at first hand about the problems they face. There are not just high input costs, fertiliser costs and labour shortages, as if they were not enough. The latest is the gold-plating of rules for export into Europe. If that is not resolved by 13 December, it will kill the export trade. Will the Minister tell us what he is doing to resolve the situation?

How do the growers feel about the support they are getting? The NFU published a report this week showing that many are walking away from contracts and cutting production by as much as 20%. They cite a whole range of extra costs, including fertiliser, wages, packaging and transport, but the killer is energy. Farmers in competitor countries have support from their Governments, but here there is no certainty beyond a few months. The Minister knows full well that farming is a long-term businesses in which decisions about whether to plant are made many months ahead. Without certainty, the only sensible decision for too many will be not to plant. The end result is that this country will be less secure and will depend more on imports, almost certainly produced to lower standards, just as we warned during the passage of the Agriculture Act.

I could give many more examples, but let me conclude by looking briefly at future prospects. To replace basic payments under the common agriculture policy, a new system was introduced under the Agriculture Act. The intellectual case for moving away from direct support was couched in terms of public money for public goods, and we agreed with the broad principle, but we argued then—we believe we have been vindicated by subsequent events—that food security is a public good. I was delighted to hear the hon. Member for St Ives (Derek Thomas) endorse that point.

Frankly, it was never clear whether the Government believed that a volatile and vital sector such as food production requires direct Government support or just indirect support through environmental schemes. The problem now is that they seem to be achieving neither. The ELMS saga has played out in public view over recent months. The headlines in last week’s Farmers Guardian screamed out: “ELM uproar” and “New Ministers tear up scheme plans”. Perhaps the Minister can tell us what is going on. Perhaps the Minister can also tell us why Parliament is always the last place to be told. Is it true that there will be an announcement on 1 December? If so, are we invited?

Informed sources—I include the hon. Member for Penrith and The Border in that—tell me that the changes may not be as dramatic as the headlines suggest, but perhaps the Minister can clarify that. Is tier 2 ELMS being replaced by countryside stewardship? If so, is that the genuine nature recovery network system promised in the Environment Act 2021? If not, how is it supposed to work? What is happening with tier 3—the landscape recovery part of ELMS? Has it been postponed, scrapped or scaled down? Perhaps the Minister can tell us.

Replacing more than 80,000 schemes under basic payments with just a couple of thousand so far under the sustainable farming incentive leaves a whopping almost £1 billion hole in the rural economy. To some extent, I echo what the hon. Member for South Dorset said. Frankly, is that what the Conservatives mean by supporting British farming? I wonder.

What assessment has been made of the impact of all this? Does the Minister know? I have asked him before and I ask him again: what assessment has his Department made of the economic impact so far on the rural economy? What assessment has been made of the environmental impact? I do not think we will get an answer because I know the answer: none and none.

Under this Government, support for farmers and the rural economy is haemorrhaging. The failures of this Government make them a threat to our farmers, undermine our food security and, despite the heroic efforts of the staff in the agencies, are leaving us dangerously exposed in the event of further animal disease outbreaks. Our farmers deserve support. They are not getting it at the moment, but they will with a Labour Government.

[The Minister of State, Department for Environment, Food and Rural Affairs (Mark Spencer)]

It is a pleasure to serve under your chairmanship, Sir Gary. I draw Members’ attention to my entry in the Register of Members’ Financial Interests, and pay tribute to my hon. Friend the Member for East Devon (Simon Jupp) for securing the debate. I was going to start by saying that we have seen the Chamber at its best today: we have seen a huge amount of celebration of and positivity about UK agriculture. I am sorry that the speech made by the hon. Member for Cambridge (Daniel Zeichner) soured that mood, to be honest.

[Daniel Zeichner]

It is the truth.

[Mark Spencer]

The truth is that if the hon. Gentleman looks around him, he will see how many members of the Labour party are here to provide support, and how many members of the Conservative party are here. Seeing how many Conservative Back Benchers have come to take part in this very important debate demonstrates how important rural communities are to the Conservative party and to this Government.

I will respond to the hon. Gentleman later; I will start by commenting on the speech made by my hon. Friend the Member for East Devon. He talked about how the new schemes are going to change the way in which we farm. This will be an exciting moment in UK agriculture: we will move in a direction where we can balance growing food—food security is a very important part of our agricultural production and our supply chains, and it will continue to be so going forward—with improving our environment and our biodiversity.

The good news is that UK farmers are very much up for that fight. They want to get involved in it, and are very proud of the landscapes they have created. I think it was my hon. Friend the Member for St Ives (Derek Thomas) who made reference to people criticising farmers and saying that they are the problem. He hit the nail on the head: farmers are part of the solution. The beautiful rolling landscapes that we see in Cumbria and in Devon are not there by accident, but because farmers have created those landscapes through the way in which they have produced food for generation after generation. The beautiful stone walls in North Yorkshire are not there for decoration, but to keep sheep in. We need to recognise that and celebrate it, and help and support our farmers through this process, because they are up for the fight.

My hon. Friend the Member for East Devon went on to talk about trade Bills. I would put a much more positive spin on this than the hon. Member for Cambridge.

[Daniel Zeichner]

Or the former Secretary of State.

[Mark Spencer]

The former Secretary of State, my right hon. Friend the Member for Camborne and Redruth (George Eustice), was a very good Secretary of State. He fought tooth and nail on behalf of UK farmers during those debates, and secured a number of concessions from the Government on that journey. What we have been left with is a trade deal with Australia and New Zealand that has brought those countries closer to us and allowed us to co-operate and work with them, which will give us huge opportunities in future. There are massive markets around the world in Asia and North America where we can sell top-quality UK beef and lamb, working with Australia and New Zealand—which have the opposite seasonal activity to us—to supply those markets. Bringing them closer through those trade deals is the first step on that journey, and I am very proud of what UK farmers produce. We should celebrate that and make the most of it in trying to exploit those markets moving forward.

Turning to the hon. Member for Barnsley Central (Dan Jarvis), I am delighted that his son is going to agricultural college—did he say Askham Bryan? I think he just said that it was a college in North Yorkshire, but I hope it is Askham Bryan, which I know is a very good college. If there was ever a moment when we needed bright young people to come into our sector—the next generation to take us forward—this is it, and I celebrate the fact that the hon. Gentleman has family getting involved in the sector. We should do all we can to encourage that. One of the first meetings I had when I took over as Minister was with the National Federation of Young Farmers’ Clubs, looking at some of the work it is doing to encourage young people into the sector. It is also very in tune with some of the mental health challenges that young people and farmers in rural communities are facing. Anything I can do in this job to help it on that journey, I will do.

The hon. Member for Barnsley Central also talked about biosecurity, which is very important when it comes to dealing with avian influenza: anything we can do to increase the biosecurity of some of our professional poultry units is to be welcomed. He went on to talk about African swine fever, which is a challenge that is spreading across Europe. That is why on 1 August this year, we changed the rules: we did a spot check on items coming into the UK to see how much illegal or unregistered pork meat was coming in, and have now changed the rules so that no one can import more than 2 kg at a time. Border Force employees are on their toes, looking for any violations of those rules to make sure we keep the UK safe from African swine fever—it would be a disaster if we ended up with it.

There has been a lot of talk about seasonal workers; clearly, I am not in a position to announce those figures, but we are in close discussions with our friends in the Home Office and hope to give clarity on that issue as soon as possible. That neatly takes me to the former Home Secretary, my right hon. Friend the Member for Witham (Priti Patel). She started with a series of massive plugs for her constituency and the great food producers of Essex, including Tiptree, which I do recognise as one of the premium jam producers in the world, not just the country. She went on to talk about avian influenza. It is fair to say that Essex, Suffolk and Norfolk have been at the epicentre of that disaster. My heart goes out to those poor farmers who have found themselves victims of that terrible virus. The good news, from a national point of view, is that we have robust supply chains in place. There will be turkeys for Christmas. There are some challenges in the goose market, but the chicken market is also fine.

The right hon. Member for Orkney and Shetland (Mr Carmichael), who always attends these debates, is a great advocate for his farmers and fishermen. He was the first to raise the Grocery Code Adjudicator, along with my hon. Friend the Member for West Dorset (Chris Loder), who mentioned the adjudicator a number of times. It is important to understand what the Grocery Code Adjudicator can and cannot do. Their role is to ensure that contracts that are entered into are adhered to appropriately and not violated.

If an egg producer has signed a contract at X per dozen eggs, the supermarket has the right to expect the producer to stand by that price. The producer could procure and secure the feed supply for the same period as the life expectancy of a laying hen, which is about 14 months. The producer could sign the contract for X amount per dozen, secure the price per tonne of feed and therefore protect the margin. The price of feed has gone up exponentially and farmers have reached the point where they must make a decision on whether to enter into a new contract for a new price or at the same price. About a year ago, many of them voted with their feet and said that they were not willing to sign up to that level of contract. The retailers made a mistake when they did not to see the huge challenge coming in the egg-supply market, and we are now seeing that.

What is the role of the Government? It is to encourage conversations between retailers, primary producers and wholesalers on a regular, monthly basis. The Secretary of State and I meet the farming unions, the hospitality sector, retailers and the processing sector to ensure that those conversations take place. I hope that that will continue to bear fruit, but I acknowledge there are challenges in the sector that are not linked to avian influenza.

My hon. Friend the Member for South Dorset (Richard Drax) has been a great advocate for farming for a long time. He was one of those who celebrated my elevation to this position. So many people celebrated my arrival at the Dispatch Box, I felt like Ronaldo must have felt when he joined Man U and all the fans celebrated. I reflect on how that worked out in the end—let’s see how that goes.

My hon. Friend the Member for South Dorset talked about grant funding, and he will have seen today that we have announced some grant funding to help farmers improve slurry systems. We are very much committed to supporting farmers with capital expenditure to allow them to invest in new tech, especially if that will benefit animal welfare and the involvement of modern practices and technology in food production.

My hon. Friend went on to talk about bovine TB, of course. There is probably not enough time for me to get into that subject today, but what I will say is that we must use every tool in the box to fight bovine TB. That includes vaccinating badgers, it includes ensuring that we have improved biosecurity and it includes culling badgers where that is essential. We should be guided by the science and not by anything else—not by the calendar and not by political lobbying, but by the science. That is what the Government will do.

I think that, for the first time, the hon. Member for Strangford (Jim Shannon) managed to get to the right of my hon. Friend the Member for South Dorset when he committed to shooting every fox in Northern Ireland. I wish him well in his pursuit—[Interruption.] I know it was tongue in cheek. He is a huge advocate for the farmers of Northern Ireland, and they are great food producers. He also mentioned the price of fertiliser and the challenges with fertiliser, as did my hon. Friend the Member for Penrith and The Border (Dr Hudson), who talked about CF Fertilisers. Yesterday I met my right hon. Friend the Secretary of State for Business, Energy and Industrial Strategy to see what we can do to co-operate and work together to assist CF in ensuring that we continue to supply the nation with ammonium nitrate, nitric acid and carbon dioxide, which of course is very important.

I know that I am running out of time, but I want to make a couple of comments about my hon. Friend the Member for St Ives, who talked about potato and dairy farmers leaving the sector and the importance of education. Education of our consumers is one area where we could criticise the agricultural sector. I do not think that we have done a very good job as farmers—I put my hand up as one of those farmers—of ensuring that our consumers understand how and where our food is produced. We have to do better to ensure that the next generation fully understands where and how our food is produced. Education was also mentioned by my hon. Friend the Member for South West Hertfordshire (Mr Mohindra).

My hon. Friend the Member for Penrith and The Border talked about grant schemes, which I hope I have mentioned. He also mentioned the work of the Select Committee on Environment, Food and Rural Affairs, which is under the chairmanship of my right hon. Friend the Member for Scarborough and Whitby (Sir Robert Goodwill). It continues to be a great critical friend of the Department, and I would encourage it to continue its great work.

My hon. Friend for Penrith and The Border also talked about the reward for—that is, payments for—hedgerows and so on. I hope that when we announce the new schemes, which I hope will be very soon, he will see the fruits of those discussions. I am very keen to ensure that farmers want to take part in the schemes and feel part of the solution. But money is not the only barrier. I think that we can help, assist with, and tweak some farming practices. Hedgerows are a good example. It is not just about money; it is about being able to get on to the land and cut the hedges at the right time. If we can fund and assist with wildlife strips by the side of the hedgerows, it is possible to cut a hedgerow in January and February without running on to the commercial crop. That has the added benefit of creating a wildlife corridor and leaving berries and so on the hedgerows for wild birds to feed on during that time.

I think I have run out of time—apart from for mentioning the hon. Member for Perth and North Perthshire (Pete Wishart), who gave us his rant about Brexit once again. We will have to come back to that on another occasion, but I enjoy the same loop of conversation we have with him every time.