Farming

Daniel Zeichner Excerpts

Thursday 13th March 2025 Commons Chamber

[Jim Shannon]

The hon. Gentleman is absolutely right, and he sums up our views.

The decision to introduce the farmers’ inheritance tax will destroy the very essence of what so many farmers have worked hard to achieve. I have called on numerous occasions for the Minister to support us. He is an honourable man. He could be a friend of the farmers—we will see just how much of a friend he is—if he contacted the Chancellor and suggested to her that one solution is to increase the threshold from £1 million to £5 million. If that is done, farms will be saved, as will the future of family farms in Northern Ireland. Does he want to be the farmers’ friend?

[The Minister for Food Security and Rural Affairs (Daniel Zeichner)]

I am the farmers’ friend.

[Jim Shannon]

When the Minister approaches the Chancellor and persuades her to increase the threshold from £1 million to £5 million, he will be my friend forever, and he will be the friend of all the farmers in my constituency. He needs to do that. The National Farmers Union and the Ulster Farmers’ Union have the solution.

If I can digress slightly, Northern Ireland has one of the highest tuberculosis rates in Europe, with over 10% of our herds affected annually. What discussions has the Minister had with the farming Minister in Northern Ireland, Andrew Muir, in relation to TB and avian flu, to ensure that we can overcome these setbacks together?

Our food security and farming industry matter. It is the young farmers who we are fighting for—I am fighting for my neighbours’ sons who want to have a farm for the future. There are so many expectations on farmers. I am pleased to see that there has been a boost in the conversations surrounding the declining mental health of our farmers, which is another massive issue. There is no doubt that our farmers need to be supported, not torn down by a Government who are meant to represent them.

To conclude, I am proud of our farming industry and grateful for it, and I want it to succeed. For those who represent rural constituencies or those who do not, the importance of agriculture cannot be disregarded, and we must make it a goal to preserve, protect and progress the success of farming across Northern Ireland and the rest of the United Kingdom. We need the Minister to stand up for farming; we all look to him to do that. Go to the Chancellor, tell her what we need—to increase the threshold from £1 million to £5 million—and things will be better.

--- Later in debate ---

[The Minister for Food Security and Rural Affairs (Daniel Zeichner)]

I thank the right hon. Member for Orkney and Shetland (Mr Carmichael) and congratulate him on securing this very important debate on the future of farming. I will not say that I agreed with all his conclusions in his opening comments, although I listened to them closely, but I thank him and his fellow members of the Environment, Food and Rural Affairs Committee for their continuing work. I look forward to meeting his Committee in time.

I am very grateful to have the opportunity to talk about the very important role that farming plays in this country, because food security is national security, and our commitment to farmers is absolutely steadfast. It is the hard work of the UK’s farmers that puts food on our tables and stewards our beautiful countryside.

As we all know, though, the sector is facing high costs and tight margins. Farmers have struggled to get enough workers to pick fruit and veg, and frankly, they have been sold out in past trade deals. Farmland is increasingly at risk from severe flooding and drought, and this all comes as we face the biggest transition for farming in generations, moving away from the basic payment scheme towards more sustainable methods of farming. The underlying problem in the sector is that farmers do not make enough money for the hard work and commitment that they put in. We are absolutely committed to making farming more profitable, and that approach will underpin our 25-year farming road map and our food strategy, through which we will work in partnership with farmers to make farming and food production sustainable and profitable.

That road map stands on three principles, the first of which is a sector that has food production at its core. The role of farming will always be to produce the food that feeds our nation. The instability that we have seen, both relating to Ukraine and during covid, shows that food security truly is national security. The second principle is a sector in which farm businesses are more resilient and able to withstand the shocks that disrupt farming from time to time, whether it be severe flooding, drought or disease. We will help farmers who want to diversify their income to put more money into their business, so that they can survive those more difficult times when they come.

[Dr Johnson]

Will the Minister give way?

[Daniel Zeichner]

I am going to make some progress, because I know that time is short. The third principle is a sector that recognises that restoring nature is not in competition with sustainable food production, but is essential to it.

On our first strand—food production—our new deal for farmers is supporting them to produce food sustainably and profitably, and we are making progress. Statistics released earlier this week show that average farm business incomes across the country are forecast to rise in the first year of this Government. That is welcome news, but we recognise that there is more to do. That certainly will not happen overnight, but over recent weeks, we have announced a series of new policies. We are extending the seasonal worker visas for five years, and we are making the supply chain fairer, an issue raised by my hon. Friends the Members for North Somerset (Sadik Al-Hassan) and for Suffolk Coastal (Jenny Riddell-Carpenter). In the next few weeks, we will see new regulations for the pig sector, making sure that contracts clearly set out expectations and only allow changes if they are agreed by all parties. Of course, we are also introducing a new regulator alongside the Groceries Code Adjudicator, building on the work of the existing regulator—the Agricultural Supply Chain Adjudicator, which is already in place.

We are using the Government’s own purchasing power to back British produce, working with the Cabinet Office to create new requirements for Government catering contracts to favour high-quality, high-welfare products that British producers are well placed to provide, as was outlined very well by my hon. Friend the Member for Shrewsbury (Julia Buckley). That will mean that British farmers and producers can compete for a fairer share of the £5 billion a year that the public sector spends on food, with that money going straight into farmers’ bank accounts to boost turnover and profits. We will never lower our food standards in trade agreements, but will promote robust standards nationally and internationally, and will always consider whether overseas produce has an unfair advantage. That point was made by my hon. Friend the Member for St Austell and Newquay (Noah Law) and by others.

We are investing in the UK agri-technology sector, and I listened closely to the comments made by the hon. Member for Mid Norfolk (George Freeman)—there is always much that we agree on. As we announced last month, we are looking to put in a further £110 million in farming grants, and we are also strengthening the wider British tech sector, a point that was made well by my hon. Friend the Member for Middlesbrough South and East Cleveland (Luke Myer). These reforms will support farmers to make more money from the food they produce.

On the second strand, diversification, farmers must be resilient against future challenges if they are to remain financially viable and strengthen food security. We know the threat from flooding, drought and animal disease, as well as the geopolitical tensions that increase demands on our land for energy generation. We are investing to help farm businesses build resilience against animal diseases that can devastate livelihoods and threaten our entire economy—we are all mindful of the issues with bluetongue and avian flu. On the recent case of foot and mouth that we saw in Germany and the one in Hungary, I spoke to the Hungarian Minister earlier this week, and we have put in place all the appropriate precautions. As ever, though, if the shadow Secretary of State wants a briefing with the chief vet, that is always available in these cases.

We are investing over £200 million to set up a new national biosecurity centre, modernising the Animal and Plant Health Agency facilities in Weybridge, which will be vital for protecting farmers, food producers and exporters from disease outbreaks that we know can be devastating to businesses. We are helping keepers of cattle, sheep and pigs in England to improve the health, welfare and productivity of their animals by expanding the fully funded farm visits offer. We have also announced new ways to help farmers to remain profitable and viable, even in a challenging harvest.

We will consult on national planning reforms this spring to make it quicker for farmers to build new buildings, barns and other infrastructure to boost food production, and we will ensure that permitted development rights work for farms to convert larger barns into whatever is required or suits their business planning, whether that is a farm shop, a holiday let or a sports facility. We are working with the Department for Energy Security and Net Zero so that more farm businesses can connect their own electricity generation to the grid more quickly, so that farmers can sell surplus energy and diversify income.

The third element is nature. Restoring nature is vital to food production; it is not in competition with it. Healthy soils, abundant pollinators and clean water are the foundations that farm businesses rely on to produce high crop yields and turn a profit. Without nature thriving, there can be no long-term food security. That point was well made by my hon. Friend the Member for South West Norfolk (Terry Jermy). We now have more than half of all farmers in environmental schemes. That includes 37,000 live SFI agreements, meaning that 800,000 hectares of arable land is being farmed without insecticides, 300,000 hectares of low-impact grassland is managed sustainably and 75,000 km of hedgerows are being protected and restored. That is important for nature.

We have already had a discussion about the SFI cap. It is set at £1.05 billion for 2024-25 and 2025-26. As we discussed yesterday, that cap was reached this week with a record number of farmers in the scheme and 37,000 live agreements. Every penny is now paid to farmers or committed for payment through existing agreements or submitted applications. We will continue to support farmers to transition to more sustainable farming models, and we will announce details of the revised scheme after the spending review.

[Victoria Atkins]

The clarification that everybody wants is this: we saw the figures last night, and they cut across two years, so what is the money for this financial year—2024-25—that the Minister describes as a cap? What is the value that he reached on Tuesday night that led to that announcement?

[Daniel Zeichner]

We have been far more transparent in disclosing how the budgets work than the previous Government. The figure was disclosed last night, and the shadow Secretary of State can look closely at that. As she will know, we have to monitor things closely over multiple years. What we cannot and will not do is play fast and loose with the nation’s finances. We are taking no lessons from the Conservatives about how to manage public money in this country. This is about using public money in a way that supports food production, restores nature and respects farmers for the effective business people that they are, while ensuring that we stick to our budgets.

We are also improving other farming schemes. The Government have announced an increase in higher level stewardship payment rates across a range of options for this year. We will reopen the ELM capital grant scheme and open the rolling application window for the countryside stewardship higher tier later this year. We are continuing with the important landscape recovery projects that were awarded funding in rounds 1 and 2, as well as some of the other funds referenced by my hon. Friend the Member for Cannock Chase (Josh Newbury).

It is those three strands that will create a resilient, profitable sector for decades to come. I look forward to continuing this important discussion with Members from all parts of the House.

[Madam Deputy Speaker (Judith Cummins)]

I call Alistair Carmichael to quickly wind up.