Agriculture Bill

Duke of Wellington Excerpts

2nd reading & 2nd reading (Hansard) & 2nd reading (Hansard): House of Lords
Wednesday 10th June 2020 Lords Chamber

[The Duke of Wellington (Non-Afl) [V]]

My Lords, I declare my agricultural interests as detailed in the register.

It is because of my agricultural interests that I know how much anxiety there currently is in the farming industry, particularly among livestock farmers. Negotiations continue with the European Union to secure a free trade agreement, and we wish our negotiators every success. But, should there be no deal and we have to trade with the EU on World Trade Organization terms, the effect on livestock farmers will be most serious. There are tariffs on beef and lamb going into the EU. Currently, three-quarters of all beef exports from this country go to the EU; the proportion is even higher for sheep meat. Tariffs into the EU will inevitably reduce the prices that farmers receive. Most of the livestock farmers in the four nations of the United Kingdom are small to medium-sized, and they are the ones who will suffer most.

From the Government’s figures for 2018-19—the latest that are available—it is clear that nearly all livestock farms lose money. This is then compensated by basic payments and agri-environment payments, but even after these payments, in 2018-19, the average income of a livestock farmer in a less-favoured area was £15,500 per annum. This is substantially below the minimum wage, and farmers usually work very long hours. Despite these figures, the Government propose to reduce the payments by 5%, starting next year in 2020-21. I cannot see in the Bill any proposal that will support the small to medium-sized livestock farmer from now until the introduction of the environmental land management scheme, which will start in 2024. Therefore, will the Minister try to persuade the Treasury that the lowest band of basic payment—that is, up to £30,000 a year—should be frozen for the next three years?

Is it not in the public interest that the uplands of this country be farmed in a sustainable way, extensively grazed, mainly grass-fed and capturing carbon, as pastures do? This must surely be a public good deserving of public money. Then, while facing a reduction in public support, these same hill farmers are also threatened with tariffs on sales into Europe and a free trade agreement with the United States of America. The latter may well, as part of a larger deal, allow American beef into this country; it is produced to lower standards and will come in at a price that UK farmers will find it difficult to compete with. In the same way that UK fishermen were, we must admit, sacrificed to achieve our entry into the then European Economic Community, so our livestock farmers may still be sacrificed for a US trade deal and no deal with the EU.

When the Minister sums up, I hope that he will reassure me and other noble Lords that the prospects for our smaller hill farmers are not as bleak as they, and I, fear.