Leaving the EU: the Rural Economy

Jake Berry Excerpts

Tuesday 17th January 2017 Commons Chamber

[Calum Kerr]

I wholeheartedly agree with the hon. Lady. It is something on which I would like us to focus in this debate. I am talking about the importance of these support payments to the prosperity not just of farming, but of the whole rural community.

[Jake Berry (Rossendale and Darwen) (Con)]

rose—

[Calum Kerr]

I wish to make a bit more progress. We have two debates squeezed in today.

As I was saying, nowhere is the policy vacuum more apparent than on the issue of farm payments. Whatever the flaws, the moneys invested in Scotland and indeed in all the rural communities in the UK through the CAP are absolutely vital in underpinning the rural economy. As my hon. Friend the Member for Angus (Mike Weir) mentioned, farm payments account for two thirds of total net farm income in Scotland. We have about 8.4% of the population, but 32.5% of the land mass, and our distinct topography means that Scotland received 16.5% of UK CAP funds.

[Jake Berry]

Like farmers in Lancashire, many farmers in Scotland are involved in upland sheep farming, which I am sure all Members will acknowledge is often a very, very difficult business. Does he not think that, if we leave the European Union, there will be an opportunity for the Government to refocus support on those most marginal farms that he is talking about—specifically the uphill farms in Lancashire and Scotland? Farmers in Lancashire are hoping for more from Brexit, just as farmers in Scotland will be hoping for more from Scexit?

[Calum Kerr]

Hill farming—sheep farming—is one of our most fragile industries. I have deep concerns about its support in the future. I want to make a point about the level of funding because we need the Government to step up. I would like to talk about lamb when we look at trade, because it is one of the most threatened trade areas.

--- Later in debate ---

[Andrea Leadsom]

I can assure the hon. Lady that, as she will appreciate, we are not entering into any negotiations until we have triggered article 50. We are, however, consulting our colleagues very widely in the devolved Administrations, and any negotiating positions will be discussed with them, so she does not need to worry about that.

A healthier environment will enable our world-leading food, farming and fishing industry to go from strength to strength. As pledged in our manifesto, our upcoming Green Paper on food, farming and fisheries will set out a framework for the future of these industries over the next 25 years. We will consult widely on that Green Paper.

[Jake Berry]

Clearly, in relation to the environment, there are decisions that may still properly be made at a European level, but some decisions made in Europe damage our farming industry in Lancashire. A perfect example is that in Rossendale and Darwen: farming of commons is what most upland farmers do, and each movement of the cattle between commons is counted. A farmer may have 15 movements in the life of his herd, reducing the price that he gets at market. Will my right hon. Friend commit to making sure that this is altered?

[Andrea Leadsom]

There is a lengthy answer to that but also a much shorter one, which is that the opportunities that arise from leaving the EU include points such as that which my hon. Friend raises. During consultation on our food, farming and fisheries Green Paper, there will be the opportunity to make those points and to seek remedies.

I want to give a few examples of how our departure from the EU gives us some very specific opportunities: first, to design a domestic successor to the common agricultural policy that meets our needs rather than those of farmers across the entire European Union; secondly, to ensure that our fisheries industries are competitive, sustainable and profitable; and, thirdly, to make our environment cleaner, healthier and more productive. Ours will be a system that is fit for the 21st century, tailored to our priorities and those of our farmers, our fishermen, and our environment.

The UK guarantee on funding was my first priority on arriving at DEFRA in the summer. It provides crucial certainty to farmers and the wider rural economy. I am conscious, however, that many farmers and rural businesses plan much further ahead and work to much longer investment cycles, so it is vital that we start planning now for life beyond 2020. It is important that we think carefully about what happens next and develop the ideas and solutions for a world-leading food and farming industry and an environment that is left in a better state than when we inherited it. That will involve focusing on the industry’s resilience, unlocking further productivity, and building environmental considerations into our policies from the outset.

I believe that the fundamentals of our food and farming sectors are strong. Food and drink is the largest manufacturing sector in the UK—bigger than cars and aerospace combined—and leaving the EU will provide more opportunities for the sector to thrive. [Interruption.] It is important to take stock of how much we already export beyond the EU: 69% of exports of Scotch whisky go to non-EU countries; 59% of salmon exports, which are predominantly from Scotland, go to non-EU countries; and non-EU dairy exports are up by over 90%. Leaving the EU will allow us to shape our own trade and investment opportunities, encourage even greater openness with partners, in Europe and beyond—[Interruption.] I sincerely hope that the hon. Gentlemen who keep shouting are going to read this in Hansard since they are obviously not interested in any of my words in the Chamber.