Jenny Riddell-Carpenter - Department for Environment, Food and Rural Affairs debates Debate: -

Farming

Jenny Riddell-Carpenter Excerpts

Thursday 13th March 2025

(4 weeks, 2 days ago)

Commons Chamber

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Sadik Al-Hassan (North Somerset) (Lab)

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As the representative for North Somerset, I, like many in this debate, represent a rural constituency, and thus a great number of farmers, whom I have had the privilege of meeting on a number of occasions since July. The farmers of North Somerset have not shied away from expressing to me their wide range of concerns, going far beyond merely changes to the inheritance tax regime. From those meetings, I have grown increasingly concerned that the outcry over changes to inheritance tax in this House, and the time subsequently given to the topic, have distracted us from the more fundamental questions about the future of farming. That is why I thank the right hon. Member for Orkney and Shetland (Mr Carmichael) for securing this debate, and for making it clear in his application that he wished to debate farming more widely than merely a discussion of the merits of the inheritance tax changes.

I start by recognising that farming is an issue that arouses great passion. We have seen that in our own constituencies during visits in the past six months, and even on the very roads that surround this building with the protests that seem to occur every other week. From conversations with farmers in my constituency, I have quickly gained an appreciation that we are talking about not just a profession, but a lifestyle and often a calling. The constituents I have met are often working the soil that their fathers, their grandfathers and the generations before them worked—in some cases, back even beyond the creation of this Chamber. It is thus understandable why there is a widespread feeling among farmers that too often this place, so distant to so many, does not listen to their needs, does not discuss the issues so pertinent to their livelihoods, and too often imposes its will arbitrarily on them. If we are being fair, I think all of us would admit that this is not a new sentiment since the autumn Budget; this goes back decades and has been directed at all parties in turn.

I want to use my speech to talk about an issue that may not be grabbing the headlines currently, but which, from discussions with farmers in my constituency, I believe constitutes the greatest impediment to a thriving farming sector. A concern I hear again and again, no matter the product a farmer may choose to specialise in, is the excessive power of supermarkets in contract negotiations and the raw deal farmers get as a consequence. Too often, farmers I have spoken to have been subject to a “take it or leave it” negotiating position from these mega-corporations, which are able to dictate price and impose unfair conditions on farmers. Many farmers I have spoken to have had perfectly edible crop rejected due to minor aesthetic defects, excessive delays in payments and indeed, as some have told me, even instances of entirely arbitrary cancellations of orders with no reason given. The fear of retaliation keeps many of these instances from seeing the light of day, and that fear has arisen due to the oligopolistic nature of the supermarket industry.

In the flow from farm to fork, the supermarkets act as a great gatekeeper, siphoning a cut from the passing traffic. While this issue is not unique to the UK—after all, a mere five companies control 80% of the global trade in grain—I think it fair to say that in recent years our constituents have become increasingly aware of the greedflation they see reflected every day in the increases in the prices they pay for food in supermarkets. These increases in prices are not benefiting the hard-working farmers who produce that food, but rather the shareholders, which are often not even based in the UK. Last year alone, we saw the big four supermarkets increase their profits by 97%, while farmers felt the continued squeeze from rising energy prices, rising fertiliser costs and rising labour costs—to name but a few things. If we are serious about improving the lot of farmers in this country, I think this is where we need to focus our attention and our efforts.

Jenny Riddell-Carpenter (Suffolk Coastal) (Lab)

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Does my hon. Friend agree that not only do the big six supermarkets not have the interests of farmers at heart, but two of them did not even pay corporation tax last year? It is critical to address that in this wider discussion.

Sadik Al-Hassan

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I thank my hon. Friend for a worthy contribution to the debate, and I completely agree. It is fundamental that we fix some of the problems in the supermarket supply chain that are affecting farmers, and that companies pay their fair share to this country.

Farmers continue to feel the squeeze from rising prices, and I think we must strengthen the Groceries Code Adjudicator and give it real teeth, and thus empower farmers to fight back and get the fair deal they deserve. To do this, it will need to be properly resourced, and to that end I suggest that we look again at the levy supermarkets pay, which has not increased since 2018, despite a dramatic rise in prices and profits.

The farmers I have met do not shy away from telling me how much they love their profession, and how sad they are that their children do not see it as a viable future career. If we are to secure the future of farming, we must secure the future workforce, and to do that we must make farming a profitable business. Without fundamentally rebalancing the scales of power between those who grow our food and those who sell it, farming will continue to be an unprofitable venture and an unattractive career for young people. I note that the next review of the Groceries Code Adjudicator will start after this month, and like the farmers of North Somerset, I eagerly await to hear how my hon. Friends in the Department for Environment, Food and Rural Affairs intend to ensure that it is fit for the future.

--- Later in debate ---

Jenny Riddell-Carpenter (Suffolk Coastal) (Lab)

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I want to start my contribution today by picking up where I left off this morning in my question to the Under-Secretary of State for Business and Trade, my hon. Friend the Member for Ellesmere Port and Bromborough (Justin Madders). At the heart of the problem facing farming and profitability is an unfair supply chain. As we heard earlier, the big six supermarkets are in effect acting like a cartel, forcing unfair prices on farmers and pursuing unfair practices towards family farms. Last year alone, the big six made a combined pre-tax profit of more than £5 billion. Of those big six, two—Asda and Morrisons —did not pay a penny of corporation tax.

As we know, supermarkets are price setters seeking maximum profits to drive down on the cost they are prepared to pay for home-grown, quality produce. At the same time, the costs of running a farm continue to rise, with soaring fuel, fertiliser and equipment prices. In a world where farmers and producers are struggling to make a living, and are relying on Government grants and subsidies so that they can survive from one year to the next, that cannot be seen to be fair or right.

John Lamont

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Will the hon. Lady give way?

Jenny Riddell-Carpenter

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I will continue, if I may.

We need to look properly, and with real scrutiny, at the supermarkets. Those practices need to change. We cannot allow farmers to bear the brunt of this system, while others in the supply chain benefit so disproportionately.

I want to address the issue of APR. Many, many farmers have raised their concerns with me directly. I have listened to those concerns in Suffolk Coastal and raised them directly with the Treasury and DEFRA. I remain committed to continuing to advocate for farmers in Suffolk Coastal over the months ahead.

John Lamont

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Will the hon. Lady give way on that point?

Jenny Riddell-Carpenter

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I will continue.

However, it is important to reiterate that while the changes to APR are significant, they are not the root problem facing the farming industry. If farming was profitable, farmers would be less worried about paying a new tax bill. The focus must be on making farming more profitable. Without profitability, tax reliefs or Government support will provide only limited help. That includes ensuring fair prices for quality produce, protecting farmers from unfair competition and addressing rising costs, from fuel to fertilisers to equipment. I do not doubt that that will be a tough battle to fight when society often prioritises price over quality—people will happily spend more on a cappuccino than they will on a locally produced chicken—but if we want to protect British farming, we must change our approach.

The future of farming is essential, not only for the economy but for the very fabric of rural society itself. We must continue to put farmers first, ensuring they continue to feed and sustain us for generations to come.

Farming

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