(2 weeks ago)
Commons Chamber
Jenny Riddell-Carpenter
I thank the hon. Member for that important question. I can confirm that the Farming Minister and other colleagues have been in active conversation with the National Pig Association and are continuing that dialogue.
Our farming road map sets out a long-term direction for the sector that is more profitable, productive, sustainable and resilient, and better able to withstand climate, market and geopolitical shocks.
I want to acknowledge just how difficult this year has been. The Liberal Democrat spokesperson set out the extraordinary combination of pressures that farmers have faced this year alone: drought and water shortages, reduced grass and forage growth, difficult crop conditions, and higher irrigation and feed costs. At the same time, the conflict in the middle east has put further pressure on fertiliser and fuel prices.
The Minister highlights fertiliser costs. Last week, this Government pushed through the fertiliser tax, which will put up the price of fertiliser by between £80 and £90 a tonne, which the Conservatives voted against. The Liberals sat on their hands and did not oppose the tax, which was, frankly, shocking. Does the Minister not recognise the pressures that farmers are facing and the fact that this additional tax that this Government have imposed will do nothing to help?
Jenny Riddell-Carpenter
I will remind the hon. Member that the last UK ammonia production facility closed under the Conservatives without any Government intervention.
We recognise that resilience is not evenly distributed and that some farm businesses have significantly less capacity than others to withstand those short-term shocks. The impacts of climate change and drought have been particularly severe, with more than 80% of the country now in drought. The south-east and south-west experienced their driest period from April to September in more than a century, and pressure on water resources continues despite the rain that we are seeing today.
We understand what that means on our farms—less grass, lower forage growth and new crop yields, pressure on irrigation and reservoirs, greater demand for livestock water, and, ultimately, greater uncertainty about the year ahead—so we have acted. In August, we introduced a package of drought support measures including temporary adjustments to environmental land management agreements so that farmers affected by drought could continue receiving payments while taking practical steps to protect their businesses. We also reminded farmers and growers that they can apply to the Environment Agency for temporary abstraction flexibility through local enforcement protections to help them to access water during dry periods where environmental impacts can be appropriately managed.
Liberal Democrat Members ask now what we are doing on water and climate resilience, but the last time they were in government, they cut flood defence spending by a fifth within six months of taking office. We are taking water and weather extremely seriously.
However, responding to one dry summer is not enough; farmers need greater long-term water security. That is why we are making up to £15 million available through a further water management grant to help to build farm reservoirs, which allow water to be stored when it is most readily available and then used to support food production during the drier periods. This will help to reduce reliance on direct abstraction when rivers and groundwater are under greatest pressure. We are also making it easier to build reservoirs by updating planning guidance and working with industry to review whether further planning reforms are needed.
We have also simplified applications for longer-duration abstraction licences, helping farmers to secure finances for on-farm reservoirs by better aligning licence duration with investment and loan repayment periods. We have also brought forward the reservoir refill season from November to October for this year. We are also encouraging farmers to work together through water abstraction groups to strengthen local water resilience, while trialling dynamic abstraction in places like Cambridge, using real-time monitoring and data to help farmers to access water when it is available while also protecting the natural environment.
Drought and climate change are not the only sources of uncertainty, though; the middle east conflict remains a significant source of disruption to fertiliser and red diesel prices. The continued pressures underline something fundamental: our farming system needs to become less exposed to global shocks and expensive imported inputs. That means not simply telling farmers to absorb higher costs, but helping them to become more productive and more efficient, with farming schemes including actions supporting variable-rate nutrient application, companion cropping, legumes and herbal leys, all of which can help to improve nutrient efficiency and reduce reliance on synthetic fertiliser.
(1 year, 7 months ago)
Commons Chamber
Jenny Riddell-Carpenter (Suffolk Coastal) (Lab)
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.
Jenny Riddell-Carpenter
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.
Jenny Riddell-Carpenter
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.