Single Payment Scheme

Debate between Jeremy Lefroy and Roger Williams

Wednesday 8th June 2011 Westminster Hall

[Jeremy Lefroy]

I entirely agree. That is a particular concern in my hon. Friend’s constituency in Devon. I do not have hill farmers in my constituency—I do not have enough hills—but in nearby Staffordshire Moorlands we do. If I understand the statistics correctly, hill farmers have suffered the greatest decline in income in recent years—the decline is greater than for any other form of farming. The problem with the single payment applies in particular to smaller farms in the livestock sector. It has been estimated that in 2009 59% of all farms would have been loss-making without their single payment; in the livestock sector the figure was even higher at 87%.

Last week, I had the privilege of attending the Staffordshire county show in my constituency. At the same show, some years ago, I met the Minister for the first time—he kindly came along and showed his support for Staffordshire farmers, as he does for farmers up and down the country, which all of us welcome. Talking to farmers at the show, many of whom have smallish holdings, it was quite clear that without the single payment they would eventually go out of business.

The single payment is essential for the short-term sustainability of agriculture. In the longer term, one might argue that farmers should look to diversify their income so as to reduce and eventually eliminate the need for support, and that that continuing support somehow makes them put off that evil day—or that day. However, no hon. Members who have farmers in their constituency agree with that. Farmers are constantly looking at ways of diversifying their income away from food production. They are taking matters into their own hands, and they do not want to rely on subsidy, in the same way that any other private business man or woman does not.

In any case, the single payment is not simply a subsidy. The payment recognises the vital public functions carried out by farmers: the management of the land in a way that provides an attractive and diverse landscape for those who live in the countryside as well as for visitors; and sustainable production, which meets the highest standards of food safety, traceability and animal welfare.

[Roger Williams (Brecon and Radnorshire) (LD)]

My hon. Friend makes an important point, but does he not agree that the direct single payment is also a buffer against volatile commodity prices? While commodity prices except for milk are reasonably buoyant at the moment, there could come a time when they are in decline, which would be difficult for farmers to sustain.

[Jeremy Lefroy]

I entirely agree with my hon. Friend. He speaks with vast experience from his own Brecon and Radnorshire constituency which is one of the largest, if not the largest, in England and Wales. I ask the Government to recognise the importance of maintaining direct payments to farmers at the heart of the common agricultural policy after 2013. I recognise the importance of environmental management, but it is vital that the primary need to produce high-quality, safe food is kept firmly in mind. Schemes must be flexible and practical to operate for smaller farmers, as well as large landowners.