Sustainable Farming Initiative

Jim Shannon Excerpts

Tuesday 19th December 2023 Westminster Hall

[Tim Farron]

My hon. Friend makes an excellent point; I will come to that in a little while, because I think that does explain a lot of why that underspend has happened. It is easy to see how it has happened; it is not a mystery. It is down to two things: first, the Conservative Government have been very good at phasing out the old BPS, and secondly, they have been relentlessly incompetent at bringing in the new schemes, including for the reason that my hon. Friend set out.

Department for Environment, Food and Rural Affairs figures show that around £460 million has been removed from farmers’ pockets in the form of the BPS phase-out, which eclipses the increase in environmental payments of around £155 million. Much of that has not even gone to farmers. It has instead found its way into the very deep pockets of large landowners, including new entrant corporate landowners, looking to do a bit of greenwashing at the taxpayer’s expense.

In the spring of 2021, the Government promised to spend £275 million on SFI schemes in the 2022-23 financial year. Yet, in reality, excluding the pilots, they spent literally nothing—zero pounds, zero pence. This year, the Government plan to spend just shy of £290 million on SFIs. One question for the Minister is: how much of that money will actually go to farmers in this current financial year?

[Jim Shannon (Strangford) (DUP)]

I understand clearly what the hon. Gentleman is saying but I would respectfully like to put forward a suggestion. There are examples where the schemes have done good. For instance, there are some wonderful farm shops in my constituency, such as Corries butcher’s, a good scheme set up some years ago, and McKee’s farm shop. For those farmers who can afford additional farm shops, this is a wonderful way to diversify in an effort to boost income and ensure functioning sustainability. Does the hon. Gentleman agree—I think he does—that small financial incentives could be a way to support our local farmers to diversify, and that could be introduced through the sustainable farming incentive? In other words, we can all gain.

[Tim Farron]

I go back to what I said at the beginning. The hon. Gentleman is right to say that there are clear advantages in the scheme, and we support its principle. The problem is that they are outweighed across the piece by the negatives.

What does the botching of the transition mean for individual farmers? Last week, I met a group of farmers in north Westmorland at Ormside near Appleby. One told me that SFI would replace just 7% or 8% of what he is losing in basic payment. Another explained that if he maximised everything in his mid-tier stewardship scheme and got into all the available SFI options, he would replace only 60% of what he received through BPS. The others in the room looked at him with some envy: he was the least badly affected.

Last month, I met a group of farmers in South Westmorland, in Old Hutton near Kendal. One told me that the loss of farm income meant that he had to increase the size of his flock to make ends meet. He knew that in making that choice he was undoing the good environmental work that he and his family had been doing for years, but he could see no other way to keep afloat. That is a reminder that the Government’s handling of these payments means that they are often delivering precisely the opposite of what they intended.