Agriculture

Jim Shannon Excerpts

Monday 13th May 2024 Commons Chamber

[Sir Mark Spencer]

My right hon. Friend will understand that the basic payment scheme did not motivate food production at all, as it was not linked to it. As we move to the new regime, we are promoting better productivity through grants for better equipment. We are investing in new technology. Alongside that, we are pushing to improve gene editing and gene technology, to try to make agriculture more sustainable and more productive at the same time. As we go through this transition, we are certainly keen to increase the productivity of our agricultural sector.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister as always for his positivity about the farming sector. The farmers’ union has asked me a specific, technical question that I would like to have on record. Does the Minister agree that since the transfer window for delinked payments closed on 10 May, clarity is needed that that will not apply to cases of inheritance, with the ability to transfer ownership not affecting payments that can be made when a business is passed on through a death in a family? Should that not be reiterated to those who may believe that they would lose necessary payments? The Minister may not be able to answer that right away, but could he let me know?

[Sir Mark Spencer]

The hon. Member will be familiar with how matters of inheritance tax are for the Treasury rather than this Department, but we want to see that fair transition between generations so that family farms can be passed from one generation to the other to continue to maintain our landscapes and produce top-quality food, as we have for a long time. I will ensure that he gets the right answer to his question as soon as possible.

Our new schemes are investing in the foundations of food security and profitable farm businesses, from healthy soils to clean water. This year, we have increased payment rates for our environmental land management schemes by an average of 10%. Some payment rates went up by significantly more: species-rich grassland rose from £182 to £646 per hectare.

--- Later in debate ---

[Sir Mark Spencer]

I should be clear and gently push back when my hon. Friend mentions reductions. The budget for the basic payment regime was £2.4 billion, and £2.4 billion is still the budget. So the size of the cake is completely the same, but the way in which the cake is being cut is different. Those are the changes we are making. The way in which we are dividing that cake is different, which is causing some challenge to some farmers.

My hon. Friend mentioned farmer confidence and the fact that some farmers are saying that productivity rates will be lower this year than they have been in the past. I think there is some truth in that: many farmers—I again draw attention to my entry in the register—have experienced unprecedented weather events and have been unable to plant crops, so they will see lower productivity this season. We are very much aware of that, and we continue to talk to farming representatives about how we can help to mitigate some of the impact later this year.

[Jim Shannon]

The Minister is gracious in giving way, which I appreciate very much. If farmers cannot plant their crops, they cannot produce the food, as he knows. If they cannot produce the food, prices increase. The Government are committed to reducing inflation, as they should be, and we welcome the fact that it is coming down. However, if we do not help the farmers with food production, inflation has the potential to rise. What can the Government do to alleviate those problems?

[Sir Mark Spencer]

The hon. Gentleman highlights a long-term challenge that we face: if we are going to be impacted by climate change and increasingly difficult weather patterns in future, we need to ensure that farmers have the resilience needed to manage those. That means investing in gene technology to make sure that we have varieties that can deal with different swings in climate, new machinery, new technology and new farm equipment. We were able to take money from the basic payment scheme and invest it in grant schemes, in order to help farmers invest in the new machinery and technology to mitigate some of those impacts. There is a lot that we can and are doing to help them along on that journey.