Food and Farming: Devon and Cornwall

Jim Shannon Excerpts

Wednesday 23rd February 2022 Westminster Hall

[Sir Geoffrey Cox (Torridge and West Devon) (Con)]

I beg to move,

That this House has considered food and farming in Devon and Cornwall.

I am most grateful and delighted to have secured this important debate on food and farming in Devon. It is good to see so many of my colleagues from Devon, and it is very good, if I may say so, to see some honorary Devonians this morning: the hon. Members for Strangford (Jim Shannon) and for Westmorland and Lonsdale (Tim Farron). It is a particular joy to see them so interested in food and farming in Devon. Of course, many of the themes on which we will touch will be of common interest to those whom they represent and so, speaking for myself and, I am sure, all my colleagues, we are delighted to see them.

I should say straightaway that I own farmland in Devon and derive an income from it. Although I do not myself currently farm the land, it is eligible for some of the schemes that I will discuss today and therefore it is possible that I might benefit from them.

A prosperous and flourishing agriculture in the United Kingdom is in the national interest—I do not imagine that that is a controversial statement in this company. It is not a dispensable or superfluous activity. Recent international events have confirmed, in the most dramatic way, that food production, and more specifically food security, is of increasing national importance and should be a vital Government priority. It does not need much imagination or foresight to see that, for some time now, we have been living through a new and unstable phase of international affairs. The effects of pandemics, wars—threatened and actual—and climate change are thrust upon us with every news bulletin. We cannot take for granted an uninterrupted international supply chain and an endless stream of imports.

On Monday this week, my right hon. Friend the Secretary of State for Defence observed that the impact of a Russian invasion in Ukraine—now already in action—would be to remove access to the breadbasket of the world. It would have the most deleterious impacts upon vulnerable states and nations throughout the world. Similarly, the gradual erosion by climate change of fertile and cultivable areas of the world, increasing regional tensions, confronts us with a growing threat to the interest of this country in ensuring a constant and adequate food supply to its people. Perhaps not for a very long time has it been so critical that our domestic agricultural policies—under our own exclusive control again after 45 years—should be got right. That is no doubt why the Government sensibly included a legal duty on Ministers, in devising the financial support schemes, to have regard to the need to encourage the production of food and to report each five years to Parliament on food security.

However, agriculture in Devon and Cornwall, like farming all over the country, faces a time of great unpredictability and uncertainty. It must adapt to the major implications of the Agriculture Act 2020 and of changes in our trading relationships after our exit from the European Union.

[Jim Shannon (Strangford) (DUP)]

I congratulate the right hon. and learned Gentleman on initiating the debate. It is specifically about food and farming in Devon, but, as he rightly said, when it comes to farming, Northern Ireland is comparable. Does he agree that, while farmers in my constituency and across Northern Ireland have recently had a reported rise in income, their outgoings will far outstrip their income, and that, if any modernisation or diversification is to take place, the Government need to step up and implement funding streams that can be allocated to those who need them most, UK-wide? The right hon. and learned Gentleman and I discussed this before the debate. He and I understand well that our Minister in Northern Ireland has grasped the important issue of farming—I know that the Minister here has done the same—but does he feel that whatever happens in Devon, the same should happen in Strangford?

[Mr Clive Betts (in the Chair)]

I thought the hon. Gentleman wasn’t going to make a speech this morning.

--- Later in debate ---

[Sir Geoffrey Cox]

The panel of wisdom assembled this morning is extraordinary; it is almost as if my hon. Friends have read the speech that I prepared last night. Of course the issue of labour is critical.

I supported the departure of this country from the European Union. I believed in every fibre of my being that the freedoms it would permit our nation, if seized and enacted, would bring great benefits, not only to the farmers of our country but to our country as a whole. I do not believe the people of this country would fail to understand the need of British farming for skilled labour. I do not think that was the objection of the millions who voted for Brexit. They would understand a policy of flexibility.

There is no need for us to maintain, with adamantine stubbornness, a policy that leads to labour shortages in British farming. So I agree with my hon. Friend the Member for Newton Abbot (Anne Marie Morris) completely. Nowhere is this uncertainty felt more keenly than in Devon, where 13% of the economy of the county consists of food production, almost twice the national average. No one seriously argued that an area-based direct payment scheme, such as the one we have, should be retained. Agricultural support should be aimed, as far as possible, at those who look after and promote the wellbeing of the land, or who genuinely make their livelihoods from it.

The aims and intentions of the Agriculture Act 2020 were widely supported, including by me, but those direct payments accounted on average for 55% of the total farm incomes of England. In the south-west, even with the farm payments, the farm business survey found that the average income of a lowland grazing farm in 2019 was just £4,048. Without those payments, there would have been a loss of £10,000, or closer to £14,000 if existing agri-environmental payments are included.

Last year, the Agriculture and Horticulture Development Board found that the levels of the new environmental land management scheme then published would, even at the advanced tier to which many could not aspire, not remotely replace the current payments. Yet, according to the agricultural transition plan, by 2024 the direct payments will have been reduced by half, and by 2027 they are due to end completely.

The Public Accounts Committee has described the Department’s approach as “blind optimism”. I do not know, but I certainly hope that that is not an accurate description, and I look to the Minister to reassure me. So far, however, no impact assessment has been published of the effects of the design of these new schemes on food production and farming in Devon, or elsewhere. Nor have measurable standards yet been published by which the environmental benefits and farming outcomes can be assessed.

The Minister herself, in answer to a question about upland farming in April 2020, nearly two years ago, said that she understood the need for payment rates to be attractive to achieve the level of uptake and the environmental outcomes we need to see. The Government have suggested—I believe is an accepted and understood figure—that only if we achieve participation in the sustainable farming incentive of around 70% of all farmers can the scheme succeed.

I understand that elements of the new scheme are still under development, but I must tell the Minister that neither the current published rates, nor the schemes as so far defined, are attracting much enthusiasm from the farm businesses and farmers I represent. They simply cannot yet see sufficiently how these schemes will be relevant to the economic survival of their farms. That anecdotal evidence is supported by the growing chorus of concern from the industry. The Tenant Farmers Association, farming one third of the land in England, has described the current plans as

“a complex patchwork of small schemes of limited impact with little which seems to stitch them together.”

The Select Committee on Environment, Food and Rural Affairs—it is a pleasure to see its Chairman, my hon. Friend the Member for Tiverton and Honiton (Neil Parish), here this morning—the National Audit Office and the Public Accounts Committee have all expressed their growing sense of dismay and apprehension. Steadily and relentlessly, the clock is ticking down for Devonshire and Cornish farmers. In the meantime, as the hon. Member for Strangford pointed out, their costs continue to soar.

I understand that in the cockpit of a commercial aircraft coming in to land, sirens and alarms will go off if the plane is approaching the runway either too low or too slow. The sirens are going off now on the Department’s transitional plan. If the market is to play a greater role in farm incomes in the future, it might be less troubling if one could see the necessary vigour and energy invested in creating new markets for British produce around the world—if we could see a bright and bold new vision of a British agricultural export agency with a mission and a passion to convey the magnificent story we have to tell about the quality of British food and to convert it into new opportunities. Perhaps the Minister might say a word about what the Government are doing in this respect.

If Devon and Cornwall’s farmers could sense that the Government were willing to invest in them and back them with the kind of tailor-made and well-designed policies that would lift their collective sales, I have no doubt that they would accept with alacrity the challenge of adaptation, investment and flexibility that these changes will require of them.

[Jim Shannon]

I was watching “Countryfile” on Sunday night, and sugar beet producers in England were mentioned. As we all know, there is an onus on the Minister, but there is also an onus on the companies that buy the product to give farmers the right price for their product. In many cases, the processing company that was mentioned—its name has escaped my mind—has upped its price, but the price has not kept in check with the cost. The right hon. and learned Gentleman is right to press the Minister, but does he agree that we should also press companies to give the producers—the farmers—the right price for their product?

[Sir Geoffrey Cox]

I completely agree that fairness within the supply and the price chain is vital. I think we have lost some momentum that we gathered a few years back with the enactment of various measures that this Government took in trying to create greater awareness of these matters within the industry and the price chain.

The hon. Gentleman has pointed out one further aspect of what I am attempting to convey. What we need is a conviction at the heart of Government of the importance of British farming. I do not doubt that the Minister herself has that conviction. I do not doubt that the Secretary of State, who is a valued colleague of ours in the south-west, has that conviction. I sometimes doubt that, at the centre of the Government’s councils, that conviction is always as persuasive and influential as it should be. I simply say again: at a time when we are confronting another dictator on the borders of Europe, how much more evidence do we need that food security should be a crucial priority at the heart of Government policy making?

If farmers felt that policies were being designed in our post-Brexit world to lift them up and help them make the most of the market, I have no doubt that they would seize those opportunities with alacrity. They were told that regulation would be handled differently and would not, as so often is the case, stifle farmers with bureaucracy and penalisation, but that there would be—I quote from the transition plan—a “new, more effective approach”. Well, someone appears to have forgotten to send the memo to the Environment Agency. Its new guidance on the farming rules for water has caused widespread dismay about the spreading of muck. I understand that dairy farmers are being visited today and told that they must build more storage for their slurry and invest in their farms—investment that they can ill afford at the moment, and even if they can afford it, they are frequently refused planning permission at the instigation of Natural England.

Again and again I hear the same of other agencies like Natural England, whose chief executive I have invited to a summit meeting on Dartmoor later this year to discuss its relationship with working farmers on the moor. We must see this fabled new approach manifested in the everyday experience of farmers. We must take the freedom that our departure from the European Union has conveyed upon us and create the light-touch, unbureaucratic approach for which the farming community is yearning. We must also see the sums promised for investment in on-farm productivity materialise, increase, and be simple to access and draw down.

Perhaps it is too lugubriously pessimistic to remind oneself of the ill-fated Rural Payments Agency and the long history of misery that its performance in administering the area-based payments so often caused those who had to deal with it. Perhaps it is too easy to believe that the administration of these new, as yet undeveloped and unfledged schemes will suffer the same fate in execution as they have appeared to in design. There are more hopeful omens: all is not doom and gloom, as I know the Minister will tell us. The countryside stewardship applications have been simplified, the rates have been increased and—lo and behold—there has been a 30% increase in the uptake of that scheme. Nobody rejoices in that fact more than I, but as the Minister will accept, it is not by itself enough. I hope she will give us this morning greater grounds for hope than, I am afraid, my more pessimistic observation produces at the moment.

This is not just a question of the observable facts. Sometimes one must rely on one’s intuition, and the Department for Environment, Food and Rural Affairs so often seems to wear an air of defeatism and lack the foresight, conviction and urgency that the situation demands. If they do not feel they are getting a fair audience at the heart of the councils of government, I understand that. That is why each one of us sitting here this morning can play our part in lending strength to my hon. Friend the Minister’s elbow and that of her boss, the Secretary of State. We stand here at their side, urging them on, willing to play any part—willing to march, to organise and to express solidarity with the team that we send into battle to fight the British farming corner in the Cabinet and the Government. In that fight she can count on my loyal, steadfast support.

I cannot, I am afraid, touch much more on optimistic and encouraging notes, because I must now turn to the topic of pigs. The Minister knows that pig farmers have suffered acutely from the effects of the pandemic. I have had correspondence with the Secretary of State on this pressing issue. The measures taken by the Government have been welcome, but inadequate to prevent a silent catastrophe on pig farms in Devon. Barely a quarter of the 800 visas for butchers have been taken up. The situation on the farms is just as desperate as when I first corresponded with the Minister last year—indeed, more so. One such local farmer has written to me just this week to say that even after culling hundreds of animals,

“we have 2,700 fattening pigs here whereas we would previously only have had 600 weaners and 650 newborn piglets. We have had to make significant investment”—

they have spent over £100,00—

“into adapting buildings to house all these much larger pigs, as well as buying two new bulk bins to store the extra food and also having to install extra feeding equipment. Meanwhile the cost of animal feed has continued to rocket. The financial burden is immense. The stress of this situation is terrible.”

Thus writes a farming family from Langtree, in Torridge in Devon.

Just yesterday the Irish Government followed other Governments, including Northern Ireland and Scotland, by announcing a hardship fund to allow flat-rate payments to farmers who send more than 200 pigs to slaughter each year. The week before last, there was a crisis meeting with the Minister. I would be glad to hear the progress that the Minister is making in this emergency—and it is an emergency.

There is a silent catastrophe going on in pig farms not only in Devon and Cornwall but throughout our country. The issue requires urgent action. The national interest demands that the Government place food security and agriculture in this country at the heart of their policy making. Surely, as the party of the countryside, we cannot stand by while farming—the very sinew of our rural communities—withers away. Of course adaptations to economic circumstances and modern requirements are necessary but, as the uncertainties and perils of world events remind us with acute and ever-growing force, the neglect of our domestic capacity to feed ourselves would be an omission for which the British people will, rightly, not forgive us.