Future of Farming

Jim Shannon Excerpts

Wednesday 4th December 2024 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

I thank my hon. Friend the Member for Upper Bann (Carla Lockhart) for working so hard to keep the plight of farmers throughout the United Kingdom in the mind of this Parliament. She does her constituency credit, as always. I declare an interest as a member of the Ulster Farmers Union and as a landowner and farmer.

I have spoken on this issue so many times, yet I do not grow tired of it. The reason is clear: without small family farms there is no food sustainability or, subsequently, food safety. Most of the 25,000 farms in Northern Ireland are small family farms run by one or two farmers. They are not the massive profit-making industries that perhaps the Government have been led to believe they are. The farmers might be land rich, but they are cash poor. They love the land; they have it in their blood. They do not toil to make a massive profit, but to pay the bills and continue doing what they love.

The fact is that most farms—65% of farmers—could not survive with this inheritance tax. That does not pave the way for food security or production in Northern Ireland. We do not have large farms making millions each year. We have families who are working farms that cannot even pay a living wage. On some of the best farms in my constituency, the sons work the farm but also work privately for income, as they cannot raise a family on the farming income. That is the reality in Northern Ireland. I beseech the Minister to listen to the points I am making, because they are made with sincerity and honesty. If we add to this the inheritance tax and remove the protection from the farming grant, we are left with unprofitable farms, and sons and daughters who have no option but to sell the land and get a job.

The end of farming as we know it is not simply sad, given the history and the lifeblood that flows through farming families, but worrying, as it leaves us beholden to other nations for our food. The average farm in Northern Ireland is worth £14,000 an acre, and the average farm is 100 acres. If the Minister or his civil servants add up the figures, they will see that that means that the threshold is quickly reached. For many farms in Northern Ireland the situation can be fixed if the Government look at it honestly and come up with a different scenario and a different threshold. The quicker they do it, the better.

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[The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Mary Creagh)]

It is a pleasure to serve under your very crisp chairmanship, Sir Roger. I pay tribute to all hon. and right hon. Members for whittling down what must have been very long speeches into very short, but none the less well-received and well-delivered, speeches.

I thank the hon. Member for Upper Bann (Carla Lockhart), not just for securing this debate but for her work representing her party here in Westminster as a spokesperson on environment, food and rural affairs. She well knows that agriculture is a devolved issue, but we are committed to working closely with devolved Governments as we work to support British farmers and boost the nation’s food security. My colleague Baroness Hayman is in Northern Ireland tomorrow, meeting with large food producers, the Ulster Farmers’ Union and Northern Ireland’s Agriculture Minister.

As the granddaughter of a Fermanagh beef farmer, I too have farming in my blood. The Minister for Food Security and Rural Affairs, my hon. Friend the Member for Cambridge (Daniel Zeichner), has many talents, but he has not yet acquired the skills of cloning himself, so I am here as a pale substitute for him today.

I thank all Members for the comments they have raised. We will never forget that farmers are the beating heart of our great country, and farming and food security is the foundation of a healthy and resilient economy, local community and environment. It is the hard work of our country’s farmers that puts food on the table and stewards our beautiful countryside, which is why, despite the difficult fiscal situation, we are maintaining the total level of Government support to farmers across the UK. For the devolved Governments we are removing the ringfence to respect the devolution settlement, and we are providing the same level of funding in 2025-26 as they are receiving in 2024-25. In England, we have committed £5 billion to the farming budget over two years, including more money than ever for sustainable food production. That enables us to keep momentum on the path to a resilient and more sustainable farming sector.

Environmental land management schemes will remain at the centre of our offer to farmers and nature in England, receiving £1.8 billion in the financial year 2025-26. What is more, we have announced that we will rapidly release £60 million through the farming recovery fund, which will support farmers, including those on family farms, affected by the unprecedented extreme wet weather last winter. Roughly 13,000 farm businesses, including family farms, will receive an exceptional one-off payment to help with severe flooding.

The Government are also investing £208 million to protect the nation from disease outbreaks that threaten the farming industry, our food security and, crucially, human health. All of that is part of the Government’s new deal for farmers. On a UK-wide level, we are working to cut red tape at our borders and get British food exports moving again—protecting farmers from being undercut by shoddy trade deals done by the previous Government. We will lower energy bills for farmers by switching on GB Energy, and introduce grid reform to allow them to plug their renewable energy into the national grid.

We will use Government purchasing power to back British produce so that half of our food in hospitals, Army bases and prisons is locally produced and all certified to high environmental standards. We will introduce a land use framework that balances long-term food security with nature recovery. Critically, we will introduce the first ever cross-Government rural crime strategy to crackdown on antisocial behaviour, fly tipping and GPS theft—a subject on which I have spent many happy hours in the Chamber.

I will address the agricultural property relief changes head-on. There has been a huge range of figures and analysis quoted on all sides. The Treasury’s figures show that 500 estates a year will be affected. That is based on the hard data of actual claims, a figure that is endorsed by the independent Office for Budget Responsibility. It includes the impact of APR, business property relief, nil-rated inheritance allowances, and other capital allowance. The Government have engaged and will continue to engage with the NFU, the CLA, the Tenant Farmers Association, MPs and other stakeholders on the issue. The reforms will not be introduced until April 2026, so there is still time for farmers to plan for the changes and get professional advice on succession planning.

[Jim Shannon]

My hon. Friend the Member for Upper Bann (Carla Lockhart) and I have both contacted the Ulster Farmers Union in Northern Ireland. We have spoken to John McLenaghan, the legal officer, who told us clearly that 65% of farmers in Northern Ireland will be impacted. With great respect, when I hear his legal opinion and the opinion that the Minister has just referred to, there is a chasm of difference. Somebody is telling porkies—I do not know who it is.

[Mary Creagh]

With any fiscal change, we look at the previous year’s figures to see what the impact will be. I am not going to get into the analysis around the figures—I want to make some progress. Those figures have been verified by our independent fiscal authority, the OBR.

We know that the current-use rules have been used by wealthy landowners to avoid inheritance tax, and currently the largest estates pay a lower inheritance tax than smaller estates. That is not fair or sustainable.