Leaving the EU: Upland Farming

John Lamont Excerpts

Tuesday 26th June 2018 Westminster Hall

[Jonathan Edwards]

I am grateful for your guidance, Mr Pritchard. I will return to the issue at hand, Welsh farming.

In Wales, the situation has been compounded by the decision of the Labour Government of my country to reduce direct payments to producers by 15% by moving money from pillar 1. However, the point remains that CAP payments offer a degree of stability. While previously, under CAP, farmers did not have to worry overtly about the impact of Westminster elections on the amount of agricultural support they would receive, they could easily now face a situation in which a new Westminster Government could radically alter agricultural support policy. As we see from the power grab, the Labour Government of my country have abdicated all responsibility.

[John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)]

Will the hon. Gentleman give way?

[Jonathan Edwards]

I will not give way. I will carry on, mindful of what the Chairman has said. While the British Government have promised to protect the current UK level of EU payments until 2022, the reality is that once we have left the EU, agricultural support will become an annual issue for the budget, or at the very best a three-year cycle under a future comprehensive spending review. There is no guarantee that current levels of funding for Wales will continue after March 2019.

We urgently need clarity for Welsh hill farmers, particularly about what the budget for agricultural support will be and how exactly it will be administered. Now that agricultural support has been re-reserved, I would be grateful if the Minister could outline how it will work for Welsh hill farmers. Will the Welsh share of agricultural support be based on our agricultural footprint, or do the British Government intend to distribute funds for Wales, Scotland and Northern Ireland based on Barnett consequentials?

During the referendum, the leave campaign argued that farmers would receive a dividend post-Brexit, because the UK would no longer have to make contributions to the EU budget. However, the reality is that there will be less money for Government investment post-Brexit, because the economy will slow and revenues will subsequently be less. Agriculture could find itself way down a long list of priorities for Westminster. Will the Minister outline what intergovernmental discussions have been held between the UK and the devolved Governments, and where exactly we are on getting clarity on the vital issue of agricultural support?

The third major issue is access to export markets. The European Union is a vital market for Welsh meat. Hill farmers inform me that approximately half of all their lambs are exported to the EU on a frictionless, zero-tariff basis, and 90% of all Welsh meat exports are destined for the EU. The EU is the largest global market for agricultural produce, and while the rest of the world is doing everything possible to get access to that market, the British Government are moving in the opposite direction. Preserving those markets is vital. It is sobering that some of the highest new tariffs are agricultural. The lowest that tariffs on lamb can be under WTO rules is 40%, and they are far higher if the product is frozen or processed in any way.

Admittedly, a comprehensive trade agreement with the EU could solve the problem, but while the British Government continue to maintain that no deal is an option, those of us who have concerns about the British Government’s negotiating strategy cannot be accused of scaremongering. We only have to look back to the chaos caused by foot and mouth. There was a collapse in market prices, a collapse in farm incomes and a host of other problems, all because farmers could not export to the EU. Impacts on upland farms were particularly acute. While such circumstances occurred due to a ban on exports rather than trade barriers, such impacts are worth bearing in mind when we consider the potential impacts of harder Brexit scenarios.

Now is the time to commit to maintaining tariff-free access to the UK’s largest trading bloc through our membership of the EU single market and customs union. That would ensure that our food producers could continue to export tariff free, that there would be no other barriers to trade and that already established, complex supply chains were not disrupted. The Farmers Union of Wales agrees. The president of the union, Glyn Roberts, said:

“Since the Referendum we have maintained that we should remain within the Single Market and Customs Union, and every day that passes brings more evidence supporting our view that at least in the short term, leaving these institutions would be a grave mistake.”

Our farmers are proud of the standard of their produce. They have some of the highest environmental and welfare standards in the world. If the British Government insist on dragging us out of the EU single market and customs union and pursuing free trade deals with third countries, it is vital that those standards are not compromised in any way, and that our markets are not opened up to substandard produce. It is essential that such matters are not regarded as exclusively within the remit of the UK Government and Parliament. As Hybu Cig Cymru chairman Kevin Roberts has said,

“Any future trade deal must take full account of the needs of the Welsh red meat sector.”

Ultimately, any future trade deal must be fully endorsed by the National Assembly, the Scottish Parliament and the Northern Ireland Assembly.

To close, agriculture, due to its complex supply chains and its prevalence in Welsh culture, is the backbone of the rural economy. It is vital, therefore, that the UK and Welsh Governments should do all they can to ensure its sustainability and success into the future. As the director of NFU Cymru, John Mercer, told me,

“Farmers were promised a bright and prosperous future after Brexit and it is now imperative that those political promises are upheld.”

Welsh hill farmers potentially face a perfect storm of hindered access to their main export markets and the opening up of the UK domestic food market to lowerstandard food produce. Policy makers cannot afford to get it wrong. With the clock ticking, it is time for Ministers to start coming up with some answers.

--- Later in debate ---

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC)]

Rwy’n llongyfarch fy Nghyfaill anrhydeddus yr Aelod dros Ddwyrain Caerfyrddin a Dinefwr (Jonathan Edwards) ar sicrhau y ddadl hon. I congratulate my hon. Friend the Member for Carmarthen East and Dinefwr on securing this debate. Dwyfor Meirionnydd is eryri—mountainous and magnificent to the eye. It has been a man-made landscape for hundreds, if not thousands, of years. Livestock husbandry made much of the environment, and taking farmers and families out will unmake it.

Earlier this year, I held a series of events with agricultural societies and farmers unions, which included visits to upland farms in the Trawsfynydd, Abergeirw and Cwm Prysor communities of Meirionnydd. Time and again, I heard anxiety for the future and a real fear that the voices of upland farming and upland communities would be lost in the Brexit lobbying cacophony.

Geraint Davies—Geraint Fedw Arian Uchaf of Rhyduchaf—is the chair of the Farmers’ Union of Wales in Meirionnydd. He has a lot to say about Brexit, but I will keep it simple. He tells me that in Wales, we need evidence of a long-term vision for rural communities as a whole, a sense that those communities matter, and an appreciation of their dependency on the rural economy. The single farm payment is spent in local shops and stores. Rural development programme money keeps local contractors in business. There is an interconnectivity to the agricultural economy that is as far-reaching and vulnerable to change as any environmental habitat.

Much is made of the payment for delivery of public goods. Farmers do not need to hear that that is a good thing—most agree—or that a way will be found to conform to World Trade Organisation requirements. They truly need to know not just whether but how a 100% level of public payments for public goods will work. I beg the Minister to respond to that. How will it conform with the WTO regulations?

In the same breath, if agriculture payments are to be used as environmental tools to deliver environmental benefits, we need clarity on the role of grazing livestock and how to manage grasslands to maintain habitats while symbiotically producing meat that inherently meets high-quality welfare standards.

[John Lamont]

The hon. Lady is making a powerful speech. Many of the issues in my constituency that involve the farming community are exactly the same. In terms of the overall principles of future farming support, does she want a system that simply replicates the current common agricultural policy, that promotes efficient and productive farming, or that focuses on the marginal farms in our country, which I suspect we both have in our constituency? It is important to understand the driving force that she sees as being behind the future CAP.

[Liz Saville Roberts]

To speak frankly, I would like to see a system that does not result in the upland clearances of farmers. Farmers and their contribution are important to the wildlife, and we should consider the people and their role.

On the significance of grazing, it is important to have an awareness of the impact of under-grazing and over-grazing, local knowledge and the implicit co-operation of the Government, environmental officers and agriculturalists. It goes without saying that such awareness cannot be centrally managed from Westminster; it must be devolved.

Farmers in my constituency are being told to diversify and that they need to look at the sort of animals they produce. Surely, however, we need to acknowledge that only native mountain breeds are suitable for upland environments. It is simply not an option to diversify by crossing with lowland breeds, because large-carcase sheep simply cannot survive the winter, let alone fare well in such environments. At the same time, the small breeds that will flourish in mountain environments have their markets in Europe, and we are yet to find another market for them.

I take this opportunity to call on farmers to speak to each other and to speak out. The Brexit debate has been, and remains, toxic. People have been driven to one side or the other. Frankly, by now, it does not matter how someone voted in the referendum, but what happens now does matter. It is fast becoming clear that individual businesses and communities as a whole are at risk. Wales was sold Brexit on the back of unsubstantiated soundbites. Now is the time to come up with the substance of these promises or to come clean and admit that the risk to Welsh communities is a price Westminster is willing for us to pay.