Oral Answers to Questions Debate

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Department: Cabinet Office
Thursday 14th July 2022

(2 years, 4 months ago)

Commons Chamber
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Selaine Saxby Portrait Selaine Saxby (North Devon) (Con)
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3. What steps he is taking with Cabinet colleagues to mitigate increases in food prices.

John Lamont Portrait John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)
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10. What steps he is taking with Cabinet colleagues to mitigate increases in food prices.

Kit Malthouse Portrait The Chancellor of the Duchy of Lancaster (Kit Malthouse)
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My Department has been working closely with the Department for Environment, Food and Rural Affairs to assess the impact on food prices as a result of the Russia-Ukraine conflict and other pressures.

Kit Malthouse Portrait Kit Malthouse
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My hon. Friend is right to identify an extremely challenging part of the global cost of living crisis that we are trying to confront. Critical in that is the role of farming and the production of food domestically. One key area where we are able to assist and where lots of work is going on is the provision of fertiliser. She is a rural MP, as am I, so she will know that fertiliser is a key driver of overall food prices. I am pleased to say that for some weeks, DEFRA has been running a fertiliser taskforce, which is doing valuable work to stabilise the market and help farmers to optimise their use of artificial fertiliser.

John Lamont Portrait John Lamont
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I visited a farm in my constituency in the Scottish Borders last week, alongside the National Farmers Union of Scotland. The cost of feed, fertiliser and many other essential products has skyrocketed, and that is clearly pushing up food prices. What more can the Government do to help our farmers and support this important industry?

Kit Malthouse Portrait Kit Malthouse
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My hon. Friend raises a very good point, although sadly the provision of food is devolved north of the border. We are working very closely with the Scottish Government to make sure that they put in place adequate provision to assist farmers. Here in England, for example, we have introduced the basic payment to help with cash flow. That has been welcomed by the industry, but the key driver of the fertiliser price will dog us for some time. If prices are too high, farmers will use less fertiliser. If they use less fertiliser, there will be lower yields and smaller animals, which means higher prices. Getting that combination right is critical, as is encouraging and supporting farmers through direct subsidy to return to the old-fashioned fertiliser use of animal slurry. We are helping them with their storage capacity and capability, so that they can optimise their yields from the crops that they sow.