Farming Debate
Full Debate: Read Full DebateJohn Lamont
Main Page: John Lamont (Conservative - Berwickshire, Roxburgh and Selkirk)Department Debates - View all John Lamont's debates with the Department for Environment, Food and Rural Affairs
(1 day, 14 hours ago)
Commons ChamberThe importance of farming cannot be overstated. It is vital not only for farmers, but for all our communities, our economy and our national security. Farming allows us to keep food prices as low as possible in shops and supermarkets. Farming is the foundation of the rural economy. It supports tens of thousands of jobs not only on farms, but all along the supply chain. There is no national security without the food security that home-grown farming provides.
I have known this for all my years because I grew up on a farm. I saw my family and friends work extremely hard to earn a living—getting up before dawn and sometimes working until after the sun went down—and toiling in difficult conditions away from the limelight in protecting the environment and the countryside, often with little thanks or reward. That is the story of so many family-run farms across our country. It is a story of the Borders, of Scotland and of British businesses up and down the United Kingdom.
The Labour Government are putting the huge benefits that farmers deliver at risk. The future of farming is under threat because of Labour’s family farm tax, which will only compound the damage that the SNP has already done to rural areas across Scotland. Family businesses, which have often been passed down from generation to generation, will be hit hardest by Labour’s vindictive family farm tax. These small family businesses are the lifeblood of entire communities. They support jobs in local shops, the workers who rely on their trade for their own business to survive, and the businesses that maintain their equipment and supply their farms. They are more than family farms; they are community farms, because they benefit everyone in the local area. These facts have been ignored by the SNP during its 18 years in power, and they have already been ignored by Labour within a year of its being in power.
What does the future of farming look like once Labour brings in its family farm tax? The National Farmers Union estimates that hundreds of farms will face collapse because of this tax, and future generations will be denied the chance to farm their family’s land. If their farms do not need to be sold, farmers will still be discouraged from investing in their properties because that would only increase the tax their children will have to pay, and they may feel the need to save cash to cover future tax bills.
What will happen is that Labour will force farmers to sell their family businesses, our countryside will not be maintained to the same standards, the same volumes of high-quality food will not be produced, our environment will suffer as more foreign food has to be imported, other rural businesses in the supply chain will suffer from the decline in investment and ongoing trade, and food prices in shops and supermarkets will rise. In the end, Labour’s family farm tax will not just harm the future of farming, but the future of the economy and the cost of living for us all.
In conclusion, if the Labour Government were serious about supporting farms, they would listen properly to farming communities. They would listen to the single biggest thing that farmers in our country are demanding, which is to scrap the family farm tax, and restore the exemptions of APR and BPR. That is the only way to secure the future of farming. The Government should do the right thing, and scrap the family farm tax.
I want to start my contribution today by picking up where I left off this morning in my question to the Under-Secretary of State for Business and Trade, my hon. Friend the Member for Ellesmere Port and Bromborough (Justin Madders). At the heart of the problem facing farming and profitability is an unfair supply chain. As we heard earlier, the big six supermarkets are in effect acting like a cartel, forcing unfair prices on farmers and pursuing unfair practices towards family farms. Last year alone, the big six made a combined pre-tax profit of more than £5 billion. Of those big six, two—Asda and Morrisons —did not pay a penny of corporation tax.
As we know, supermarkets are price setters seeking maximum profits to drive down on the cost they are prepared to pay for home-grown, quality produce. At the same time, the costs of running a farm continue to rise, with soaring fuel, fertiliser and equipment prices. In a world where farmers and producers are struggling to make a living, and are relying on Government grants and subsidies so that they can survive from one year to the next, that cannot be seen to be fair or right.
I will continue, if I may.
We need to look properly, and with real scrutiny, at the supermarkets. Those practices need to change. We cannot allow farmers to bear the brunt of this system, while others in the supply chain benefit so disproportionately.
I want to address the issue of APR. Many, many farmers have raised their concerns with me directly. I have listened to those concerns in Suffolk Coastal and raised them directly with the Treasury and DEFRA. I remain committed to continuing to advocate for farmers in Suffolk Coastal over the months ahead.
I will continue.
However, it is important to reiterate that while the changes to APR are significant, they are not the root problem facing the farming industry. If farming was profitable, farmers would be less worried about paying a new tax bill. The focus must be on making farming more profitable. Without profitability, tax reliefs or Government support will provide only limited help. That includes ensuring fair prices for quality produce, protecting farmers from unfair competition and addressing rising costs, from fuel to fertilisers to equipment. I do not doubt that that will be a tough battle to fight when society often prioritises price over quality—people will happily spend more on a cappuccino than they will on a locally produced chicken—but if we want to protect British farming, we must change our approach.
The future of farming is essential, not only for the economy but for the very fabric of rural society itself. We must continue to put farmers first, ensuring they continue to feed and sustain us for generations to come.
The hon. Lady is making an excellent speech. Throughout the debate, I have struggled to understand the point put forward by Labour Members that while they rightly acknowledge that farming is not profitable, they support a policy that will take even more cash away from farming businesses. Does she, like me, find those two policies hard to reconcile?
I find them extremely difficult to reconcile. In early October, I went to the “Farmers Weekly” awards in London where the Minister, in his red bowtie, gave a speech in which he said that the Government would have the farmers’ backs. I am sure he believed it was true when he said it, but within a month, he was unfortunately proven wrong with this Government’s Budget.
Many Members have talked about the profitability of farming. How will the family farm tax make farms more profitable? How will the family business tax, the drastic drops in delinked payments, the rise in the minimum wage, rising national insurance contributions, or the tax on double cab pick-ups make farms more profitable? They will not. How will closing the SPI payment scheme early and without notice, despite having promised to give notice, make farms more profitable and businesses more secure? It will not. The Government now talk about taking land without proper due consideration. That has led many farmers in my constituency to ask, “Why does this Labour Government hate farmers so much?” Why do they want to hurt our farmers so much?
My hon. Friend brings knowledge from the past, which is very valuable to the debate. My right hon. Friend the Member for Orkney and Shetland is also a champion of this cause, and what he says strikes a chord among farmers in my constituency. Getting a fair deal is fundamental to making farms viable for the long term. It is not that we want to do everything, but I hope that the Government will engage constructively with my right hon. Friend on this. It is too important to let this one go, and it could be an easy win for the Government and for all of us.
The hon. Gentleman is making an excellent speech, but does he agree as a fellow Scottish MP that our farmers are facing a double whammy? Not only do we have to deal with the vindictive family farm tax being imposed by the Government opposite, but we face the hostile environment that the Scottish National party Government are creating towards our farming communities in Scotland.
I thank the hon. Gentleman for his contribution, and what a pity it is that our SNP colleagues are not with us at this point, because we both might have something to say about that. There has been a lack of knowledge north of the border—or a lack of understanding, I believe—of things that are fundamental to the way of life in the constituencies we represent at the different ends of Scotland.
Time is short, but I want to conclude by mentioning three things that are causing my constituents some anxiety. In particular, I spoke with farmers this week and there has been recent publicity about what is known as lab-grown meat, produced from cells in a laboratory environment. It is thought that this could be upon us within two years. Yes, it is a way of producing food, but what does that mean for our livestock farmers? That needs to be looked at very carefully indeed.
The second thing I am duty-bound to mention is the low price of malting barley. This is the highest-quality barley and is used to make whisky. It is low priced because not so much is being bought by the whisky distillers, a reflection of the fact that they are not selling so many bottles of whisky.