(3 weeks, 2 days ago)
Commons ChamberI 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.
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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.