Single Payment Scheme

Julian Sturdy Excerpts

Wednesday 8th June 2011 Westminster Hall

[Jeremy Lefroy]

I entirely agree with my hon. Friend, and I will come on to that in a moment.

The strong food manufacturing industry is the largest manufacturing sector in the country and a vital customer for our raw materials. My own county of Staffordshire, along with Gloucestershire, Devon and many other counties represented in the Chamber today, views agriculture and food production as a business of the future and not of the past. Whereas other counties have sold off much of their farm estate, Staffordshire has largely retained its own, and continues to invest in it.

I have to declare a local interest, as about half of the county-owned farms—some 50—are in my constituency. They provide a start for the many young people who wish to farm but do not have the land or capital to do so. South Staffordshire college recognises the need for training young people on the land, and I welcome its application to establish a land-based academy at Rodbaston in my constituency, along the lines of the excellent JCB academy for technical subjects in nearby Rocester.

Last year, UK food and non-alcoholic drink exports topped £10 billion for the first time. If ever we needed a reminder of the importance of Ireland to our economy, it lies in the fact that Ireland is our No. 1 customer, followed by France, the Netherlands and Germany. Our recovery depends substantially on export growth, and agriculture is making a strong contribution. We also import £31 billion a year in food and non-alcoholic drinks, leaving plenty of room to increase market share at home. Food is also of increasing importance to the cost of living, in particular for those on low incomes. As with fuel, the more we produce ourselves, the less we depend on sources of supply over which we have no control on price, quantity and, I must say, quality.

Given the apparently rosy outlook for agriculture, why am I concerned about the single payment scheme or direct payments to farmers? Surely agriculture can survive on its own, without support. I have no doubt that it will, eventually, but that day has not yet come.

[Julian Sturdy (York Outer) (Con)]

If my hon. Friend can see a future without subsidy, can he outline how that would happen in a global context? It is one thing for the European Union to withdraw subsidy to agricultural food production, but that can only happen if the rest of the world follows suit. It would be unfair for European farmers to be disadvantaged by an American system that subsidises its farms.

[Jeremy Lefroy]

My hon. Friend makes an excellent point, and I entirely agree with him. I will come on to how I see the future and how we can eventually get to a stage at which no subsidy is required. However, that day has not yet come. As the National Farmers Union has stated:

“while we are looking forward to the day that farmers no longer need state support, this is unlikely to be within the next few years and it is vital that we maintain and develop the industry now.”

--- Later in debate ---

[Jeremy Lefroy]

I entirely agree with my hon. Friend. He speaks with vast experience from his own Brecon and Radnorshire constituency which is one of the largest, if not the largest, in England and Wales. I ask the Government to recognise the importance of maintaining direct payments to farmers at the heart of the common agricultural policy after 2013. I recognise the importance of environmental management, but it is vital that the primary need to produce high-quality, safe food is kept firmly in mind. Schemes must be flexible and practical to operate for smaller farmers, as well as large landowners.

[Julian Sturdy]

I congratulate my hon. Friend on securing this important debate. He has touched on food security, and I agree entirely with him on that. He has said that farming is going through a rosy patch at the moment, and that is certainly so in arable farming, but not in livestock farming. Does he believe that, despite the need for subsidies, certainly in the short term, supermarkets will play a key role in driving up incomes for farmers and how they are dealt with in future?