Agricultural Transition Plan

Luke Pollard Excerpts

Monday 30th November 2020 Commons Chamber

[Luke Pollard (Plymouth, Sutton and Devonport) (Lab/Co-op)]

I thank the Secretary of State for advance sight of the statement, even if most of it was announced this morning in his online conference. For transparency, I remind hon. Members that my little sister is a sheep farmer in Cornwall.

The Secretary of State has majored on the green elements of the announcement, but this is about more than our environment. Of course Labour supports public money for public goods, but that is not what the statement is about. Strip away the green coating and the proposals are a full-throttle attack on English family farms. I say “English” because Scottish, Welsh and Northern Irish farmers are going in a different direction because the devolved Governments are maintaining support for small farms for longer. Under the Government’s proposals, many small farmers will lose up to half their current support payments within just three years, leaving many financially unviable.

The public and farmers back high standards, but many farms will not be sustainable economically if the economic foundations of their business are undercut by food produced to lower standards abroad. British farmers remain at risk from future trade deals as the Government have chosen not to require food imports to meet the same standards that we hold our own farmers to.

Farmers themselves have not given today’s announcement a ringing endorsement. The panel that farmers convened to heap praise on the Secretary of State’s speech this morning described it as, “disappointing”, “lacking detail” and, “an announcement about further announcements”—not a glowing endorsement.

I am concerned about the 5% cuts for all, the 50% cuts in three years and the new system not even starting until 2022. Why was no sustainable farming initiative announced for next year, just a 5% cut and no bridge to environmental funding? Why was there so little detail on that and why is there a gap? Given that we are both west country MPs, does the Secretary of State share my concern that many south-west farmers will be forced out of business because of the changes? Does he have regional figures on the expected farm bankruptcies? The estimates that I have heard are deeply worrying. With the Government’s new farm exit schemes, there are huge incentives for people to leave agriculture early. How many small farmers does the Secretary of State expect to take that exit scheme rather than go bust?

Labour has five simple tests for the effectiveness of the policy. Will there be more family farms in 2024 than there are now? I doubt it. Will there be more family farm bankruptcies under the proposals? I expect so. Will Britain produce more of its food here rather than importing it? Will we be more reliant on food from America and Australia in future? Will English farmers have a tougher time than farmers in Scotland, Wales and Northern Ireland with their mix of direct payments and environmental funding? Labour backs our British farmers. I am very concerned that the Secretary of State’s announcement today risks breaking English family farms.

[George Eustice]

First, let me confirm that the policy we set out today is for England. Indeed, most of the powers in the Agriculture Act 2020 were for England. It will be open to the devolved Administrations to pursue their own policy. Even under the common agricultural policy, devolved Administrations had some freedom about the pillar 2 schemes that they could put in place. We will also co-ordinate policy with the devolved Administrations to ensure that there is no disturbance within the internal market. It is the case that over time, albeit at different paces, other devolved Administrations will not want to be shackled to the common agricultural policy that we have inherited, and they will want to take the opportunity to do things better.

The second point I would make relates to the profitability of agriculture. The hon. Gentleman mentioned the position of smaller farms. In fact, work done by AB Agri on farm productivity shows that there is not a correlation between farm size and productivity. Indeed, it is often the case that highly technically proficient, smaller family farms will have lower overheads and can look forward to the future with confidence. Agriculture is an industry that needs attention to detail, and that attention to detail is often best given by some smaller enterprises.

The other point I would make relates to food standards, which have been debated extensively in this House during the passage of the Agriculture Bill, now the Agriculture Act. We made changes to the Bill to introduce the Trade and Agriculture Commission and to require the Secretary of State to bring a report to Parliament outlining the impacts of any trade agreements on those standards. We have also been very clear as a Government that we will protect our producers from being undermined by substandard products produced overseas by using a combination of sanitary and phytosanitary policy in trade agreements and tariff policy.

I do not accept the criticism that the plan lacks detail. It is a 65-page document with many detailed annexes. It sets out in great detail the pace at which we intend to reduce the basic payment scheme, the other schemes we intend to roll out and the years we intend to roll them out. There will be some further consultations in the new year, in particular on the design of the voluntary exit scheme that we have said we will offer to those farmers who want to exit the industry with dignity.

I should make one final point, which is that our Agriculture Act requires the Government to report on food security every three years. The coronavirus pandemic has proven to us that domestic food production is a critical component of the food security of our nation, and that is something we will continue to measure and to support, so that we can have a vibrant food-producing agriculture sector in this country.