Future of Farming

Mary Creagh Excerpts

Wednesday 4th December 2024 Westminster Hall

[The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Mary Creagh)]

It is a pleasure to serve under your very crisp chairmanship, Sir Roger. I pay tribute to all hon. and right hon. Members for whittling down what must have been very long speeches into very short, but none the less well-received and well-delivered, speeches.

I thank the hon. Member for Upper Bann (Carla Lockhart), not just for securing this debate but for her work representing her party here in Westminster as a spokesperson on environment, food and rural affairs. She well knows that agriculture is a devolved issue, but we are committed to working closely with devolved Governments as we work to support British farmers and boost the nation’s food security. My colleague Baroness Hayman is in Northern Ireland tomorrow, meeting with large food producers, the Ulster Farmers’ Union and Northern Ireland’s Agriculture Minister.

As the granddaughter of a Fermanagh beef farmer, I too have farming in my blood. The Minister for Food Security and Rural Affairs, my hon. Friend the Member for Cambridge (Daniel Zeichner), has many talents, but he has not yet acquired the skills of cloning himself, so I am here as a pale substitute for him today.

I thank all Members for the comments they have raised. We will never forget that farmers are the beating heart of our great country, and farming and food security is the foundation of a healthy and resilient economy, local community and environment. It is the hard work of our country’s farmers that puts food on the table and stewards our beautiful countryside, which is why, despite the difficult fiscal situation, we are maintaining the total level of Government support to farmers across the UK. For the devolved Governments we are removing the ringfence to respect the devolution settlement, and we are providing the same level of funding in 2025-26 as they are receiving in 2024-25. In England, we have committed £5 billion to the farming budget over two years, including more money than ever for sustainable food production. That enables us to keep momentum on the path to a resilient and more sustainable farming sector.

Environmental land management schemes will remain at the centre of our offer to farmers and nature in England, receiving £1.8 billion in the financial year 2025-26. What is more, we have announced that we will rapidly release £60 million through the farming recovery fund, which will support farmers, including those on family farms, affected by the unprecedented extreme wet weather last winter. Roughly 13,000 farm businesses, including family farms, will receive an exceptional one-off payment to help with severe flooding.

The Government are also investing £208 million to protect the nation from disease outbreaks that threaten the farming industry, our food security and, crucially, human health. All of that is part of the Government’s new deal for farmers. On a UK-wide level, we are working to cut red tape at our borders and get British food exports moving again—protecting farmers from being undercut by shoddy trade deals done by the previous Government. We will lower energy bills for farmers by switching on GB Energy, and introduce grid reform to allow them to plug their renewable energy into the national grid.

We will use Government purchasing power to back British produce so that half of our food in hospitals, Army bases and prisons is locally produced and all certified to high environmental standards. We will introduce a land use framework that balances long-term food security with nature recovery. Critically, we will introduce the first ever cross-Government rural crime strategy to crackdown on antisocial behaviour, fly tipping and GPS theft—a subject on which I have spent many happy hours in the Chamber.

I will address the agricultural property relief changes head-on. There has been a huge range of figures and analysis quoted on all sides. The Treasury’s figures show that 500 estates a year will be affected. That is based on the hard data of actual claims, a figure that is endorsed by the independent Office for Budget Responsibility. It includes the impact of APR, business property relief, nil-rated inheritance allowances, and other capital allowance. The Government have engaged and will continue to engage with the NFU, the CLA, the Tenant Farmers Association, MPs and other stakeholders on the issue. The reforms will not be introduced until April 2026, so there is still time for farmers to plan for the changes and get professional advice on succession planning.

[Jim Shannon]

My hon. Friend the Member for Upper Bann (Carla Lockhart) and I have both contacted the Ulster Farmers Union in Northern Ireland. We have spoken to John McLenaghan, the legal officer, who told us clearly that 65% of farmers in Northern Ireland will be impacted. With great respect, when I hear his legal opinion and the opinion that the Minister has just referred to, there is a chasm of difference. Somebody is telling porkies—I do not know who it is.

[Mary Creagh]

With any fiscal change, we look at the previous year’s figures to see what the impact will be. I am not going to get into the analysis around the figures—I want to make some progress. Those figures have been verified by our independent fiscal authority, the OBR.

We know that the current-use rules have been used by wealthy landowners to avoid inheritance tax, and currently the largest estates pay a lower inheritance tax than smaller estates. That is not fair or sustainable.

[Perran Moon]

Does the Minister agree that it falls to this Government, following the abject failure and economic incompetence of the previous Government, to deal with the rampant speculative acquisition of farmland by closing the tax loophole that has been exploited for too long, and that if the Conservatives really cared about the future of farming, there would be more than one Conservative MP here, with the exception of the shadow Minister and the Chair?

[Mary Creagh]

I thank my hon. Friend for that intervention, which sets out why the Government are better targeting tax reliefs: to make them fairer and to protect the smallest family farms. We believe that that is a fair and balanced approach that safeguards small family farms, while also fixing the public services that farming families rely on. Those families will be able to pass the family farm down to their children just as previous generations have always done.

I will quickly make a couple of other points. The hon. Member for Upper Bann mentioned Bovaer, the feed additive. We know that agriculture is one of our largest emitting sectors, and we consider that methane-suppressing feed products are an essential tool in the decarbonisation of the agricultural sector. Bovaer was approved by the Food Standards Agency in April 2024 for use in the UK as a feed additive. The authorisation process assessed evidence about animal health, consumer health and environmental safety, and the evidence that was provided to demonstrate the methane reduction efficacy of the product. Bovaer is fully metabolised by the cow and is not present in milk or meat, so there is no consumer exposure to it. I hope that reassures her about Bovaer.

I will also discuss the carbon border adjustment mechanism, which was mentioned by the hon. Member for Chichester (Jess Brown-Fuller). Its introduction, including on imports of specific fertiliser products, was announced by the previous Government in December 2023, but it will not come into force until 2027. It is intended to address carbon leakage, which is the movement of production and emissions from one country to another due to different levels of decarbonisation effort. About 70% of UK agrifood imports come from the EU, and fertiliser used by EU farmers will have already faced a carbon price. Many non-EU imports cannot be produced in the UK, so the Treasury expects that the impact on UK farmers will be modest and that there will be no material impact on food prices.

On capital grants, we have seen an unprecedented demand, and we will continue to process the applications that have already been received and accept new applications for woodland tree health grants. Capital grant plans and management plans are important to help Countryside Stewardship Higher Tier arrangements, protection and—