Single Payment Scheme

Mel Stride Excerpts

Wednesday 8th June 2011 Westminster Hall

[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.”

[Mel Stride (Central Devon) (Con)]

I congratulate my hon. Friend on securing this important debate. On subsidies, does he agree that hill farmers in particular represent a special case, given their incomes relative to those of lowland farmers? If we are to encourage young people, to whom he has referred, to get involved in farming in such a context, it is important that we do more.

[Jeremy Lefroy]

I entirely agree. That is a particular concern in my hon. Friend’s constituency in Devon. I do not have hill farmers in my constituency—I do not have enough hills—but in nearby Staffordshire Moorlands we do. If I understand the statistics correctly, hill farmers have suffered the greatest decline in income in recent years—the decline is greater than for any other form of farming. The problem with the single payment applies in particular to smaller farms in the livestock sector. It has been estimated that in 2009 59% of all farms would have been loss-making without their single payment; in the livestock sector the figure was even higher at 87%.

Last week, I had the privilege of attending the Staffordshire county show in my constituency. At the same show, some years ago, I met the Minister for the first time—he kindly came along and showed his support for Staffordshire farmers, as he does for farmers up and down the country, which all of us welcome. Talking to farmers at the show, many of whom have smallish holdings, it was quite clear that without the single payment they would eventually go out of business.

The single payment is essential for the short-term sustainability of agriculture. In the longer term, one might argue that farmers should look to diversify their income so as to reduce and eventually eliminate the need for support, and that that continuing support somehow makes them put off that evil day—or that day. However, no hon. Members who have farmers in their constituency agree with that. Farmers are constantly looking at ways of diversifying their income away from food production. They are taking matters into their own hands, and they do not want to rely on subsidy, in the same way that any other private business man or woman does not.

In any case, the single payment is not simply a subsidy. The payment recognises the vital public functions carried out by farmers: the management of the land in a way that provides an attractive and diverse landscape for those who live in the countryside as well as for visitors; and sustainable production, which meets the highest standards of food safety, traceability and animal welfare.

--- Later in debate ---

[Rory Stewart]

I have little to add to the brilliant exposition by my hon. Friend the Member for Stafford of why single farm payments are so vital to everybody. We see that every day in Cumbria, where such payments are vital for the support of our hill farms; in some areas, about 93% of farms would go bust if they did not receive the single farm payment. The entire agricultural economy depends on those payments and, as my hon. Friend suggested, they stretch into every area including the governance of agricultural colleges. The fight in my constituency is to protect Newton Rigg, our agricultural college, from having its assets stripped in a takeover.

I do not need to emphasise the problems faced by all farmers. There is no need to talk today about the horrors of the Rural Payments Agency, but all strength to the arm of the Minister for the steps that he has taken to sort it out. The system is totally unacceptable and debilitating for so many of our farmers.

[Mel Stride]

On the RPA, farmers in my constituency constantly complain about bureaucracy and red tape. Does my hon. Friend welcome Richard Macdonald’s recent review on cutting red tape and its 200 recommendations, and will he urge the Government—as I will—to take up those recommendations with some vigour?

[Rory Stewart]

Absolutely. The second area connected with red tape is, of course, the effects of these environmental schemes. Whether we are talking about cross-compliance or stewardship schemes, we exist in a world often of craziness, of indigestible tufts of grass emerging, of self-seeding oak plantations that never self-seed and of floodplains that never flood, because of a lack of local flexibility, so I again congratulate the Minister on pushing for more local flexibility. However, the short point that I wish to make is about our diplomatic initiative.

The really big game in the end is not the red tape; it is ensuring that we get 2013 right, that we team up with the right partners in Europe, that we are there with the Germans, that we understand the French position and that we are winning that diplomatic fight. That will not be done just by the NFU or by the Department for Environment, Food and Rural Affairs; it will be done by the Foreign Office. We must invest in our embassies. We must invest in ensuring that the European countries are not ahead of us in that game—in ensuring that we get the best deal possible for British farmers through diplomatic enterprise in Europe.