Single Payment Scheme

Debate between Mel Stride and Jeremy Lefroy

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.