Agriculture

Oliver Heald Excerpts

Monday 13th May 2024 Commons Chamber

[Tim Farron (Westmorland and Lonsdale) (LD)]

Like the official Opposition Front-Bench team, we do not seek to oppose this SI, not least because we do not want to give the Government any excuses to be slower in the roll-out of the new schemes than they already are, but it is absolutely right that we do not allow this moment to pass without there being a debate because I would not wish anybody either in this place or elsewhere to think that the roll-out of ELMS was going well—for most farmers it is going the opposite of well.

Britain desperately needs its farmers. Whether in Westmorland, in my own communities or across the whole of the country, we need our farmers to protect the built-up areas around rural Britain and in our urban areas from flooding, with water retention and all the other things we can do to slow the flow in the uplands. We need our farmers for developing biodiversity and for tackling the greatest need, which is greater carbon sequestration. We need them because of our landscape heritage and because of tourism. Twenty million people visit Cumbria every year. It is the biggest destination in the country outside of London. They visit not just because the hotels are great, but because the landscape is epic. In the Lake district, we were given world heritage site status not many years ago and the UNESCO document granting it world heritage status gave as much credit to the farmers for how the landscape looks as it did to the glaciers that carved those valleys in the first place. So we are desperately in debt to our farmers, both in our neck of the woods and across the country, for various reasons, but none as great as the fact that they feed us. We see too little focus on the fact that Britain’s farmers are first and foremost food producers in our discussion of public policy. This transition has been botched to the detriment of our farmers, to our ability to deliver environmental goods and especially to our ability to feed ourselves as a country.

At the last general election, £2.4 billion was the pot set aside for England’s farmers. We know of course that £2.4 billion now is worth an awful lot less than £2.4 billion four and half years ago, in large part because of the behaviour of this Government in trashing the economy, fuelling inflation and therefore making everybody’s pound in their pocket worth significantly less, but no more so than in the case of Britain’s farmers.

Over the last two years, £400 million of that £2.4 billion each year has been unspent, which is utterly inexcusable. There is a danger in this, which I am almost scared to say publicly, although I do not imagine the Treasury has missed it: when the Treasury, whether in the hands of the party now or in those of a party that might be in power soon, sees that a Department cannot spend its budget, it asks questions about whether that Department needs its budget. Britain’s farmers need every bit of that £2.4 billion and more, yet the incompetence of this Government to spend the money set aside for farming and the environment via agriculture means that we are putting farming at risk generations ahead. The Minister’s reply to a written question from me just last week confirmed that last year the Government underspent by more than £200 million—that was just in one financial year.

Therefore, there is a range of things that are the fault of this Government which put our farmers at risk and under pressure, and seriously put at risk our ability to feed ourselves in this country and care for our environment. Then there are some things that are not the Government’s fault. I do not blame the Government for the weather, I am sure the Minister will be pleased to hear me say. [Interruption.] The hon. Member for North Herefordshire (Sir Bill Wiggin) says I am not trying hard enough. I will perhaps find a way of blaming the weather upon the Conservative party. But, no, I do not blame the Government for the weather. However, we need to accept the consequences of the unusually wet weather of the past few months on farming in every part of the country, including those where the weather was not so awful, because the reality is that it has an impact on our ability to sow crops. We have seen crops rotting in the fields, unable to be reaped. The impact on arable farming is obvious, but the impact on livestock farming is also huge. The availability and affordability of straw and other forms of animal feed later in the year and next year are particularly precarious. We have already talked about inflation, the cost of living for farmers and how margins are massively under pressure, but if feed prices go through the roof over the next year or so because of this weather, it will put our farmers into serious problems.

Let us not forget that livestock farmers have seen a massive impact, by which I mean the awful tragedy that in my constituency the 2% average rate of lamb mortality—that is always utterly tragic and heartbreaking for farmers and their families—is up to 15% this year because of the weather. We can imagine what that is like for farmers and their families as they deal not only with that mortality, but what that does to their businesses.

Alongside our compassion for farmers struggling through these terrible circumstances, we need to be aware of what the situation is doing to the cash flow of our farms. We hear the Government saying, “Right, there has been an underspend of £400 million over the past couple of years. We will get it out the door by grant support”. Grants can be useful. In the lakes and the dales in Cumbria, farming in protected landscapes—FIPL, as we refer to it—has been a positive thing. Some grants have done a lot of good for the farming sector, but let us not forget that, with most grants, the additional money will only be available after the election anyway, so it will not help people in the here and now, and we are expecting most of these grants to be delivered to farmers who can co-fund the project. If farmers have no money, what are they co-funding with?

It is more important that we think more intelligently about how we can support farmers with their cash-flow needs during this difficult time. The Minister says the cake is the same size, but is being distributed differently. I am afraid that for farmers the cake is not the same size for the time being. I have talked about the inflationary impact shrinking the size of the cake, but the fact is that several slices of the cake are stuck in the Treasury and are not out there with farmers, who see no sign of them.

One of the reasons we do not oppose this statutory instrument today is that, like everybody in the House today, we agree that ELM schemes are a good thing in theory. I have said it before, so I do not mind saying it again: as we search high and low for Brexit benefits, this potentially is one of them. The common agricultural policy was indefensible for all sorts of reasons, some of which the Minister spoke about. The ability for Britain to design a scheme that is better is absolutely to be lauded, which is why it is so frustrating that we are missing that opportunity so badly. The underlying principles of public money for public good is something that farmers across the country absolutely welcome. I welcome it, as do communities across Westmorland. What is deeply troubling is that the production of food in a country that only produces 60% of what it eats is not seen as a public good. That is criminal, ridiculous, foolish and unwise.

We are talking about the roll-out of ELM schemes and how we make these new schemes land. Among the positive projects is landscape recovery. We can see lots of good potentially coming through it. I saw a very good scheme up Kentmere just a few weeks ago, but I have also seen schemes rolled out badly and poorly, to the detriment of our environment, communities and farmers. I saw the failure of a landscape recovery scheme in the Lyth valley that the Winster farmers were supportive of. It failed because it wanted to keep productive land dry. We should not be putting public money into stopping productive agricultural land being used for agricultural purposes. We should be making sure that less productive land is used for environmental purposes and that we bring farmers with us. When farmers see themselves principally as food producers, we need to work with their motivations to do good for the environment.

Bringing in these changes, particularly landscape recovery, before the Government have enacted many of the most serious and important of the Rock review’s recommendations seems to be putting the cart before the horse. It is good that the Government embrace Baroness Rock’s proposals for a code of practice for tenants and landlord relationships, but they have so far shown no sign of introducing a tenant farmers commissioner. I tabled a private Member’s Bill calling on the Government to do just that. There is no point having a code, rules and regulations without a referee to enforce them and to protect tenants.

What troubles many of us at the moment, as has been mentioned, is that farmers are facing a frightening transition. For a variety of reasons—including the fact that 50% of farmers’ basic payment will be taken by the end of the year—livestock farmers’ incomes have reduced by more than 40% just during this Parliament. Who in this place could live with a 40% drop in their income in four years? It is outrageous. We need to take action here to defend that cash flow.

[Sir Oliver Heald (North East Hertfordshire) (Con)]

I wonder where the hon. Gentleman stands on the issue of how many sheep there should be in the Lake district. As he will know, there is a lively debate about whether the numbers should be reduced, and the future of the Herdwick. I would be grateful to know his views on that.

[Tim Farron]

As I said, our landscape in the Lake district is crafted by many hands, including sheep. I am deeply concerned that we may see the complete destocking of some of our fells. There is a notion that somehow we are overstocked—we probably were during foot and mouth, but that is more than a generation ago. There may be some give and take about what the numbers should be in different valleys, but I am deeply concerned not to see the roll-over of the stewardship schemes, because to continue in a scheme, folks are being asked to lose up to 80% of their stock. Let us ensure that we do things that work with the motivation of our farmers. We can do a woodland pasture, for example, and carbon sequestration and livestock farming can continue at the same time. If we do not work with farmers, we will not deliver environmental goods. I share the concerns that I suspect the right hon. and learned Member for North East Hertfordshire (Sir Oliver Heald) has.

Let us look again at what has been discussed, and some of the proposals from other places. The hon. Member for Croydon North (Steve Reed) talked about the NFU’s proposals, which I think have been slightly misunderstood. The NFU says that one way to get cash into farmers’ pockets is to pause the cancellation of the basic payment system for the next year or two. That is not pausing the roll-out of ELMS—I want the Government to speed up that roll-out. I want more people in stewardship schemes, landscape recovery and SFI. The fact that 100% of farmers in my community are losing their basic payments but only one in seven of them is in an SFI scheme tells us all we need to know about why farm incomes are plummeting.

The proposal is worth taking into consideration. We could come up with a cleverly worked out, bespoke scheme to support farmers though this terrible period. How many months would that take to put into practice? How hard would that be to make work? We could do grant support, as the Government propose, but that will not happen until after the election. In any event, unless farmers have the money up front, the grants will be of little value to them. There is great merit in the NFU’s proposals and I ask the Secretary of State and the Minister to consider them, in thinking that we can continue to roll out ELMS and green our farming programmes, but not threaten the livelihoods of farmers in the interim. My great fear is that we are forcing excellent farmers out of the system, or they decide that the only way to keep the wolf from the door is to double their livestock numbers to take advantage of lamb and beef prices, and therefore opt out of environmental schemes all together. That would be completely counterproductive to what the Government, all the environmental groups and we rightly want.

It would be far better to ensure that we keep farmers farming. It would be tragic to see hundreds, if not thousands, of farmers around our country—hundreds in my communities alone—whose families may have farmed those valleys for generations, feel that because of this moment of flux botched by this Government, they might be the one to lose the family farm. How heartbreaking, terrifying and shaming would that be to many people in my communities and beyond? Let us protect those people’s mental health, wellbeing and their ability to feed us.

The greenest, most environmentally positive thing that this or any Government could do is to keep Britain’s farmers farming to feed our country. By doing so, we ensure that we do not import excessive amounts of food and damage the environment through all the extra carbon miles entailed, and we do not displace our demand on to other countries, many of which are poorer. We should not rob the poorest people of this world by raiding the commodity markets because we cannot afford to feed ourselves. The best environmental policies on the planet are but useless bits of paper in a drawer if we do not have our farmers, from Westmorland to every corner of this great country, delivering them. The botching of the transition is causing heartache, pain and poverty in my community. It is robbing us of food production for the country as a whole. It is damaging our environment and the Government need to listen to our farmers.