Support for Farmers

Tim Farron Excerpts

Wednesday 21st October 2026 Commons Chamber

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

I beg to move,

That this House regrets the Government’s chaotic opening of the Sustainable Farming Incentive (SFI) 2026 application window on 22 September 2026; notes that the scheme’s budget was exhausted within hours, leaving many farmers unable to apply after months of preparation; further regrets the previous Government’s decision to design the SFI on a first come, first served basis and its post-Brexit trade deals with Australia and New Zealand, which fundamentally undermined British farmers, their £358 million underspend in agricultural budget, and decisions to effectively cut farmers’ incomes in their approach to phasing out direct payments; further notes that the Government’s decision to accelerate the direct payments phase-out whilst stop-starting new schemes like SFI has left farmers with no universal payment offer for the first time since 1945; also regrets the Government’s changes to Agricultural Property Relief and cuts to the Department for Environment, Food and Rural Affairs and farming budgets; also notes that the lack of an effective payment scheme for farms has undermined their profitability and the UK’s ability to produce food, recover nature and adapt to climate change; notes that farmers are deeply concerned about surging input costs, the impact of the Carbon Border Adjustment Mechanism on fertiliser costs, the impact of consecutive bad harvests and the looming crisis in the pig sector; and calls on the Government to guarantee long-term funding for all eligible SFI26 applicants, reverse the family farm tax, and commit to an additional £1 billion a year to properly fund environmental land management schemes.

If there was a thin silver lining to Brexit—and that is an “if”—it was the opportunity to design our own bespoke system to reward and support farmers, to care for our environment and to feed our country, but every farmer, certainly in England, knows that at the heart of this debate is the utter, inexcusable failure of both Conservative and Labour Governments to deliver an effective post-Brexit farm payment scheme. That failure has undermined farm profitability and the UK’s food security. It is two and a half years since the Conservatives left office, yet, as Halloween approaches, that Government still loom as a spectre over our rural communities, haunting us all, because this Labour Government refuse to exorcise that ghost, clinging instead to the ghastly Conservative policies that did so much to damage our farmers in Westmorland and beyond.

I am in no risk at all of overstating when I say that the last Conservative Government did more harm to British farmers and British farming than any other in UK history: trade deals with Australia and New Zealand that threw our farmers under the bus; a botched Brexit deal that ended overnight British farmers’ access to their biggest external market; and the reckless, rushed removal of the basic payment scheme while new schemes were falteringly introduced at a snail’s pace. Those new schemes have mostly placed hundreds of millions of pounds of taxpayers’ money into the hands of huge non-farmer organisations, while family farmers saw their incomes plummet, such that hill farmers in Cumbria now “enjoy” an average income of less than half the minimum wage—and that is if you assume that they work for 40 hours a week, when it is nearer 90.

I do not know if the Conservatives’ attack on our countryside, taking money away from family farms and putting it into the hands of a few large landowners, was deliberate or incompetent, but the results are the same either way—those who we rely on to feed us being treated like dirt. The Liberal Democrats tabled this motion today because I want farmers to know that this House cares about them; that we think that those who get up early each day to feed our country and to protect our planet do the most awesome job in the world; and that they are valued and respected, and that we want a system that reflects that in practice.

This debate follows the debacle of the sustainable farming incentive window in September. That catastrophically short window was a long time coming.

[Dr Roz Savage (South Cotswolds) (LD)]

I left party conference when that SFI window had just opened. I went straight home to speak to my Wiltshire farmers, but by the time I got to the meeting, the window had closed. That is not acceptable, and what happened last year is also not acceptable. Does my hon. Friend agree that the Government need to give our farmers some certainty, so that they can plan accordingly around when that window will be open next year and how much money will be in it?

[Tim Farron]

I very much agree. My view is that we should be seeking to reopen a window this year, given the number of farmers who were carved out.

[Claire Young (Thornbury and Yate) (LD)]

Does my hon. Friend agree with the point, made by Latteridge Green Farm in my constituency, that decisions about how public funding is spent should be made on the merits of an application and the benefits it can bring, rather than an ability to click quickly?

[Tim Farron]

That is an issue I will come to, but what my hon. Friend says is absolutely the case. If we have a first come, first served system, then there is no assessment of the quality of bids. I am sure that pretty much all the applications were of a high quality, but differential merit was not taken into account. Farmers were excluded simply because they were milking or otherwise doing their job before the window closed.

The SFI was—I think the record will prove this—essentially set up to replace the basic payment scheme. It was implemented disastrously because it was designed disastrously. The Conservative Government failed even to spend the SFI budget when they were in power, underspending the allocation by £358 million. That is money that should have gone to support our farmers and to keep the promises made to them during Brexit—promises that have been broken.

Then, in March 2025, with absolutely no notice, this Labour Government closed the SFI programme for the year, leaving hundreds of farmers outside with absolutely nothing. The Minister at the time, the hon. Member for Cambridge (Daniel Zeichner), is not in his place. I must say that, before his removal, he was becoming an increasingly important advocate for farmers within Government. He apologised for the closure of the SFI, explaining that the scheme was a good one, but that because the application process inherited from the Conservatives was first come, first served, funds were being allocated neither wisely nor fairly, as my hon. Friends have already highlighted.

I remain outraged at that closure in 2025, but the former Farming Minister’s point about the Tory’s first come, first served process is well made. A first come, first served process means that Government funding is allocated randomly at best, not achieving best value for the taxpayer. Even worse, it means that funding disproportionately goes to those farms that are big enough to be able to afford land agents, to be able to have a large farm staff, or to be able to spend much time away from farming to fill out forms. Meanwhile, farmers working 90 hours a week up Langdale, up Longsleddale or in the Eden valley, producing our food, caring for our countryside, with low incomes, get systematically shut out by accident or by design; the impact remains horrific either way.

The Government pledged to learn lessons from the 2025 disaster, so along came 22 September this year, when sustainable farming incentive funds ran out and the drawbridge got pulled up after less than six hours. I have spoken to hill farmers, protecting some of the world’s most epic landscapes but struggling with dodgy wi-fi in their valley so they got nothing. I have spoken to dairy farmers who just popped out to tend their cattle and got back to their computer to discover that they had got nothing. I have spoken to land agents, heartbroken and ashamed that the majority of small farms that they bid on behalf of had got nothing. There are farmers who had all their basic payment taken away and had literally nothing else to look forward to apart from the SFI, yet the system closed in less than a day and they got nothing. The Government have learnt nothing from the damage the Conservatives did, so will the Minister return with a scheme this autumn that ensures that farmers who had viable SFI applications are funded and not left out in the cold?

[James Naish (Rushcliffe) (Lab)]

I think the hon. Gentleman missed out SFI window 1 in his description.

[Tim Farron]

There was indeed an SFI window earlier in the year, but the bulk of applicants were aiming for SFI window 2 in 2026, and of course a huge number of them were cut out simply because of the way in which the system was set up.

Liberal Democrats are determined to put this right. With our biggest parliamentary presence in this place in more than a century, we humbly seek to be in government after the next election. Should we be so, we will be determined to lead the Department for Environment, Food and Rural Affairs, and we would reform the SFI so that every farmer was allocated a sum via the SFI consistent with the capacity of their farm. That money would be theirs to claim within a long window, so long as they submitted a compliant claim that demonstrated delivery of public goods. There would be no competition as to who could press “send” the quickest.

The failings of our farm payment system go far beyond the SFI disaster. At its foundation, this Tory-designed, Labour-delivered scheme is woefully flawed for one fundamental reason: they have given us a farm payment scheme, the bedrock of our agricultural policy, that—would you believe it?—actively disincentivises the production of food. What utter and complete madness. When Britain’s food security is more at risk than at any time since the last war, we now have a farm payment scheme in England that fails to support farmers to produce food. At a time when every other country in the UK and every country in the European Union does provide that support, England is the odd one out. We are failing our farmers and we are failing our people as we sleepwalk into no longer being able to guarantee that we can feed our country.

Effectively locking small farmers out of the farm payment scheme is socially unjust. It damages our food security, and it also damages our environment. Many farmers I have spoken to in Westmorland and beyond who have been excluded from the SFI and other schemes are so utterly demoralised and angry that they will now just turn their back on environmental schemes altogether. These are people who have been champions of nature-friendly farming, and whose parents and grandparents have spent decades promoting environmental responsibility on their farms. They do not want to turn their back on sustainable farming, but they have got to pay the rent and feed their kids somehow. An SFI delivered well could have brought every single farmer who had received the basic payment in the past into the environmental big tent. Instead, this combination of cruelty and incompetence leaves thousands outside in the cold, and we cannot now blame them if they choose to intensify and undo the good environmental work of generations that preceded them.

Liberal Democrats would reverse the banking tax cuts from the last Parliament and use a portion of that revenue to boost the environmental land management scheme budget by £1 billion. We would allocate an SFI sum to every farm, which would be theirs to claim. We would therefore maximise the number of farms inside environmental schemes, protecting nature, improving water quality, sequestering carbon, protecting urban areas from flooding, and providing access and enjoyment to the millions who visit the lakes, the dales and the rest of Britain’s beautiful countryside. We would revoke the Labour-Conservative consensus by finally making the production of food a public good, funding it as we should and starting the journey back to food security.

To be parochial for just a rare moment, the English Lake District was awarded world heritage site status in 2017. When UNESCO made that award, in its assessment of the beauty of those towering landscapes it gave as much credit to the farmers who shaped them as it did to the glaciers that carved them. For a millennium at least, our land has been curated, tended, moulded, protected and nurtured into producing the food that fuels each one of us. How short sighted is it to put all of that at risk?

To be personal, the loss of a basic payment, and the failure to include thousands of family farms in replacement schemes as funds instead gravitate to the big estates and the huge non-farmer organisations, has left many families back home in Cumbria bereft. I mean not just financially bereft, but deep heartbroken despair. Just think what it might feel like for if someone’s family had farmed their valley for generations, maybe centuries, and yet now it looks like the farm will be lost on their watch because of all this. Imagine the anxiety and the shame, the isolation—in every sense of the word—and the overwhelming desolation that there is nowhere to turn.

Thanks to the Farmer Network, RABI and young farmers’ clubs there are places to turn. But in this House today, we can choose to say to our farmers that we will stand with them too, that we are grateful to them for feeding us and keeping Britain beautiful, and that we will match those words with actions. Maybe there are Members who think, “Well, I haven’t got any farms in my constituency, so this isn’t relevant to me,” but I will tell them this: 100% of our constituents eat food, and so farming matters to them and to all of us—yet this place too rarely acts like it believes that. Today, we give Members the opportunity to affirm that they do.

Seventy per cent of England’s land mass is agricultural. If we are serious about tackling climate change and protecting our environment, we must start there, by motivating and including all of our farmers to be on the frontline for that fight, not locking them out, or demoralising and excluding them. In an increasingly volatile and uncertain world, Britain is less than 60% self-sufficient in food. That is terrifying. And yet we have thousands of farmers out there ready to meet the call, if only we did call. The Liberal Democrats present this motion to the House because British farmers are the best in the world, and the best farmers in the world deserve the best support.

--- Later in debate ---

[Robbie Moore]

What Government Members do not seem to understand is that when a highly sought-after scheme is closed, which is exactly what happened under this Labour Government in March 2025, demand inevitably builds up. That was coupled with the budget being reduced significantly. There was 18 months of this Government sitting on their hands, enabling demand to build. What was the result? When the scheme finally opened, it became a competitive scheme. On this Labour Government’s watch, it was “first come, first served”; those who got in were those who could press “send” the fastest. This Labour Government knew what the consequences would be, as was reported in The Times yesterday, but they carried on regardless. The result: approximately 40,000 farmers tried to get into the scheme, but only 12,200 were successful. The application window was slammed shut after just five and a half hours, all because the money had gone.

Last week, I stood in this Chamber and asked the Farming Minister very simple questions, but there were no answers. I will try again, so that he can address these in his summing up. The expiring agreements were worth more than £520 million, yet the SFI budget was cut to just £310 million. Where has the additional £210 million gone? It is vital that clarity and reassurance be given to our farmers. When will the Minister open SFI27? It is not good enough to say, “As soon as possible”; we need clarity. What will the Minister do for those who have agreements that are expiring, to stop the cliff edge in their cash flow? What budget has the Minister set aside for SFI27?

We must all remember that this situation comes on top of the Government’s disastrous decision to reduce de-linked payments dramatically, far more quickly than was ever agreed, to a measly £600 per farming business. I suspect that it costs the Government more in administrative charges to distribute those payments than it benefits each farming holding. Our farming businesses now feel the pain, financially and emotionally, as they struggle with their cash flow.

SFI is not some isolated incident; it is part of a pattern. Before Labour broke the SFI scheme, it crushed the family farm with its disastrous family farm and family business tax. Before the election, those on the Government Benches looked farmers in the eye and told them that they had no plans to change agricultural property relief and business property relief. In Labour’s very first Budget, which was its first opportunity to show rural communities up and down the country that it cared and understood them, it did not. It brought out the family farm and family business tax—a vindictive tax that strikes family farming businesses at their worst moment.

Each and every Labour MP who voted again last week to keep the family farm and family business tax should be ashamed of themselves. The narrative is, rightly, that there has been a partial U-turn—the threshold at which the tax applies has been raised from £1 million to £2.5 million—but that simply does not go far enough. Now, bizarrely, a person’s marital status can raise the threshold to £5 million. That seems ridiculous. Once the farmland, the farmhouse, the growing crops, the stocks, the machinery, the crops in store and the livestock have been valued, the value of a traditional farming business will be well above the £2.5 million threshold. That exposes any hard-working family farming business to an inheritance tax liability that they simply will not be able to afford. This was completely ill thought through.

That brings me to the Liberal Democrat motion before us, which only states that they regret

“the Government’s changes to Agricultural Property Relief”.

It makes no reference to business property relief. I thought that we were aligned on this issue, but clearly we are not. Many farming businesses rely heavily on business property relief. It covers trading assets not covered by agricultural property relief, including machinery, livestock, harvested crops and any rural diversification projects, including farm shops and holiday lets, so I am incredibly surprised that the Lib Dems do not also regret the Government’s changes to business property relief.

[Tim Farron]

I am sure that the hon. Gentleman is at least as au fait with Liberal Democrat manifesto policies as I am, so he will know that we oppose the family business inheritance tax changes as well. He will also know, having been here a reasonable amount of time, that there is a word limit on these motions; that is why those changes are not mentioned.

--- Later in debate ---

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

I thank hon. Members on both sides of the House for their contributions throughout the debate, and for sharing issues raised by farmers and rural communities across our country. I also thank the Liberal Democrat spokesperson, the hon. Member for Westmorland and Lonsdale (Tim Farron), for raising these important matters.

Let me reiterate the words of my excellent fellow Minister, my hon. Friend the Member for Suffolk Coastal (Jenny Riddell-Carpenter), in her first speech at the Dispatch Box: we know how hard this year has been for farmers. Behind every statistic about drought, input prices or farm income is a family making difficult decisions about crops, livestock bills and their future. We set out our farming road map because farmers have repeatedly asked for clarity and certainty, and we are delivering that. The road map sets out this Government’s strategic vision for farming. We want profitable, productive farms that are better able to withstand volatile weather and markets, and geopolitical shocks. The road map also sets out that domestic food production will be maintained at least at current levels, while nature recovery, economic growth and the responsible use of land and resources are supported. That is supported by the strong financial settlement that DEFRA secured in the 2025 spending review.

Across this Parliament, the Government have allocated a record £11.8 billion to sustainable farming and food production, including £788 million this year alone in new funding for farmers to boost farm productivity, develop cutting-edge technologies to drive future growth, and maintain a healthy natural environment. Where this year has exposed vulnerabilities, this Government have responded. We have made drought flexibilities available, supported investment in farm reservoirs and added funding to the SFI26.

I thank the Chair of the Select Committee, the right hon. Member for Orkney and Shetland (Mr Carmichael) —he is back in his place—for his interventions. I think he is right to recognise the optimism and resilience of our nation’s farmers. I wholeheartedly support that view, as do so many Members in this House. I very much agree with what he said about the value of providing greater certainty to the sector; we are very much doing that through our farming road map. It sets out the Government’s vision for driving more a profitable, productive, sustainable and resilient farming sector, and we are doing that in partnership with the sector, via our partnership board and the sector growth plans.

Members spoke about the SFI, this year’s two windows and the learning for future years, and I thank all Members who have offered practical ideas for its delivery in future. We also recognise where things have not worked as farmers would have wished. The speed with which the SFI26 window closed last month caused real disappointment, and I do not dismiss that frustration. I recognise the concerns raised by Members across the House, and the specific examples that they have given. Demand substantially exceeded the funding available, and we must learn from that experience as we work with the sector in partnership on SFI27. Working through the options, following my confirmation that we have scrapped the “first come, first served” approach, is absolutely a priority of mine.

[Tim Farron]

In March 2025, the last time the drawbridge was pulled up with no notice, the hon. Member for Cambridge (Daniel Zeichner) said that we must not do first come, first served again. We have just done that, so what guarantees can the Minister give us that next time around it will not be first come, first served? All the same, can he ensure that the window will come very, very soon?

[Stephen Morgan]

I thank the hon. Gentleman for that intervention. He will know that we made a number of changes to improve the scheme this year. He briefly mentioned those in his opening remarks, but I have been very clear that we need to learn lessons from this year’s scheme and that means a commitment on scrapping the first come, first served approach and bringing forward SFI27 as early as possible.

A number of Members also expressed concerns about the impact on farmers of trade deals done by the previous Conservative Government. Let me be clear: this Government will always act in the national interest to protect Britain’s farmers and secure our food security. We will never lower food standards and we will uphold the high animal welfare standards that our country expects. In the last year alone, we have reached agreement on new trade deals with India, the Republic of Korea, the Gulf Cooperation Council and Switzerland. All those deals strike a balance: they open new opportunities for UK businesses and help diversify supply chains, while also protecting the UK’s most sensitive sectors.

A number of Members have been interested in the SPS agreement with the European Union. I want to thank the hon. Member for South Northamptonshire (Sarah Bool) who is not in her place currently—[Interruption.]—there she is—for the issues she raised. The EU remains the UK’s biggest and closest export market, offering major opportunities for British food and drink businesses to reach millions of consumers. Yesterday, I was at the SIAL trade show in Paris, meeting businesses from every corner of the UK who want to increase their exports to Europe. The SPS agreement will reduce costs and delays for both UK and EU exporters and importers at the border, supporting the UK’s food supply chains and security. It will make agrifood trade with our biggest market cheaper and easier, cutting costs and red tape for British producers.