Agricultural Transition Plan

Tonia Antoniazzi Excerpts
Monday 30th November 2020

(3 years, 5 months ago)

Commons Chamber
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George Eustice Portrait George Eustice
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My hon. Friend makes an important point. We are absolutely committed to domestic food production and the crucial role that that plays towards our food security. The Agriculture Act 2020 requires that every three years, there will be a review of our food security, and that will look at the viability and profitability of our domestic food production. The paper that we have published today sets out plans for a farm investment fund that will have a whole suite of grants available to support farmers to produce food in a more cost-effective way and to add value.

Tonia Antoniazzi Portrait Tonia Antoniazzi (Gower) (Lab)
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The Secretary of State continues to say that he has maintained the budget for the devolved nations. However, farmers in Wales will be £95 million short compared with if they were still in the EU, due to what would have been a crossover of the programme. I find it quite tedious that the hon. Member for Montgomeryshire (Craig Williams) and the UK Government point the finger at the Welsh Government, who are rightly acting in accordance with the EU rules for agricultural funding until 2023, which the National Farmers Union of Wales confirmed with me just over an hour ago. Will the Secretary of State back up the promises that he has made to farmers and rural communities in my constituency of Gower and across Wales?

George Eustice Portrait George Eustice
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The confusion on this stemmed from the fact that the EU budget runs on a cycle called n+3, where n is seven years, so effectively, the EU budget is across a decade. The budget that we have announced is across a Parliament and we have guaranteed the same in each year. A typical spending review cycle is five years. We cannot compare a 10-year EU budget with a five-year UK one that will be renewed at the end of that. The reality is that we have set a favourable exchange rate that is 22% higher than before the referendum result, and that benefits farm incomes. The reality is also that the European Union has had to slash spending on agriculture by 10%.