Farming

Victoria Atkins Excerpts

Thursday 13th March 2025 Commons Chamber

[Victoria Atkins (Louth and Horncastle) (Con)]

I congratulate the right hon. Member for Orkney and Shetland (Mr Carmichael) on securing this important debate. I thank him for bringing his expertise as Chair of the Environment, Food and Rural Affairs Committee to the discussion. May I welcome, although I am not supposed to, the farmers in the Public Gallery who have been known making their views, not all of them terribly happy, about various contributions during the debate, and the tractors outside? We cannot hear the tractors in the Chamber, but they have been tooting as loudly as they possibly can. I am not sure the tooting is to welcome the SFI scandal that emerged on Tuesday, but no doubt the farming Minister, the hon. Member for Cambridge (Daniel Zeichner), will be able to help us with that.

This debate should have been filled with positivity and confidence about the future of British farming. Instead, it has been overshadowed by this Labour Government’s farming fiasco. In just a few short months, this city-dwelling Government have destroyed families’ ambitions for the future, put at risk generations of expertise and custodianship and, less than 48 hours ago, ripped the rug out from underneath businesses immediately. This Government have treated farmers and the countryside with unashamed contempt, and that contempt has consequences.

The NFU announced this week that farm business confidence has reached historically low levels, and that was before the SFI scandal on Tuesday night. New tractor registrations are at the lowest level since 1998. When I visited the Lincolnshire Agricultural Machinery Manufacturers Association in January—the farming Minister apparently could not make it—manufacturers were telling me how people are not investing in new machinery as a direct result of the Budget. I am afraid RoboCrop will have to wait for the next Conservative Government.

Just as the Chancellor inherited the fastest-growing economy in the G7 and has ground it down into stagflation, so too the Secretary of State inherited a growing farming sector that had gone through massive change since Brexit, but was seizing the new farming and environmental opportunities available. After a few months of this city-centric Government, farming families are feeling “ignored, alienated and disrespected”, to use the Secretary of State’s own words. But where is the Secretary of State? I have been hunting high and low for him, but nowhere is he to be found. He had a major announcement yesterday, but he sent his poor junior Minister out to take the flak because the Secretary of State is missing in action.

Where are rural Labour MPs? [Hon. Members: “Here!”] We have heard about a rebel force—

[Several hon. Members rose—]

[Victoria Atkins]

Oh, I would not do that if I were you. We have heard about a rebel force of Labour MPs who are going to stand up to the Government on the family farm tax. This debate is their chance to show their support for their farmers, but where are they? A total of 10 Labour MPs have turned up and six have spoken—that is 1.4% of the parliamentary party.

The Labour Government’s farming fiasco policy can be summarised in three points: they will remove, without warning, farming and environmental schemes that help farms thrive and on which farms build their business cases; they will permit the state to seize farmland without consent or market value; and, if family farms manage to cling on despite that, Labour will tax farmers for dying.

Let us deal with the first point: the abrupt halting of the sustainable farming incentive and the massive cut to delinked payments. The Government sneaked the SFI decision out late on Tuesday night, before being dragged to the Dispatch Box by us yesterday. That is a chaotic and inept way for a Government to treat taxpayers, businesses and families. Yesterday, the Minister kept using the figure of £5 billion for farming over two years—2024-25 and 2025-26. Of course, the funding for the first year, 2024-25, was set by the previous Government, including the £300 million that was rolled over from the previous year. It is for Labour Ministers to set the budget for 2025-26 after the spending review. Will the Minister confirm that the DEFRA budget will not face substantial cuts in the spending review, given he has relied on that figure so much? If he cannot confirm that, then those figures are meaningless, as Ministers are counting money for 2025-26 that could be removed at a stroke by the Chancellor.

The decision on SFI has consequences, as my right hon. Friend the Member for Salisbury (John Glen) and my hon. Friends the Members for Mid Norfolk (George Freeman), for Sleaford and North Hykeham (Dr Johnson) and for Kingswinford and South Staffordshire (Mike Wood) have made clear. David from Gloucestershire, a farmer, asks the Minister whether he should simply plough up his farm and turn his back on 25 years of farming with an environmental focus. He says:

“We are a small family farm…I won’t be able to afford environmental principles, everyone loses but the environment mostly.”

We have heard from hon. Members about how farmers have contacted them because they face a financial crisis as a result of this decision, yet the no-farming Minister told them that they should be celebrating—well, the tractors outside do not seem to be tooting in celebration at his announcement yesterday.

Let us move on to delinked payments, which were cut in the Budget. Tens of thousands of farmers who are not signed up to SFI in any of its iterations are still being subjected to a 76% cut in their delinked direct payments, leaving many in cash flow crisis, including tenant farmers. That was not mentioned at all by the hon. Members for Shrewsbury (Julia Buckley), for South West Norfolk (Terry Jermy), for Cannock Chase (Josh Newbury), for Suffolk Coastal (Jenny Riddell-Carpenter), for St Austell and Newquay (Noah Law) or for Middlesbrough South and East Cleveland (Luke Myer).

An urgent issue facing the industry is the importance of biosecurity to the future of farming. The second case of foot and mouth disease in Europe is alarming, but we have heard nothing from the Government on that. Will the Minister confirm whether funding for Dover Port Health Authority has now been agreed, outline how he is preventing the rising trend of bushmeat being sold over social media platforms and explain why the Government continue to ignore our calls to increase funding for the redevelopment of Weybridge? I can reveal what the Secretary of State and the Farming Minister have been prioritising this week. They have issued a consultation not on SFI, the family farm tax or cuts to delinked payments, but on how to carry a chicken. I am sure everybody thinks that really is the national priority for farming at the moment.

Let us turn to the Government’s plans to undercut property rights and force farmers to sell their land at below market value. This is a policy that goes against the fundamental British principle of land ownership and puts food security and prices at risk—my hon. Friends set out the case on that.

We then move on to the points made about the family farm tax, which the hon. Member for North Somerset (Sadik Al-Hassan) criticised as being a distraction. The hon. Member for Suffolk Coastal seemed to be arguing for more taxes on farmers, but at least those Labour Members mentioned the family farm tax. The hon. Members for Shrewsbury, for South West Norfolk, for Cannock Chase, for St Austell and Newquay and for Middlesbrough South and East Cleveland did not see fit to mention it, because they are ignoring the facts of life on this.

As Conservative Members know, this policy is having a genuine emotional and economic toll on farmers throughout the United Kingdom. One farmer told me:

“I’ve stopped encouraging my daughter to spend time on the farm so I don’t have to have the conversation of why she can’t take over in the future.”

This Government are robbing the next generation of farmers of their future, and this is also having a devastating impact on elderly farmers. It was shared in the Senedd this week that a farmer declined cancer treatment months before his death as he wanted to make sure that he died before these changes came into effect. That is desperately harrowing, yet we are being told this week in, week out by farming organisations, all because the Chancellor—who, by the way, refuses to meet farmers—is destroying British farming with her taxation policy. This is not just about the family farm tax: it is about the family business tax, the national insurance hike, the fertiliser tax and the double cab pick-up tax, which were all set out by the hon. Member for Upper Bann (Carla Lockhart) and my hon. Friend the Member for Sleaford and North Hykeham. You name it, the Government will tax it. That is why my hon. Friend the Member for Sleaford and North Hykeham said that farmers see no future in farming under this Government. In the words of one mid Devon farmer:

“At no time in all these years have I felt so deflated with the job.”

To the farmers despairing at this city-dwelling Government: please know that we Conservatives hear you, support you and will work with you to mend the outright assault on the countryside that this Labour Government are carrying out. Together, we will build a bright future for farming.

--- Later in debate ---

[Daniel Zeichner]

I am going to make some progress, because I know that time is short. The third principle is a sector that recognises that restoring nature is not in competition with sustainable food production, but is essential to it.

On our first strand—food production—our new deal for farmers is supporting them to produce food sustainably and profitably, and we are making progress. Statistics released earlier this week show that average farm business incomes across the country are forecast to rise in the first year of this Government. That is welcome news, but we recognise that there is more to do. That certainly will not happen overnight, but over recent weeks, we have announced a series of new policies. We are extending the seasonal worker visas for five years, and we are making the supply chain fairer, an issue raised by my hon. Friends the Members for North Somerset (Sadik Al-Hassan) and for Suffolk Coastal (Jenny Riddell-Carpenter). In the next few weeks, we will see new regulations for the pig sector, making sure that contracts clearly set out expectations and only allow changes if they are agreed by all parties. Of course, we are also introducing a new regulator alongside the Groceries Code Adjudicator, building on the work of the existing regulator—the Agricultural Supply Chain Adjudicator, which is already in place.

We are using the Government’s own purchasing power to back British produce, working with the Cabinet Office to create new requirements for Government catering contracts to favour high-quality, high-welfare products that British producers are well placed to provide, as was outlined very well by my hon. Friend the Member for Shrewsbury (Julia Buckley). That will mean that British farmers and producers can compete for a fairer share of the £5 billion a year that the public sector spends on food, with that money going straight into farmers’ bank accounts to boost turnover and profits. We will never lower our food standards in trade agreements, but will promote robust standards nationally and internationally, and will always consider whether overseas produce has an unfair advantage. That point was made by my hon. Friend the Member for St Austell and Newquay (Noah Law) and by others.

We are investing in the UK agri-technology sector, and I listened closely to the comments made by the hon. Member for Mid Norfolk (George Freeman)—there is always much that we agree on. As we announced last month, we are looking to put in a further £110 million in farming grants, and we are also strengthening the wider British tech sector, a point that was made well by my hon. Friend the Member for Middlesbrough South and East Cleveland (Luke Myer). These reforms will support farmers to make more money from the food they produce.

On the second strand, diversification, farmers must be resilient against future challenges if they are to remain financially viable and strengthen food security. We know the threat from flooding, drought and animal disease, as well as the geopolitical tensions that increase demands on our land for energy generation. We are investing to help farm businesses build resilience against animal diseases that can devastate livelihoods and threaten our entire economy—we are all mindful of the issues with bluetongue and avian flu. On the recent case of foot and mouth that we saw in Germany and the one in Hungary, I spoke to the Hungarian Minister earlier this week, and we have put in place all the appropriate precautions. As ever, though, if the shadow Secretary of State wants a briefing with the chief vet, that is always available in these cases.

We are investing over £200 million to set up a new national biosecurity centre, modernising the Animal and Plant Health Agency facilities in Weybridge, which will be vital for protecting farmers, food producers and exporters from disease outbreaks that we know can be devastating to businesses. We are helping keepers of cattle, sheep and pigs in England to improve the health, welfare and productivity of their animals by expanding the fully funded farm visits offer. We have also announced new ways to help farmers to remain profitable and viable, even in a challenging harvest.

We will consult on national planning reforms this spring to make it quicker for farmers to build new buildings, barns and other infrastructure to boost food production, and we will ensure that permitted development rights work for farms to convert larger barns into whatever is required or suits their business planning, whether that is a farm shop, a holiday let or a sports facility. We are working with the Department for Energy Security and Net Zero so that more farm businesses can connect their own electricity generation to the grid more quickly, so that farmers can sell surplus energy and diversify income.

The third element is nature. Restoring nature is vital to food production; it is not in competition with it. Healthy soils, abundant pollinators and clean water are the foundations that farm businesses rely on to produce high crop yields and turn a profit. Without nature thriving, there can be no long-term food security. That point was well made by my hon. Friend the Member for South West Norfolk (Terry Jermy). We now have more than half of all farmers in environmental schemes. That includes 37,000 live SFI agreements, meaning that 800,000 hectares of arable land is being farmed without insecticides, 300,000 hectares of low-impact grassland is managed sustainably and 75,000 km of hedgerows are being protected and restored. That is important for nature.

We have already had a discussion about the SFI cap. It is set at £1.05 billion for 2024-25 and 2025-26. As we discussed yesterday, that cap was reached this week with a record number of farmers in the scheme and 37,000 live agreements. Every penny is now paid to farmers or committed for payment through existing agreements or submitted applications. We will continue to support farmers to transition to more sustainable farming models, and we will announce details of the revised scheme after the spending review.

[Victoria Atkins]

The clarification that everybody wants is this: we saw the figures last night, and they cut across two years, so what is the money for this financial year—2024-25—that the Minister describes as a cap? What is the value that he reached on Tuesday night that led to that announcement?

[Daniel Zeichner]

We have been far more transparent in disclosing how the budgets work than the previous Government. The figure was disclosed last night, and the shadow Secretary of State can look closely at that. As she will know, we have to monitor things closely over multiple years. What we cannot and will not do is play fast and loose with the nation’s finances. We are taking no lessons from the Conservatives about how to manage public money in this country. This is about using public money in a way that supports food production, restores nature and respects farmers for the effective business people that they are, while ensuring that we stick to our budgets.

We are also improving other farming schemes. The Government have announced an increase in higher level stewardship payment rates across a range of options for this year. We will reopen the ELM capital grant scheme and open the rolling application window for the countryside stewardship higher tier later this year. We are continuing with the important landscape recovery projects that were awarded funding in rounds 1 and 2, as well as some of the other funds referenced by my hon. Friend the Member for Cannock Chase (Josh Newbury).

It is those three strands that will create a resilient, profitable sector for decades to come. I look forward to continuing this important discussion with Members from all parts of the House.