Agriculture: Government Support

Wendy Chamberlain Excerpts

Wednesday 29th April 2026 Westminster Hall

[Wendy Chamberlain (North East Fife) (LD)]

I agree with my hon. Friend about sustainability. We are in a cost of living crisis, but also a cost of producing food crisis. It took the Government seven weeks to respond to my written question about fertiliser costs. Does he agree that the Government need to be much more on the front foot on these issues?

[Richard Foord]

My hon. Friend is absolutely right. Farming is not just another sector; it is critical national infrastructure, just like power stations and data centres. Too often, it is an afterthought—under-supported, neglected and left exposed to global shocks.

I want to focus my remarks on international trade, tax and planning, drawing on the conversation I had with Devon farmers last Friday. At a time when uncertainty on the international stage continues, food and farming policy should be about resilience. Instead, the Government preside over continued dependence on imports, higher costs and a system of support that is unpredictable and bureaucratic. Farmers are being asked to bear the brunt of shocks at a time when many of them are struggling to make ends meet.

Let us begin by talking about trade. The UK is far from self-sufficient in food. We import about 40% of the food we eat, and an astonishing 78% of our fruit and veg. Food security is measured not only by the produce on supermarket shelves; it is also about the inputs that farmers require to grow the food.

As was mentioned earlier, fertiliser is increasing in price, such that some of the farmers I spoke with last week are seeing an additional £60,000 cost to their farming businesses this year in anticipation of next, with fertiliser prices having gone up that much. That is because of the products that fertiliser is made up of. It requires nitrogen, phosphorus and ammonia, some of which are sorely lacking in the UK. We are only 40% self-sufficient in fertiliser requirements.

Between a quarter and a third of the raw materials required for fertiliser would typically pass through the strait of Hormuz. We are heavily dependent on imported ammonia. Only 45% comes from places other than Algeria; we are heavily dependent on north Africa for ammonia. This is not resilience. This is vulnerability in an uncertain world.

Global instability over the last few years, from Ukraine to the middle east, has already pushed fertiliser prices significantly higher. Tom Bradshaw, president of the National Farmers Union, has warned that farmers are having to shoulder increased costs of inputs. Too often, they are only made aware of the price that they might have to pay for them once they arrive at the farm gate, such is the volatility of the market right now.

Red diesel tells another concerning story. Prices of red diesel in recent months have doubled, rising from 69p a litre at the start of the middle east conflict, to well over £1.23 a litre on 7 April. Responding to questions on this in recent weeks, both the Prime Minister and the Chancellor have stated that the situation is “under review” or “being monitored” by the Competition and Markets Authority. For many farmers, fuel and fertiliser prices have soared simultaneously, hitting their finances incredibly hard across the board, so monitoring does not really help.

We Liberal Democrats are calling for an emergency fuel duty cut that would bring down the cost of red diesel used by UK farmers by around £5 million over the next three months, to remedy the rising cost.

--- Later in debate ---

[Dame Angela Eagle]

I certainly am well aware that the SFI that we have inherited is not particularly well suited to the uplands. That is why we are doing work with Hilary Cottam to see what we can do to provide a different method of support that is much more community based. I recognise the issue that the hon. Gentleman raises about common land, but I would want to see whether we can make some changes to the higher level schemes, which I think are probably more suited to supporting farmers in that kind of setting. Not everything, all the time, has to go into SFI. I am looking to see whether we can create a more coherent structure for upland farmers and also, obviously, commoners in that circumstance. I am quite happy to keep the hon. Gentleman in touch with how that is going. I am sure that, given that Hilary Cottam is doing some work in his own area, he will be at least as in touch with it as I am.

Fuel is another issue that was raised in the debate. Price spikes can feed straight into farm costs, particularly for those who rely on red diesel. Red diesel continues to benefit from an 80% discount, saving farmers almost £300 million a year. There is also a 5p fuel duty cut in place from March until September. Where concerns have been raised about price transparency, we have raised them with the Competition and Markets Authority, which is monitoring petrol and supply prices closely. Industry bodies have been clear with us that fuel production and imports are continuing across the UK as usual. The Government continue to monitor sales, deliveries and stock levels, and well-established contingency plans exist should they ever be required.

The hon. Member for Honiton and Sidmouth raised farming schemes and grants. I understand the pressure that the uncertainty we are now facing in the world because of what is happening in the middle east applies to farmers, coming as it does after the impacts of climate change-related extreme weather in recent years, which have damaged harvests. This Government will work with farmers to deliver long-term solutions to the risks of extreme wet and dry weather, and to increase profitability, because when farmers can run profitable businesses, it is good for the whole economy and vital for our food security.

[Wendy Chamberlain]

The Minister talks about profitability, but there is no doubt that the Government’s failed family farm tax has had a huge impact. She also talks about building resilience for the future with schemes, but does she accept that we need next generation schemes to attract young people into the industry, because from a family perspective many of them are leaving?

[Dame Angela Eagle]

Entrance into the industry is a really important issue. Often, it is an issue of access to land to farm at all, and I am certainly thinking very carefully about what we might do with respect to that. If the hon. Lady has any insights from her own constituency, I am happy for her to share them with me, and we can see whether we can deal with the issue of how to get younger people into farming and get them some land to farm.

We have allocated a record £11.8 billion to sustainable farming and food production over this Parliament. Overall, farmers and land managers will benefit from an average of £2.3 billion a year through the farming and countryside programme. We are increasing investment in environmental land management schemes, rising towards £2 billion by 2028-29, because profitable farming depends on the fundamentals, which are healthy soils, clean water and resilient ecosystems.

We are also improving how support is delivered. I recognise some of the issues—