Question to the Department for Environment, Food and Rural Affairs:
To ask the Secretary of State for Environment, Food and Rural Affairs, what recent assessment he has made of the impact of the rise in the cost of living on food producers.
The turbulence of the market in light of the invasion of Ukraine, and the global spike in oil and gas prices, has brought into focus again the importance of a resilient global supply chain and the importance to our national resilience of having strong domestic food production.
Farmers are facing increased input costs including for fertiliser, feed and fuel. We continue to keep the market situation under review through the UK Agriculture Market Monitoring Group, which monitors UK agricultural markets including price, supply, inputs, trade and recent developments. We have also increased our engagement with industry to supplement our analysis with real time intelligence. We have recognised that increasing input costs, particularly fertiliser, feed, fuel and energy, are creating short term pressures on cash flow for farmers.
The Government has taken a number of actions to support farmers. These include changes to statutory guidance to the Environment Agency on how they should implement the "Farming Rules for Water" to provide clarity to farmers on how they can use slurry and other manures during autumn and winter to meet agronomic needs; increased grants funding to help farmers and growers boost research and development; and a delay to changes to the use of urea by at least a year. When the urea restrictions are introduced, they will be related to the use of ammonia inhibitors rather than a complete ban. The Government has also announced that Direct Payments in England will be paid in two instalments each year for the remainder of the agricultural transition period, to help farmers with their cashflow.