Question to the Department for Environment, Food and Rural Affairs:

To ask the Secretary of State for Environment, Food and Rural Affairs, whether additional support will be provided to farmers and agricultural businesses impacted by the covid-19 outbreak.

Coronavirus continues to represent a significant challenge to daily life and every part of the economy. The agricultural sector plays a vital role in maintaining the UK’s food security and has done a fantastic job of feeding the nation during this challenging period.

The Government took a number of early emergency steps to support farmers and the wider sector. These included designating employees in the food sector as key workers and temporarily relaxing the normal rules on drivers’ hours, enabling the sector to keep supply chains running, including deliveries from farm gate to processors. The department worked closely with banks to ensure farmers have access to financial support, including the Government-backed Coronavirus Business Interruption Loan Scheme and the Bounce Back Loan scheme. We have also worked closely with the dairy and horticulture sectors to address supply chain and labour issues.

On 6 May, Defra announced a new fund to support English dairy farmers who have seen decreased demand because of the loss of the food service sector. Dairy farmers access this funding for those qualifying months, with no cap set on the number of farmers who can receive this support or on the total funding available. Eligible dairy farmers who have lost more than 25% of their income over April and May because of coronavirus disruptions will be eligible for funding of up to £10,000 each, to cover around 70% of their lost income during the qualifying months to ensure they can continue to operate and sustain production capacity without impacts on animal welfare. The Welsh Government announced the opening of a similar scheme on 12 May.

The availability of this funding followed the launch on 5 May of a joint Government and Devolved Administrations backed £1 million campaign aiming to boost milk consumption and help producers use their surplus stock. This 12-week campaign is being led by the Agriculture and Horticulture Development Board (AHDB) and Dairy UK. This follows a similar ongoing campaign led by AHDB and retailers to promote the consumption of beef products.

We remain in regular contact with representatives of our food and farming sector and will continue to monitor the situation to assess and respond to emerging issues as they arise.