🌾 Farming

Commons Chamber

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Farmers are facing a crisis due to sudden policy changes and tax reforms, causing widespread frustration and uncertainty about their future. The government’s decision to abruptly close the Sustainable Farming Incentive scheme and cut delinked payments has led to financial distress among many farmers. The debate highlighted the urgent need for a stable and supportive agricultural policy, with MPs from various parties expressing concerns over the impact of inheritance tax changes on family farms. The government insists on boosting farm profitability and food security through new strategies, but farmers remain skeptical and demand more clarity and support.

Summary

  • Debate Purpose and Context:
    • The debate was initiated by Mr Alistair Carmichael to discuss the future of farming, focusing beyond recent governmental changes such as the removal of the basic payment scheme and inheritance tax reforms.
    • The discussion aimed to shape the ongoing inquiry titled “The future of farming” by the Environment, Food and Rural Affairs Committee.
  • Positive Aspects of British Farming:
    • British farming was praised for its resilient and resourceful workforce.
    • Emphasis was placed on the importance of domestic food production, particularly highlighted by recent global events such as the Ukraine invasion and US tariff changes.
  • Challenges and Concerns:
    • Concerns were raised about the impact of climate change on farming, including the need for investment in rural flood management and water storage.
    • The sudden closure of the Sustainable Farming Incentive (SFI) scheme was criticized for causing financial uncertainty among farmers.
    • The government’s removal of the basic payment scheme and changes to inheritance tax were seen as detrimental to farmers’ confidence and financial stability.
  • Policy and Government Interaction:
    • There was a call for agricultural policy to be developed in partnership with farmers rather than imposed upon them.
    • The lack of transparency around the SFI budget and its closure was a significant point of contention.
    • Criticism was directed at the government for not setting clear, achievable objectives for agricultural policy post-Brexit.
  • Economic Pressures and Future Viability:
    • Farmers are facing increased costs and reduced profits, exacerbated by recent policy changes, which threaten the viability of family farms.
    • The debate highlighted the need for a balanced approach to land use, as competition from solar farms and private equity buy-ups threatens food production.
  • Industry Response and Proposals:
    • The National Farmers Union expressed strong dissatisfaction with the government, with confidence levels at historic lows.
    • Suggestions were made for introducing meaningful regulation in the food supply chain to address the poor return on capital faced by farmers.
  • Biosecurity and Environmental Concerns:
    • The debate touched on the importance of biosecurity measures, with recent animal disease outbreaks in Europe raising concerns.
    • There was a discussion on balancing food production with environmental stewardship, advocating for a symbiotic approach.
  • Political Positions and Calls to Action:
    • Criticism was leveled against the Labour government for policies seen as harmful to farming, including new taxes and the SFI closure.
    • The Conservative opposition vowed to support farmers and criticized the government’s approach as detrimental to the rural economy.
  • Future Outlook and Recommendations:
    • Emphasis was placed on making farming profitable and sustainable to attract and retain the next generation of farmers.
    • Calls were made for the government to reverse detrimental policies and engage more constructively with the farming community.

Divisiveness

The session exhibits a high level of disagreement on various aspects related to farming policies, economic impacts, and government support. Here are the key points contributing to this rating:

  1. Inheritance Tax Reforms: A significant point of contention was the proposed reforms to agricultural property relief (APR) and business property relief (BPR). Many Members of Parliament, especially from the Conservative Party and some opposition members, expressed strong opposition to these changes, arguing that they would severely impact family farms. For instance, John Lamont described the changes as a ‘family farm tax’ that could lead to the collapse of many farms.

  2. Sustainable Farming Incentive (SFI) Closure: The abrupt closure of the SFI was another major point of disagreement. Members across the House, including Alistair Carmichael and others, criticized the move, highlighting the lack of notice and transparency, which they believed undermined farmers’ confidence and planning. The Minister’s explanation and the government’s stance were met with skepticism and criticism from various MPs.

  3. Economic and Market Pressures: There was disagreement over the economic pressures facing farmers, such as the profitability of farming and the power of supermarkets in the supply chain. Sadik Al-Hassan and Jenny Riddell-Carpenter focused on the need for addressing the oligopolistic practices of supermarkets, while others, like Julia Buckley, highlighted the government’s efforts to support farmers through procurement policies.

  4. Government Policies and Support: The debate saw differing views on the government’s approach to supporting the agricultural sector. Conservative MPs, including Victoria Atkins and others, were vocally critical of the Labour government’s policies, accusing them of neglecting rural economies and undermining food security. In contrast, Labour MPs and the Minister for Food Security and Rural Affairs, Daniel Zeichner, defended their initiatives aimed at improving farm profitability and resilience.

  5. Environmental and Biosecurity Concerns: There were disagreements on how to balance environmental sustainability with food production. While some MPs, like Ellie Chowns, emphasized the need for sustainable and nature-friendly farming practices, others were concerned about the practical and economic implications of these policies on traditional farming.

These points illustrate a session with strong disagreements, not only on policy specifics but also on the broader direction and impact of government actions on the farming sector. This level of disagreement, reflected in the passionate exchanges and criticisms from various members, justifies a rating of 4 out of 5 for disagreement displayed in the session.