Support for Farmers

Ashley Fox Excerpts

Wednesday 21st October 2026 Commons Chamber

[Jenny Riddell-Carpenter]

I thank the hon. Gentleman for that contribution. I will tackle the SFI later in my speech. The Farming Minister has been clear on many of the lessons that will be learned, but I will set them out further shortly.

Across the sustainable farming incentive, countryside stewardship and higher level stewardship, 534,000 hectares are already using precision applications of fertiliser and manure. We have also increased fertiliser market monitoring and encouraged greater use of nutrient planning to help farmers optimise fertiliser use, and we are rolling out an online tool to help farmers use fertilisers more efficiently.

Beyond DEFRA, the Treasury reduced the duty on red diesel earlier this year in response to price increases resulting from the middle eastern crisis. We are investing in innovation, because lasting resilience must ultimately come from producing more efficiently. For ’26-27, £123 million has been allocated to the farming innovation programme, with support for technologies and approaches that can raise productivity and strengthen resilience.

[Sir Ashley Fox (Bridgwater) (Con)]

Will the Minister give way?

[Jenny Riddell-Carpenter]

I will make progress, because I am coming on to something important.

I want to address the issue of SFI26 frankly. I really do recognise the disappointment and frustration caused by the closure of the second application window on 22 September. The SFI is a scheme that the Government inherited from the previous Conservative Government. They designed this first come, first served scheme, sent a quarter of the money to 4% of farms and now complain that it was oversubscribed.

When we inherited it, the scheme had no budget control and no proper alignment of SFI actions to environmental and sustainability targets, and it included that first come, first served application process. For 2026, we made improvements to the offer to ensure that more farmers could access funding. We made the offer simpler and more focused, with fewer actions while retaining actions for all farm types. We introduced a £100,000 per annum max agreement value cap to spread the availability of funding more widely.

We also gave priority access to the scheme for small farms and farms without existing ELM revenue agreements. Those two groups had been under-represented in the SFI previously. This priority access through SFI26 window 1 remained open for two months. The SFI26 window 2 was open to all eligible farmers and land managers. It experienced exceptionally high demand and closed after around six hours once available budget had been allocated.

--- Later in debate ---

[Jenny Riddell-Carpenter]

The right hon. Gentleman is correct that modelling was undertaken. As a result of that modelling, a further £50 million was announced by the Prime Minister and a subsequent £20 million was announced by the Secretary of State.

I recognise that the substantial demand remained unsatisfied when window 2 closed, and I understand how difficult that was for farmers who were ready to apply but did not have the opportunity to secure an agreement. Let me say this clearly: there will be future SFI offers, and we plan to make an SFI27 offer available as soon as possible.

[Sir Ashley Fox]

Will the Minister give way?

[Jenny Riddell-Carpenter]

I am sorry; I am going to make progress.

To that end, we are working with the farming sector on how the scheme can be improved, and the Under-Secretary of State for Environment, Food and Rural Affairs, my hon. Friend the Member for Portsmouth South, confirmed that we will scrap the “first come, first served” application.

It is important to stress that the SFI is only one part of our support for farming. Across this Parliament, the Government have allocated a record £11.8 billion to sustainable farming and food production. That includes £788 million this year alone in new funding for farmers to boost farm productivity, develop cutting-edge technologies that will drive future growth, and maintain a healthy natural environment. Capital grants have provided £225 million this year for practical environmental improvements on farms. At least £50 million is available for new countryside stewardship higher-tier agreements. We have also committed £173 million in 2026-27 for productivity, equipment and innovation through the farming equipment and technology fund and the farming innovation programme. That represents an extensive ongoing commitment to farm adaptation and improvement. I hope that the Opposition support those aims.

Our Government support is not only about grants. Farmers need thriving markets and fair returns for the food they produce. That is why we have established the Farming and Food Partnership Board, which brings together leaders from farming, food, retail and finance to focus on productivity, profitability, home-grown produce and national food security. We are taking action on fairness in the supply chain, too. Fair dealing regulations have been introduced for dairy and pigs, with further work covering eggs, fresh produce and crops.

Our farming road map makes our long-term approach clear: we will maintain domestic food production at least at current levels; we will protect productive land for food production; we will support investment in technology and skills; and we will build resilience to the climate and geopolitical shocks that farmers are increasingly having to manage. That is because healthy soil, reliable water supply, efficient use of nutrients and profitable farm businesses are not competing objectives but the foundations of our food security.

[Sir Ashley Fox]

Will the Minister give way?

[Jenny Riddell-Carpenter]

I am going to make progress.

Farmers have endured an exceptionally demanding period. We recognise the pressure that many businesses are under, and I recognise the real frustration for those who have been unable to secure an SFI26 agreement, but our commitment to farming has not changed. We will continue to invest in farmers, support productivity and innovation, improve water resilience, make supply chains fairer and work with the sector to build businesses that can withstand changing weather and an uncertain world. Above all, we will continue to back the people who produce our food, because supporting British farming is not simply about supporting one sector; it is about our food security, our economic security and our national resilience. The Government are determined to secure all three.

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[Robbie Moore]

This is a Liberal Democrat Opposition day debate. The Liberal Democrats have had many opportunities to prepare for it, but their motion excludes a crucial issue: business property relief. I take the hon. Member at his word when he says that the Liberal Democrats are also concerned about the impact that business property relief will have on many of our farming businesses, but given the huge impact the issue has, I am very surprised that it is not included in their motion.

Let me be clear: the Conservatives absolutely regret the continued roll-out of both the family farm tax and the family business tax, and we will continue to demand that the Government scrap both and put back in place the 100% relief on APR and BPR. On behalf of our farmers, our growers and our wider agricultural sector, we urge the Government to ensure that the Prime Minister does the right thing next week in the Budget and axes the family farm tax and family business tax.

[Sir Ashley Fox]

I am grateful to my hon. Friend for giving way. I am glad that he is brave enough to take an intervention from a Member from Somerset. He is absolutely right to emphasise our commitment to scrapping the family farm and family business tax, but does he agree that the fertiliser tax that this Labour Government will introduce on 1 January, and which the Liberal Democrats are too timid to oppose, will hit farmers and increase the price of food in our country?

[Robbie Moore]

My hon. Friend makes an excellent point. He is completely right to outline the impact of the statutory instrument that was voted on just this week, which all Conservative Members voted against.

I was just about to come on to the point that this does not stop with the family farm and family business tax. As if the dramatic drop in de-linked payments, the SFI debacle and the family farm and family business tax were not enough, from 1 January next year Labour will hit farmers with yet another tax—the fertiliser tax—through the carbon border adjustment mechanism. Industry warns that this new fertiliser tax could pile up a further £75 a tonne, if not more, on current fertiliser prices. This is simply unfeasible. It adds an additional cost to many of our farmers at a time when they are already being pushed to breaking point. The fertiliser tax should not have been introduced, and the Conservatives voted against it last week.

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[Terry Jermy (South West Norfolk) (Lab)]

I welcome my hon. Friend the Minister to her place. I am so pleased to see her there, and I know that her rural credentials are strong.

As the Member of Parliament for South West Norfolk, one of the most productive farming constituencies in the country, it has been a privilege to spend a significant amount of my time over the past two years meeting farmers, landowners, growers and rural businesses across the area. Farming is not simply another sector in South West Norfolk; it shapes our landscape, supports our local economy, underpins food production, contributes to environmental stewardship and helps to define the very character of our communities. Since being elected, I have made a conscious effort to get out on to farms and to listen, and I firmly believe that good policy starts with understanding the reality on the ground. That means standing in fields and walking farmyards, and hearing directly from the people who deal with the practical challenges and the opportunities facing farming every single day. I welcome that our Farming Minister has been undertaking that engagement, too, and I know that it has been valued by the industry.

I have now met more than 100 South West Norfolk farmers, and from those meetings I have been struck by their resilience, dedication and innovation. Agriculture today requires farmers to balance a growing range of responsibilities. Alongside producing high-quality food, businesses manage environmental outcomes, adapt to changing weather patterns, embrace new technologies and respond to market pressures. The scale of that challenge demonstrates the professionalism and adaptability of modern farming, and many are doing that while operating on extremely fine margins.

The concerns of a farmer in Weeting will likely differ from those in Nordelph. There is no one-size-fits-all solution for farming, and one clear theme from my visits is how important confidence, clarity and certainty are for farming businesses making long-term decisions.

[Sir Ashley Fox]

In the hon. Gentleman’s discussions with farmers in South West Norfolk, are they content with the Government changes to agricultural property relief, or do they still think the family farm tax should be abolished in its entirety?

[Terry Jermy]

The vast majority of farms in my constituency are small family farms. It was campaigning from constituency MPs like myself and others that got the changes to that policy so that it now works for the vast majority of those impacted.

Over the past decade or so, farmers have been at the sharp end of changing political landscapes, with Brexit and its fundamental change to farming policy being the most profound, because farming is an industry that plans years ahead. Decisions made today on investment, machinery, water infrastructure, environmental delivery and succession have consequences that last decades. Farmers can adapt to change and seize new opportunities when there is a clear direction of travel, but it becomes difficult for businesses to plan with confidence when there is a lack of certainty.

In countless conversations, farmers have told me they are desperate for that clarity, consistency and long-term thinking from Government. I hope that the farming roadmap developed under this Labour Government is the start of that approach. One of the biggest issues raised has been around profitability. The fundamental challenge that remains is in ensuring that farming businesses can generate sustainable returns. While discussions often focus on environmental schemes or regulation—this scheme or that scheme—as is the case with the Lib Dem motion before the House, neither environmental ambition nor long-term investment can be achieved if a farm business itself is not financially viable.

Farming continues to be treated as a political football. Cosplay Reform Members may have a Barbour jacket and a flat cap, but do they actually have a single farming policy? I note their absence from today’s debate. And what of the Tories, desperate as ever to be the face of rural Britain like it is some divine right, while completely ignoring the demise of farming under their watch? It was their withdrawal from the common agricultural policy that left our farmers exposed with no plan in place. It will be some years before many farmers will forgive that level of betrayal by the Conservatives.

Many farmers tell me that despite producing world-class food, margins are often squeezed by factors beyond their control. That limited agency over their destiny feeds into their frustration and the poor mental health of many farmers, which is a real concern.

Looking forward, I remain optimistic about the future of British farming. There are many significant challenges, but there are opportunities too. We have some of the most productive farmland to be found anywhere in the world, we have farmers who are innovative, entrepreneurial and committed to producing high-quality food, and we have growing opportunities around technology, precision agriculture, water management and sustainable food production. However, success is not guaranteed. It will require a recognition that food production and environmental improvements are not competing objectives. Done properly, they can and must go hand in hand.

To conclude, I have three main asks of the Government. First, with the Budget looming, we must raise the annual investment allowance and consider what I have called the green investment allowance, because incentivising investment in rural areas into things like reservoirs and revamping poultry sheds will deliver greater environmental benefits than many SFI schemes.