Cost of Living: Support for Farmers

Daniel Zeichner Excerpts

Tuesday 12th July 2022 Westminster Hall

[Daniel Zeichner (Cambridge) (Lab)]

It is a pleasure to serve with you in the Chair, Mr Hollobone. I congratulate the hon. Member for Rutland and Melton (Alicia Kearns) on securing the debate. I do not always find myself in agreement with her. She is an eminent plotter, of course, but I certainly found myself in agreement with many of the points she made today.

I noted the comments made by the newly liberated hon. Member for North Devon (Selaine Saxby), who has discovered the horrors of DEFRA bureaucracy made in Britain. It is interesting to see how the last week has panned out, Mr Hollobone. We also had a fleeting appearance from a former Secretary of State for Education, the right hon. Member for Chippenham (Michelle Donelan), which was fascinating.

All the powerful contributions from across the House indicated that these are very tough times for farming, just as they are for the wider environment. We need support for both, not least because on the Government’s watch I am afraid the farming sector has suffered crisis after crisis. Prices may be good at the moment, but just look at input costs—and shudder and be worried. Look at the continuing pig backlog, with tens of thousands of healthy pigs already culled, as we heard from an earlier speaker. Look at avian flu—the worst for many years—which many fear may become a recurring annual issue. At these times, when other nations in the UK and in Europe, have provided the farming sector with much-needed support, this Government have consistently refused to lend a helping hand to English farmers. The basic message is that they are on their own and the market will sort it out. Some of them will go to the wall, but “them’s the breaks.”

The current challenges bearing down on the agricultural sector are the most severe that many farming businesses have ever faced, with inflation, lack of seasonal agricultural labour and a botched roll-out of the environmental land management scheme all putting British agriculture and food security at risk. The Opposition take a different view. Intervention is not alien to us. We back British farmers and have consistently raised concerns that many farms will be unable to cope with soaring inflation.

We have heard many figures. The Government’s own agricultural price index shows that in the 12 months to April 2022, the price index for agricultural inputs increased by over 28% and Andersons’ latest inflation estimate for agriculture is over 25%. We all know the effect of the war in Ukraine and significant gas price rises worldwide. Not only do they put farms at risk; they also threaten Britain’s food security.

The Lea Valley Growers Association has warned that the UK will harvest less than half its normal quantity of sweet peppers and cucumbers this year after many greenhouse growers chose not to plant in the face of surging energy prices, and producers have warned that yields of other indoor crops, such as tomatoes and aubergines, will also be hit. Far from producing more food in the UK, under this Government we risk seeing less being produced.

We had a good discussion about the fertiliser issues. I pay tribute to my hon. Friend the Member for Ellesmere Port and Neston (Justin Madders) for the fight he has been conducting on behalf of his constituents and the wider points that he made. I will not repeat those points, but I ask the Minister to set out, after months of dither and delay from the Government, what steps her Department is taking to help farmers to access affordable energy and fertiliser now. What are the Government doing in response to the powerful points made by my hon. Friend? How do the Government intend to curb agricultural inflation, and does the Minister have any plans to help support domestic fertiliser production?

If farmers were only facing inflation, that would be more than bad enough. However, as we have heard, there is a chronic shortage of seasonal agricultural workers. That is a crisis of the Government’s own making; they initially announced 30,000 horticultural seasonal worker visas, but then that number was upped to 40,000— although 2,000 went to poultry workers. Throughout that debate, the NFU and others estimated that we needed 70,000 workers. Why did the Department’s calculations differ so much from those on the ground and in the industry? I am sure the Minister will remember the woeful performance of the Immigration Minister, the Under-Secretary of State for the Home Department, the hon. Member for Torbay (Kevin Foster), before the Environment, Food and Rural Affairs Committee—Committee members were certainly not convinced.

Survey data from the NFU for April showed an estimated national seasonal worker shortfall of 12% in horticulture—three times the figure for the same month last year. Industry experts say that labour shortages on British farms this summer have led to catastrophic waste of homegrown fruit and vegetables. A survey by British Berry Growers showed that annual food waste almost doubled, from £18.7 million in 2020, to £36.5 million in 2021, due to worker shortages. It could be even higher this year. I ask the Minister what support she will be offering farmers struggling to find seasonal labour, and what plans her Department has to put an end to the shortage.

The latest crises take place against the backdrop of the slow and painfully complicated introduction of the environmental land management scheme. The Government are currently phasing out direct payments and farmers have already received significant cuts to those payments, with further to come this year. The Government always suggested that the payments would be replaced by the environmental land management scheme. While the Opposition support the principle of paying farmers to provide environmental goods, the Minister will remember that I warned during the passage of the Agriculture Act 2020 that farmers would be unwise to imagine it would be a straightforward replacement. That has turned out to be the case.

The NFU, the National Audit Office and the Public Accounts Committee, as well as farmers and Opposition Members, all warned that those new schemes are simply not ready for farmers to access them and start making up the shortfall. Will the Minister confirm how she intends to support farms struggling with the transition? What plans does her Department have to speed up the introduction of the ELM, and the sustainable farming incentive in particular?

Will the Minister confirm the budget allocated to the landscape recovery scheme tier 3, following the extraordinary story briefed to newspapers a few weeks ago that it would be hugely reduced? In The Sunday Times, it was described as being reduced to just £50 million over three years. The paper said that DEFRA insiders believed that the scheme was likely to be scrapped after that. Will the Minister clarify whether that story was put out ahead of the Tiverton and Honiton by-election to buy a few votes, or is it actually Government policy?

Although the Conservatives may be unwilling to support British agriculture, Labour takes a different view. On ELM, we have supported the NFU’s calls for basic payment reductions to be paused for two years to provide more time. Frankly, we think that it will take that time to get it sorted out. We do not want to see more stewardship agreements rolled out so that people get paid for doing what they are doing already. We want genuine environmental gain. We would reprioritise ELM to secure more domestic food production in an environmentally sustainable way as part of our plan to support farmers to reach net zero. That plan is conspicuously lacking in DEFRA.

On seasonal labour, through our five-point plan to make Brexit work, Labour will deliver on the opportunities Britain has, sort out the poor deal signed by the—I was going to say previous, but he is still in place—Prime Minister, and end the Brexit divisions once and for all. We will seek new flexible labour mobility arrangements for those making short-term work trips. On inflation, Labour will support struggling agricultural businesses through our plan to make, buy and sell more in Britain, invest in jobs and skills and use the power of public procurement. There is another away: a fresh start to get us to net zero; a fresh start for our food system; and a fresh start for our farmers. That is what support for farmers looks like.