Support for Farmers

John Cooper Excerpts

Wednesday 21st October 2026 Commons Chamber

[John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)]

I am pleased to be able to speak in this important debate. For many parts of my constituency in the Scottish Borders, farming is not just part of the local economy; it is the backbone of the community. Across the Scottish Borders, farming families produce the food we eat, look after the countryside and keep our towns going. Today, they are being squeezed from both ends by a Labour Government here at Westminster and an SNP Government in Edinburgh.

Let me be clear from the outset that the sustainable farming incentive applies only to England. Farm support is devolved, and farmers in my constituency could not apply for the SFI, but how a Government treat farmers in one part of the country reveals a great deal about how they regard farmers everywhere. With the two issues that hit every farm in the United Kingdom—the family farm tax and the fertiliser tax—Borders farmers are being hit just as hard as farmers here in England.

On the SFI, the facts speak for themselves. In March 2025, Ministers shut the scheme overnight without warning. Then, after more than a year of uncertainty, the new application window opened at 10 o’clock on 22 September. By 4 o’clock that afternoon, the entire budget—around a quarter of a billion pounds—was gone. Thousands of farmers lost out, including around 12,500 who already had agreements in place. Months of preparation, advisers’ fees and business plans were wasted in just under six hours. Farmers cannot run their businesses around a Government lottery. Decisions on cropping, stocking and investment are taken years in advance, not between 10 in the morning and 4 in the afternoon.

This Labour Government’s record on farming has been appalling. They created one of the biggest threats facing family farms in recent years with the family farm tax. Even after last December’s partial climbdown, which raised the threshold to £2.5 million, farms above that level, including many in my constituency, still face an effective 20% inheritance tax bill. Farmers are asset-rich and cash-poor. The value of their land does not pay a tax bill; selling the land does. Families in my constituency are still asking whether they will be able to hand the family farm on to the next generation. A Conservative Government will restore agricultural property relief and business property relief in full.

Farmers in Scotland are being let down by the SNP, too. Just last week, NFU Scotland warned that the agricultural support budget of around £677 million a year has lost some 20% of its purchasing power since 2014. The union is calling for an increase of around £183 million in the next Scottish budget, and NFU Scotland has also made it clear that a budget being eaten away by inflation is simply not good enough. Farmers in the Borders are sick of consultations and complicated new frameworks being dished out by Holyrood. They need a properly funded scheme that backs food production, encourages investment and lets their businesses make a profit.

That brings me to Labour’s fertiliser tax. From January, the carbon border adjustment mechanism, known as CBAM, will impose a new charge on imported fertiliser. Some have suggested during this debate that the carbon border mechanism was first proposed under a Conservative Government. Its purpose was to stop the British industry being undercut by high carbon imports, but there is no British ammonia industry left to protect.

[John Cooper (Dumfries and Galloway) (Con)]

My hon. Friend and I were in the Committee that discussed the carbon border adjustment mechanism. Does he share my surprise that the Government did not seem to realise that it would affect fertiliser? There was much focus on cement and steel, but it seemed to come as a shock to them that it would put as much as £70 or £80 on a tonne of fertiliser.

[John Lamont]

My hon. Friend is absolutely right. The Labour Minister did not seem to understand the impact that the mechanism would have. I was even more shocked that the Liberal Democrats decided not to vote against the proposal, unlike Opposition Members.

As I was saying, the ammonia that our fertiliser depends on is now just about all imported. For farmers, the fertiliser tax is not about protection, but is simply a further tax on growing food. As the NFU has warned, food grown overseas with exactly the same fertiliser will come into this country with no tax being paid. British farmers will be put at a disadvantage in their own market by their own Government. This tax will hit every farm in the United Kingdom, including the farms on the Scottish Borders that the SFI never reached.

As we have heard, the Conservatives tried to stop the fertiliser tax, but where were the Liberal Democrats? They were sitting on the fence. When I challenged the hon. Member for South Cambridgeshire (Pippa Heylings)—she is not in the Chamber, but she was a member of the Committee that was considering this regulation last week—she accepted that there were concerns about the uncertainty and the additional costs; but when it came to the vote, the Liberal Democrats sat on their hands. They refused to oppose the measure imposing this additional tax on our farmers.

--- Later in debate ---

[John Cooper (Dumfries and Galloway) (Con)]

Food security is national security, as the mantra from the Government Benches goes. Yet the reality, I am afraid, is that it is much spun and little done. The family farm tax sent a chill through my rural Dumfries and Galloway constituency and underscored yet again the disconnect between this urban-centric Government and rural Britain.

Now we have the fertiliser tax coming along and again, like the family farm tax, it is deeply flawed. In fact, we had an admission that the family farm tax was deeply flawed from a former Government Minister who pressed its case in this House—incredible! On the price of fuel, there has been much back slapping about the cuts to duty for red diesel. That is certainly helpful, but the reality is that red diesel is up by as much as 60%, and that is an enormous input cost for farmers. It is a big difficulty as well for the fishing sector. I have asked the Fisheries Minister if he will convene a meeting with the fishermen, because British boats are afraid to put to sea when French boats are able to access finance from the French Government to fish in British waters.

Funding in Scotland, as we heard from my hon. Friend the Member for Berwickshire, Roxburgh and Selkirk (John Lamont), is devolved for farming and agriculture. However, we have also seen in Scotland the SNP Government exercising sleight of hand with the agricultural budget. Money that was intended for farming— supposedly ringfenced—magically disappeared, only to reappear. That is not good enough. Devolve and forget is the order of the day with this Government. We must have more accuracy about what is going on in Scotland. The block grant and the Barnett consequentials go north. This place should have some say in what goes on there.

The hon. Member for Westmorland and Lonsdale (Tim Farron) opened this debate with his usual paean to the EU. The EU funding settlement is changing and the envelope under the common agricultural policy is shrinking, such that farmers in Ireland are protesting about it. I can assure the House that the farmers in Dumfries and Galloway are in no hurry at all to return to the EU and the idea of a shrinking common agricultural policy.