Support for Farmers

Stephen Morgan Excerpts

Wednesday 21st October 2026 Commons Chamber

[The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Stephen Morgan)]

I thank hon. Members on both sides of the House for their contributions throughout the debate, and for sharing issues raised by farmers and rural communities across our country. I also thank the Liberal Democrat spokesperson, the hon. Member for Westmorland and Lonsdale (Tim Farron), for raising these important matters.

Let me reiterate the words of my excellent fellow Minister, my hon. Friend the Member for Suffolk Coastal (Jenny Riddell-Carpenter), in her first speech at the Dispatch Box: we know how hard this year has been for farmers. Behind every statistic about drought, input prices or farm income is a family making difficult decisions about crops, livestock bills and their future. We set out our farming road map because farmers have repeatedly asked for clarity and certainty, and we are delivering that. The road map sets out this Government’s strategic vision for farming. We want profitable, productive farms that are better able to withstand volatile weather and markets, and geopolitical shocks. The road map also sets out that domestic food production will be maintained at least at current levels, while nature recovery, economic growth and the responsible use of land and resources are supported. That is supported by the strong financial settlement that DEFRA secured in the 2025 spending review.

Across this Parliament, the Government have allocated a record £11.8 billion to sustainable farming and food production, including £788 million this year alone in new funding for farmers to boost farm productivity, develop cutting-edge technologies to drive future growth, and maintain a healthy natural environment. Where this year has exposed vulnerabilities, this Government have responded. We have made drought flexibilities available, supported investment in farm reservoirs and added funding to the SFI26.

I thank the Chair of the Select Committee, the right hon. Member for Orkney and Shetland (Mr Carmichael) —he is back in his place—for his interventions. I think he is right to recognise the optimism and resilience of our nation’s farmers. I wholeheartedly support that view, as do so many Members in this House. I very much agree with what he said about the value of providing greater certainty to the sector; we are very much doing that through our farming road map. It sets out the Government’s vision for driving more a profitable, productive, sustainable and resilient farming sector, and we are doing that in partnership with the sector, via our partnership board and the sector growth plans.

Members spoke about the SFI, this year’s two windows and the learning for future years, and I thank all Members who have offered practical ideas for its delivery in future. We also recognise where things have not worked as farmers would have wished. The speed with which the SFI26 window closed last month caused real disappointment, and I do not dismiss that frustration. I recognise the concerns raised by Members across the House, and the specific examples that they have given. Demand substantially exceeded the funding available, and we must learn from that experience as we work with the sector in partnership on SFI27. Working through the options, following my confirmation that we have scrapped the “first come, first served” approach, is absolutely a priority of mine.

[Tim Farron]

In March 2025, the last time the drawbridge was pulled up with no notice, the hon. Member for Cambridge (Daniel Zeichner) said that we must not do first come, first served again. We have just done that, so what guarantees can the Minister give us that next time around it will not be first come, first served? All the same, can he ensure that the window will come very, very soon?

[Stephen Morgan]

I thank the hon. Gentleman for that intervention. He will know that we made a number of changes to improve the scheme this year. He briefly mentioned those in his opening remarks, but I have been very clear that we need to learn lessons from this year’s scheme and that means a commitment on scrapping the first come, first served approach and bringing forward SFI27 as early as possible.

A number of Members also expressed concerns about the impact on farmers of trade deals done by the previous Conservative Government. Let me be clear: this Government will always act in the national interest to protect Britain’s farmers and secure our food security. We will never lower food standards and we will uphold the high animal welfare standards that our country expects. In the last year alone, we have reached agreement on new trade deals with India, the Republic of Korea, the Gulf Cooperation Council and Switzerland. All those deals strike a balance: they open new opportunities for UK businesses and help diversify supply chains, while also protecting the UK’s most sensitive sectors.

A number of Members have been interested in the SPS agreement with the European Union. I want to thank the hon. Member for South Northamptonshire (Sarah Bool) who is not in her place currently—[Interruption.]—there she is—for the issues she raised. The EU remains the UK’s biggest and closest export market, offering major opportunities for British food and drink businesses to reach millions of consumers. Yesterday, I was at the SIAL trade show in Paris, meeting businesses from every corner of the UK who want to increase their exports to Europe. The SPS agreement will reduce costs and delays for both UK and EU exporters and importers at the border, supporting the UK’s food supply chains and security. It will make agrifood trade with our biggest market cheaper and easier, cutting costs and red tape for British producers.

[Ben Goldsborough]

Does my hon. Friend agree that one of the huge things we must protect in the SPS agreement is precision breeding—not just the research and development aspect but how we get it to market? From other conversations we have had, I know that he has been working hard with our European colleagues. Can he explain what action he is taking to ensure we can keep precision breeding as that benefit to the UK?

[Stephen Morgan]

I thank my hon. Friend for that intervention. It was a real pleasure to spend time with him at the Royal Norfolk Show earlier this year, where I heard very clearly the value of our innovation and world-leading technology in this space. I take this opportunity to reflect on the points he made earlier on the importance of working with our international partners and showcasing the best of British around the world, and thank him for that. He will appreciate that I cannot provide details on the ongoing SPS negotiations. The Prime Minister set out that the Government will be completing those negotiations before the next EU-UK summit on 20 November.

A number of Members expressed concern about the impacts of the reforms to agricultural property relief on inheritance tax, which came into force earlier this year. I recognise that when the Government initially announced the reforms in 2024, there was significant concern in the industry about their impact. The Government listened to those concerns carefully, considered the feedback, and the previous Chancellor acted. That is why last year the Government went further to protect more farms and businesses, while maintaining the core principle that the most valuable agricultural and business assets should not receive unlimited relief. This is a fair and balanced approach that protects the family farm while also fixing the public services that we all rely on.

[Mr Dillon]

Can the Minister explain how a farm in my constituency will still have a potential inheritance tax bill of £650,000, yet only generates £18,000 a year of profit?

[Stephen Morgan]

On these matters the Government’s view is now settled. I recognise that the previous Chancellor made the changes as a result of the engagement that she and others had with the farming community up and down the country, but the hon. Gentleman would have been keen to place his views on the record and he has successfully done that.

My hon. Friend the Member for South West Norfolk (Terry Jermy) raised a number of constructive points as a result of his continued engagement with the farmers across his constituency. I understand he has now visited 100 farms in his patch, and I know that he is hosting a very important event in his constituency later this week on the future of farming, and I wish him well with that. My hon. Friend the Member for South Norfolk (Ben Goldsborough) spoke about the importance of profitability and the value of learning from international partners, and I thank him again for his insights. My hon. Friend the Member for Rushcliffe (James Naish) gave a very eloquent speech about the importance of co-designing the future of SFI. I can assure him that directly, and through officials, I and the Department are already working with the sector on exploring options and trade-offs as we consider what SFI ’27 will look like.

To conclude, farmers deserve security, fairness and confidence to invest in the next generation and they have a Government who listen when times are hard and work in partnership with the sector to deliver on the commitments set out in our farming road map. That is our commitment: to back British farming; to maintain domestic food production; and to ensure that those who produce our food have a resilient and profitable future.

Question put.