Farming: Financial Sustainability

Debate between Stephen Morgan and Rebecca Smith

Wednesday 24th June 2026 Westminster Hall

[Stephen Morgan]

I remind Members that we currently have a good supply of fertiliser and are keen to support domestic production. The Government are live to the other issues that the hon. Gentleman raises; I will take them back to the Department, and am happy to write to him on his concerns.

The Government are also sharing information and guidance to support farmers to diversify sources of nutrients to reduce reliance on artificial fertilisers and strengthen long-term resilience by managing more effectively. DEFRA’s new nutrient management planning tool is already supporting our farmers by matching nutrients to crop and soil needs. That enables farmers to make the most of nutrient sources and to reduce their reliance on artificial fertilisers. More than 500 farms have used the tool since it was launched.

DEFRA has launched a consultation and call for evidence to inform how the Government modernise fertiliser production and the regulations around it, which will further improve future fertiliser supply options. We will continue to work with farmers to ensure that they become more resilient, through our innovation funds and equipment grants or our continued shift from area-based subsidy to environmental land management schemes.

Another issue raised in today’s debate was about fuel. Farmers have told the Government how important manageable fuel prices are to the financial sustainability of the farming sector and food security, and we have listened. While the shadow Minister, the hon. Member for Keighley and Ilkley (Robbie Moore), worries about his selfies for social media, we are focused on taking decisive action to support farmers by slashing the fuel duty rate on red diesel from 10.18p to 6.48p per litre—its lowest rate in 20 years. That means that red diesel now benefits from an 88% tax discount, saving farmers more than £300 million a year.

We have also extended the 5p fuel duty cut until the end of this year, keeping taxes at a 16-year low and saving the average driver £120. My Department will continue to work actively with others to monitor developments in the middle east, including their impact on the supply and price of red diesel. We are committed to ensuring that the market functions fairly, and will continue our discussions with industry leaders, including the NFU and farming stakeholders.

There are real, recent issues that need to be addressed; I have heard from the stakeholders I have already met that additional pressures are affecting farmers. The Government are well aware of the impact of climate change -related extreme weather on the financial sustainability of farms in recent years—this week’s heatwave is a reminder of that. We are committed to working with farmers to deliver long-term solutions to the risks associated with extreme wet or dry weather, and to increase profitability, because farmers being able to run profitable businesses is good for the whole economy and vital for food security. That is why we are investing in farming schemes and grants to make farming more resilient to economic and environmental shocks, and to safeguard our long-term food security.

We have allocated a record £11.8 billion over this Parliament to sustainable farming and food production. Overall, farmers and land managers will benefit from an average of £2.3 billion a year through our farming and countryside programme.

[Rebecca Smith]

On that point specifically, I raised Dartmoor and invited the Minister to visit my constituency. He has about 30 seconds left to speak, but could he respond to that point?

[Stephen Morgan]

I am happy to write formally to the hon. Lady to respond to her questions.

The message I leave with Members is simple: this Government believe that food security is national security. We are standing alongside farmers through global uncertainty, and supporting them by equipping them to manage volatility more effectively. We have already responded to the real pressures around fertilisers and fuel that farmers face and are backing British farming with record investment, improving schemes to make them simpler and fairer and supporting productivity and innovation. We are proud to work with British farmers as we grow the future of farming together.