Question to the Department for Environment, Food and Rural Affairs:

To ask the Secretary of State for Environment, Food and Rural Affairs, what support he is providing to farmers to compensate for (a) the loss of product sales and (b) lower market prices as a result of the covid-19 outbreak; and if he will make a statement.

The Government is aware that coronavirus represents a very significant challenge to daily life and to every part of the economy. We are working closely alongside the farming industry to ensure that we understand and manage the impacts to farming and the food supply chain.

Defra’s Food Chain Emergency Liaison Group is meeting regularly to discuss the impact of COVID-19 on the food and farming sectors across the UK and what actions are needed to support the sector. This group includes the NFU, other industry stakeholders and the devolved administrations.

The Government is providing £330 billion of guarantees so any business needing cash can access a low-cost, Government-backed loan. If demand is greater than the initial £330 billion, then more capacity will be provided. This includes extension to the COVID-19 Business Interruption Loan Scheme (CBILS) as well as a new lending facility for larger firms.

The Government’s CBILS scheme is available to the farming sector and farm businesses are being encouraged to access the loans that are available from this scheme. Defra has held urgent discussions with the major banks to ensure they understand that farmers are eligible for this scheme and communications are being prepared to increase awareness across the industry.

The UK Agricultural Market Monitoring Group has increased the frequency of its meetings. Its aim is to monitor UK agricultural markets and provide forewarning of market movements. During the coronavirus outbreak this is allowing Defra and the Devolved Administrations to share the latest stakeholder information and to prepare the evidence base for a possible range of interventions needed in specific markets or specific geographical regions.

The Secretary of State remains in regular contact with representatives of the farming industry and will continue to engage with them on these important issues. We will continue to monitor the situation and to work closely with the farming sector and to respond to emerging issues as they arise.