Agriculture: Coronavirus

(asked on 24th April 2020) - View Source

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

To ask the Secretary of State for Environment, Food and Rural Affairs, what plans his Department has to provide to support the people in the agricultural sector affected by market disruption during the covid-19 outbreak through a mechanism similar to the retail and hospitality grant scheme.


Answered by
Victoria Prentis Portrait
Victoria Prentis
Attorney General
This question was answered on 4th May 2020

The Retail, Hospitality and Leisure Grant Fund (RHLGF) is a specific fund that is run by local authorities and linked to business rates. Most farmers are exempt from business rates so the rationale and operation of this scheme is unsuitable for the farming sector.

The department has been in close discussion with banks to ensure the farming sector has access to financial support to ease cashflow problems during this period, including through the HMG backed Coronavirus Business Interruption Loan (CBIL), and the Bounce Back Loan scheme, which was announced on 27 April, and is the latest step in a package of support measures announced by the Chancellor. The Government will provide lenders with a 100% guarantee on each loan, to give lenders the confidence they need to support small businesses. These loans will be from £2,000 up to £50,000, capped at 25% of firms’ turnover, and the Government will cover the first 12 months of interest payments and fees charged to the business by the lender. Almost all UK businesses will be eligible to apply for a loan under the scheme.

In addition, we have temporarily relaxed certain elements of competition law to support the farming sector during this period. Legislation will be laid shortly to enable collaboration between dairy farmers and producers, supporting them to adapt to changes in the supply chain including decreased demand from the hospitality sector. The legislation will have retrospective effect.

Reticulating Splines