Farmers: Finance

(asked on 4th January 2022) - 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 he has to provide financial support to farmers in Shropshire who have seen their total income from farming in Shropshire fall 28 per cent from 2019 to 2020.


Answered by
Victoria Prentis Portrait
Victoria Prentis
Attorney General
This question was answered on 20th January 2022

We have committed to maintain the farming budget for the duration of this parliament. In England, we are seizing the opportunity of EU exit to move away from the EU’s unfair and ineffective approach. We will repurpose that money into new and improved environment schemes. The result is that the total level of funding will remain the same but will be focused on achieving better outcomes for farmers, farming and the environment. These schemes, a number of which are now live, will help farmers get their businesses ready for these changes. Including grants to invest in productivity measures, support new entrants, and support farmer-led innovation and improve farm resilience. Farmers including those in Shropshire will have the opportunity to engage in these offers as they continue to be rolled out.

It is important that we keep a close eye on farm profitability. Since the 2016 referendum result, farm incomes have generally increased. Farm incomes and commodity prices are very closely linked to exchange rates and to oil prices. There is also a growing world demand as the population grows and as demand for some proteins also expands.

As a result of this, we have seen the price of beef and sheep running at very strong levels. We have seen gross margins in some of the cereal sector increase by around 30%.

In the coming years, we want to build a thriving agricultural sector where the majority of farms are profitable, productive and economically sustainable without subsidies, and many are making a significant and widespread contribution to environmental, biodiversity and climate change goals.

Reticulating Splines