Lord Fuller (Con)

My Lords, I rise to declare my interest as a member of a farming company and also involved in the fertiliser industry, which was mentioned a little earlier. Fertilisers and fuel are farmers’ most expensive costs, and we see unprecedented increases ahead of them, on top of three bad harvests in a row. I want to dwell for a moment on the SFI and the capped payments. What capped payments do is reward inefficiency; they militate against investment, efficiency, productivity, progress and scale. All the things that farming over many generations has contributed to this nation are at risk of being thrown away carelessly by the capped payments that these regulations will impose. The noble Lord, Lord Curry, mentioned the land use framework. It is going to be a disaster for farming and terrible for food security. It contemplates in table 1 that fully 1.7 million hectares of productive land will be removed from agriculture, out of a total of 9.6 million hectares. That is about a fifth—and, at £2,000 per hectare gross income, which is what, on average, a mixed farm would hope to gain, it represents a £3.4 billion hit to the rural economy. We cannot afford this in terms of food security and we cannot afford it economically. That £3.4 billion loss is out of a £13.9 billion total gross value added from agriculture. It is between one-fifth and one-quarter of the entire economic output of agriculture in our islands, in all its forms: arable, livestock, fruit, veg, grains and so forth. It is a fantasy to think that somehow, magically—it is magical thinking—we are going to have a 20% efficiency improvement. This adds to further insults with the APR/BPR issue, and the fact that farmers can have their land compulsorily purchased from under them, under the NSIP regime for solar, destroying the credibility and capacity of farms already under pressure: pressures aggravated by the cash flow problems from SFI. It is hard to get fertiliser as it is in this nation—it is my trade; I know how difficult it is to secure the cargoes, fighting off the rest of the world—yet this Government, by choice, are going to make it even harder to get fertiliser delivered to this nation to support our farmers and underpin our food security with the introduction of insane carbon taxes that will add rocket boosters to the food price inflation that is already barrelling down the tracks.