David Smith

I beg to move, That this House has considered the financial sustainability of the farming sector. It is a great pleasure to serve under your chairship, Mr Turner. In a shameless effort to garner sympathy, I thank you for allowing me to sit down if I need to; I have a bad back today. Members can feel free to be sympathetic in their interventions. It is a great pleasure to be here for this debate on the financial sustainability of the farming sector. The best beef in the world is reared in my constituency of North Northumberland. There may be some competition there, but let me assure the Chamber that that is true. However, farmers are not taking home the best cuts in terms of profitability. The Food, Farming and Countryside Commission—the FFCC—found that in 2023-24, an average cereals farm in England took in a quarter of a million pounds from selling crops such as wheat and barley, but after costs, it made a loss. For profit, it relied on subsidies, diversification and environmental schemes. Those are all good things, but they come with an underlying challenge. As the party of labour, we should be alarmed when any worker receives a poor return for their work. I know that alarm is shared by my colleagues in the Labour rural research group, many of whom are present, and by the Minister, whom I welcome to his new role and to this debate. In her profitability review, Minette Batters was very clear that “there is no silver bullet to achieve farming profitability.” Today, by genuinely happy coincidence, the Government have published their 25-year farming road map, with a focus on profitability, productivity, sustainability and resilience. I look forward to digesting the road map, which I have with me, and I trust that many of the points raised in the debate will chime with its contents. I hope that the Batters review, the farming road map and the LRRG’s upcoming report on farming profitability can help the Department for Environment, Food and Rural Affairs and the Government to tackle the wide range of reasons why farming often does not pay. I want to focus on three elements: protecting our farms from the global markets as part of a drive for food security, regulating the marketplace so that produce receives a fair price, and cutting costs and boosting innovation so that farmers have more at the end of their work. On food security, one farmer recently told me that “covid and the current conflict in the Gulf have shown that globalised supply chains do not have the resilience of a strong indigenous industry.” He is right, and I am glad that the Government share that view in the road map, but our industry is not strong enough. Our farmers earn a lower share of food chain gross value added than farmers in Germany, France or the Netherlands. Just 9% of farms produce 62% of our food, and high production costs mean that high-quality British produce struggles to compete with the international market on price.