Contribution
It is an honour to serve with you in the Chair, Mr Turner. I congratulate the hon. Member for North Northumberland (David Smith) on securing this important debate.
Farmers are the foundation of communities across the country, but British farming is in crisis—not a crisis of effort or ambition, but a crisis of confidence that successive Governments have chosen to ignore. Chris, a farmer in Babcary, has spent his whole life in agriculture, building a business worth passing on to his son, but Chris has terminal prostate cancer. For 18 long months, what caused him the greatest anxiety was not his health, but the tax bill his son would soon face following the Government’s cut to agricultural property relief, should he not survive seven years. I know how he feels, as I had very similar painful conversations with my mother. Like many farmers across the country, I was relieved when the Chancellor has moved the threshold to £2.5 million, but the family farm tax should be axed altogether.
Somerset farmers are struggling because successive Governments have let them down. The Conservatives gave farmers a kick in the teeth with their £358 million underspend on the farming budget, and Labour has delivered more of the same: a family farm tax with no consultation, a real-terms DEFRA budget cut of 2.3% a year, a farming budget slashed by more than £100 million and the closure of the SFI last year without notice. The Liberal Democrats were the first party to oppose the family farm tax, and we will keep opposing every policy that treats our farmers with disdain rather than lifting them up, because they are critical to our national security.
Jonathan, who farms in Little Weston, looked to the Rural England Prosperity Fund, only to find that DEFRA excludes farmers who want to diversify into food and drink. It is a fund for rural businesses to apply to, but it excludes adding value to the very products that farms produce. DEFRA also promised uplifted stewardship payment rates in April, but that promise has not been fulfilled, and there is no clear route from old schemes to new ones. The Government are asking farmers to transition and then shutting the door in their face.
British farmers are the best in the world, and the Liberal Democrats would invest an additional £1 billion a year into the farming budget so that they can continue to produce high-quality food for our tables while protecting and enhancing our natural environment. We would set payments over 10-year periods and ensure that every farmer has a route from old schemes into new ones.
In February I visited Andrew Moon, a third-generation pig farmer based in Baltonsborough who has more than 400 sows. His business is fighting for survival. Without warning, processors demanded a 30% cut in production, but Andrew asked a question that I could not answer: if farmers are forced to cut herds by 30%, where will the pork come from? Perhaps the Minister can help me answer that question.
Producers are being squeezed out of their own supply chains, with no commitment from retailers and no consultation—just an immediate demand to produce less. The Liberal Democrats have long called for a strengthened Groceries Code Adjudicator, with real teeth, to protect producers like Andrew, as well as public procurement that supports high-standard food and a guarantee that future trade deals will never undercut British farmers.
Yesterday marked 10 years since the Brexit vote, and it would be remiss of me not to address the impact that it has had on British farming. The botched deal has strangled trade across our food, farming and fishing industries. Every border check, every lorry held at port and every delayed consignment is a cost absorbed somewhere in the supply chain, and it is rarely the supermarkets that suffer. That is why the Liberal Democrats are calling on the Government to sign a sanitary and phytosanitary agreement with the EU as soon as possible, so that Somerset’s pork, cider and cheese reach European shelves without the paper eating into their profit.
We are sleepwalking into dependency on fragile global supply chains and into a crisis of empty fields and empty plates at home. The Government must treat farming as critical infrastructure, because Britain is not secure unless food supply is secure. That means providing long-term financial security for our farmers.