Contribution
It is an honour to close the debate on behalf of the Liberal Democrats. We chose to use our Opposition day to discuss support for farmers because farmers are the backbone of rural communities across the country, and today’s debate has shown just how deeply that is felt.
My hon. Friend the Member for Westmorland and Lonsdale (Tim Farron) opened the debate by explaining that the Liberal Democrats would reform the SFI so that it allocated every farmer a sum that was consistent with the capacity of their farm. That sum would be theirs to claim within a long window. My right hon. Friend the Member for Orkney and Shetland (Mr Carmichael), the Chair of the Select Committee, reminded us that we, and farmers, are in the middle of a perfect storm. We have heard from Members in all parts of the House about farmers who prepared SFI applications for months on end, only to be shut out in an afternoon. In Glastonbury and Somerton, this is not an abstract issue. It is about whether family farms can plan not just for next year, but for the years and generations ahead.
On 22 September, the second window opened, with £233 million in the fund. By 3.48 pm, it had shut. Farmers deserve better than a Glastonbury ticket scramble. At least festival-goers know when the fallow years are coming; farmers who missed out have been handed one with no warning at all. One farmer from Curry Rivel wrote to me describing the process simply as a “disaster”. The money has been shared out badly, not just too thinly. Window 1 left £3 million unallocated, but window 2 was oversubscribed within hours, and it was not an even scramble. A recent survey conducted by the Select Committee found that 60% of respondents could not submit before the window closed. Only 31% of those running farm businesses were successful, compared with 68% of land agents. That is a two-tier system. Those who can afford an adviser are waved through the farm gate, while those who cannot are left out in the field. Until it was privatised in 1997, ADAS gave farmers free independent advice, provided by the state. Today, those who cannot afford an agent are on their own.
That was not just bad luck. DEFRA’s own forecasts, made in April and May, modelled the window’s closing on its very first day; it predicted 12,200 applications. On the day, 12,204 were submitted, just four more than were forecast. DEFRA saw it coming, and nearly 2,900 farmers started applications that they were never able to submit. Others were let down by DEFRA’s IT systems. Tom Kimber, who farms at Higher Stavordale farm in Charlton Musgrove, had an SFI agreement that was coming to an end. He applied in window 2, and missed out because of technical problems. He was assured that farmers like him would be given a route back in, but he has heard nothing since. Tom wants to deliver for the environment, and demand for the SFI proves that thousands of other farmers want to, too, but their commitment is not matched by a Government who understand the scheme.
Last week, the Minister told the House that “first come, first served” will end. I welcome that, but one cannot feed a whole farm herd from a trough that is simply too small. The expiring agreements are worth over £520 million, but the budget across both windows is just £310 million; as the NFU has asked, where has the missing funding gone? Around 8,800 of this autumn’s applicants have agreements ending in February. Clare, who farms near Puckington, is one of them. For years, she has protected the river margins on her land, thereby slowing run-off, filtering pollution and giving wildlife space to thrive. SFI was meant to be her way forward, but now those margins have no funding.
Before I move on to the Conservatives’ utter failure to support British farmers, I remind the shadow Minister, the hon. Member for Keighley and Ilkley (Robbie Moore), that the Liberal Democrats were the first party to oppose the family farm tax, which includes BPR and APR. The Conservatives cannot escape their share of the blame for the chaos that farmers face today. They designed SFI on a “first come, first served” basis, botched the transition from basic payment schemes, let farming budgets fall behind inflation, and signed trade agreements with Australia and New Zealand that undercut British farmers. However, this Government cannot keep hiding behind their predecessors. They chose to accelerate the phase-out of direct payments while stop-starting SFI, so farmers have no universal payment offer at all for the first time since 1945. The Government imposed the family farm tax, and cut the DEFRA and farming budgets.
The Liberal Democrats warned that this would happen. I wrote to the former Secretary of State in July, before the first window closed, to ask how the Department would stop window 2 meeting this exact fate. All of this is happening as our farmers face one of their worst years in memory. Mark Humphrey, who farms at Isle Brewers and chairs NFU Somerset, has described a torrid 18 months. Milk is down at 32p per litre, selling for 8p less than it costs to produce, and maize yields are down by 10% to 15%. Our farmers must be profitable.
However, Somerset shows what is possible with long-term certainty. Last week, I met Damon Bridge of the Royal Society for the Protection of Birds and the Greater Sedgemoor landscape recovery team on North Moor, near Langport, where farmers and conservation groups are working together across 4,000 hectares. This involves 20-year agreements, not a window that slams shut in an afternoon, but only a handful of landscape recovery projects have reached delivery. Farmers need to know that they will actually happen, because food security is national security.
All this comes back to one question: can this country feed itself? We produce only about 60% of the food we eat. Between 2019 and 2024, the farming budget was frozen at £2.4 million, while input costs rose by 44%. With war in Ukraine and conflict in the middle east, food security is national security, yet the Government still do not treat it as a priority.