Farm Profitability 2022-06-23
2022-06-23
TAGS
Response quality
Questions & Answers
Q1
Partial Answer
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Context
The MP is concerned about rising costs affecting farmers and their ability to remain profitable.
What steps he is taking to help increase farm profitability. My farmers are seeing rising production costs, from increases in fertiliser costs, feed prices going up, the price of red diesel agriculture fuel doubling and increasing labour costs because of low availability of labour in the south-west. Those pressures will increase food prices further or see farms go to the wall.
We will spend over £600 million on farm-based innovation over the next three years. Our recent food strategy outlined how we intend to use grant support to help businesses invest to improve their profitability and increase their agricultural output. To help with cash flow, we have brought forward basic payment scheme payments to July, and we have also announced an additional 10,000 visas through the seasonal worker visa route to help with labour shortages.
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Assessment & feedback
Did not address rising fertiliser costs directly
Response accuracy
Q2
Partial Answer
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Context
The MP is asking about the Secretary of State's assessment of how Brexit has affected farm profits.
What is the Secretary of State's latest assessment of the impact on farm profits of plunging exports, new red tape and the labour shortage caused by the Conservative Government's Brexit deal?
Farm incomes have seen a strong recovery since the 2016 referendum. Land prices are running at record highs and the price of milk has also increased. Farm profits have been on the rise in recent years.
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Assessment & feedback
Did not address plunging exports or new red tape directly
Response accuracy
Q3
Partial Answer
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Context
The MP is concerned about the impact of free trade agreements, specifically the Australia-UK deal, on UK agriculture.
While the other place's International Agreements Committee report broadly welcomed the Australia-UK trade deal for sectors such as financial services, it was concerned about the deal's impact on UK agriculture. The Committee fears that that will continue with other trade deals that the Government pursue and criticises their refusal to involve the devolved Governments. How can farms and our food and drink sector remain profitable in the face of such free trade agreements?
In the context of the free trade agreement with Australia, we secured staging protections for the sensitive sectors of beef and lamb for a decade, and then a very strong special agricultural safeguard thereafter. We judged that that would be sufficient to manage any risks to the market.
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Assessment & feedback
Did not fully address the devolved Governments' involvement or impact on food and drink sector profitability
Response accuracy
Q4
Partial Answer
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Context
The MP is concerned about the impact of free trade agreements, specifically the Australia-UK deal, on UK agriculture.
While the other place's International Agreements Committee report broadly welcomed the Australia-UK trade deal for sectors such as financial services, it was concerned about the deal's impact on UK agriculture. The Committee fears that that will continue with other trade deals that the Government pursue and criticises their refusal to involve the devolved Governments. How can farms and our food and drink sector remain profitable in the face of such free trade agreements?
We judged that the staging protections we secured for beef and lamb, including a decade of sensitive sector protection followed by strong agricultural safeguards, would be sufficient to manage market risks.
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Assessment & feedback
Did not address impact on food and drink sector profitability or devolved Governments' involvement
Response accuracy