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Farming: Financial Sustainability
24 June 2026
Lead MP
David Smith
Responding Minister
Stephen Morgan
Tags
Agriculture & Rural Affairs
Word Count: 9770
Other Contributors: 21
At a Glance
David Smith raised concerns about farming: financial sustainability in Westminster Hall. A government minister responded.
Key Requests to Government:
The Government should ensure imported food products meet the same high standards as home-grown produce to maintain a level playing field on quality. The Minister should update the House on progress towards ensuring half of all food purchased across the public sector is locally produced or certified to higher environmental standards and create a public record of how much of public institutions' food is sourced from the UK.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Opened the debate
The farming sector in North Northumberland and across England is facing significant financial challenges. In 2023-24, an average cereals farm took in £250,000 from selling crops but made a loss after costs, relying heavily on subsidies, diversification, and environmental schemes. The profitability review by Minette Batters highlighted that there is no single solution to improve farming profitability. Farmers earn a lower share of food chain gross value added compared to farmers in other countries like Germany, France, and the Netherlands, with only 9% of farms producing 62% of our food. Additionally, the National Farmers' Union reports that there were 2,500 abattoirs in the UK in the '70s but now there are just 200.
Adam Dance
Con
Yeovil
Farmers in Yeovil and Somerset are struggling with increased costs for diesel and fertiliser, despite the publication of a farming road map that promises action. The lack of long-term funding is attributed to the Treasury's misunderstanding of rural communities.
Adam Jogee
Lab
Newcastle-under-Lyme
Calls for a fairer deal for farmers and the supply chain, emphasizing the need for long-term certainty to enable sustainable planning. Encourages the Minister to look at a letter sent last week regarding farmer support.
Andrew Murrison
Con
South West Wiltshire
I agree with the hon. Member that we need to produce more food in this country but, at the moment, farmers are not putting crops in the ground due to high fertiliser costs caused by the situation in the Gulf.
Ann Davies
Lab
Conwy
Farmers in Conwy face spiralling costs, particularly for fertiliser and fuel. Milk prices have crashed, leading many smaller dairy holdings to leave the market. Sheep and beef prices are now showing signs of decline, while horticultural producers want a steady market for their produce.
Bayo Alaba
Lab
Birmingham, Hodge Hill
Farming is more than just a job; it's a lifestyle and identity that has defined rural communities. Local NFU members have spoken about pressures from rising fertiliser costs and how equivalent standards are giving favourability to imported foods over home-grown produce. Outdated and underfunded rural infrastructure prevents farmers from scaling up.
Ellie Chowns
LD
North Herefordshire
Farmers are central to national health, wellbeing, and security; we need regulation that works for farmers with a level playing field and investment in farming methods that support sustainability.
James Naish
Con
Intervened to ask the Minister to work with the Industry Minister on reviving domestic nitrogen and fertiliser production, which was previously at 40% but has since declined under Conservative rule.
Supported Jim Shannon's point, emphasizing that food security requires more than identity; it involves avoiding reliance on imports.
Jim Shannon
DUP
Strangford
Farming families need certainty, equity, and protection from this Government. Urged for an increased multiannual farm support budget fully inflation-proofed. Highlighted the threat to generational sustainability posed by changes in agricultural property relief.
Josh Newbury
Con
Tamworth
Welcomed the new farming Minister and investment of £123 million for productivity. Stressed the importance of fair supply chains and encouraged more agricultural co-operatives similar to those in New Zealand.
Julie Minns
SNP
Caithness and Sutherland
Raises concerns about the first round of Sustainable Farming Incentive allocations being open only to farms under 50 hectares, questioning whether this reflects the realities of farming in less favoured areas.
Maya Ellis
Con
Ribble Valley
Stressed the importance of farming being part of British society and valued as a core aspect. Emphasised public perception, countryside value, and the need for sustainable financial practices in agriculture.
Olly Glover
LD
Reading West
Farmers face challenges such as rising costs due to red diesel and fertiliser inflation, electricity standing charges increasing by 44% to 91%, a lack of government understanding of farmers' issues, and the need for more investment in environment land management schemes.
Rachel Gilmour
Con
Gordon
Argues that many farmers earn less than £20,000 annually and highlights the need for a comprehensive sanitary and phytosanitary agreement with Europe to reduce trade friction and lower costs for farmers.
Robbie Moore
Con
Telford
The farming sector faces financial sustainability challenges due to the Labour Government's fiscal decisions, including the closure of the SFI scheme and introduction of taxes such as the family farm tax. The MP highlights record farm closures and food insecurity under this government.
Sadik Al-Hassan
Lab
North Somerset
Farmers in North Somerset have waited a long time for a Government willing to back them with a genuine plan. The costs of farming have spiralled, making a profit almost impossible. However, farmers do this job as a way of life, hoping one day prices will allow them or their children to make a decent living from the land.
Samantha Niblett
Con
Bury St Edmunds
Electricity standing charges are crippling for farmers and there is a need to fund increased uptake of leguminous protein crops through the sustainable farming incentive scheme.
Sarah Bool
Con
North Norfolk
88% of North Norfolk is agricultural land. The farming sector faces significant challenges, especially with energy costs driving food inflation to 9%. Energy-intensive industries receive support but farmers are excluded.
Sarah Dyke
Lib Dem
Somerton and Frome
Farmers are in crisis due to a lack of confidence from successive Governments, with issues such as tax bills for family farms, budget cuts, and the closure of SFI without notice. The Liberal Democrats propose investing an additional £1 billion annually into farming and oppose policies that treat farmers poorly.
Steve Witherden
Lab
Ceredigion
The food sector is vital to Wales's workforce, transparency in supply chains is essential, the Groceries Code Adjudicator should cover more retailers, and trading with the EU is crucial for Welsh producers.
Stuart Anderson
Con
South Shropshire
I thank the hon. Member for securing a very good debate and raise concerns about food security in south Shropshire, where plans to install over 130 acres of solar panels on agricultural land threaten resilience and food production.
Government Response
Stephen Morgan
Government Response
Morgan paid tribute to his predecessor's work and highlighted the Government's commitment to supporting farmers through global uncertainties. He announced a record £11.8 billion investment over this Parliament for sustainable farming, including an additional £53 million for the farming innovation programme. The minister addressed concerns about fertiliser prices due to the Middle East conflict and fuel costs by reducing red diesel tax rates, saving farmers over £300 million annually.
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About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.