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Cost of Living: Support for Farmers — [Mr Philip Hollobone in the Chair]
12 July 2022
Lead MP
Alicia Kearns
Rutland and Stamford
Con
Responding Minister
Victoria Prentis
Tags
EconomyAgriculture & Rural AffairsStandards & Ethics
Word Count: 13831
Other Contributors: 12
At a Glance
Alicia Kearns raised concerns about cost of living: support for farmers — [mr philip hollobone in the chair] in Westminster Hall. A government minister responded.
Key Requests to Government:
The Government should expand the seasonal agricultural workers scheme year-round, boost domestic fertiliser production, secure domestic supplies, open export markets, establish a gas-fertiliser index within DEFRA, introduce farm business loans with repayment flexibility, and recognise farms as sites of national infrastructure to protect against activist disruptions.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Farmers are under tremendous pressure due to rapid inflation in fuel, fertiliser, machinery, and labour costs. The decline in agricultural output will lead to increased food costs and dependency on imports at a time when supply chains are strained. Labour shortages are severe, with dairy farmers considering leaving the industry altogether if conditions do not improve. Rising input prices, especially for fertilisers, are pushing farms to the brink, reducing product yields and quality.
Alyn Smith
SNP
Stirling
Alyn Smith stressed the importance of farming and agriculture to all our lives, highlighting that farmers are fundamental to our existence. He mentioned that Scotland's agricultural industry employs 67,000 people directly and supports a further 320,000, with an annual gross output of £3.3 billion. Smith called on the UK Government to do more to support farmers, especially through trade policy, competition policy, procurement policy, energy policy, and budgets. He also suggested that there is now more opportunity to use procurement policies to boost local demand for agricultural products following Brexit.
Ben Lake
PC
Ceredigion Preseli
Ben Lake expressed concern about the rising input costs and cost of living challenges facing farmers, particularly in Wales. He highlighted that agricultural inflation stands at 28.4% according to the agricultural price index, with many farmers considering leaving the industry due to increasing fertiliser prices from £200 per tonne last year to upwards of £700 per tonne now. Lake suggested exploring interventions such as establishing a gas-fertiliser price index and reconsidering VAT treatment for agricultural inputs.
South East Cornwall
Cornwall's agriculture industry is vital, contributing £2 billion to the economy with one in three jobs linked to food production. Farmers face rising input costs due to agflation at 30%, impacting fertiliser prices which have trebled and red diesel doubling in price. The cost of living crisis could undermine domestic food security as farms transition away from Basic Payment Scheme (BPS) support. There is a need for proactive mitigation measures, including on-farm business advice and local guidance to help navigate grants. Farmers say there is a lot more they have to do to get the same payments. How can we streamline the process?
Chris Philp
Con
Croydon South
I have received multiple emails from constituents worried about rising energy bills and their impact on the farming community in Croydon South.
Shrewsbury and Atcham
He praised young farmers' energy and dynamism but criticised the Government for not doing enough to support them. He called for a new Ministry of Agriculture and Fisheries with a dedicated Secretary of State at the Cabinet table. Kawczynski also proposed nationalising fertiliser plants due to rising costs and security concerns, highlighting mental health issues among farmers.
Daniel Zeichner
Lab
Cambridge
The hon. Member is concerned about the severe challenges facing the agricultural sector, including inflation, lack of seasonal labour, and issues with the environmental land management scheme rollout. He highlighted significant increases in agricultural input costs and warned about potential impacts on food security due to energy price rises and fertiliser shortages.
Helen Morgan
Lib Dem
North Shropshire
Farmers in North Shropshire are facing a cost of doing business crisis due to soaring input costs, labour shortages, and inadequate support from the Government. Farmers report cuts in basic farm payments, which are putting them at risk of going out of business. The National Farmers Union and others have highlighted issues with the implementation of new support schemes that farmers say are not ready or effective enough.
Justin Madders
Lab
Ellesmere Port and Bromborough
Madders is concerned about the potential closure of CF Fertilisers in his constituency, which employs over 300 people. He highlights that an increase in fertiliser costs could exacerbate the cost-of-living crisis and impact food security. Madders expresses worry that the parent company may not sell the site to a competitor due to its profitability and market position, potentially leading to job losses and higher food prices.
Mark Pritchard
Con
Walsall North
I am concerned about the impact of rising food costs on families across Walsall North and how it affects their ability to afford nutritious meals.
Donelan briefly intervenes to recognise the role of land-based colleges in supporting agricultural education and skills development.
Rebecca Pow
Con
Taunton Deane
The cost of fertilisers has increased by 150% in the past year, which is crippling small farmers who cannot absorb these costs and are struggling to stay afloat.
Selaine Saxby
Con
Tiverton and Honiton
Devon's farms face significant challenges due to inflation, with agricultural costs increasing by 28.4% for all inputs in the year to April 2022. Farmers are struggling with higher fuel and heating costs, affecting both their businesses and household expenses. The member urges a further reduction in fuel duty but acknowledges that it needs to reach consumers first. They advocate for better electric vehicle infrastructure and support for small farmers transitioning from old to new payment schemes, proposing an advisory board funded by £250,000 to help them navigate DEFRA bureaucracy.
Government Response
Victoria Prentis
Government Response
Addressed various issues raised by colleagues, thanked Alicia Kearns for securing the debate, and discussed ongoing work on fertiliser prices, supply chain fairness, seasonal worker visas, and the pig sector. Mentioned that half of this year's basic payment scheme payment will be brought forward as an advanced injection of cash to help with input problems. The cost of fertiliser is between £700 and £750 a tonne. We are working on transparency in the fertiliser market and will continue to work closely with banks regarding loans for farmers. The pig sector supply chain review will be launched shortly, and we aim to increase British pig consumption. In the arable sector, there are expected increased yields this year despite concerns about profit margins due to rising costs.
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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.