PARLIAMENTARY DEBATE
Agriculture: Government Support - 29 April 2026 (Commons/Westminster Hall)
Debate Detail
That this House has considered Government support for agriculture.
It is a pleasure to serve under you in the Chair, Mr Turner. It is good to have the Minister in her place. I hope she will forgive me if I take a direct tone. It was a direct tone that members of the National Farmers’ Union in my area of Honiton and Sidmouth took with me when we met last Friday in Devon.
Food security is fundamental to our national resilience. At a time of global instability, farming underpins the rural economy, although we tend to take the produce for granted.
I want to focus my remarks on international trade, tax and planning, drawing on the conversation I had with Devon farmers last Friday. At a time when uncertainty on the international stage continues, food and farming policy should be about resilience. Instead, the Government preside over continued dependence on imports, higher costs and a system of support that is unpredictable and bureaucratic. Farmers are being asked to bear the brunt of shocks at a time when many of them are struggling to make ends meet.
Let us begin by talking about trade. The UK is far from self-sufficient in food. We import about 40% of the food we eat, and an astonishing 78% of our fruit and veg. Food security is measured not only by the produce on supermarket shelves; it is also about the inputs that farmers require to grow the food.
As was mentioned earlier, fertiliser is increasing in price, such that some of the farmers I spoke with last week are seeing an additional £60,000 cost to their farming businesses this year in anticipation of next, with fertiliser prices having gone up that much. That is because of the products that fertiliser is made up of. It requires nitrogen, phosphorus and ammonia, some of which are sorely lacking in the UK. We are only 40% self-sufficient in fertiliser requirements.
Between a quarter and a third of the raw materials required for fertiliser would typically pass through the strait of Hormuz. We are heavily dependent on imported ammonia. Only 45% comes from places other than Algeria; we are heavily dependent on north Africa for ammonia. This is not resilience. This is vulnerability in an uncertain world.
Global instability over the last few years, from Ukraine to the middle east, has already pushed fertiliser prices significantly higher. Tom Bradshaw, president of the National Farmers Union, has warned that farmers are having to shoulder increased costs of inputs. Too often, they are only made aware of the price that they might have to pay for them once they arrive at the farm gate, such is the volatility of the market right now.
Red diesel tells another concerning story. Prices of red diesel in recent months have doubled, rising from 69p a litre at the start of the middle east conflict, to well over £1.23 a litre on 7 April. Responding to questions on this in recent weeks, both the Prime Minister and the Chancellor have stated that the situation is “under review” or “being monitored” by the Competition and Markets Authority. For many farmers, fuel and fertiliser prices have soared simultaneously, hitting their finances incredibly hard across the board, so monitoring does not really help.
We Liberal Democrats are calling for an emergency fuel duty cut that would bring down the cost of red diesel used by UK farmers by around £5 million over the next three months, to remedy the rising cost.
Looming over all this are the Government’s efforts to secure a comprehensive agreement with the European Union on exports. We encourage the Government to conclude an agreement on sanitary and phytosanitary standards, but they need to do so in a way that does result in a cliff edge. We heard recently from the Chair of the Environment, Food and Rural Affairs Committee, my right hon. Friend the Member for Orkney and Shetland (Mr Carmichael), that such a cliff edge would be very harmful for farmers if there is very little notice.
On trade, the Liberal Democrats believe that we need a comprehensive agreement with the European Union that guarantees enhanced access for UK food and animal products to the European single market, with minimal needs for checks or documentation.
The second area I want to focus on is the balance of tax and incentives for the farming industry. Government policy is undermining the viability of many of our family farms. Farmers are not seeking to get rich; they dedicate their lives to the intense labour required to manage their farms, and ask for some stability in return—predictable costs, fair taxes and support systems that reward their productivity.
Small producers are disproportionately disadvantaged under the new SFI scheme. Payment caps raise serious issues about long-term farm profitability. The system appears not to have been designed around farmers and what they want, but rather around bureaucracy and administrative convenience. The Liberal Democrats would invest in agriculture, including an additional £1 billion a year to support sustainable, domestic food production, improving our skills, resilience and supply, rather than leaving our farmers at the mercy of global markets.
Thirdly, I would like to talk about planning concerns. As I understand it, there are delays in the planning systems across local authorities that are preventing farmers from doing the right thing. Last week, I talked to one who had applied for a cover on a slurry store and was still waiting, eight months later, for a verdict on whether he could go ahead and make the modification.
To recap, we are calling on the Government to reduce exposure to volatile global inputs by supporting domestic fertiliser production. We are calling for a tax policy that recognises that family farms need stability, rather than the Government adding to global shocks with one or two of their own. We need farm support schemes that are predictable, accessible and fair, alongside systems for planning developments that work towards following clear timetables, rather than deadlines that continue to slip.
Farmers are doing their best in very trying circumstances. They are adapting and innovating, and trying to produce food for all of us while under immense economic pressure. They do not need warm words from the Government—they do not need “monitoring”. What they need now is a Government that are prepared to take action to match their rhetoric. I look forward to the Minister’s response.
I recognise the pressures many farm businesses face. Input costs can rise quickly and global markets, as we have seen recently, can shift overnight. That uncertainty makes it harder to plan, invest and employ, which is why the approach of the Department for Environment, Food and Rural Affairs is both long term and practical: stable funding, and simpler, fairer schemes designed to make farming more resilient and sustainable in the future—sustainable both environmentally and financially.
I will first address fertiliser, because I appreciate it is the major input in an arable setting. It is a cost that is a real worry for farmers. Recent market volatility has seen a 40% increase in prices for some fertiliser products and DEFRA is monitoring the impact on agricultural supply chains. We have direct lines open with domestic fertiliser suppliers, commodity traders and farming stakeholders, including the National Farmers’ Union—in fact, I have just been in a meeting with Tom Bradshaw. We all do our bit to meet as many of our farmers and their representatives as possible to know exactly what is going on where, so that it can inform our decision making.
Better information helps farmers make decisions that are up to date with the current situation, which is obviously in great flux. That is why we asked the Agriculture and Horticulture Development Board to increase the frequency of fertiliser price reporting, and welcome its move to publish price data weekly, giving farmers more timely and transparent information. We also recently ran a survey to understand how the rise in fertiliser prices and supply issues are impacting our farmers and land managers on the ground. Responses are being reviewed alongside other industry intelligence to guide how we shape future support.
DEFRA’s new nutrient management planning tool is supporting farmers by matching nutrients to crop and soil needs, enabling them to make the most of nutrient sources, reducing their reliance on artificial fertilisers. Over 500 farms have used this since it was launched. We are also consulting and gathering evidence to modernise fertiliser product regulations, improving future supply options and resilience.
The pressures imposed by events in the middle east only underline the importance of increasing the efficiency of fertiliser use. Whether through more effective use of technology or adoption of more sustainable farming practices, we can better equip our farmers and growers to produce food in a more resilient way. The Government stand ready to help farmers do just that, whether through our innovation funds and equipment grants, or our continued shift from area-based subsidy to environmental land management schemes.
Fuel is another issue that was raised in the debate. Price spikes can feed straight into farm costs, particularly for those who rely on red diesel. Red diesel continues to benefit from an 80% discount, saving farmers almost £300 million a year. There is also a 5p fuel duty cut in place from March until September. Where concerns have been raised about price transparency, we have raised them with the Competition and Markets Authority, which is monitoring petrol and supply prices closely. Industry bodies have been clear with us that fuel production and imports are continuing across the UK as usual. The Government continue to monitor sales, deliveries and stock levels, and well-established contingency plans exist should they ever be required.
The hon. Member for Honiton and Sidmouth raised farming schemes and grants. I understand the pressure that the uncertainty we are now facing in the world because of what is happening in the middle east applies to farmers, coming as it does after the impacts of climate change-related extreme weather in recent years, which have damaged harvests. This Government will work with farmers to deliver long-term solutions to the risks of extreme wet and dry weather, and to increase profitability, because when farmers can run profitable businesses, it is good for the whole economy and vital for our food security.
We have allocated a record £11.8 billion to sustainable farming and food production over this Parliament. Overall, farmers and land managers will benefit from an average of £2.3 billion a year through the farming and countryside programme. We are increasing investment in environmental land management schemes, rising towards £2 billion by 2028-29, because profitable farming depends on the fundamentals, which are healthy soils, clean water and resilient ecosystems.
We are also improving how support is delivered. I recognise some of the issues—
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I can see that the hon. Member for South Devon (Caroline Voaden) wants to intervene, so I will give way to her.
I have taken a lot of interventions, so I will now press on and say a little about the future vision for farming, because supporting farmers is also about building more profitable businesses and stronger partnerships from farm to fork. We are doing that by modernising capital grants, which will be open to apply for from July, with £225 million available, which is 50% more than in 2025. These grants will help farmers to upgrade infrastructure and deliver practical improvements, including to hedgerows, water quality and natural flood management. This year, £120 million will be available in farming grants to boost productivity innovation, consisting of £70 million through the farming innovation programme and £50 million through the farming equipment and technology fund.
I also want to talk about the Batters review and its 57 recommendations. We have already announced that we will take forward a number of the review’s recommendations, including the formation of a Farming and Food Partnership Board. Indeed, that board has already met and decided that horticulture will be the first agricultural sector to have a sector growth plan, which will be developed as part of the board’s work. I agree with the hon. Member for Honiton and Sidmouth that we need to consider what we can do make the growing of fruit and vegetables more resilient; he pointed out that that is the sector where we have the most difficulty in generating resilience. The Farming and Food Partnership Board is also looking at the poultry sector.
We will continue to develop our farming road map, which will be published later this year alongside our formal response to the rest of the recommendations of the Batters review. This road map will set the course for farming in England up to 2050, setting out how farming will evolve in response to changing markets, technologies and environmental pressures. In developing the road map, we have held workshops, meetings and listening sessions across the country, to ensure that it reflects what farmers need on the ground to plan for the future.
I think that this is the first time since the second world war that a Government have tried to set more of a Government direction for agriculture, so that we can work with the farming sector to ensure that we can increase resilience and give food security the proper priority it deserves. By definition, some of that work means that we have to look through the near-term pressures and problems that the hon. Member for Honiton and Sidmouth has raised today. However, it is important strategically that we are able to do that.
I also want to respond to the concern raised by my hon. Friend the Member for Bury St Edmunds and Stowmarket (Peter Prinsley). The Government take the issue of mental health support for farmers very seriously. We are tripling the previous funding for mental health and wellbeing support for farmers, and a new fund, which overall will be worth £1.5 million over three years, will be introduced. We want this investment to help farmers to deal with the pressures and potential isolation that they face. It builds on our commitment to improve business resilience through the £30 million farmer collaboration fund, because we think that self-help and peer help are often the most important ways to get through to farmers.
That has been a very quick look around the system, Mr Turner, but I hope that it gives some idea of the work that DEFRA is doing for farming.
Question put and agreed to.
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