PARLIAMENTARY WRITTEN QUESTION
Dairy Farming: Finance (16 April 2024)

To ask the Secretary of State for Environment, Food and Rural Affairs, with reference to Table 1.2 of his Department's national statistics entitled Farm business income in England 2023/24 forecast, updated on 14 March 2024, whether his Department plans to provide financial support to dairy farmers in the context that their average farm business income in real terms is forecast to decrease by the greatest percentage among all farm types from financial year 2022-23 to financial year 2023-24.

Asked by:
Helen Morgan (Liberal Democrat)

The UK has a resilient and dynamic dairy sector which operates in an open market where the value of dairy commodities, including farmgate milk price, is established by those in the supply chain. The average Farm Business Income is at a 20-year high in 2022/23 following a previous 20-year high in 2021/22. The forecast decrease for 2023/24 would bring average Farm Business Income for dairy farm businesses back closer to historic trends. Through a range of government schemes, there is support for investment in dairy businesses through the Sustainable Farming Incentive, the animal health and welfare pathway and various productivity and innovation grants.

We have also recently introduced new legislation, The Fair Dealing Obligations (Milk) Regulations 2024, which creates new rules for dairy contracts covering issues such as pricing provisions, unilateral changes to contracts and notice periods. Ensuring fairer contracts will provide greater certainty for farmers and help the dairy industry thrive into the future.

Answered by:
Sir Mark Spencer (Conservative)
23 April 2024