Farming Sector Productivity

2. If she will take steps to help increase productivity in the farming sector.

We are backing British farmers to build a profitable and sustainable future. We will put £11.8 billion into food and farming in this Parliament, including £200 million for cutting-edge innovations through the farming innovation programme. Last weekend, we announced £21.5 million backing 15 projects to turn new crops and new farm tech into ready-to-use tools that boost productivity.

The Batters report included a number of good recommendations about productivity. North Yorkshire farmers want to produce food; they are obviously worried about the environment, but the priority is food. After covid, we talked about more UK food resilience, so may I urge the Minister to press forward quickly with the recommendations about productivity in the Batters review? And will she come and visit a farm in my constituency soon?

I welcome the right hon. Gentleman’s support for the Batters review, which is an important part of ensuring that the sector remains profitable. I am always listening to farmers. I have had many welcome propositions to visit farms, and I will see what I can do to fit him into the grand tour.

Last week, I visited Gisburn auction mart in my constituency, with my constituents John Alpe and Graham Young, where I heard the challenges that farms are currently facing with the rapidly dropping milk prices. Indeed, two farmers were there to sell up their farms entirely, while others are pushed into further intensification just to survive. As a former head of innovation, I know that sometimes productivity and innovation can mean bringing back strong old ideas in new ways. In that spirit, does the Minister think that we should consider bringing back the Milk Marketing Board?

The milk price has certainly had a very difficult adjustment down, as part of the global glut in milk supply, so having been in a period of high prices, we are now in a different kind of period. What my hon. Friend is suggesting is almost a form of price control. I think the best thing we can do is think about fair-dealing obligations, and ensure that the Agricultural Supply Chain Adjudicator does his job and makes certain that there are no unfair contracts in the market.

I call the Chair of the Environment, Food and Rural Affairs Committee.

Has the Minister had the opportunity to consider the report by the Andersons Centre for CropLife UK? It estimates that if a sanitary and phytosanitary agreement with the European Union was implemented without a suitable implementation period, it could result in steep drops in UK crop production and a total loss of income of up to £810 million. That is why the Select Committee is today asking for an implementation period of 24 months. Will she impress upon her colleagues in the Cabinet Office the need for that suitable implementation period?

The first thing to say is that the SPS agreement is attempting to put right the Tories’ botched Brexit deal, which made it almost impossible for many people to export to our largest market. The idea is that this should be a new, mutually beneficial agreement to remove barriers, and I hope the right hon. Gentleman supports it. I know that the Select Committee report came out last night, and we will certainly respond to it in more detail. We are aware of the potential downsides if wrong deals are done, but we will not sign a deal that is not in the UK’s interests.

Precision breeding is critical to improving productivity. That is why I was so pleased to see so many Norfolk-based research projects, including the fantastic John Innes Centre, receive funding from DEFRA’s farming innovation programme. It is crucial that we protect these advancements, so can the Minister outline what assurances the Department has sought on precision breeding during the SPS negotiations?

The agreement between the EU and the UK to search for an SPS agreement recognised explicitly that there is a case for some exceptions, and we are negotiating that agreement as I speak. We are very well aware of the advantages that precision breeding gives to this country, which is why we laid a statutory instrument on plant precision breeding in November.

I call the shadow Minister.

Farming cashflows are under pressure, and farming businesses need clarity, certainty and clear policy direction from this Government now more than ever. However, with partial U-turns, continuous consultations, new taskforces, road maps, frameworks, reviews and now—finally—an announcement that the renewed sustainable farming incentive will be launched, but not until summer, farming businesses are really struggling to financially plan ahead. In all this confused policy direction, has the Minister decided the budget allocation for the new SFI scheme? How much will be available per farm? What will the assessment criteria be? Given that she wants to open up the scheme first to smallholdings, has she yet defined the definition of a small farm?

We have been quite clear that the new SFI should be simpler. We do not want it to be distributed in the way that it has been in the past; under the Conservatives, 25% of that scheme went to 4% of farms. That is why we have decided to open up the scheme first and foremost to small farms. We are in negotiations about the definition. All this will be set out in great detail, and there is transparency and simplicity ahead. We will not fall into the traps of creating schemes so complex that they cannot be properly administered by the Rural Payments Agency—that was the legacy that we received from the Conservatives.