Future of Farming

I beg to move,

That this House has considered the future of farming.

It is a privilege to serve under your chairmanship, Sir Roger, and to bring this timely and important debate to the Floor of the Chamber. I did not think that it would be being debated at the same time in the other place. However, we will progress.

Farming has long been the backbone of our nation, underpinning food security, providing jobs and delivering significant environmental benefits. The agrifood sector across the United Kingdom contributes £148 billion to the economy and employs over 4 million people, including 462,000 directly in agriculture. It is an industry worth protecting and speaking out for.

Today, I speak not just as a politician, but as someone with farming in my blood—the daughter of a farmer, the wife of a farmer, and the mum of a little boy who dreams of becoming a farmer. The future of farming is deeply personal to me, as it is to many of the 209,000 farm owners across the UK, including 26,000 in Northern Ireland. These people work 17 million hectares of land to feed the nation, and care for the countryside. Their average farm size is 82 hectares, and their contribution to the UK economy amounts to £13.7 billion annually. Yet, they now face an existential threat from the proposed changes to agricultural property relief and business property relief.

The hon. Lady is talking about the direct impact on farmers, but in her opening comments she mentioned the broader agricultural, business and food sectors across the UK economy. Does she share my concern that, whether it is the tractor manufacturers or those who work in the farm shops in my constituency, the knock-on consequences will be huge if the Government’s proposed tax changes get through? They will impact not just the individual family farms themselves, which are the backbone of our economy, but all aspects of our rural and urban economy.

I could not agree more: the knock-on impact will be immense.

The Budget’s decision to cap full inheritance tax relief at £1 million, with a 20% charge above that, will devastate family farms. These changes know no boundaries and will affect countless small and modest family farm businesses. Independent analysis shows that up to 75,000 farming taxpayers will be impacted over a generation—five times the Government’s initial estimate. In Northern Ireland alone, the Department of Agriculture, Environment and Rural Affairs predicts that one third of farms and 75% of dairy farms will be hit the hardest. These figures are not plucked from the sky; these are real, evidenced figures from DAERA. Farmers face the grim prospect of selling off prime agricultural land, probably to big businesses that certainly do not want to use it for food production. This death tax will erode our food security and end future generational farming.

Three weeks ago, at the Eikon centre in Lisburn, I stood in front of 6,000 farmers who had braved Storm Bert to voice their concerns. Their message was clear: stop the family farm tax grab. The Government must listen. If they proceed with this policy, it will not only destroy an industry that feeds the nation, but tarnish their legacy, with the destruction of rural communities and livelihoods. When we are asked about this Government’s legacy thus far, sadly farmers and pensioners come to mind.

Does my hon. Friend not find it really angering that the Government justify this policy by saying that a few big landowners buy up land as a way of escaping inheritance tax? Yet, the impact is not on the big landowners; it is on ordinary landowners, such as those she has described. The impact on the countryside will be enormous.

My right hon. Friend is exactly right: big businesses will be the ones buying over the land, and they are not interested in farming it.

I respectfully ask the Minister to heed the voices of farmers, backed by detailed analysis from the Central Association for Agricultural Valuers and others. Farmers know their industry best. This policy must be revisited to ensure the sustainability of farming for generations to come. Let us act now to protect the custodians of our land, the economic drivers of our rural areas and the hand that feeds our nation.

Our farmers face relentless challenges, and the abolition of agricultural property relief is just the latest in a long list of blatant attacks. For too long farmers have been denigrated and subjected to some of the most draconian environmental restrictions. They are blamed for polluting waterways, while raw sewage goes unaddressed. Across all four nations, farmers are held back by planning restrictions over ammonia, making it nearly impossible to replace or upgrade sheds, despite these improvements benefiting the environment. Farmers face real threats from disease, including bluetongue, tuberculosis and bird flu, with little effective support. In Northern Ireland—this is a devolved issue, but the point is still important—herds of cattle are being slaughtered because of a lack of decisive action on TB, leaving farming families devastated and unsupported.

On the bovine TB agenda, does the hon. Member agree that what the recent Minister in Northern Ireland brought forward was a disappointment? There were no concrete proposals as to how to address the issue.

I do not want to get into a devolved issue, but I will say that farmers are absolutely reeling from the lack of action by the Minister in Northern Ireland.

Farmers are increasingly being forced to adopt measures under the guise of supporting environmental goals, but many of these come with significant concerns and costs. One topical example is Bovaer, an additive aimed at reducing methane emissions from livestock. It is promoted as a solution to agriculture’s environmental impact, but it has raised serious questions in the minds of consumers about the long-term effects on animal health and consumer safety. Consumers are understandably concerned about the food chain, and farmers are left shouldering the burden of implementing often costly solutions, with little clarity on their benefits or consequences.

If we genuinely want to support sustainable farming, the Government must ensure that these measures are properly researched and justified and are accompanied by meaningful support for farmers in adopting them. Instead, what do farmers see from this Government? A raft of policies that show nothing but contempt for British farming. In the past month alone we have seen plans to abolish APR and a new tax on double cab pick-ups—the lifeline vehicle for many farmers—which will come into effect in 2025.

We have also seen the galling revelation that foreign farmers are receiving £536 million from the UK aid budget while our own farmers are left to struggle. British taxpayers’ money is being used to fund low-carbon agriculture in countries such as Brazil—the 11th richest nation in the world—and Kenya, as well as in Asia, while our own farmers face insurmountable challenges to their food security and sustainability. What good is environmental progress if we import more food from abroad, produced to lower standards and with a far greater carbon footprint than what we can grow here at home?

Order. We have 13 Members wishing to participate and about 24 minutes. I will put on an immediate time limit of two minutes. If you do the maths, you will find that that does not work. There will be a Division at around 5 o’clock, and injury time will be added on. We will see how many Members come back after the Division, and I will reassess the situation, but for the moment, there is a two-minute time limit.

It is a pleasure to serve under your chairmanship, Sir Roger. I grew up in a rural community as well, and I know how hard farmers work. I know how long it takes for generations to pass on the expertise involved in managing and cultivating the land. It is not like any normal apprenticeship or training programme; children learn over decades how to get the most out of the land, how to get the best yield and how to manage the ever-unpredictable set of circumstances that any year on a farm may bring.

However, I suggest that the last thing farmers need right now is the scaremongering that has been undertaken by the Opposition parties; they are protecting the vested interests of wealthy landowners. It is not just a minority of these people who are buying up the land; 50% of our farmland is being bought up by them, and they are on record saying that they are seeking it to avoid inheritance tax. That is the issue we are taking on. The average farmer in my constituency in Hyndburn has nothing to fear. When we look at the numbers in detail—unfortunately, I do not have the time to offer them—they show that those farmers are protected from the tax. The average farmer, even when we look at arable land values and some of the higher-value land, will not be impacted by the tax.

We have to acknowledge the challenges that some farmers face and the rural poverty in this country—we talk about it a lot and it is very real. But that is not the fault of the current policy; it is the result of decades of failure, and particularly of what happened in recent years under the previous Government, who failed to grasp how to support farmers to be more productive, so that they can earn the money they ought to be earning.

The hon. Lady says that 50% of those affected are people who invest in land not for farming; is not the answer to put 40% inheritance tax on them and 0% on the real farmers?

Order. I should have said—I did not, but I will now—that if any Member chooses to intervene, which they are quite entitled to do, I shall treat that as a speech, so they will not get called later in the debate.

A farming survey shows that the farmers we are speaking about make an average profit of £96,000 per year, which means that even those who are impacted will not be subject to the same level of inheritance tax as many people on similar incomes. They face half the rate of inheritance tax, and through gifting they can avoid that if they undertake the necessary planning. They can of course still protect their farmhouse—that concern is sometimes raised—through the way the system operates. We have to keep coming back to the point that at least 75% of farmers will not be impacted by the measure.

Our Government have an ambitious plan for our farmers. They will invest £2.4 billion in farming next year to focus on sustainable food production and protecting nature. They are getting £60 million out the door through the farming recovery fund and have committed to providing a further £208 million to prevent the collapse of our defences against disease threats—

Order.

It is a privilege to serve under your chairmanship, Sir Roger. Well done to the hon. Member for Upper Bann (Carla Lockhart) for securing this debate.

I should be able to set out a vision of optimism and resilience for the future of farming in Northern Ireland today, but sadly that is not the case. It appears that, with the proposed inheritance tax, the Government know neither the price that farming families will have to pay nor the value of their industry. Our UK agricultural heritage is a cornerstone of our economy, culture and communities, and it is critical for our future. The 26,000 farmers and their families in Northern Ireland deserve better. When we take into account the food and drinks processing sector, the proposed measure will affect 70,000 jobs in Northern Ireland.

Northern Ireland’s fertile lands and valuable climate have long supported diverse farming activities, ranging from dairy and beef to crops such as our world-famous potatoes. As we look to the future, the potential for growth and innovation in our agricultural sector is immense. We should be looking at enhancing cutting-edge technologies, such as precision agriculture, drones and sensors, to increase productivity and ensure environmental sustainability. Our hard-working farming community wants to enhance efficiency in order to protect our natural resources for future generations. Our farmers are the true guardians of the countryside, and sustainability is central to their vision. They are dedicated stewards of the land, committed to adopting eco-friendly practices such as crop rotation and organic farming. They are also committed to sustainability.

Farmers’ efforts not only safeguard our environment but open new markets for our produce, meeting the growing global demand for environmentally responsible products. Farming is more than an economic activity: it is the backbone of our communities. The proposed tax will place an undue burden on families, making it difficult for them to pass down their farms to the next generations—

Order.