Daniel Zeichner MP: speeches

Speeches

• 12 Mar 2025 · Sustainable Farming Incentive · Hansard source

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  Many farmers are now in these schemes and are benefiting from them. We are also getting the environmental benefits that the whole transition away from basic payments to the environmental land management schemes was designed to achieve. Let me give some credit to the Opposition—they set this train in motion, but what they did not do was set up the schemes in a way that could properly be managed. That is what we are now doing.

• 12 Mar 2025 · Sustainable Farming Incentive · Hansard source

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  It should have been clear to people for a long, long time that this transition was coming. It was the move away from a system based on entitlements for every farmer through the basic payment scheme to a system that relied on people applying to what was essentially a fixed budget. I agree with the hon. Lady and many other Members that the way the system was set up did not allow for proper prioritisation or fairness in allocation. That is what we would like to change in future, but it is the system that we inherited, and I am afraid that that is where we are at the moment. The House should remember that the majority are already in schemes, and to those who have not yet come forward, I gently say for the future that the advice in these kinds of schemes is that it is better to apply early rather than to wait.

• 12 Mar 2025 · Sustainable Farming Incentive · Hansard source

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  I do not agree with some of the hon. Lady’s question, because the food security report published at the end of last year did not bear out her analysis. The Rural Payments Agency has written to farmers today setting out exactly the situation to give people reassurance.

• 12 Mar 2025 · Sustainable Farming Incentive · Hansard source

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  With your permission, Mr Speaker, I would like to update the House on the sustainable farming incentive. We stand on the edge of an unprecedented global transition for British farming. From leaving the European Union to the challenges of climate change and geopolitical events, we are asking more of farmers than ever before: to continue to produce the food that feeds the nation and to protect the environment on which our long-term food security depends. We are determined to create the conditions for farm businesses to be profitable and succeed. We are proud to have secured £5 billion for farming over two years: the largest budget for sustainable food production in our country’s history. That is £1.8 billion for customers already in agreements, £1 billion for farmers now in SFI agreements and a further £150 million for farmers in the SFI pilot. Labour has got that money out of the door and into farmers’ pockets. We have invested it to bring thousands more farmers into environmental land management schemes, which were vastly underspent by the previous Government, to make a record number of capital items available for the coming year to help farmers carry out actions under the SFI and countryside stewardship, with £600 million available for productivity, animal health and welfare innovation, and other measures to support agricultural productivity, as well as 50 landscape recovery projects across the country. We have responded directly to calls from the sector to roll out a new higher-tier scheme, and to increase payment rates so that higher-level stewardship agreement holders—many of them upland farmers—are fairly rewarded for their work. More than half of all farmers are now in schemes, with 37,000 live SFI agreements and 50,000 farmers in ELM agreements. Under the SFI, 800,000 hectares of arable land are being farmed without insecticides, 300,000 hectares of low-input grassland are managed sustainably, and 75,000 km of hedgerows are being protected and restored, which is a huge success for nature. I thank all farmers involved and reassure them that all existing SFI agreements will be honoured. Farmers will continue to be paid under the terms of their agreement for its duration. If they entered into a three-year SFI agreement earlier this year, they will be paid until 2028. If they submitted an SFI application but this has not yet started, that will also be honoured. All farmers who took part in the SFI pilot will be able to apply for an agreement. With the high uptake of the scheme, however, the fact is that it is now fully subscribed. This Government inherited SFI with no spending cap, despite a finite farming budget, and that cannot continue. We will continue to support farmers to transition to more sustainable farming models including through the thousands of existing SFI agreements over the coming years and a revamped SFI offer. But this is an opportunity to improve how we do that under a fair and just farming transition, which supports farms to be profitable businesses in their own right through fairer supply chains, better regulation and greater market access, and directs public funding in a fair and orderly way towards the priorities that we have set out on food, farming and nature. We will be strategic in how we design our schemes, and responsible within the available budget. This is about using public money in a way that supports food production, restores nature and respects farmers as the business people they are. SFI can and must work better for all farms and for nature, and I will set out the details of the revised SFI offer following the spending review, including when it will open for applications. We will work closely with the sector to design an improved scheme so that they can tell us what works best for their businesses. We will also put in place strong budgetary controls so that SFI is affordable to the public purse. The revised offer will align with our land use framework to better target SFI actions fairly and effectively, focusing on helping less productive land contribute to our priorities for food, farming and nature. The underlying problem facing the sector, however, is that farmers do not make enough money. The Government are changing that. [Interruption.] Opposition Members may laugh but businesses do need to make money; they might need to know that. We announced a new set of policies at the National Farmers Union conference last month aimed at improving farm profitability, securing our food security, and protecting nature. Through our farming road map, we are creating the conditions for farmers to run profitable businesses that can withstand future challenges. This decision is about investing in long-term stability. It is about a future where farmers are supported to run profitable businesses, and where public money is used in a better way to better restore nature and to secure long-term food security.

• 12 Mar 2025 · Sustainable Farming Incentive · Hansard source

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  My hon. Friend is absolutely right. I am afraid I was genuinely dismayed, but perhaps not entirely surprised, by what I found when I came into the Department. We have spent the last six or seven months trying to get control of the situation because if we have a scheme that is not capped or managed, or has no budgetary control, there is a problem. The figure of £5 billion overall is the biggest amount for farming that we have had. We will make sure the money gets out to farmers.

• 12 Mar 2025 · Sustainable Farming Incentive · Hansard source

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  My hon. Friend is absolutely right. I am afraid that, as on so many other issues, we have to clear up the mess that we inherited. That will take time. We are setting out a clear path to the future that, I hope, over time people will come to support.

• 12 Mar 2025 · Sustainable Farming Incentive · Hansard source

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  Let me repeat the point: this is not about communication. If we suddenly say that a scheme with a fixed amount of money in it will close in two or three weeks, we would get a surge in applications and have to close it the same day. That is a flaw in the way the scheme was originally designed, and we want to do better in future.

• 12 Mar 2025 · Sustainable Farming Incentive · Hansard source

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  The hon. Gentleman and I have had many exchanges across the Chamber over the years. I would be very happy to speak to his farmers and to talk to him about the important work that we are doing on supply chain fairness.

• 12 Mar 2025 · Sustainable Farming Incentive · Hansard source

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  I am astonished by the hon. Lady’s contribution. She should be celebrating the fact that so many farmers are now farming in an environmentally sensitive way. I invite her to help us ensure that these schemes work better in future. This is actually a cause for celebration of the benefits of the environmental land management schemes.

• 12 Mar 2025 · Sustainable Farming Incentive · Hansard source

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  We have known it for five years.

• 12 Mar 2025 · Sustainable Farming Incentive · Hansard source

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  This process has been going on for five years now. Perhaps the hon. Member should have looked a bit more closely at what was about to happen.

• 12 Mar 2025 · Sustainable Farming Incentive · Hansard source

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  Again, I refer the hon. Gentleman to the point that I made earlier. If we started a consultation on a first come, first served scheme, everybody would apply that day and we would have to shut it at that point. That is a flaw in the way the scheme was designed.

• 12 Mar 2025 · Sustainable Farming Incentive · Hansard source

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  I think there is still a misunderstanding about how these schemes work. If there is a first come, first served scheme and people have known for weeks and weeks—months—that it would be full at some point, there comes a time when we have to make a decision. If the Department is working within its budgets properly, it can hardly say a week or two before that suddenly it will close, because there will be a spike in applications. It is like a run on a bank. Basically, when the scheme is finished, it is finished.

• 12 Mar 2025 · Sustainable Farming Incentive · Hansard source

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  The hon. Lady raises an important set of points. We now have 75,000 km of hedgerow within these schemes. The basic point is that we have a fixed budget and, just as with the capital grants, when they are spent, they are spent. Another set of grants will be available, and I invite her constituents to apply at that point. We cannot get away from the fact that there is not an endless supply of money. We have to work within the budgets.

• 12 Mar 2025 · Sustainable Farming Incentive · Hansard source

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  I am not laughing. This is a very serious point. I am genuinely concerned about the future of the farming sector if we do not get generational change. We will look closely at how we can do that. The £5 billion budget that we secured was a very good first step for stability.

• 12 Mar 2025 · Sustainable Farming Incentive · Hansard source

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  Again, I am disappointed in the hon. Gentleman’s comments. He is a thoughtful person, and he and I have debated these issues many times. I am sorry that he did not welcome the uplift in higher level stewardship payments, which he and many others have been asking to see for a long, long time and which will benefit upland farmers. I take him back to the many discussions that we have had about the importance of getting the farm budget out to farmers. That is what has happened. The full budget is actually being spent and that should be celebrated.

• 12 Mar 2025 · Sustainable Farming Incentive · Hansard source

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  I am grateful to my hon. Friend. She makes a sensible point, which is that we saw a succession of schemes announced by the previous Government. I want to get to a scheme that will work for the long term. My hon. Friend is absolutely right; the way the scheme was set up by the previous Government meant that it was first come, first served.

• 12 Mar 2025 · Sustainable Farming Incentive · Hansard source

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  I thank my hon. Friend for that question. I very much enjoyed visiting his constituency and talking to farmers there about these issues. I can absolutely give him that commitment.

• 12 Mar 2025 · Sustainable Farming Incentive · Hansard source

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  I am grateful to the hon. Lady for her question, but I point out to her that this scheme relates to England. The different devolved Governments have different schemes. She asked about international aid. The key thing for us is to ensure that we support our farmers here, which is why we are spending a record £5 billion on farming over the next two years.

• 12 Mar 2025 · Sustainable Farming Incentive · Hansard source

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  Well, really! I had hoped that the shadow Secretary of State would understand how the schemes that her own Government created actually work. Let me explain the problem that we inherited—there are some on the shadow Front Bench who, I think, understand this better than her. This time last year, these schemes were undersubscribed; they are now oversubscribed. It is not a complicated thing to say that, when the budget is spent, a responsible Government responds to that. The budget is spent. [Interruption.] The budget has been spent and what we are doing in a sensible, serious way— [Interruption.] Conservative Members should actually be celebrating the fact that so many farmers are now taking up these schemes. I am confident that we will be able to sort out the mess that we have inherited. Basically, if you set up schemes without proper budgetary controls, you end up in this kind of position. We have had to take the hard decisions that the previous Government ducked.

• 12 Mar 2025 · Sustainable Farming Incentive · Hansard source

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  I completely disagree with the premise of the question, as the hon. Gentleman will probably realise. He is right to say that we need generational change in farming, and there are a number of ways in which that can happen—

• 12 Mar 2025 · Sustainable Farming Incentive · Hansard source

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  I hear the hon. Lady, but I repeat that we have 50,000 farmers in ELM agreements. The majority of farmers are already working with us to make that change to environmentally friendly farming. It was never clear how many farmers overall would make the transition into the new schemes. Obviously, it is not a matter of compulsion. We invite people to apply, and they were invited last year. When the new scheme comes along, I will invite people to apply.

• 12 Mar 2025 · Sustainable Farming Incentive · Hansard source

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  I was going to say that I was grateful for the hon. Member’s question, but I am not sure that I am. I invite him to come and talk to people who are engaged in nature-friendly farming, who benefit from these schemes and who are undertaking the transition, for which I give the previous Government credit for starting. We wanted to move away from the common agricultural policy to a new system. That is what we are doing. The schemes were not designed well enough, and we are now addressing that.

• 12 Mar 2025 · Sustainable Farming Incentive · Hansard source

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  I am always grateful to receive questions from the right hon. Gentleman, who chairs the Environment, Food and Rural Affairs Committee. Those figures on future farm viability go all the way back to the Agriculture Act 2020, when a serious attempt was made to assess future farm viability. That is why the Secretary of State and I are so determined to address those problems around farm viability. Farmers will not be supported forever by the public purse—we know that—so it is very important that we address the whole range of issues, but I am very happy to have a further conversation with him.

• 12 Feb 2025 · Support for the Scotch Whisky Industry · Hansard source

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  I am grateful to the hon. Lady. We are well aware of the importance of those casks to the industry and their value. As well as working with Governments overseas to increase market access, we work closely with the industry at home to catalyse its ability to reach export potential. We offer a wide range of support for businesses that want to start exporting or to expand into new markets, as well as a compelling programme of trade shows and events to support Scotch whisky exporters to access new markets, build buyer connections and increase marketing in target countries. We also have a network of international trade advisers offering one-to-one support across England, and teams with embedded sector expertise in Scotland, Wales and Northern Ireland. Overseas, we have a network of trade advisers and international market teams supporting agriculture and food and drink businesses in more than 100 markets, supplemented by a network of 15 highly skilled agricultural attachés focusing on removing trade barriers in key markets. We are aware of the challenges faced by Scotch whisky in international markets and we work closely alongside their representatives. Officials across Government are working on trade deals and breaking down export barriers to ensure that Scotch whisky is traded on a fair playing field and has opportunities to grow in new and expanding markets. An important part of that work is securing geographical indication status in major export markets, to add to Scotch whisky’s domestic protection. The status is a special form of protection that defends the iconic product from imitation and counterfeiting. Last August, the Government were pleased to announce our role in securing this form of protection in Brazil, a country which is in the top five global growth markets for alcohol, and is worth almost £900 million in Scottish exports. In the Budget a firm commitment was made to support spirits producers by, among other measures, investing up to £5 million in the spirit drinks verification scheme, which will reduce the fees paid by businesses for verification of their use of the Scotch whisky geographical indication, and go towards upgrading the overall verification scheme the Government provide. The specifics on how the funding will be used to improve the service will soon be announced by His Majesty’s Revenue and Customs.