Farmers are in despair, and here’s why – with Rebecca Wilson
Recently it’s been heavy blow after heavy blow for the farming community. Fifth-generation farmer Rebecca Wilson explains why that is and what it means for food production and the environment.
I wanted to write a short piece which hopefully helps to explain why farmers are so frustrated at the minute. Actually, frustrated doesn’t even cover it. Farmers are in despair.
For those who aren’t involved in this way of life, it might seem that farmers are always complaining, but the future of food production and food security are in real jeopardy – in a way that most of us haven’t seen before. Ultimately, anyone who eats food should be concerned by these threats to UK food production.
Farming businesses have recently been dealt some major blows whilst already functioning against a backdrop of supply chain unfairness, financial instability and a mental health crisis. We might be resilient, but neither we nor our businesses can function when the ability to plan and invest is taken away by a government that betrays its promises and seemingly does not understand that farming businesses are vital to food security, the environment and the wider rural economy.
Why is the UK’s farming community so concerned?
Let’s start with SFI – the Sustainable Farming Incentive. This was introduced as a way to help bridge the gap in farming incomes and cashflows after we left the EU and the Basic Payment Scheme (BPS) began to be phased out.
The BPS was funding for farmers to maintain the production of food, and it helped to keep food prices ‘affordable’ for consumers. To receive this funding, farmers had to meet certain criteria and abide by regulations.
To receive funding through the Sustainable Farming Incentive, on the other hand, farmers are required to act (at their own cost) to achieve environmental goals. Whilst it is not perfect, farmers have enrolled in SFI to produce food whilst looking after the environment and delivering public goods.
You might ask why farmers should receive government funding. The simple fact is that producing food is not profitable. In the vast majority of cases, farmers are ‘price takers’ and therefore what we sell is often sold at a price below the cost of production. Government funding is granted to many other sectors such as rail without question, yet they can set ticket prices to cover their costs in a way farmers cannot.
Now, though, SFI has been pulled by the government – with no warning – despite their promise of at least six weeks’ notice if they were going to remove the chance to apply. In an industry where we plan years in advance and make eye-wateringly large investments to be more efficient, improve animal welfare and reduce our impact on the environment, turning the tap off like this so suddenly undermines our ability to be financially sustainable.
If pushed, will farmers now farm even harder? Will we be able to afford to incorporate the environmental public goods that the government once promised to help us maintain and sustain?
Farming is not like any other business...
We have also recently been told that the government’s compulsory purchase powers will be extended, allowing it to acquire farmland at below market value for the purpose of house building and the like. But what about food security? We now sit in an extremely uncertain geopolitical landscape, and I just can’t get my head around how taking more farmland out of production can be a good thing. In government’s own words, farming is not like any other business and once it’s gone, you can’t get it back. Importing food – which is often produced to lower health and environmental standards – is not the solution government make it out to be.
Finally, I have previously talked about changes to inheritance tax (IHT) and how these will impact farming businesses. Simply put, farmers may have valuable assets on paper, but most do not have the cash available to pay an inheritance tax bill. National farming organisations, farmers and even the government’s own advisors and MPs have called for a pause, an impact assessment, a clawback clause and a full reversal. Still, we are not listened to – and I don’t believe the government can claim to underestimate the impact of their actions. It certainly feels like a deliberate, malicious and dishonest attack on farmers, farming businesses and, ultimately, working people and consumers across the whole country who they claim to support.
I don’t know what’s next for farmers, simply surviving perhaps? We have said time and time again that we don’t want to disrupt food supply or impact consumers, but right now, we have been pushed to a place where we’re questioning what we can do to truly make our voices heard.
