A tense NFU Conference saw the farmers’ union and government present their visions of how to reach a more profitable future. By Michael Barker
Defra secretary Steve Reed has promised to put profitability back into UK farming, pledging that he will deem his time in the job a failure if he doesn’t achieve that goal.
Reed addressed the NFU Conference in Westminster on 25 February against the backdrop of the ongoing row over inheritance tax (IHT), and his speech was repeatedly interrupted by protests both from inside the hall and from tractors lined up outside. Farmers also took turns to give moving personal accounts of how the new rules were affecting ageing relatives in particular.
Despite repeatedly saying he was sorry for the pain the policy has caused, Reed again dashed hopes that it would be changed, arguing that it is the result of the “black hole” the Conservatives left in the economy. Instead, he urged farm businesses to follow strategies that minimise their tax liabilities.
Reed set out to refocus the discussion away from IHT and onto profitability, which he said was the true big issue facing the industry. To address this, he announced the creation of a new farming profitability unit within Defra, although he didn’t give further details on what that would involve. “The underlying problem is that farmers do not make enough money for the hard work and commitment they put in,” he said. “I will consider my time as secretary of state a failure if I do not improve profitability for farmers across the country. My focus is on ensuring farming becomes more profitable because that’s how we make your businesses viable for the future.”
In announcements that he said would put more money into British farmers’ pockets, Reed confirmed the seasonal worker visa route for horticulture and poultry workers will be extended for five more years, though he did caveat that with the warning that visa numbers will have to reduce over time. New requirements for government catering contracts are also aimed at prioritising high-quality, high-welfare products, which Reed said local farmers and producers are “well placed to serve”.
There was also a further £110m earmarked for technology development through the Farming Innovation Programme, a promise to protect British animal welfare standards in future trade deals, and the establishment of a new National Biosecurity Centre to transform the Animal and Plant Health Agency’s animal health facility at Weybridge.
Reed said ensuring long-term food security was a top priority, and promised collaboration in creating Labour’s 25-year farming roadmap and food strategy. Workshops were due to begin at the start of March, he revealed.
Reed spoke after NFU president Tom Bradshaw’s opening address, which as expected focused heavily on the union’s frustration over IHT. Bradshaw, whose speech was also disrupted by protestors, did however make a number of references to the poultry sector in relation to both animal welfare equivalence and avian flu housing orders.
On the former, he said he was “fed up with hearing from poultry farmers being told by government, supermarkets and others that they must reduce their stocking density, while poultry produced to much lower standards is being imported every day. That chicken ends up in our ready meals, in our restaurants, hospitals and schools, undermining the very economics of domestic food production.” He also stressed that time-critical decisions around poultry housing orders cannot wait any longer.
The heart of Bradshaw’s speech was his call for a reset in the relationship between government and farmers. Stating he has “never seen such a crisis of confidence in our industry,” he called on ministers to work closely with farmers to deliver the food security the nation needs in an insecure global climate.
Part of the NFU strategy for the future includes its Blueprints for Growth, which Bradshaw unveiled as a pathway towards both a sustainable and profitable future for the industry, and a safe, healthy and affordable supply of British food for the public. The 16-page document outlines the union’s priority asks across a number of areas including commerce, international trade, environment, resilience, investment and innovation.
Elsewhere at the conference, in a session looking at exports Rebecca Tonks from St Ewe Free Range Eggs asked speakers whether there’s a scenario in which Britain might export its produce to markets that value it more highly, leaving Brits to eat lower-standard imported food. In response, Richard Clothier of Wyke Farms said there is a “great opportunity” for independent businesses to build premium markets abroad.
Sandra Sullivan, director of the Food & Drink Exporters Association, added: “I think there can be more profit to be made internationally. UK multiples can be quite tough on pricing and margins can be very small, and there is the ability to negotiate a stronger margin and more money for your product internationally. I think it’s a balance. A lot of businesses do both and have a standard pack and a premium pack – it’s about developing both in parallel to take advantage of both opportunities.”