Defra Secretary of State Emma Reynolds gave her first speech to this week’s Oxford Farming Conference against a second year’s background of tractor horns from protesting farmers outside the venue.
Appointed in September, the minister was positive and on top of her brief. She made three commitments to the agri-food sector – to work in partnership with the industry, to provide clarity and stability for farmers and growers, and to back agri-food businesses to grow – with food production and the environment “sides of the same coin”.
Ms Reynolds said the decision to raise the inheritance tax relief threshold for agricultural and property assets from £1 million to £2.5m showed Defra has engaged with the sector, listened and acted. But she said there could be no more concessions on this matter with the Finance Bill imminent. She praised the NFU and other bodies for the quietly determined way in which they had engaged with government over the issue – a much more productive method than noisy, disruptive protests, she commented.
Responding to Dame Minette Batters’ recent Defra-commissioned report on farm profitability, Ms Reynolds said many of the 57 recommendations would be incorporated in the government’s forthcoming 25-year Farming Roadmap. But there will be a new Food and Farming Board to represent and work in partnership with the whole agri-food chain, consulting and shaping policy. It will also develop sector plans – initially for horticulture and poultry, sectors with the greatest growth potential, and then other enterprises – with the aim of increasing national food self-sufficiency.
The minister promised planning system reform to encourage farmers and growers to invest in the infrastructure they need to grow, alongside faster, more responsive planning for the whole economy.
Farmer and grower partnership working will be encouraged through a new £30m Collaboration Fund to encourage farm clusters and co-operation and link farmers and expert advisers to benefit both business productivity and the environment.
There will also be £30m fund over the next three years to extend protected nature programmes – particularly to support upland farming. Dr Hilary Cotton has been engaged by Defra to develop new partnerships, starting with Dartmoor and Cumbria, with the aim of replication the initiative in other less favoured areas.
Turning to the Sustainable Farm Incentive (SFI), Ms Reynolds again said Defra had listened to farmers and learnt from previous mistakes. She promised a simpler and more focused SFI. There would be two scheme windows. The first would open in June for new entrants to the SFI and small farms – probably 50ha, although this is not yet decided and will be defined by area not turnover. The second SFI window in September will be open to all applicants.
Currently, 25% of SFI funding goes to just 4% of applicants, noted the minister. The scheme will change to make it fairer, open to more farmers, and simpler, with fewer options to choose from. All details and budgets will be clarified and fully transparent before the SFI windows open, and the arrangements will not change significantly for the rest of the current Parliament, the minister pledged.
In conclusion, Ms Reynolds said the government wanted to work in partnership with industry, providing the clarity and stability to allow businesses to plan, and providing strong foundations to invest and grow profitable and sustainable agri-food businesses.
NFU president Tom Bradhaw responded positively to the partnership funding, the promise for more clarity and stability, and a planning presumption in favour of farm development. But he called for more openness in the amount of SFI funding that would be available, to help farmers plan their rotations.