Agriculture and Climate Change (Commonwealth Union) _ The National Farmers Union (NFU) is making a compelling plea for increased support to assist farmers in navigating the volatile landscape, a key component of its requests to the Chancellor ahead of the upcoming spring budget.
In a letter addressed to Jeremy Hunt, the NFU underscores the vital need for farmers to regain ‘business confidence’ to sustain long-term food production. Central to their appeal is the call for the Treasury to address the pressing issues of high production costs, the detrimental impacts of flooding, and the imperative need for certainty in UK food production.
Moreover, the NFU is shedding light on a pivotal opportunity for the Treasury to promote green investment within the industry, aligning with the legislated net zero emissions target by 2050.
Tom Bradshaw, the newly appointed president of the NFU, articulated the urgency of their message: “We have penned a letter to the Chancellor, scheduled ahead of the March 6 budget, delineating the essential policies required to support UK farmers amidst a host of daunting and persistent challenges.”
Bradshaw elucidated on the harsh realities faced by farmers, with input costs soaring by 32% since 2019, compounded by severe weather events leading to flooding and crop losses. Additionally, a looming 50% reduction in direct farm payment support by 2024 exacerbates the economic strain on food-producing enterprises.
He emphasizes the pivotal role of farms as businesses tasked with supplying the nation’s food needs. However, without profitability assurances, it becomes exceedingly challenging for farmers to make forward-looking investments, crucial for ensuring sustained food production to meet both domestic and international demands.
Among the NFU’s appeals to Mr. Hunt is the imperative need to ensure adequate funding for the Environment Agency to prioritize essential maintenance of flood defenses and watercourses. Additionally, they advocate for measures such as inheritance tax agricultural relief to safeguard agricultural land enrolled in Environmental Land Management schemes.
Furthermore, the NFU is urging the government to broaden the scope of the Industrial Energy Transformation Fund to include the poultry sector and introduce enhanced capital allowances to incentivize low-carbon investments.
In closing, Bradshaw underscores the Chancellor’s pivotal role in bolstering business confidence within the UK’s food and farming industry. He asserts that by prioritizing green investment incentives, funding flood prevention measures, and crafting a forward-looking agricultural budget, the Chancellor can fortify the resilience and sustainability of the farming sector for the years ahead.
