Clear vision needed for farming

The government’s stop-start approach to farm support is stifling investment, says Fen Tiger.

The government’s decision to pause new capital grant applications has once again left thousands of farmers facing unnecessary uncertainty.

Capital grants play a big part in encouraging farm businesses invest for the future – helping growers and livestock producers maintain high environmental standards while ensuring their businesses remain profitable.

Only a short while before postponing caiptal grants, the government trumpted its allocation of £5 billion for farming and the environment for the next two years – describing it as the largest budget yet to be announced by for agriculture.

Mixed messages

That description is not quite true. The £5bn includes support for farmers impacted by extreme weather and a tranche of cash to help safeguard against disease threats. But it remains a substantial pot of money.

Yet soon after trumpeting its determination to invest in food security, sustainable farming and nature, the government then said budgetary constraints meant capital grants were being postponed.

These mixed messages do nobody any good. It makes it hard to plan and invest in our business. One minute the Treasury imposes inheritance tax on farmers, the next it says it is backing farmers. No wonder we feel confused.

Faster phase-out

The government then said it would issue an update on the situation early this year. I decided not to hold my breath waiting. Like many politicians, ministers increasingly seem to say one thing and then do the other.

In fact, few of us would be surprised if the government backtracked on the original capital grant agreements. Similarly, eligibility criteria and application processes will probably be scrutinised and changed.

It is all a farce. Farmers have been asked to adopt environmental practices to improve their environmental surroundings – but they have also been left without key grants or the threat of being unable to access them.

The whole farming industry has lurched from one crisis to another. The faster phase-out of the basic payment scheme – or de-linked payments – shows again how difficult it is to plan a way forward with any certainty.

The few farmers who managed to submit capital grant applications before the announcement have been lucky.

But many have been told not to purchase or materials until confirmation has been received and confirmed.

Giving notice

The entire way this has been handled goes against official guidance, which says Rural Payments Agency will give six weeks’ notice if any grant is likely to be over-subscribed. Applications should then be assessed on a first-come-first -served basis.

It now seems that farmers will also have to wait for the higher tier of the Countryside Stewardship scheme, which is not expected to open for applications until the summer of 2025 at the earliest.

Once again, this prevents farmers from accessing a much-needed revenue stream at a time when many in the industry are struggling to keep their heads above water. Defra minister Steve Reed should take note.

With fears growing that more financial pain may be on its way for the farming sector, one thing is for certain: Anything that this current government says must be taken with a pinch of salt.