Select Committee on Environment, Food and Rural Affairs Minutes of Evidence


Examination of Witnesses (Questions 160 - 166)

TUESDAY 4 JULY 2006

REVEREND ROBERT BARLOW, MRS JILLY GREED, MR ROGER JAMES AND MR JOHN TURNER

  Q160  Chairman: That is very clear.

  Mr Turner: I will try and keep my introduction brief. I have described myself as a traditional farmer. We have heard a number of different viewpoints expressed by witnesses today which I think reflect the dynamic that is there in most farming businesses between the need to run them as a modern business, in other words awareness of commercial markets, global trade and the impact that might have, but we are also dealing with wider values within farming, such as animal husbandry, environmental husbandry, and they have always existed in all farming businesses. Quite where that balance falls very much depends on an individual perspective but also the market opportunities. I was driven to respond to this because when I saw this Vision document, which was published by Defra and the Treasury, I felt it was a very dry document that took a very limited perspective. Sure it was a vision, but it was from a very limited perspective which was framed by international agreements, the need for addressing global issues, but local issues hardly figured at all. If you put a word search in here for "local produce" it does not figure once, yet "international trade" figures on a number of instances. Therefore, what I would like to have seen in that was this wider perspective brought into it. We hear a lot of talk about moves towards environmental payments and moves away from production but, at the same time, I think what it fails to reflect is that the environmental damage which has happened over the last 40 or 60 years in farming has been the result of the policies and the markets that it is framed in. It is not always down to farmers being the bad guys, they are responding to external constraints and drivers in the market. A number of people have already made the point that if we export production to other countries there is absolutely no guarantee that those same drivers will not follow it out there and there is going to be a similar impact on their environment. There was also mention made of this move from Pillar 1 to Pillar 2 payments, but the Pillar 3 payments, the social aspects of farming, have hardly figured in that. Farming is interwoven into every community throughout the country. Somebody mentioned that within the report you could quite easily have put "washing machines" as the commodity, and it is certainly true that you could replace the word "farming" with "shipbuilding" or "mining" or "steelmaking". It seems to me that it is being treated as one of those commodities, but if you pull farming out of a lot of local communities it will have an absolutely devastating effect on them. The number of industries that are related to farming, the number of people who are potentially involved in farming, has been seriously underplayed and not reflected in this document. There are a lot of ways the Government could support farming which do not fall under the word "subsidy" which has been a millstone to farmers. Farming never really benefits from the word "subsidy", it is a subsidised food production, the farmers very rarely benefit. In the 1970s and 1980s farming benefited from the Farm and Horticultural Development Scheme which allowed farmers to develop their businesses. Once that ended, we are now seeing a point 20 years later where that investment in infrastructure has dried up, those buildings are in need of repair and renewal, and farmers do not have the confidence in the future to invest anymore. One thing, above all else, that farming needs is clear guidance for where we need to go, and we need the confidence to invest in a market that we know is going to be there in 10 or 15 years rather than what we are getting at the moment, which is every two or three years having a different objective put in front of us, trying to turn round a very complex business and trying to align it with different sources of funding and different streams of support.

  Chairman: Thank you very much indeed, gentlemen, for two challenging and very interesting perspectives on the Vision document. I have got four colleagues who have indicated they wish to ask questions. I am going to ask David Drew and Roger Williams if they will put their questions one after the other and then ask our two witnesses if they would respond.

  Mr Drew: Picking up on what both of you say, in a sense one of the weaknesses of farming is it does tend to come from a compromised position, and that is the way that politicians may want it to at least be perceived. I believe strongly with what Roger says. I think it is disgraceful that we give the greatest amount of money to the richest people for reasons that are very unclear. How would you get farming to respond? I think it would help politicians if we had a diversity of opinion on the way that things might be taken forward to at least have this argument rather than it being a messy compromise all the time.

  Q161  Mr Williams: I think Roger James makes a very good case for hill farming, and at the moment hill farming is only supported marginally in the Common Agricultural Policy. At the moment, the Common Agricultural Policy would give the same amount of support for land which has good soil, good climate, good growing conditions as for somebody farming in the most upland areas. Is there a case for having not such a level playing field but supporting people farming in the most disadvantageous regions rather than the people who can compete on a world market producing commodities such as wheat and milk?

  Mr James: We live in the hills and we are 35 miles from what I would determine as good land. Our rainfall is very high, so basically we have got seven months of winter. There is nothing wrong with that, I love living there, I love the people, I love the economy, it is brilliant, but we do need money to survive one way or another. Possibly they are going into environmental payments, but the biggest problem is the people who are in charge of the environmental payments are educated, they do not quite know what to do with them, I am afraid to say. A prime example is a friend of mine has got butterfly orchids and SSSI have told him the maximum stocking rate, you are not supposed to graze this, you are not supposed to do that, they have lost them. He has managed that land for over 20 years and they were there until they told him how to manage them. You might all laugh but I am afraid that is happening everywhere. The latest thing we have had to do is biannually trim the hedges. The population of birds has gone down 50% in about 20-odd years. One reason is badgers eating the ground eggs, and if we biannually trim hedges it opens the hedge up which enables the big birds to get into the little birds. They do not know that, I do. I am not educated, but you have got to be very careful to ask people like us—I am not saying me—because we do know what we are doing, otherwise we would not have survived so long. As far as money towards the hill areas or the sort of area I am living in, personally I think there ought to be so much per labour unit per farm. A lot of farmers' wives are working these days so they only have one labour unit, not two, but farmers being farmers find out how to go around these things in a roundabout way. It is time that was stopped and it is time the money was paid to the people who work on the land.

  Q162  Chairman: Does anybody want to comment on David Drew's point about a ceiling on CAP?

  Mr Turner: Sorry, I thought you were going to say his point about the need for a more co-ordinated approach.

  Q163  Chairman: You can comment on that as well, but briefly.

  Mr Turner: Whatever strategy we evolve for the future of CAP, it should be one that involves not just 16 farmers but gives a forum for a great number of other farmers to be involved in, but not only those, the public, the retail sector and others. It would be great if we could sit down together and develop a strategy. There have been models, such as the Biotechnology Commission, which have taken quite divisive issues within farming and brought those together in quite a dynamic way. It is a shame that model is not replicated in other issues such as CAP reform.

  Mrs Moon: In the first presentation from Mr Blackett, he said the Scottish Parliament knew better how to work with farmers. Mr James, you work with the Welsh Assembly, would you say the Welsh Assembly is more proactive in terms of its work with farmers? If so, how? I understand also that the Assembly is withdrawing a subsidy to hill farmers which currently is in place. I had this from my local farmers this weekend and I wonder if you would comment on that too.

  Q164  David Taylor: I was very interested in John Turner's suggestions about areas where support can be justified for farmers. He makes the point that small and medium farms find it particularly onerous to do some things to maintain good farming practices: soil testing analysis; demonstration farms; support for fair trade; all of those, fine, and I can see how they might work. The one I was surprised at was: "Working IT systems that simplify record-keeping...". I am astonished, having come from an IT background, that within the marketplace there is not some viable worthwhile cost-effective systems that do just that. Is there really a market void of that kind? Secondly, and finally, you also talk about areas of support, "...fostering better co-operation between farmers". We have heard evidence from time to time that getting farmers to co-operate is not unlike herding cats because, of course, farmers are proud, independent and entrepreneurial. How can you break down these things and put them into a more co-operative context?

  Mr James: Carwyn Jones is rumoured to be taking away our monies. What do I think of the Welsh Assembly and the way things are going? I think it is another disaster. You have got another heap of politicians, excuse the phrase, and all it is doing is taking money out of our kitty. There are too many compromises and too many tiers of government. We have got the FUW, the NFU, the Scottish Unions, and whatever, and by the time our idea gets to the politicians the idea is gone, it has been watered down that much that the good idea and the good intention has disappeared. As the gentleman here said, we need more of these forums for you to get an actual idea of a working farmer. I am a working farmer, like it or lump it. I am a bit rough around the edges, a bit blunt, I cannot help that, but I am a working farmer. I get all my living from agriculture, albeit subsidies, but that is what I do. Carwyn Jones will be like the rest, he will get rid of us all if we are not careful. We are a dying industry and it is a real shame. As you like hills, we live in a beautiful area and it will disappear and all go back to bracken and that will be the end of it.

  Mr Turner: I too classify myself as a working farmer but, unfortunately, increasingly I spend two and a half days of the week just in front of a computer, record-keeping and keeping things up-to-date. It is bad enough for most farmers but as an organic farmer there is a further tier of forms and record-keeping that we have to do, which is purely for the sake of the audit trails. I know the Government does not have a good record in implementing centralised IT systems, but I think there is a very, very good case for doing it within agriculture and reconciling the diverse schemes there. I realise that the whole farm approach is intended to address this, but from my limited experience of it so far I think it has got a long way to go to reduce the burden.

  Q165  David Taylor: What about fostering co-operation, John?

  Mr Turner: With the best will in the world, there is a need for education for farmers, and I do not mean that in a disparaging way, but the markets have changed significantly over the last 20 years and I do not think small farmers can any longer afford the luxury of being independent isolated businesses. A lot of the problems within farming can be traced down to a lack of co-operation.

  Q166  Lynne Jones: Mr Turner, you have emphasised the importance of having confidence for investment, and Mrs Greed said there was a need for more investment in value-added production and promotion. One idea in this document is about upfront payments which would allow investment, what do you think of that idea?

  Mr James: The biggest thing I see is time. We are working farmers and we have not got the time to do a lot of these things. From my point of view, what we really need is a directive from government, with the help of farmers or as an integrated thing, to set up something to do the marketing. My trouble is I am a down-to-earth farmer and I cannot do anything else besides farming because I have not got the time. I cannot market things because I have not got the time to market them.

  Mr Turner: My understanding of the role of government is to address market failure. We have the centralised distribution and retailing system which is dominated by the supermarkets which has framed a certain sort of agriculture and a certain style of farming. Where I feel there is a case for public support is to develop an alternative network which provides a greater choice for people. The seed funding at least will not be provided by the market at the moment. My feeling is if that can be brought together there is a viable alternative to the centralised food distribution system, and there is a very good case for using public money to build that network.

  Chairman: Thank you all very much indeed. That was excellent. We are going to move quickly to our third panel of witnesses.





 
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