Zeichner grilled on food security amid wheat strike 

Efra Committee chair Alistair Carmichael asked Daniel Zeichner how it feels to be the food minister who took hot cross buns off the table, during a debate yesterday (1^st April).

The remark referred to the milling wheat strike that launched on April Fool’s Day, which farmers warn is likely to result in shortages of bread and hot cross buns this Easter.

Farmers are refusing to load their milling wheat ‘for the foreseeable future’ from 1^st April, in protest against recent government policy, including changes to inheritance tax (IHT) and the closure of the Sustainable Farming Incentive (SFI).

Mr Carmichael addressed the minister directly: “These farmers are talking about taking a massive hit – do you think they’re just doing this on a whim or to make a political point?”

Food security and rural affairs minister, Mr Zeichner, faced intense scrutiny from the committee, on issues ranging from IHT and the SFI, to fairness in the supply chain, a US trade deal, and the country’s foot and mouth disease preparedness. 

Mr Zeichner was joined on the panel by Janet Hughes, director of the Farming and Countryside Programme; and Emily Miles, director general for food, biosecurity and trade. 

Why was SFI closed without warning?

The trio were pressed multiple times to explain why farmers were given no notice of the closure of the SFI, despite the Rural Payments Agency website claiming six weeks’ notice would be given.

Janet Hughes said: “The best explanation for the committee is the decision was made to close the scheme at the point when the funding had expired.”

Mr Zeichner later said there had been concerns about a spike in applications if notice was given. 

He blamed the previous government for the need to close the SFI and said work would be done to develop a “better system” that can be allocated effectively once the Spending Review has been completed. 

More information on this new iteration of the scheme is expected in July this year, with a view to opening applications next summer.

Mr Carmichael noted that farmers would be “incensed” by some of Mr Zeichner’s remarks. 

READ MORE: Farmers ‘betrayed again’ as Defra stops SFI applications
READ MORE: Nigel Farage supports idea of selling US chlorine-washed chicken in UK
READ MORE: Shadow chancellor delivers blistering attack on Reeves during Spring Statement

Asked how many SFI applications were pending, Ms Hughes confirmed 4,000 had been completed but not yet processed at the time the scheme closed – these are being worked through at a rate of 500 a week and will receive offers assuming they are eligible.

Meanwhile 3,000 had been started and not completed within the past couple of months – if these were participants in the pilot they can still apply, as can those who had technical difficulties that prevented them completing applications.

All others will need to wait until the next round of the scheme, Hughes confirmed.

The minister was asked by Conservative MP Sarah Bool to apologise to farmers for not allowing them to plan, listing numerous recent policies which have caused suffering in the industry.

She also accused the government of giving with one hand and taking with the other.

She cited reforms to planning permission, which the minister had mentioned as a positive move from the Labour government. In light of changes to inheritance tax, however, which sees farmers pay 20% death duty on farms valued over £1m, farmers will be reluctant to invest as it would bring them further into the scope of IHT, she pointed out. 

Responding to comments by the minister that farms must run in a business-like way to ensure the future of the sector, Mr Carmichael said the suggestion that this is not already the case is “deeply insulting” – which Mr Zeichner said was not his inference.

Inheritance tax

The minister was also asked to consult on the effect of IHT changes on the wider economy, with reports that farmers are no longer investing due to uncertainty and financial challenges brought about by recent government policy. 

He was asked if it’s fair that a foreign owned business doesn’t have to pay the tax but a family farm does – to which he confirmed “we do not anticipate any changes” to the Budget.

US trade deal

Asked about the possibility of a US trade deal, the minister was unable to confirm if agriculture is part of the negotiations but said Defra is providing advice to the government and assured the committee that the department will defend Britain’s farmers.

Foot and mouth outbreak

The panel were also asked to provide reassurance on the country’s ability to prevent a foot and mouth outbreak in light of cases elsewhere on the continent – with concerns raised over illegal meat smuggling.

Emily Miles confirmed that Defra takes the threat “extremely seriously” and is “doing everything we can to be as prepared as we can”, though she acknowledged that with all the notifiable diseases “we would like to do more but we do as much as we can with what we’ve got”.

Commercial imports have now been banned from Austria, Slovakia and Hungary in response to the outbreak.  

Meanwhile, asked whether funding will be maintained for bovine TB, Zeichner said this too would have to wait till the Spending Review, though the government plans to move more towards badger vaccination. 

‘Big six’ profits 

Finally, much was made of the significant profits made by the ‘big six’ supermarkets over the past year, yet Morrisons and Asda paid zero Corporation Tax, noted Labour MP Jenny Riddell-Carpenter.

Zeichner said these are issues for the Department of Business and Trade but expressed reluctance to “unfairly criticise” “successful” businesses – though he acknowledged that power imbalances can occur.

Lib Dem MP Sarah Dyke cited figures showing 1% of the profit from produce goes back to the farmer.

There were additional concerns around the ability of farmers to report breaches of the Groceries Supply Code of Practice without being delisted and losing their income.

The government was also criticised for a lack of urgency in addressing these issues, despite claiming its plan is to make farming businesses more profitable. 

Mr Zeichner assured the committee that there is “absolutely a sense of urgency” and claimed that the government is working on these issues via the Fair Dealings Regulations.

Read more political news.