Farmers' Basic Payment Scheme

Private Members' Business – in the Northern Ireland Assembly am 5:30 pm ar 7 Hydref 2024.

Danfonwch hysbysiad imi am ddadleuon fel hyn

Photo of Declan McAleer Declan McAleer Sinn Féin 5:30, 7 Hydref 2024

I beg to move

That this Assembly recognises the significant investment in rural communities and businesses, and the wider economy, derived from the single farm payment under the EU common agricultural policy (CAP); agrees that CAP single farm payments were critical to supporting farms to be financially viable and more environmentally sustainable, particularly small family farms; is concerned with the significant uncertainty facing our farming community with the loss of CAP single farm payments as a result of Brexit and the end of the replacement basic payment scheme worth £300 million a year, beyond 2024; and calls on the Minister of Agriculture, Environment and Rural Affairs to urgently press the British Government to set out what replacement funds will be put in place to support our farmers and the wider agricultural sector.

Photo of Carál Ní Chuilín Carál Ní Chuilín Sinn Féin

The Business Committee has agreed to allow up to one hour and 30 minutes for the debate. The proposer of the motion will have 10 minutes to propose and 10 minutes to make a winding-up speech. As two amendments have been selected and are published on the Marshalled List, the Business Committee has agreed that 30 minutes will be added to the total time for the debate.

Photo of Declan McAleer Declan McAleer Sinn Féin

I welcome the opportunity to debate the motion this evening on the farmers' basic payment scheme. Our farmers are grappling with some of the greatest challenges they have ever faced. Among them are Brexit, climate change and animal diseases. On top of those, the rising cost of production and reforms to agriculture policy are stretching our farming communities to the limit.

Local farmers play their part in global food security, particularly for countries that are not self-sufficient. In this context, our farmers are not just local producers; they contribute to the wider European and global food chain, as well as being custodians of the countryside. Global food consumption is projected to increase by 1·4% over the next decade, driven by population growth. This is not the time to cut funding or reduce our commitment to agriculture. On the contrary, we need to invest in the future of farming to ensure food security at home and abroad. <BR/>Thriving rural communities are essential for our wider economy, and agriculture is the backbone of those communities. Over 80% of farms in the North are small-scale, but we cannot assume that the end of direct payments would only impact on small farmers; it would devastate the entire sector. Research from Queen's University suggests that, without direct support, we could see the collapse of 30% of our farms. For the over 25,000 farm businesses here, the loss of direct payments could be catastrophic, threatening sustainable farming practices and the livelihoods of thousands of people. With approximately one million hectares of farmland, primarily grassland, we have the unique ability to convert grass into protein, thanks to our ruminant livestock. In the North, 75% of land is classified as less-favoured areas (LFA), which is unsuitable for growing crops but is perfectly suited for grazing livestock. That natural resource should be protected and maximised, but the current uncertainty threatens the industry.

The basic payment scheme, known to many as the "single farm payment", is crucial to the rural economy. It provides direct financial support to farmers and has a multiplier effect throughout the local economy. It stabilises farm incomes, enabling farmers to maintain or increase production, helps to keep the land in good environmental condition and boosts demand for agricultural input, such as machinery, seeds and fuel. That increased spending power supports local businesses, services and jobs in agriculture-related sectors like transport, processing and agri-tech. Additionally, the basic payment scheme allows farmers to invest in farm infrastructure, further benefiting industries like construction. Overall, the basic payment scheme is central to sustained growth and economic resilience in rural and non-rural areas.

Under the guise of austerity and post-Brexit policies, we see a systematic undermining of our agriculture sector. Direct payments from the European Union that represented over 80% of farm income provided long-term security and enabled farmers to produce safe, nutritious and affordable food whilst caring for the countryside. The South of Ireland, by contrast, has continued to invest heavily in agriculture, increasing payments for areas of natural constraint, whilst, in the North, we do not have such vital supports, which puts our farmers at a distinct disadvantage. With Brexit, we face a declining Budget, and the British Government have yet to provide any clarity on whether there will be a ring-fenced commitment to agriculture similar to the EU's common agricultural policy.

We eagerly anticipate the Chancellor's Budget announcement on 30 October, which is expected to shed light on the funding that will be available. It is crucial that the Minister promptly assesses the implications of that funding for our agriculture sector and ensures that it aligns with our goal for sustainable development and a just transition. I welcome the fact that the Minister is with us in the Assembly this evening.

We need a robust, long-term commitment to agriculture, similar to pillar 1 and pillar 2 of the common agricultural policy. It is our duty to fight for that in the upcoming spending review. We must secure the future of farming in the North for the good of our rural communities, our environment and our collective food industry.

Sinn Féin supports both amendments. We support the DUP's call for a:

"ring-fenced, inflation-proof and multi-annual farm support and development budget".

The SDLP amendment — amendment No 1 — helpfully includes the need for a separate, ring-fenced pillar 2 scheme. As we know, pre Brexit, CAP pillar 2, which was also known as the rural development programme, provided funding for agrienvironment schemes and the farm business improvement scheme as well as social and economic development programmes through the local action groups. In the current post-Brexit arrangement, there is only one farm budget envelope available — there is no pillar 2 — but all the schemes proposed in the new farm policy will be modulated out of the basic payment scheme, which will reduce the value of farmers' entitlements. All of that is in the context of no overall clarity from the British Government on the Budget.

While we support both amendments, I understand that the SDLP amendment will be voted on first and if it is passed, the DUP amendment will not be voted on. The Speaker will keep me right on that. I am certainly not going to pre-empt how Members will vote.

The Assembly must ensure that farm support continues so that our farmers, who are the custodians of our countryside, can continue to feed people and contribute to the global food supply. I look forward to the debate.

Photo of Patsy McGlone Patsy McGlone Social Democratic and Labour Party

I beg to move amendment No 1:

Leave out all after "wider economy derived" and insert: "from the EU common agricultural policy, including pillar 1 (direct payments) and pillar 2 (rural development payments); agrees that significant financial investment in agriculture and land management is critical in supporting farms to be financially viable and more environmentally sustainable; is concerned with the significant uncertainty facing our farming community as a result of Brexit and the lack of commitment from the UK Government to maintain agricultural funding beyond 2024; and calls on the Minister of Agriculture, Environment and Rural Affairs to urgently press the UK Government to, as a minimum, maintain current agricultural funding in real terms for the duration of this Parliament."

Photo of Carál Ní Chuilín Carál Ní Chuilín Sinn Féin

You will have 10 minutes to propose amendment No 1 and five minutes to make a winding-up speech. Please open the debate on amendment No 1.

Photo of Patsy McGlone Patsy McGlone Social Democratic and Labour Party

Mo bhuíochas leat, a Phríomh-Leas-Cheann Comhairle.

[Translation: Thank you, Madam Principal Deputy Speaker.]

I welcome the debate and the recognition of the significant investment made by the single farm payment and the EU common agricultural policy in rural communities and businesses. While we agree with the intent of the motion, in our view, it is incomplete. That is why we believe that our amendment is necessary. There were two pillars to the EU common agricultural policy, and both of them, as we well know, played an important part in supporting rural communities and the rural economy. The motion mentions only the direct payments under pillar 1, but the pillar 2 payments for rural development were also crucial. However, after Brexit, the British Government did not properly replace the pillar 2 funding stream, as many of us know. As a result, we have lost access to nearly £100 million of funding that should have been invested in our rural communities. Our amendment seeks to acknowledge that loss. Let us be clear: this issue is up for debate today directly because of the Brexit that the DUP campaigned for, which the SDLP and others opposed. That is a simple fact.

We all know the importance of the agri-food sector to our rural and wider economy. It is one of our most vital industries, supporting tens of thousands of jobs and generating over £2·87 billion in output in 2023. The bedrock of that sector is farming, with many small farms, most of them family-owned and run, dotted across the rural landscape. For years, those farmers have been supported by EU funding that was made available through our membership of the European Union. That funding, whatever problems some may have had with it, ensured a level playing field for farmers across the EU and between these islands. That funding was consistent and, importantly, it allowed farmers to plan ahead financially. That was all thrown into chaos by Brexit. Previous friends of the DUP in the British Conservative Party promised to match EU agricultural funding. They have not matched the inflationary pressures that have followed, which has led to cuts in real terms to the funding that is available. Those are cuts that the DUP, more than any other party here, bears some political responsibility for.

The annual funding allocation to replace the EU's common agricultural policy payments has been capped since 2020 at approximately £330 million.

Within that is around £300 million of direct payments to farmers. The Ulster Farmers' Union (UFU) has calculated that maintaining the real value of the funding — the "real terms" referred to in our amendment — will require the overall funding to be increased to £389 million by the end of 2024. Without that increase, there will be a shortfall of around £60 million this year, a real-terms cut in the available funding that has been experienced each year since 2020.

Meanwhile, while the financial support has been cut and is reducing, farmers are under increasing pressure. It is expected that the figures will show a drop in total farm income from £609 million in 2022 to £341 million in 2023. Therefore, it is not enough to maintain direct payments at the pre-Brexit levels. The funding must be inflation-proofed in real terms, as our amendment states, and guaranteed for at least 10 years, as the UFU has called for. That would restore the certainty that accompanied the EU funding. It must also include replacement funding for the pillar 2 payments. As I said earlier, many from rural areas know that they are crucial for rural development, small businesses, microbusinesses and community groups in general. The funding was lost after Brexit, and replacing the lost investment for rural development is essential if the Executive hope to deliver, in total, for our rural communities.

It is right that the argument is being led by our Minister of Agriculture, but it is also a message that the joint First Ministers must take to London. Sin é. Tá mé an-sásta an leasú a chur in bhur láthair. Thank you, a Phríomh-Leas-Cheann Comhairle.

[Translation: That is it. I am very pleased to introduce the amendment. Thank you, Madam Principal Deputy Speaker.]

Photo of Carál Ní Chuilín Carál Ní Chuilín Sinn Féin

Go raibh maith agat as sin, a Phatsy.

[Translation: Thank you for that, Patsy.]

Photo of Michelle McIlveen Michelle McIlveen DUP

I beg to move amendment No 2:

Leave out all after "small family farms;" and insert: "welcomes the fact that this annual support was maintained at pre-2020 levels for the duration of the last Parliament; acknowledges, however, the need to address the significant uncertainty regarding the future of the basic payment scheme, worth £300 million a year, beyond 2024; and calls on the Minister of Agriculture, Environment and Rural Affairs to urgently press the UK Government for an increased, ring-fenced, inflation-proof and multi-annual farm support and development budget to support our farmers and the wider agricultural sector."

Photo of Carál Ní Chuilín Carál Ní Chuilín Sinn Féin

The Assembly should note that the amendments are mutually exclusive. If amendment No 1 is made, the Question will not be put on amendment No 2. With that understood, the Member has 10 minutes to propose the amendment and five minutes to make a winding-up speech. All other Members who wish to speak will have five minutes.

Photo of Michelle McIlveen Michelle McIlveen DUP

I thank those who tabled the motion for bringing the important matter of financial support for farmers to the Chamber. The majority of western countries support farmers directly or indirectly, and they are our competitors for sales and inputs. Not addressing the issue puts our farmers and economy at a competitive disadvantage.

I acknowledge the inclusion of pillar 2 in the previous amendment. It is an oversight that the importance of rural development funding and the difference that it has made to our rural communities is not explicit in our amendment. However, the call for increased ring-fenced, inflation-proofed and multi-annual farm support and a development budget to support our farmers and the wider agricultural sector is missing from the motion and amendment No 1.

It is worth repeating how important the farming and agri-food sector is to our local economy. Food and drink production is worth £6 billion to the Northern Ireland economy. It is our largest manufacturing sector, supports a workforce of around 113,000 and is served by a range of other sectors, such as transport, animal health and construction.

Farms are required to undergo massive changes and meet huge challenges to become financially viable and more environmentally sustainable, including the target set by the Assembly under the Climate Change Act. The cost of production has also increased massively, and, of course, farmers also face the impact of changes in our climate. The basic farm payment is a hugely important in enabling farmers to manage and cushion market volatility. The latest set of total income from farming figures (TIFF) show that income has reduced by around 46%. There are around 26,000 active farm businesses in Northern Ireland, which employ about 51,000 people. It is, therefore, a cornerstone of our local economy.

The UFU recognises:

"The long-term resilience of Northern Ireland's agri-food sector hinges on targeted investments in local food production and sustainable farming practices."

Let us consider the challenges facing local farmers. For more than 10 years, inflation has not been factored into the Agriculture budget. It has been a cut, year-on-year, in real terms. The Government expect farmers to do more for less. Some 10 years ago, the CAP budget was in place to help to support the production of cheaper food. However, farmers are now expected to use the budget to reduce ammonia emissions, reduce their carbon footprint and produce food to a higher welfare standard, while somehow still keeping food prices low. A policy that started as a food policy expanded to a rural development and agri-environment policy, and now we have climate change, biodiversity, water and air quality and animal health and welfare issues to factor in.

Whilst there is a strong argument that says that the UK Government should increase their budget, local Ministers can and must do more to help the sector. There is a need for major capital investment on farms to meet the challenges being faced through the demands that are placed on farmers to improve efficiency, reduce carbon footprints, invest in technology and develop expertise. Future support from DAERA needs to go towards helping productive farmers to produce food efficiently in an environmentally sustainable way. If the Minister walks away from previous commitments, that will result in a real danger that farmers will turn their back on the support scheme and will not claim any government support. That will mean that the Government have less ability to influence the sector and deliver necessary change.

It is evident that maintaining the level of direct support at 2020 levels is not sustainable. It ignores inflationary increases and does not take cognisance of the other pressures that farmers now face. We need to see future allocations being inflation-proofed in order to ensure that farm businesses are protected and treated equitably. That is vital for our food security, particularly given how uncertain and volatile global markets have been seen to be.

Safeguarding direct farm support needs to be central to government policy on promoting food production and food security. For example, since 2020, the cost of keeping a ewe has increased by £24 per animal. The cost of vaccinations has increased by 175%, the cost of worming and fluke by 75% and the cost of machinery by 100% — all in the past four years. A ton of lamb pellets has increased from £200 in 2020 to £320 in 2024. In that time, the cost of a 580 kg straw bale has gone up from £40 to £130. One small Armagh dairy farm has 60 cows as its main enterprise. Its BPS total was £7,700. It will lose £700 from the 2024 BPS and a further £650 in 2025. That money would have covered conacre costs, which have increased from £160 per acre to £280 per acre. Milk prices are slightly above break-even, but, as I noted, input costs have increased significantly. How are smallholdings meant to survive?

In addition to the much-needed financial support, there is so much more that the Minister could do to help farmers create sustainability and effect necessary change. Inaction stymies progress. The Minister must be mindful of the need for generational renewal. Farmers are getting older, and it is getting harder to attract young farmers. Uncertainty, poor policymaking and a lack of financial support make that renewal even harder. I am delighted that the deputy First Minister, in her engagement with the Chancellor, made our concerns known regarding Labour's position on a possible change to inheritance tax and the impact that that would have on our farming community.

We have raised planning policy this term. The current environmental policy has stopped virtually all agricultural development in Northern Ireland. That is fundamentally wrong. Farmers who want to improve their farm buildings in order to improve their businesses and the environment cannot do so. For example, a farmer who wishes to install a new milking parlour that will reduce the time that the animals are milking and increase the time that they are outdoors at grass cannot get it through the planning system. That is madness. Last week's announcement on the A5 upgrade is welcome progress for improving road safety and connectivity, but there is still a huge amount of uncertainty for farmers along the route. Farmers who will lose farm buildings cannot get planning permission for new buildings because of inaction to address the anomaly in the current ammonia policy. Will the Minister undertake to address that issue for the farms that are affected? He needs to be an advocate for the local farmers who are affected in such instances.

TB is estimated to be costing £60 million, which is money that could be better spent in the Agriculture budget. I appreciate that a review is being undertaken, but there is a genuine concern among the farming community that the fundamental issues pertaining to TB will be kicked down the road. Despite that large sum of money, the disease is not being controlled as it is in our neighbouring jurisdictions. The current TB problems are closely related to the need for an adequate basic payment. Take a farm with 70 suckler cows, a £20,000 BPS and 65 suckler calves to be sold in the autumn. If that farm went down with bovine TB before the sale, the farmer would have to keep 65 extra cattle over the winter until the farm was TB-free.

The BPS is needed to cover the costs of those additional cattle, rather than for paying annual bills. In the absence or lowering of the BPS, farms such as that could not survive.

There is understandable despondency among the farming community. There are reduced margins; increased red tape; heightened risks of bluetongue, maedi-visna (MV) and bird flu; the unbalanced focus on farmers over Lough Neagh; and increasing demands to do more with less. The UFU tells us that the agriculture sector in Northern Ireland is at tipping point. There is a need for government intervention — financial and practical. The message that the UFU is sending out is stark: without increased government support, the sector risks decline in farm incomes; increased job losses in rural areas; and a reduction in the production of the high-quality, sustainable food that a country relies on.

The basic farm payment is an investment in the future of rural communities. It is also an investment in the economy and in environmental sustainability and social well-being. I urge the Minister to be the advocate and policymaker whom the sector needs for its long-term survival. There are 670,000 people living in rural Northern Ireland, with thousands of jobs relying on farming and the wider agri-food sector. With increasing policy demands being made of our farmers and spiralling costs from international instability, there is a need for an increased, ring-fenced, inflation-proofed and multi-annual farm support and development budget to support our farmers and the wider agricultural sector.

Photo of John Blair John Blair Alliance 5:45, 7 Hydref 2024

I thank the proposer of the motion and those who proposed the amendments. I speak in my capacity as a member of the Agriculture, Environment and Rural Affairs Committee. Members of the Committee are often reminded of the difficult financial situation faced by many in the agriculture sector but also of the Department's difficult budgetary situation. Before I proceed, I express my gratitude to Members for tabling the motion. It is one that the Alliance Party supports in principle. I am sure that, when he speaks, the Minister of Agriculture, Environment and Rural Affairs will clarify his position and that of the Department. It is my hope that there will be some positive news in that regard.

I know that the Minister has corresponded repeatedly with the Secretary of State for Environment, Food and Rural Affairs in GB, for example, as well as with the Northern Ireland Office, to strongly express his profound concern about the future of the allocated agriculture budget. The Minister has informed us of that in the Chamber on a number of occasions. The uncertainty around funding arising from DEFRA's underspend has been widely reported. Indeed, the annual report of the farming and countryside programme has confirmed a DEFRA underspend of £358 million in the agriculture budget over three years. That is a very worrying figure in the context of Northern Ireland and that of GB.

Ultimately, today's discussion centres on a critical implication of Brexit. We cannot escape that, and we cannot talk about this without rehearsing all of the arguments over again. We are witnessing an increasing number of such issues in the Department and across other Departments. As well as Brexit, immense challenges are being posed by climate change. Therefore, I must take the opportunity to address the issue of a just transition — an issue that is becoming increasingly urgent.

It will come as no surprise to those in the Chamber to hear me say that the transition to a low-carbon economy will significantly affect the agri-food sector. The just transition fund is crucial, because it aims to provide guidance and financial support to the sector as it meets its obligations under the proposals and policy outlined in the climate action plans. That assistance will further enable the sector to improve its economic resilience and competitiveness. I was glad to hear the Minister speak in detail on the issue at Question Time last week. Specifically, he announced plans to establish a just transition fund for agriculture in the coming months. However, he emphasised the need for clarity from the UK Government regarding the funding that will be available in future years. I understand that the Minister has consistently emphasised to the Secretaries of State for Northern Ireland and for Environment, Food and Rural Affairs the importance of funding decisions that reflect the need for a just transition. The Minister has advocated for and, I am sure, will continue to advocate for a similar approach to be taken to that of the EU, where separate and additional capital funds are provided to support the just transition in agriculture outside of the common agricultural policy. That includes eight interventions to reduce greenhouse gas emissions and improve air and water quality.

Farmers require the UK Government's support and investment in order to transition to regenerative farming practices, ensuring a sustainable livelihood and stability for the future. The UK Government need to take decisive action to ensure the provision of clear and consistent funding for our agriculture sector, which plays a critical role in maintaining the UK's food security. Future funding must also be regularly adjusted to keep pace with inflation to guarantee its long-term sustainability. I know that the Minister will continue to press for that and for the sector, as he has told us before. I look forward to hearing what he has to say on that when he responds to the debate.

I support the motion. I have no major problem with either of the amendments. I note that neither one fully mentions a just transition or any detail, although one amendment alludes to it. I am slightly disappointed that, unlike the other one — perhaps not coincidentally — one of them does not reference the Brexit challenge at all. Overall, I have no major challenge to any of the proposals that are before us.

Photo of Robbie Butler Robbie Butler UUP

Thanks for your clarity, Madam Principal Deputy Speaker, as to how the motion and the amendments will be taken and how we will vote on that. I welcome the motion from the Sinn Féin Member and the amendments that have been tabled. They are all pitching in the right direction, which is in support and recognition of the hard work that our farmers do. The issue touches not only on the heart of rural communities but what I consider to be the backbone of our economy.

We are here to address the uncertainty surrounding the future of agricultural funding, following the end of the CAP single farm payments and the looming conclusion of the basic payment scheme in 2024. Let us first acknowledge the tremendous value that the CAP payments provided. They ensured that our farms, particularly small family farms, remained financially viable. They also promoted environmentally sustainable farming practices, allowing our farmers to adopt greener technologies and to protect our rural landscapes. That support system, which was in place for decades, not only helped our farmers but had ripple effects throughout rural communities and the economy. Now, however, our farming community stands at a critical juncture, with the loss of £300 million annually from the basic payment scheme and the uncertainty of what may follow hanging over the agriculture sector, and the tension is palpable. It is not just about numbers: that uncertainty fuels stress and anxiety, contributing to a mental health crisis amongst farmers and their families. The weight of not knowing how they will make ends meet or how they can plan for the future takes a significant toll on their well-being.

In response, we support the call for increased farm support and development funding. Specifically, we need to adjust the annual ring-fenced allocation for agricultural funding from £324·9 million to around £390 million, reflecting the effects of inflation, and that has been picked up on by a number of Members already. Farmers are already operating in increasingly competitive global markets, and it is essential that they have the resources that are needed to remain viable and competitive. Moreover, we must commit to long-term sustainable funding. That is why we must develop a more robust funding strategy that adjusts annually for inflation. We cannot afford to revisit this crisis of uncertainty every few years. Northern Ireland's agri-food sector, which plays a vital role in feeding our communities and supporting rural economies, needs a stable and predictable funding model.

As we look at the volatility of global food and energy markets, investing in local food production and sustainable farming practices becomes even more critical. A failure to invest in those areas will jeopardise our food security and increase our reliance on costly imports. Our long-term resilience depends on empowering our farmers with the resources that they need to innovate, thrive and provide locally.

In addition, I urge us to increase investment in renewable energy and energy efficiency in the agriculture sector. Agriculture can and should be part of the solution to our energy challenge. Only by supporting farmers in adopting renewable energy sources can we reduce energy costs and contribute to a greener economy.

The impact of this issue, however, extends beyond the farms. Thousands of supply-chain companies across Northern Ireland depend on the spending power of our farmers. Those businesses provide essential services from machinery suppliers to food processors. Many of them are located in rural areas where alternative employment opportunities are limited or, indeed, non-existent. Any reduction in future agriculture budgets would have a significant ripple effect, threatening the livelihoods of countless rural businesses and families. The socio-economic impact of underfunding our farmers would be devastating to the broader rural economy. Those farmers and supply chain businesses are the lifeblood of rural Northern Ireland, and their success is linked directly to the prosperity of our rural communities. Any reduction in support would endanger the upstream benefits that those businesses provide: jobs, economic activity and social stability. We must protect the livelihoods of rural communities by increasing agriculture funding, thereby ensuring the continued economic vitality of our rural areas.

Let us not forget, as I mentioned, the mental health toll that uncertainty brings. Farmers already face incredible pressures: weather, fluctuating markets and rising costs. The added uncertainty over future funding compounds the stress, leading to increased anxiety, depression and, sometimes, worse. The Assembly has a duty to mitigate that stress by providing clarity, stability and support for our farming community. We must now focus on securing the future of our farmers, rural businesses and food security. We must secure the funding necessary to ensure that our farmers remain competitive, environmentally sustainable and resilient to the challenges ahead.

Photo of Nicola Brogan Nicola Brogan Sinn Féin 6:00, 7 Hydref 2024

I speak as a member of the AERA Committee. I welcome Robbie Butler as the new Chair of the Committee and wish him well in his role.

I thank our farmers for the work that they do in producing food and stewarding our environment. Farmers play an essential role in producing high-quality, nutritious food and contribute significantly to food security. Agriculture is not just an economic driver; it delivers crucial social, economic and environmental benefits. Farmers and the agriculture sector are the backbone of our rural economy, supporting jobs and sustaining communities.

DAERA must take all necessary steps to retain the basic payment scheme beyond 2024. The upcoming UK spending review is critical, especially for our farmers, who need certainty to plan. The pressures on the agricultural community are immense. Rising feed, fertiliser and energy costs are crippling incomes. Inflation is hurting every sector, but farmers are particularly vulnerable. Meanwhile, as Robbie has alluded to, mental health issues among farmers are rising, as highlighted by Rural Support's recent report. Brexit has only deepened those challenges. Leaving the EU's common agricultural policy has been disastrous for the North financially and structurally. The EU provided multi-annual funding through the CAP, giving farmers long-term security. Now, with Brexit, we have a shrinking agriculture budget, a loss of environmental funding and post-Brexit trade deals that have left our farmers exposed to cheap imports that undermine their ability to compete.

The looming end of the basic payment scheme adds further uncertainty, and we have seen no clear replacement. In my constituency of West Tyrone, the total amount of single farm payment is almost £47 million annually. Sinn Féin has called for impact assessments of the loss of those payments because, without them, 25,000 farm businesses are at risk. Food security should be treated as a political priority. Our farmers produce safe, nutritious and affordable food, while maintaining high animal welfare and environmental standards. Agriculture is a key pillar of the economy, especially in the North, and a shrinking budget threatens the sustainability of rural communities.

We must also address the broader challenges impacting farming: climate change, access to labour and global instability, such as the war in Ukraine. The British Government's austerity agenda has done little to alleviate those pressures, and the Government's failure to prioritise agriculture will only deepen the crisis. A strong, secure agriculture budget is essential not just for our farmers but for the future of food security. Thriving rural communities depend on it, and so does the economy.

We need a Government committed to supporting our farmers beyond 2024, with policies that genuinely reflect the importance of local food production and the sustainability of rural life.

Photo of Sian Mulholland Sian Mulholland Alliance

I do not think that there is a Member in the Chamber who would deny the vital role that the agriculture sector plays in Northern Ireland. The farming and agri-sector is the backbone of my constituency of North Antrim. It sustains families through a wide-ripple network of connected sectoral businesses that are not often thought about when you think of farming. It adds so much to the local economy. Therefore, there is an onus on us all to ensure that it receives the support that it needs in these uncertain times, especially with the end of the basic payment scheme approaching and given the ongoing impacts of Brexit.

In recent months, concerns have been raised consistently in my constituency office about that impending end to the agricultural funding package. With it set to expire, it is clear that future allocations must, at an absolute minimum, maintain current levels and, crucially, be uplifted for inflation to ensure that farmers can continue their vital work. Since coming into office, my party colleague Minister Andrew Muir has been proactive in his engagement with the UK Government on multiple occasions, fighting for the clarity and support for farmers that they so desperately need in this time of uncertainty. There may have been some criticisms, but he has been an unfaltering advocate for the farming community since coming into office. I have heard that consistently from people who have come into my office.

At his September meeting with UK Government officials, the Minister stressed the importance of early decisions on future funding. He underlined Northern Ireland's role in UK food security, with 80% of the food that we produce being exported, with the majority of it going to Great Britain. Simply put, Northern Ireland's agri-food sector is absolutely vital to the food security of the UK as a whole. With £4·3 billion worth of exports annually, it is critical that any future settlement recognise that and the vital role that our farmers play in the economy.

The Minister has also acted swiftly to avoid the challenges that we have seen in other parts of the UK, such as the disastrous £358 million underspend of the UK's agriculture budget over the past three years. Pushing for that early clarity and for inflation-proof payments to prevent Northern Ireland's farmers from facing the same uncertainty and financial strain is absolutely vital. Schemes such as the farm sustainability payment that is being rolled out under the Minister's leadership will hopefully ensure that stability.

While we are now eight years down the road from Brexit and some have forgotten about it, we cannot ignore the ongoing negative impact that it has. It continues to affect farmers across North Antrim and across Northern Ireland as a whole. Certain parties in the Chamber supported Brexit and now shy away from discussing the harm that it has caused directly to our rural communities, but Alliance has, in addressing that impact, been clear that the promises that were made during the Brexit campaign have not been fulfilled. Farm incomes in Northern Ireland have dropped by 46% in the past year alone. Post Brexit, small family farms face uncertainty as a result of that falling income.

As we move from the basic payment scheme to the farm sustainability payment in 2025, the Minister and our party have stressed that clarity is urgently needed. Without proper planning and information, like people in any other business in any other sector, farmers cannot make informed decisions for their businesses. Future payments must be index-linked to inflation. The £330 million allocated in 2020 should have increased to £390 million by 2023 to reflect rising costs. Farmers in my constituency face the rising costs of fuel, feed, medications and vaccinations, services and supplies, while their payments remain stagnant. We have heard that, without further investment from the Government, our farming communities will collapse. With a budget that has remained stagnant over the past number of years, however, there is only so much that the Department can do.

I thank the signatories to the motion and those who tabled amendments. I assert my support for the farmers who make up a community that is so colourful and vibrant in North Antrim. Hopefully, more clarity and support will be forthcoming in the time ahead.

Photo of Carál Ní Chuilín Carál Ní Chuilín Sinn Féin

This is Diana Armstrong's first opportunity to speak as a private Member, so I remind the House that it is convention that an inaugural speech is made without interruption. Diana, if you choose, however, to express views that would provoke an interruption — just saying — you are likely to forfeit that protection.

Photo of Diana Armstrong Diana Armstrong UUP

Thank you, Madam Principal Deputy Speaker. I am pleased that speaking on this motion affords me the opportunity to deliver my maiden speech. It is with immense pride and a deep sense of responsibility that I rise as the Ulster Unionist MLA for Fermanagh and South Tyrone, a place that I have always called "home" and where I raised my family. It is a truly humbling moment. I am deeply honoured to have been entrusted with the opportunity to serve the people of my constituency, a region that is steeped in history, resilience and community spirit.

I pay tribute to my predecessor, Lord Elliott of Ballinamallard. His service to Fermanagh and South Tyrone has been marked by dedication, dignity and an unwavering commitment to his constituents. His work on behalf of our community will not be forgotten. I intend to build on the strong foundations that he laid. Lord Elliott's leadership and integrity set a high standard, and his presence at Stormont will be missed by many. He will, however, continue to make a valuable contribution to Northern Ireland and unionism through his work in the House of Lords, and I wish him well in that role.

Representing Fermanagh and South Tyrone is not just a political role for me; it is a deeply personal one. As I drove up to Parliament Buildings on my first day as an MLA, I felt a great sense of pride in my family. I was following in the footsteps of my late father, Harry West, a former MP, Agriculture Minister, leader of unionism and representative of the people of Fermanagh and South Tyrone. My father tirelessly advocated for rural communities and farmers, whose livelihoods form the backbone of our economy. Standing in the Chamber today, I am motivated by the values that he held dear and am determined to continue his legacy of service to those people.

My politics have been shaped by the people in the community in which I work. I believe that politics is a tool for delivering positive outcomes and that the well-being, aspirations and voices of the community should be at the centre of every decision we make. Throughout my career, whether in the European Commission, in advertising and merchandising or as an elected representative, I have consistently demonstrated a commitment to prioritising the needs of the people whom I serve. My message to Fermanagh and South Tyrone is simple: I want to be a voice for all, and it is my pledge to represent every one of you, regardless of where you stand on the political spectrum. We may not always agree, but I believe that, through dialogue, respect and understanding, we can deliver and build a better future for everyone in our community.

Naturally, coming from a farming family, my heart is in the countryside. I value very much the land beneath my feet. It is rich and productive, and, in Fermanagh and South Tyrone, there are many successful agri-food businesses and companies that supply national and international markets. Many of those enterprises have grown from the micro scale to command superiority in the marketplace. I want to see those success stories continue with added support such as is in the motion that we are debating this afternoon.

I will move to the motion at hand. I thank Members for tabling the motion and the amendments. Following the contributions we have heard from other Members, I too acknowledge the vital role that the single farm payment scheme and its successor, the basic payment scheme, have played in supporting agriculture in Northern Ireland. Those schemes have been essential in sustaining farm incomes and ensuring the viability of the industry. Agriculture is a significant factor in the local economy and plays a key role in the social fabric of society. Farming is Northern Ireland's largest sector, employing around 51,000 people and utilising 75% of our land, and ring-fenced and future-proofed funding is critical to its survival. Farm incomes have already dropped by as much as 44% in 2023, creating serious challenges for producers.

Local farmers whom I have spoken to are concerned about the uncertainty surrounding what will follow the basic payment scheme, particularly with rising costs and interest rates threatening the viability of their businesses. The lack of a funding road map for the long term is leading farmers to question the viability of continuing in the profession. That uncertainty is taking its toll on farmers' mental health and well-being. Many farmers were encouraged to develop their businesses and have invested heavily in expansion. Now they face repayments with high interest rates, soaring input costs and uncertainty about the future funding that would make farming a viable profession, as well as the ongoing regulatory restrictions of the Windsor framework. Farmers are resilient, but their ability to plan and grow is being tested by external pressures such as fluctuating markets and global instability.

Photo of Carál Ní Chuilín Carál Ní Chuilín Sinn Féin

The Member's time is up.

Photo of Timothy Gaston Timothy Gaston Traditional Unionist Voice

I welcome Diana to the Chamber. Congratulations on making your maiden speech, Diana. I was in that position a number of weeks ago, and I understand the pressure that you can be under. Well done. I enjoyed listening to your comments.

I will move on to the motion. Recent global events have starkly highlighted the need for food security. As the Government have stated, food security is national security. With an increasingly aggressive Russia and turmoil in the Middle East, there has never been a more important time to support our farmers.

With over a third of our population living in rural areas, we can ill afford to not pay attention to the needs of our farming community. All too often in the House, their concerns are overlooked or glossed over. One has only to look at the current state of our waterways to see how the farming sector has become a scapegoat when NI Water is the biggest cause of the problem.

In advance of the debate, I received a briefing paper from the Ulster Farmers' Union. Under the section entitled "Sector-specific Support", it highlights the vexed issue of sheep farming support. As the paper observes:

"The sheep sector has been overlooked in previous support packages. The UFU urges DAERA to implement the recommendations from the Northern Ireland sheep industry task force to support this vital sector."

We have a beef support package — the beef carbon reduction scheme and a separate cow scheme — that contributes to the environmental enhancements in the direct payment scheme, but there is no package for sheep farmers. The task force recommendations were made early last year, but they are still sitting with no action from the Minister.

From 2025, sheep farmers who farm only sheep are set to lose 17% of their basic payment unless they change to include protein crops and cattle. For many, that is just not possible. There is an urgent need for the Minister to address that issue. We need to see that the AERA Minister is a Minister for farmers, not just for the environment and for net zero.

Many of those with whom I speak do not want to rely on subsidies and handouts from the Government. They want to be paid a fair price for the produce that they produce on their farms. For a sustainable model, that is the direction of travel that we need to go in. We should not be solely reliant on subsidies. We should pay farmers the money that they deserve for the product that they pour their heart and soul into producing.

Photo of William Irwin William Irwin DUP 6:15, 7 Hydref 2024

I declare an interest as a partner in a farm business that is in receipt of the basic farm payment.

There is no question that the basic farm payment scheme has played a pivotal part in farming in Northern Ireland. Our industry could not have done without it over the years. A continual theme in our agri-food industry is that the farmer is at the bottom of our supply chain. As an individual, that farmer has to absorb disruption associated with the global marketplace and still be able to function as a business. That is not easy, and we can think immediately of the crises over the years that have beset the industry, including, to name but a few, BSE, foot-and-mouth disease and COVID. At the moment, there is a serious issue with bovine TB. Yet, through those challenging times, our farmers had to somehow function and find a path through in order to maintain a high-quality supply of food to our nation.

Profitability is certainly not guaranteed for any farmer. It continues to be a challenge, and there is a squeeze on the industry by processors and retailers that continually tighten the screw on our farming community. Input costs of feed, fuel and energy fluctuate massively, as do the prices of fertilisers, seeds and machinery and general upkeep costs. Indeed, many of those costs have doubled since 2020. That is why the payment support system has been a vital part of farming; it must continue.

Farm incomes fell by 46% in 2023-24. The DUP lobbied and leant heavily on the previous Government to ensure that payments remained at pre-2020 levels for the duration of their tenure. That was important in order to provide security and confidence for producers.

Extremely challenging targets are coming down the tracks. I am on record as saying that the changes to address climate change are much too large a challenge and will be much too costly, yet they are the law. Those requirements will, of course, apply to all aspects of industry in Northern Ireland, including the agriculture industry. However, agriculture is unlike any other industry. The costs that farmers are struggling to pay cannot be passed on at the stroke of a pen. They sadly do not have that power at their disposal. As I said, processors and retailers have significant authority in regard to farming. There must be urgent action on the issue of farm support payments. Our party's amendment rightly calls for:

"an increased, ring-fenced, inflation-proof and multi-annual farm support and development budget to support our farmers and the wider agricultural sector."

With 25,900 active farm businesses in Northern Ireland employing roughly 51,000 people, it is important that the magnitude and seriousness of the issue be fully understood. Let the focus be on dealing with this issue in a manner that sees support delivered to assist our industry with the considerable pressures that are coming down the line. I support amendment No 2.

Photo of Claire Sugden Claire Sugden Annibynnol

As a representative of East Londonderry, a rural constituency where farming is the heart of our community, I welcome the debate to address such a critical issue: the imminent end of the basic payment scheme, or single farm payment.

That scheme has provided essential support to farmers across Northern Ireland for years, and its removal, without a realistic replacement, threatens the very livelihoods of those who rely on it. The scheme has allowed farms, particularly small family-run farms, to maintain stability in a volatile and unpredictable sector. For many, it has been a lifeline that has kept them afloat amid rising costs and fluctuating markets. Without that financial support, many farmers are now faced with a future of uncertainty, with no clear path or viability for moving forward. Farm incomes have already fallen drastically, and that is a reality for countless families in my constituency and across Northern Ireland. Those farmers work tirelessly with slim margins and rely on the single farm payment to bridge the widening gap. The loss of the scheme will leave many unable to continue their work, which will have severe consequences for them, as well as for rural communities.

The issue goes far beyond individual farmers. If we lose those farms — that is the risk — we will undermine our food security. Northern Ireland farmers produce much of the fresh local produce that we depend on every day, from dairy to beef and fruit and vegetables. If farms can no longer operate, we will become increasingly reliant on imports, which are not good for the environment and are subject to price fluctuations and global market disruptions. Brexit and conflicts have shown us how fragile the global food supply chains can be, and with that fragility come rising food prices, which are an immediate concern for families across Northern Ireland, not just those in rural communities. Families who are already struggling with the cost of living will face even greater challenges in putting food on their table.

As others said, our farmers are not only vital to our economy and food security but play a crucial role in managing our environment. During the climate change debate, how often did we hear how farmers are modernising through environmentally sustainable practices, protecting biodiversity, improving soil health and reducing carbon emissions? If the support is removed, farmers will be limited in what they can do, and that is now a statutory obligation.

We must also acknowledge the other challenges that farmers are facing. The rising cost of fuels, fertilisers and feed is squeezing their margins more tightly than ever. The price of fertilisers alone has skyrocketed, and it is putting enormous strain on farmers' ability to maintain productivity. Many are being forced to make difficult decisions, and that includes closing their farms. Many farming renewable heat incentive (RHI) claimants applied in good faith to a scheme that was intended to support them, but they now find themselves under a financial burden because of the outcome of that scheme.

Labour shortages are another issue. Post Brexit, it has become difficult for farmers to access seasonal workers, particularly for tasks such as harvesting and looking after livestock. Many farmers in Northern Ireland are struggling, as are other industries, to find the help that they need to keep their businesses going. It is not just a problem for large farms; it is hitting small family-run farms just as hard, as well as business across Northern Ireland.

The farm sustainability payment is not enough, and it will not come soon enough for farmers who are struggling. Its eligibility criteria could exclude very small farms that are most in need of help. Farmers in my constituency and across Northern Ireland cannot wait two years for support; they need solutions now. The Minister and the Executive must work with the British Government to ensure an immediate replacement for the basic payment scheme, and that replacement must recognise the specific needs of Northern Ireland's farmers and provide them with the financial support that they need to manage costs, access labour and invest in sustainable farming practices — again, that is a statutory requirement.

We need to do more with our local food markets. We need to strengthen our local food supply chains and promote local produce in order to ensure that farmers receive fair prices while enhancing our food security and reducing our reliance on imported food.

As many others said, we must address the mental health challenges that farmers face. Farming is a tough job at the best of times, but the increasing and extra pressures that farmers face, including financial stress, labour shortages and the impacts of climate change, which many did not expect when they entered the role, take a significant toll on their mental health. The Assembly must do more to support them, because it is not just farmers who will come under pressure; Northern Ireland, as an agricultural region of the UK, will come under pressure too.

Photo of Carál Ní Chuilín Carál Ní Chuilín Sinn Féin

Time is up. Thank you, Claire. The Minister of Agriculture, Environment and Rural Affairs is next to respond to the debate. Minister, you will have 15 minutes.

Photo of Andrew Muir Andrew Muir Alliance

Thank you very much, Madam Principal Deputy Speaker.

Before I start, I welcome Diana to the House and congratulate her on an excellent maiden speech. It is great to have you here. I look forward to working with you and with the new Chair of the Committee for Agriculture, Environment and Rural Affairs. Robbie follows in the footsteps of Tom, who did an excellent job. You will keep me on my toes.

[Interruption.]

I am looking forward to that and that is your job.

I have a couple of things to say. First, I thank Members for bringing this important issue to the Floor for discussion. Hopefully, we can have unity and purpose around it. Both amendments have merit, which has been debated. The SDLP amendment references the importance of pillar 2. The DUP amendment references the importance of earmarked funding and other matters. Both amendments have strengths. Hopefully, from today, we can come together as one around what is a really important issue.

As Minister, I fully recognise the economic and environmental significance of the agriculture industry in Northern Ireland. As custodians of the countryside, our farm families work hard to produce quality food. What farmers produce is literally life-giving in terms of sustenance to millions of people and life-affirming through the sector's value to communities, businesses, our environment and, indeed, the very social fabric of everyday life in Northern Ireland. I wholeheartedly agree that it is vital that our local farm businesses and rural communities are supported. I highlight the fact that the agriculture sector in Northern Ireland makes a significant contribution to UK food security. Although we have a population of nearly two million, Northern Ireland produces enough protein for 10 million people, and a large portion of that is supplied to other parts of the UK. However, our environment carries the impact of that agricultural production, particularly through the excess nutrients that have caused deterioration in water quality, biodiversity and our valuable habitats. The blue-green algae crisis in Lough Neagh, which is impacting on society and the economy, is a stark example of that.

I must therefore stress at the outset that we are on a journey of change. I have set out my priorities. We have many environmental challenges. We need to support sustainable, resilient and productive agri-food and fishing sectors. I recognise the significant investment in rural communities and businesses and the wider economy that was derived from the single farm payment under the EU common agricultural policy, which has been outlined. I agree that single farm payments were critical in supporting farms, particularly small family farms, to be financially viable and more environmentally sustainable. I acknowledge that the closure of the 2014-2022 rural development programme is of concern to our rural communities. I am considering the future of rural policy post EU exit. I have recently established a new rural policy unit, which I met today. It will focus on reviewing and evaluating previous rural policy initiatives and engaging with other Northern Ireland Civil Service Departments, councils, public authorities and stakeholders to inform collaborative policy proposals that are mindful of the changed rural landscape and the current and future needs of rural communities. I will meet some of those practitioners tomorrow.

As Members highlighted, we do not have confirmation of funding for future agricultural support beyond March next year. I share the concerns that were expressed about the significant uncertainty that is facing our farming community. I stress that the future provision of funding for agriculture, agri-environment and wider rural support is a matter for the UK Government. We must be able justify to Treasury that all future agricultural support payments deliver value for money. It is my view that maintaining the status quo for any farm business is no longer a viable option. Change is needed, but I am determined that we do that together. Through my Department's new farm support and development programme, I am seeking to transition to a more sustainable farming sector by implementing policies and strategies that benefit our climate and environment whilst, very importantly, supporting our economically and socially significant agriculture sector.

Importantly, the programme is being co-designed in consultation with the Northern Ireland agricultural industry and other key stakeholders to target farm support so that it meets the bespoke needs of Northern Ireland. That partnership approach is critical to our collective success in tackling the challenges and seizing the opportunities that lie ahead.

My ambition is high. Great work has already been done in the agriculture sector, and it has to be built on. Positive solutions are required to deliver at pace, and there is much for us all to do. The farm support and development programme is made up of a range of schemes and actions, some of which, such as the groundbreaking soil nutrient health scheme, are already seen as exemplars by my counterparts in the rest of the UK and Ireland. The schemes that will be introduced through the programme will be essential levers in contributing to Northern Ireland's statutory obligations under the Climate Change Act and achieving a genuinely just transition. I firmly believe that we can strike a balance that allows our agriculture industry to thrive and be sustainable while protecting our environment.

Photo of Robbie Butler Robbie Butler UUP 6:30, 7 Hydref 2024

I thank the Minister for giving way. He will forgive my ignorance — I am just chipping in to the discussion — but I think that we are all facing the same direction when it comes to our environmental credentials and the ambition of farmers. As a former butcher, I remember Brazilian beef coming in. Is there not a risk that we replace and increase globally the impact on our environment if we do not handle this issue sensitively, given that we produce some of the finest produce in the world here locally?

Photo of Andrew Muir Andrew Muir Alliance

I agree: it is about carbon leakage, which was debated when the legislation was being passed. We need to be conscious of that. We cannot, essentially, move the problem around; we need to address it, here and now. That is why I am very keen that the future farm support and development programme addresses the concerns that you raised. It is a legitimate issue to have raised.

The delivery of the farm support and development programme will be essential to addressing ammonia- and phosphorous-related issues and incentivising and enabling actions to ensure environmental sustainability in Northern Ireland by contributing to water and air quality, soil health and biodiversity. Although agriculture has partially contributed to nutrient loading in Lough Neagh over the past century and more, today's farmers should not be blamed for the actions of previous generations. Rather than engaging in a blame game, we should focus on solutions and work together with others. We should also be conscious of the fact that the nutrient overloading was from not just agriculture but waste water infrastructure, septic tanks and industry. Everyone needs to play their part, which means that we need to face up to issues such as waste water infrastructure, which is having an impact on our environment, economic development and housebuilding. I am not into a blame game; I am into working with people in that regard. We have be fair in all that we do.

The farm support and development programme will also deliver on my priority of supporting sustainable, resilient and productive agri-food and fishing sectors by securing sustainable productivity in Northern Ireland agriculture and assisting the development of effective functioning supply chains, ensuring food security and high standards of disease control and public and animal health. As part of the programme, it is planned that the current basic payment scheme will be replaced by a farm sustainability transition payment next year, with the full farm sustainability payment's coming into operation in 2026. As was announced in March 2022 by my predecessor, the new farm sustainability payment will provide a balance between providing a safety net, which will help a farm business to withstand shocks that are beyond its ability to manage effectively, and encouraging farm businesses to be sustainable, efficient, competitive and able to manage risk proactively.

Over time, the funding allocated to the farm sustainability payment will reduce to enable funding to be diverted to other elements of the farm support and development programme to encourage and support changes in behaviour and deliver better outcomes across a range of defined metrics. The College of Agriculture, Food and Rural Enterprise (CAFRE) will provide training to farm business to help them to navigate that period of change. The programme is supported by a full programme of communications to inform and motivate stakeholders to participate and establish the understanding required to support the necessary behavioural and attitudinal change. Any reduction in the future earmarked budget would have extremely adverse impacts for not only farm businesses but the successful delivery of the programme.

I note that Members have called on me to urgently press the UK Government to set out what replacement funds will be put in place to support our farmers and the wider agriculture sector. Be assured that I have written to the Secretary of State for Environment, Food and Rural Affairs on a number of occasions expressing my concerns about the future of the earmarked agriculture budget. Given Northern Ireland's important role in food security, I consider that it is fair and reasonable that there should be adequate funding to support us to deliver environmental sustainability and food security. I stressed to him that any future settlement should, as an absolute minimum, maintain the current Budget allocation, uplifted for inflation, to allow for delivery of my Department's policy objectives and ambitions.

It is essential that the competitive position of our farmers is at least equivalent to that which is being provided to EU farmers and, most particularly, to those elsewhere on the island of Ireland. Consequently, the real value of our allocation must, at the minimum, be maintained in real terms. I note that a disparity is starting to appear between North and South in that. That became very clear last week with the Irish Budget. Our position is clear and strong, and I make it abundantly clear to the Secretary of State at the Department for Environment, Food and Rural Affairs.

Most recently we discussed this in person at the Inter-Ministerial Group for Environment, Food and Rural Affairs, which met in London on 16 September. Following that meeting, I wrote again to stress the importance of receiving early clarity on future earmarked agricultural support funding for next year and beyond. In my letter, I highlighted the significant contribution that the agriculture sector in Northern Ireland makes to UK food security.

I have also recently stressed to the Secretary of State for Northern Ireland and DEFRA the need for funding decisions to reflect the importance of a just transition and also made the case that there should be a separate, specific and additional capital fund to support just transition in agriculture. We need to ensure that the work that we carry out to reduce greenhouse gas emissions and reach net zero will be fair and will support people on the journey through a just transition. That is why we need to provide those incentives and support.

Funding for the just transition fund for agriculture will need to be considered in the context of budgetary pressures and priorities across the Northern Ireland Executive. That is why I made the case to DEFRA. My Department is engaging with the Department of Finance on raising these issues with the Treasury as part of broader budgetary processes. It is fair to say that there is regular engagement, informally and formally, between me and the Finance Minister.

I thank Members for bringing the motion and for the interesting and challenging discussion that the debate has stimulated. I will endeavour to keep Members informed of the outcome of the future earmarked Budget allocation.

I have a couple of minutes, so I will deal with queries that were raised. It is clear that this issue of the earmarked funding is primarily the responsibility of DEFRA and Treasury, and it is important that we, as a House, speak together, united on this point. It is absolutely critical that we send the message about the importance of the funding for Northern Ireland. We are facing a cliff edge at the end of March next year and concern arises from that. Also, there is concern at the underspend by DEFRA. That is regularly reported in the farming press and also on 'Farming Today' on BBC Radio 4. We should not feel the consequence of that money being passed back to Treasury and surrendered. As Minister of Agriculture, Environment and Rural Affairs for Northern Ireland, I send a very clear message, and that is "No surrender" from us of money back to the Treasury. Just because others have done that does not mean that we should be punished as a result.

A couple of other issues were raised. I met the sheep industry task force last week about support for sheep farming, and I have tasked officials to engage with them around what further support we can provide to that sector. There are challenges in that, but we are going to look it and work in a process of co-design on that.

We are taking action on TB. I am not kicking any cans down the road — I do not believe that we should be treating waste like that: we need to deal with it correctly. We need to deal with TB, and that is why Brian Dooher is looking at that issue. I have tasked him to bring recommendations to me in the next couple of weeks.

People will know that the Office of Environmental Protection has today published a report on ammonia. Whatever I do has to be within the law. I have had a number of stakeholder engagements on ammonia, and I am holding another one later this month.

I am committed to working with people on these issues. The most fundamental thing that I can say is that we need the funding so that we can support farmers to deliver the changes that we require in our society and also to support food security across the UK.

Photo of Carál Ní Chuilín Carál Ní Chuilín Sinn Féin

Thank you, Minister. I call Tom Buchanan to wind up the debate on amendment No 2. You have five minutes.

Photo of Tom Buchanan Tom Buchanan DUP

Thank you, Madam Principal Deputy Speaker.

The amendment has been well articulated by my colleague Michelle McIlveen. I thank all who took part in the debate: those who brought the motion, and the SDLP for bringing the other amendment. It is something that has obviously united everyone in the Chamber. This is an issue that lies at the heart of everyone in the House, and therefore we need to support it as best we possibly can.

I come from the rural constituency of West Tyrone, which consists largely of agriculture enterprise. Many of the farm businesses are small, family-run farms. No one can overestimate the economic benefit that those small farm holdings have brought to rural communities. Of course, there is a little concern about farms perhaps being left as unsustainable by the new A5 road that will be coming through. With some of the Ministers, we will have to look at proper funding packages for those farmers in order to allow them to redevelop and rebuild their farm holdings when they lose their land for that road to be built.

Single farm payments have been critical in supporting our agriculture industry, especially our smaller farms, to be financially viable and environmentally sustainable. That is why, in the previous Westminster term, our party secured a guarantee from the Government that the level of annual support provided for direct farm payments would be maintained at pre-2020 levels for the duration of that Parliament. However, it is clear that simply maintaining the level of direct support available at 2020 levels, ignoring the impact of inflation, is no longer sustainable. Others around the Chamber have mentioned that today. We must ensure that future allocations are future-proofed so that our farm businesses are protected and treated equitably. The Labour Government must continue to value primary production and make food security a national asset by providing an increased multi-year, ring-fenced farm support and development programme budget. Given increased costs of production, many smaller farm holdings are struggling financially, with some paying off debt that has been accumulated over the past few years due to profit loss in their business. Safeguarding direct farm support should be the central tenet of the Government's policy on promoting food production and food security. However, it should not be the only priority; creating the proper conditions for on-farm investment in more sustainable and productive technologies and buildings must also be a priority.

I will mention some of the comments that have been made in the debate. The proposer of the motion spoke about the single farm payment and the multiplier effect and increased spending power that that has in rural communities. He said that it is central to sustaining growth and that there is a need for a robust and long-term commitment to agriculture. That is exactly what we need: a robust and long-term commitment to our agriculture sector. The proposer of amendment No 1 tabled that amendment because of concern about pillar 2 not being mentioned in the motion and because of the importance of rural development funding to rural communities.

My colleague Michelle McIlveen spoke of the various policies that are now in the mix. Of course, policies relating to the agriculture and farming industry are increasing. All the new policies that are coming in, and where it will end, can sometimes be a bit of a concern. She said that the Minister could do more on ammonia, planning and TB. The Minister mentioned the action that he plans to take on those issues. Robbie Butler spoke about farming being at the heart of the rural community. He said that it stands at a critical junction, with anxiety and mental health issues among farmers increasing, and that long-term, sustainable funding is required.

Photo of Carál Ní Chuilín Carál Ní Chuilín Sinn Féin

Your time is up, Tom.

Photo of Tom Buchanan Tom Buchanan DUP

With that, I will have to leave it as my time has gone.

Photo of Carál Ní Chuilín Carál Ní Chuilín Sinn Féin

Thank you. I appreciate that. I call Colin McGrath to wind on amendment No 1. Colin, you have five minutes.

Photo of Colin McGrath Colin McGrath Social Democratic and Labour Party 6:45, 7 Hydref 2024

The SDLP is clear that our amendment and our support for the motion is support for our rural communities. The agriculture industry in our rural communities contains some of the most vital businesses that we have in Northern Ireland. They support tens of thousands of jobs and generate billions of pounds of output. Getting the support funding right for the agriculture sector is not something that we should do but something that we must do, and we must do right.

Our agriculture industry is the cornerstone of rural life, supporting economic prosperity in areas such as South Down that are otherwise overlooked by the Executive. Recent years have brought about significant changes for the industry. There is the impact of climate change requirements, the war in Ukraine impacting on prices, the very prices that farmers get at market for their produce, the weird weather patterns that we have had to contend with and, of course, Brexit, Brexit, Brexit and the impact that it has had on our farmers and rural communities. Getting the support intervention right is critical.

As with any amendment to a motion, the question has to be this: what does the amendment do? We feel that there is a weakness in the motion, in that it simply calls for a continuation of the funding scheme as is. There is no reference to the policy changes taking place that are affecting practices. To proceed without acknowledging such policy changes would be a major fault of a funding scheme.

I also highlight the fact that the motion ignores any reference to the rural development funding stream, pillar 2, which is in danger. We cannot leave that funding to the whim of the British Government's Shared Prosperity Fund or their Levelling Up Fund, as we do not know whether that funding will be delivered. The former rural development programme offered funding streams that helped agriculture and rural areas become more resilient and more sustainable. Those opportunities came via a number of schemes, such as the rural business investment scheme, the rural basic services scheme and the village renewal scheme.

In my council area of Newry, Mourne and Down, for example, the village renewal scheme stands out, as it delivered over £3 million of rural village improvements to Annalong, Ballyhornan, Dundrum, Hilltown and other villages district-wide. Those environmental improvements enhanced the physical and social infrastructure of those villages. The funding allowed for widespread consultation, which informed each village's individual renewal design and included a combination of new paving, street lighting, gateways, railings, shrubbery and landscaping. I say that just to show that, while we have absolute support for our farmers, the impact reaches far beyond them, right down into the lives of people living in rural areas. That funding model allowed a bottom-up approach to community funding. Without doubt, it improved the economic prospects and quality of life of rural dwellers and made those rural communities more attractive and vibrant. Nowhere do we see similar funding opportunities, and that is why it was important that pillar 2 is referenced in our amendment.

There is real evidence that we need to support our farming communities with funding but also recognise other funding streams that our rural communities need. We have heard Members refer to the lack of reference to a just transition in the amendment. There is such a reference, however, because we refer to:

"supporting farms to be financially viable and more environmentally sustainable", which is at the core of a just transition. It is about helping those farms, providing them with funding and allowing them to move into more environmentally sustainable practices. The key, however, is to provide the support and to make sure that it is there.

I will not reference any of the other comments that were made. We were all in the Chamber as they were made.

Our agriculture sector is critical to the facilitation of jobs and economic prosperity in rural communities. Support for them is critical. We must also support rural funding for rural community development, which is critical for communities to connect, flourish and prosper. The SDLP is steadfast in its support for farmers and our rural communities, and I urge support for our amendment.

Photo of Carál Ní Chuilín Carál Ní Chuilín Sinn Féin

I call Áine Murphy to conclude and make a winding-up speech on the motion. Áine, you have up to 10 minutes.

Photo of Áine Murphy Áine Murphy Sinn Féin

Go raibh maith agat, a Phríomh-LeasCheann Comhairle.

[Translation: Thank you, Madam Principal Deputy Speaker.]

I thank all those who contributed to this evening's debate on what is a very important issue for farmers and, indeed, rural communities. I also welcome Diana to the Chamber: I look forward to working with you over the coming months and years.

The success of rural communities is closely tied to the prosperity of farm businesses. The 'Key Rural Issues' report highlights the fact that, in areas over an hour away from Belfast, agriculture, forestry and fishing dominate, with nearly half of businesses being in those sectors and an additional 17% of businesses operating in construction. In my constituency of Fermanagh and South Tyrone, which is the largest recipient of farm subsidies, agriculture lies at the heart of our rural life. Our farmers, who are expected to compete in a subsidised global market, rely on these payments to sustain their livelihoods.

A report commissioned by the Agriculture and Horticulture Development Board recently highlighted the fact that farmers in the Red Tractor scheme comply with world-leading standards. Our farmers across the North and, indeed, the island of Ireland continue to produce food to the highest standards with exceptional animal welfare and environmental practices. We are immensely proud of that. Rural communities are the backbone of our society, playing a crucial role in supporting agricultural production, preserving cultural traditions and safeguarding natural landscapes. Farmers make significant contributions to the economy, food security and environmental sustainability, while fostering strong social bonds and a sense of identity. Ensuring the vitality of those communities promotes regional development and benefits everyone.

We face a period of reduced public spending exacerbated by uncertainty about replacement EU funding. During the Brexit referendum, we were assured that the North of Ireland would not be financially disadvantaged. However, as we know, Brexit has led to a significant reduction in financial supports. A survey conducted by Rural Support in Cookstown found that nearly half of farmers cited rising costs, climate change, animal disease and changes to subsidies as their top concerns. Alongside those financial and environmental pressures, mental health issues are growing amongst farmers. That has been referenced by the Committee Chair and other Members.

Photo of Andrew Muir Andrew Muir Alliance

It is important for me to put this on record. Does the Member agree that the mental health impact of TB in our farming community is significant? That is why we need to come together on the actions that I hope to outline in the next few weeks to try to drive it down. It is having a real impact on people in the farming community.

Photo of Áine Murphy Áine Murphy Sinn Féin

I agree with the Minister.

Future policy decisions must consider those impacts, and the Minister must ensure that the well-being of our farming and rural communities is at the forefront of decision-making. I commend Rural Support in Cookstown for its tireless work in supporting farmers, and I call on the Department to provide greater backing to such organisations.

Supporting rural communities and farmers is essential to ensuring their continued contribution to our economy, culture and environment. As we face uncertain times with reduced public spending and unclear funding, it is vital that the Department and DEFRA prioritise fair and sustainable support for those areas. By doing so, we can ensure the prosperity of the rural businesses and agricultural businesses that are so deeply intertwined with our success.

Agriculture is not just an industry; it is a way of life. The food on our plates comes from the hard work and dedication of our farmers. Clarity and long-term sustainable funding need to be delivered as a matter of urgency. The future of our food supply and rural economy depends on it.

Photo of Carál Ní Chuilín Carál Ní Chuilín Sinn Féin

Before I put the Question on amendment No 1, I remind Members that, if it is made, I will not put the Question on amendment No 2.

Question put, That amendment No 1 be made. The Assembly divided:

<SPAN STYLE="font-style:italic;"> Ayes 31; Noes 19

AYES

Mr Allen, Dr Archibald, Ms D Armstrong, Mr Baker, Mr Boylan, Miss Brogan, Mr Butler, Mr Delargy, Mr Durkan, Ms Ennis, Ms Ferguson, Ms Flynn, Mr Gildernew, Miss Hargey, Ms Hunter, Mr Kearney, Mr Kelly, Ms Kimmins, Mr McAleer, Mr McGlone, Mr McGrath, Mr McGuigan, Mr McHugh, Ms McLaughlin, Mrs Mason, Ms Á Murphy, Mr O'Dowd, Mr O'Toole, Mr Sheehan, Ms Sheerin, Ms Sugden

Tellers for the Ayes: Mr McGlone, Mr O'Toole

NOES

Mr Brett, Mr Brooks, Mr K Buchanan, Mr T Buchanan, Mr Buckley, Mrs Dodds, Mr Dunne, Mrs Erskine, Ms Forsythe, Mr Frew, Mr Gaston, Mr Harvey, Mr Irwin, Mr Kingston, Mrs Little-Pengelly, Mr Lyons, Miss McIlveen, Mr Martin, Mr Middleton

Tellers for the Noes: Mr T Buchanan, Mr Harvey

Question accordingly agreed to.

Main Question, as amended, put and agreed to. Resolved:

That this Assembly recognises the significant investment in rural communities and businesses, and the wider economy, derived from the EU common agricultural policy, including pillar 1 (direct payments) and pillar 2 (rural development payments); agrees that significant financial investment in agriculture and land management is critical in supporting farms to be financially viable and more environmentally sustainable; is concerned with the significant uncertainty facing our farming community as a result of Brexit and the lack of commitment from the UK Government to maintain agricultural funding beyond 2024; and calls on the Minister of Agriculture, Environment and Rural Affairs to urgently press the UK Government to, as a minimum, maintain current agricultural funding in real terms for the duration of this Parliament.

Adjourned at 7.05 pm.