Sue Hayman speech to the Northern Farming Conference

Sue
Hayman MP, Labour’s Shadow Secretary of State for
Environment, Food and Rural Affairs, speaking to the Northern Farming Conference, said:

Thank
you for inviting me to speak to you today.

I’ve
been Shadow Secretary for Environment, Food and Rural Affairs since February
this year, since when I’ve been building relationships with farming and food
organisations across the country.

For
those of you who don’t know me I’m the MP for Workington, a very large rural
constituency with a lot of hill and livestock farming and many small food
producers.

My
number two in our team – the Shadow Minister for Farming – is David Drew, the
very experienced MP for Stroud in Gloucestershire, also a large rural
constituency but with different issues to my own.

So
I believe that Labour has a strong team with a good working knowledge of rural
issues and I know some of you believe that has not always been the case.

So
I’ve become Shadow Secretary of State at this most critical time for our
country’s farming and food industries.

We
really are at a crossroad, with so much hanging in the balance during the EU
negotiations.

Everyone here will know that one of the most important
industries that must be protected in these negotiations is our farming
industry. In a survey commissioned by the NFU, 85% of people said they believe
that it is important that Britain has a productive and resilient farming
industry.

That figure shows how important farming is to Britain. It is
a key component of the economy, providing 475,000 jobs and driving growth in
rural communities up and down the country. Not only is the industry a major
part of our economy, it also provides 61% of Britain’s food and farmers act as
custodians for our environment, managing more than 70% of the UK landscape.

The Brexit negotiating team must step up to the plate and
get the best deal for Britain. We have to have a plan that protects the rights
of private citizens and also enables businesses to flourish and our industries
to remain successful across the continent.

And
food and farming must be a part of our trade talks from day one.

Brexit brings an opportunity to
fundamentally review the objectives and design of the UK’s long-term
agricultural policy, shaping
the future of British farming and food production for generations to come. And it
has led to new, fresh thinking about the
future of food and farming.

But as well as opportunity Brexit
brings challenges and risks.

It is impossible to emphasise just
how much is at stake for farming during and after the Brexit negotiations.

Agriculture has
been more exposed to EU law-making over the past four decades than any other
sector of the economy.
80% of all UK food legislation has been negotiated at EU level and many British
farmers are heavily dependent on EU farm subsidies for survival.

· 40% of the entire EU’s budget is related
to agriculture and rural development

· About 80% of our
agricultural exports currently go to the European Union

· 94% of farming imports
and 97% of exports are with countries with which the EU has negotiated a free
trade agreement

So we need to negotiate trade
agreements that work for British farming, while recognising and protecting the
high standards of food safety and animal welfare that consumers expect – frictionless, tariff-free trade and new markets that
exploit this proud record of production standards.

Future
trade deals should not undercut British farming in a race-to-the-bottom Brexit
on food standards and animal welfare. We must not allow the UK to become
swamped by imports of food produced to lower environmental, social and animal
welfare standards than those of UK producers.  

Food and farming should be a clear
strategic priority for the Government, one of the cornerstones of a broad
industrial strategy. There remains a clear need for a food and farming plan to
grow more, buy more and sell more British food.

We
have an opportunity to export even more, putting farming at the heart of our
future as a great trading nation.

But the government’s vision for the UK as a leading
free-trade nation with low tariff barriers to the outside world does not sit
easily with its declared commitment to high quality and welfare standards in
British farming. Combining and delivering these two objectives will be a
considerable challenge.

But what is at
stake here if the UK gets this wrong is far more than the interests of one
industry.  It’s our nation’s food
security, nutrition, environment and public health.

I was so pleased to
lead Labour’s celebration of Back British Farming Day earlier this year –
celebrating and recognising the value and contribution of farming to the UK.

British farming provides jobs,
driving rural growth both in food production and in diversified industries such
as renewable energy and tourism.

And this really cannot be
emphasised enough – that farming provides the bedrock for the UK’s largest and
most thriving manufacturing industry – the £108bn food and drink manufacturing
sector.

I would like to assure you all
here today that my team and I are working hard to emphasise the importance of
British food and farming and drive it up the Brexit agenda, to provide the
prominence, attention and thinking time that it deserves.

Farming is an
integral part of Labour’s vision of a fairer society, one that tackles the
increasing social ills of food poverty, poor diets, environmental degradation
and inequality.

The
creation of our new British agricultural policy must be ambitious. It should
aim to establish a new deal with society – a consensus on what the modern-day
farming industry can deliver for the economy, for rural communities, for
consumers and for the environment.

Just
as the Government must ensure the nation has a secure energy supply, it must
ensure there is a safe, affordable supply of food in the long term. Change
cannot be left to market forces alone, as farming is critical to our nation’s
food security and stewardship of the natural environment. It requires
Government leadership and support.

And
I believe that government needs to do more to help and encourage consumers to
buy British food. The UK produces some of the best food in the world, with the
highest standards of safety and animal welfare and we should celebrate that but
currently only 61% of the food eaten in Britain is produced here.

But
if we are going to encourage consumers to buy British better food labelling is
vitally important. For our farmers to be able to compete fairly within any new
trade deals product labelling must be clear and unambiguous so that people know
exactly what they are buying – including the country of origin and method of
production. And we can build trust by continuing to promote accreditation
schemes such as Red Tractor, which will become increasingly important.

We
should also do more to promote the wide range of regional and speciality food
producers – both at home and abroad. In my home county of Cumbria we run the
very successful ‘Taste of Cumbria’ food festivals and value is added to, for
example, Lakeland Herdwick lamb by demonstrating its quality and authenticity
in the labelling. We should look to develop this once we are out of the EU in
order to promote our excellent products right across the globe.

Labour
is committed to increasing the powers and remit of the Groceries Code
Adjudicator, to reinstating a form of the Seasonal Agricultural Workers Scheme
and to consider how future farming payments could be reconfigured around
environmental and public good.

As a member of the All Party Parliamentary Group on Rural
Business I met with other members to press the Minister that the review of the
GCA should increase her powers and remit.
We held sessions in parliament where farmers and producers could give
evidence anonymously so as to not prejudice their businesses in any way.

The shared message that came from witnesses was that an
extended GCA is necessary to:

· Support transparent trading relationships along the supply
chain that give farmers predictability of income and the ability to make
informed decisions about their businesses

· Prevent farmers bearing disproportionate risk, which can send
a competent business bankrupt

· Support sustainable supply chains that produce high quality
for the consumer

So the GCA needs to have the power to ensure that farmers are
paid a fair price and tackle unfair trading, while at the same time ensuring
that food is affordable. In many areas we seem to have lost the relationship
between the price paid to the farmer and the price set by the retailer and this
situation is not helped by the volatility of the market in, for example, the
dairy industry. I’m sure that consumers would not expect fresh produce to be
sold at below the cost of production.

The issue of farm labour is critical and immediate. UK
farmers and food processors and producers need to have access to the labour
market in Europe. And labour that is properly qualified to do the job.

Findings from a recent NFU labour
survey showed the number of seasonal workers coming to work on UK farms has
dropped 17%, with more than 1,500 unfilled vacancies in one month alone.

Without access to this labour resource, both the agricultural
sector and food manufacturers will face severe difficulties.

A
lack of labour will lead to a number of consequences for UK agriculture,
including produce left to waste, the movement of investment and operations out
of the UK, and the likelihood of price inflation for consumers.

And
we also need to invest in skills, training and the exchange of knowledge.

The CLA has argued for a focus on building a high-tech, efficient and resilient
industry with opportunities for all, developing a future pipeline of talent. Young people are leaving
the countryside; with the average age of a British farmer now at 59.

We
need to examine freeing up the market to develop new lower-cost ways for a
people from a wider range of ages and backgrounds to enter food growing and
farming.

This
is essential if we are to enable a new generation to enter farming affordably
and create the pipeline of talent needed for a sustainable future for the
sector.

I
was delighted to attend the awards ceremony for agriculture and land management
earlier this year at Newton Rigg College near Penrith and was really impressed
with the students’ achievements.

We
need to look at what skills and training the different sectors need for the
future and how we encourage on-going development amongst those already working
in the industry and selling agriculture as an exciting and fulfilling career to
the younger generation.

I’ll
now look at some of the challenges we face when considering what could replace
the Common Agricultural Policy.

We
know that in many cases the profitability of farms is too dependent on direct
payments from the CAP. But, because of the huge diversity in farming and the
volatility in many areas, we will need to consider how to support farms in becoming
more resilient while at the same time mitigating against this volatility.

We
are still developing our thinking and policy on what should replace the CAP, but
we believe that a future payments system must broadly seek to do the following:

· We
need to look at how we target support to farmers who provide the most amount of
public good but may struggle to compete in the market through no fault of their
own – e.g. a Lakeland hill farmer

· Add
transparency – any future system must be transparent as well as relevant,
easily accessible and cost-effective.

· Reward
environmentally sustainable practice and environmental stewardship – for
example management of habitat, of natural resources, of the cultural and
historical landscape for the benefit of all of us. We can promote tourism as
part of this.

· Support
flood mitigation through land management – extreme rainfall has become
significantly more serious over the last 20 years and we need to look at
developing programmes which support farmers in slowing the flow of water
through catchments, and for storing water in times of flood.

· Encourage
technological innovation. This is an area I’ve been discussing with the NFU
looking at how investment could meet the broad aims of improving resource
efficiency, improve animal health and welfare, manage disease and add value. It
could also be used to encourage investment in machinery and software but at the
same time there has to be a commitment to fully connect every business to a
fast broadband network.

· Support
rural communities – farming is central to the economy and sustainability of our
rural communities and the contribution that farming makes should recognised.

We
are still working on this in close collaboration with farmers, environmental
stakeholders and local communities to develop our ideas so that any new system
that we propose will enable profitable and sustainable farming businesses that
support a dynamic rural economy.

I
was interested to read the CLA’s report that was launched earlier this week on
how to improve the profitability of farming and forestry. It brings the kind of
vison, determination and positive thinking that we need to see right across the
sector.

The
report is absolutely right in saying that productivity gains should not be at the expense of
the environment. Farming practices that
produce more in the short term but over time destroys its own assets – the land
and soil – is not economic progress and leaves the industry less resilient to
cope with challenges such as climate change and extreme weather.

Over the coming months the Labour
shadow Defra team will be working closely with stakeholders in farming and
agriculture to make sure we get our response to the government’s Agriculture
Bill right.

Farmers have been telling me that
they need more certainty about the future and we will be doing all we can to
help secure as much certainty and direction for the sector as possible to allow
your forward planning.

And I hope that we can strengthen
our relationship so that over the coming months we can work together.

With your expertise, your
experience and your energy an ambitious and progressive vision for farming and
food can be developed and taken to government.

Thank you.