Kicker: Policy uncertainty encouraging production cuts
By Abi Kay
THE Governments flagship Environmental Land Management (ELM) scheme will not get farmers out of the cost crisis triggered by the Ukraine war, MPs have been warned.
Tenant Íæż½ã½ã Association chief executive George Dunn made clear Ministers needed to find other ways to help industry cope with soaring costs and wafer thin margins.
Giving evidence to the Environment, Food and Rural Affairs (Efra) select committee this week, Mr Dunn said: We cannot ask ELM to do everything. ELM is there for a specific purpose which is about the public goods around environment, climate, biodiversity, clean water and clean air.
The Government has many other levers at its disposal to use on things like emergency intervention in markets, which for such a time as this they should be thinking about.
They also need to think about what they do on labour supply issues and supply chain issues.
ELM is not going to get us out of this crisis.
David Exwood, vice president of the NFU, was also giving evidence to the committee and told MPs that the lack of clarity on future policy was forcing farmers to move towards Countryside Stewardship, as it was the only option for certain funding.
The risk of farming has gone up exponentially since the start of the Ukraine war, and when you try to cover off that risk, you look for certain income, so that is why we have seen a big rise in applications for Countryside Stewardship, he said.
The current situation is driving people away from food production and we ignore that at our peril.
Government policy needs to recognise the challenges facing farmers and do something to help them, because otherwise they will just continue to decline the amount of food they produce.
ELM payment rates were also discussed during the hearing, with CLA chief land use policy adviser Susan Twining calling for a system which allowed them to be regularly amended.
Doing that once every three years at the spending review is possibly not going to be enough, she said.
