CAN CASH INCENTIVES BRING NEW BLOOD TO FARMING?
Ihave lost count of the times over the years when farmers’ sons or daughters have told me they want to modernise the way things are done,
“but dad isn’t keen”. That reluctance to embrace new methods has driven some younger members of farming families to quit, while others wait in frustration as the parents work on, often beyond normal retirement age.
Yet, as I highlighted in my
June column, British farming urgently needs new, young blood – coming from both inside and outside the industry – to meet the massive challenges of a post-Brexit era. Production subsidies will be phased out and potentially threatening competition will emerge in the form of free trade deals with countries such as Australia.
Environment secretary George Eustice believes some older farmers (nearly four in 10 are over 65) are “standing in the way of change” and resisting new “green” measures. Now he plans to offer farmers, both tenants and owner occupiers, lump sums of up to £100,000 (the average is expected to be half that) if they hang up their wellies for good. The scheme, says Eustice, will assist them clear bills, settle debts and retire with dignity, while helping others fulfil their dreams.
Countless would-be newcomers long for that chance but have real fears about raising the necessary funds. For example, one council demands applicants have at least £70,000 worth of capital before they can
put their name forward for a farm tenancy. So, expect demands for practical government support for them, too – investment that would reap benefits in the long term.
RESPONSIBLE RETIREMENT
“Younger farmers are more likely to be innovative and boost productivity and be more interested in environmentally friendly methods of farming,” says Professor Wyn Grant, an expert in agricultural policy at Warwick University.
Before the ‘exit strategy’ was announced, a survey revealed that almost half the UK’s farmers don’t intend to retire until they are over 70. Many believe they have dealt effectively with past challenges – from foot and mouth disease to quotas and EU agriculture reforms – and can ably handle those still to come. Will this incentive change their minds?
“From my point of view, they can forget it,” 60-year-old Cumbrian farmer Alistair Mackintosh told me. “If you already have everything set up to leave your farm, you might well take the package, but it’s a very small golden handshake that does not reflect a lifetime of work and investment.
“The way the payment is framed at the moment, once you have taken it, the farm can’t claim future subsidies. The older generation has a duty of care to make sure that when you do hand over, your successors have a realistic chance,” Alistair adds. “I don’t see this package delivering that.”
Others, though, seem more than ready to reap their last harvest. The Tenant Farmers Association says three quarters of its members questioned about the scheme were seriously interested, though it would have to be easy to follow and not “drown them in bureaucracy”.
Tenants giving up their home as well as their way of life will need a new place to live, which can be a huge disruption at their stage in life. And ownerfarmers, who would be able to sell, rent out or transfer their land by gift, must carefully examine their financial affairs before making any commitment. They all have time to ponder – a consultation process is underway and final details of the scheme will be announced later this year.