Farmers at risk from the cost of living crisis

MPs warn supermarkets may try to slash farm gate prices

SOARING costs for farmers could be made worse if supermarkets try to cut the prices they pay for produce, MPs warned yesterday.

They urged Environment Secretary George Eustice to give the supermarket ombudsman “more teeth” so that farm gate prices aren’t slashed to protect store giants’ profits.

Farmers’ leaders have warned that the soaring cost of animal feed, fertiliser and fuel could have a serious impact on food production this year.

Some producers have already said they will be cutting back in order to reduce costs – leading to potential shortages.

Westcountry MP Chris Loader told the House of Common he was fearful the supermarket giants might try to take advantage of rising food costs – and try to make cuts in the payments made to farmers.

He told Mr Eustice – who comes from a Cornish farming family – that many farmers were at the mercy of supermarket buyers when it came to setting prices.

“As he will well know, a lot of farmers face great pressure from supermarkets and some would argue that they (supermarkets) actually control the prices that farmers get, when that is not really how it should be,” Mr Loader said.

Farmers were also dismayed yesterday at the news that import checks on food and agricultural products coming to Britain from the EU would again be delayed.

NFU President Minette Batters said: “These checks are absolutely crucial to the nation’s biosecurity, animal health and food safety and without them we really do leave ourselves at risk.

“Our producers have to meet stringent controls to export their own products abroad, all while being left at a continued competitive disadvantage to our EU competitors, who are still enjoying an extended grace period which gives them access to the prized UK market relatively cost and burden free.”

THE Government needs to make sure that supermarkets do not use the cost-of-living crisis to impose unfair food prices on farmers, ministers have been told.

Conservative MP Chris Loder asked in the House of Commons what ministers are doing to give the supermarket ombudsman “more teeth” to ensure supermarkets “do not inappropriately take advantage of the difficulties that we see with food prices” when it comes to the prices farmers receive.

Elsewhere during the session of Defra questions, a number of MPs also warned about the growing cost pressures on farmers, warning the cost of feed, fuel, fertiliser, energy and wages are all rising.

Mr Loder, the MP for West Dorset, asked the Secretary of State: “What is he doing to give the grocery adjudicator some more teeth to make sure that supermarkets do not inappropriately take advantage of the difficulties that we see with food prices?

“Because as he will well know, a lot of farmers face great pressure from supermarkets and some would argue that they [supermarkets] actually control the prices that farmers get, when that is not really how it should be.”

Environment Secretary George Eustice, the MP for Camborne and Redruth, replied: “The supermarket adjudicator in recent years had made good progress to bring transparency to the way relationships work between supplies and the supermarkets.

“In addition to that,” he added, “through the Agriculture Act, we have introduced new powers so that in future we will be able to regulate and improve the transparency and fairness of contracts between farmers and processors.”

Labour shadow environment secretary Jim McMahon called on the Government to “urgently convene a cross-Government summit with the food industry, devolved and local government, and charities to finally get ahead of this crisis”.

Mr Eustice said that he had “already had many such meetings with the food industry”.

Liberal Democrat MP Helen Morgan said: “I have been contacted by several farmers explaining that, because fertiliser and fuel costs are rocketing so quickly, they may not be able to afford to plant for next season.” She said “now is the time to reverse the cut to the basic farm payment schemes to help our farmers survive this crisis”.

The Government has said it will be phasing out the rural grant payments in England, with progressive reductions to 2027. Environment minister Jo Churchill said “that is too much of a blunt instrument”.

She added: “We are supporting all farmers and actually that’s why the fertiliser taskforce is so important and why the work across Government keeping an eye on the situation, making sure that we’re supporting correctly, is so important.”

SNP MP Dave Doogan said: “Input costs into agriculture are at a tremendous high – feed, fuel, fertiliser, energy and wages. On that last point, the Home Office’s pernicious surcharge on growers of £10.10 per hour has got no basis in reality.”

Mr Eustice said: “We wanted to give the industry access to labour, but not access to cheap labour, and that’s why we followed the recommendation of the migration advisory committee to have a slightly higher minimum wage for those coming in under the scheme.”