Opinion: Red flag will herald changes for farmers

Well, comrades, it’s happened: not only do we have a Labour government, but we have a Labour government with such a huge parliamentary majority that Britain could feel rather like a one-party state for the next five years.

What will this period of unbridled “Starmerism” feel like for farmers?  

There was a time, of course, when it didn’t much matter which party was in power in Westminster.

Any reform of the EU’s CAP was proposed by the EU Commission years in advance of implementation by the EU parliament, and only then after lengthy haggling between the agriculture ministers of the 28 member states.

See also: Opinion – why I’m bucking the trend and expanding my suckler herd

 

About the author

Stephen Carr

Farmers Weekly Opinion writer

Stephen Carr runs an 800ha beef, sheep and arable farm on the South Downs near Eastbourne in Sussex in partnership with his wife and four of his daughters. He also runs a nearby pub with his nephew, The Sussex Ox, which serves the farm’s beef, lamb, (and fruit and vegetables from the farmhouse kitchen-garden in season) through its restaurant.

Read more articles by Stephen Carr

How things have changed since Brexit. Now, for example, a Westminster government can quickly make any radical changes to farm or food trade policy it likes.

We famously found this out to our cost when Liz Truss, as trade secretary, signed a deal that will eventually allow Australian beef and sheep into the UK completely tariff-free despite being produced to lower animal welfare standards.  

So, with a new Labour government having the freedom to make any changes to farm policy it sees fit, could we see major adjustments to agri-environment schemes such as the Sustainable Farming Incentive?

Perhaps Starmer, who has already said he intends to put more emphasis on things being “made in Britain”, will prefer to encourage food production rather than blow nearly the whole £3.4bn farm budget on agri-environment schemes.

Scotland, Wales and Northern Ireland are better insulated against radical changes in farm policy, as agriculture falls under “delegated powers” granted to the national governments and regional assemblies.

But ultimately, even they are subject to control from Westminster, as the UK government holds all the purse strings.

How vulnerable to review England’s agri-environment schemes may be was brought home to me on the day after the election.

I phoned an agent who advises on Countryside Stewardship (CS) and reminded him that my agreement expires at the end of 2025.

When, I asked him, would discussions with Natural England start about the renewal of my agreement?

He replied: “Well, I suppose we now have to add the caveat, ‘if you are offered a renewal of your CS’ as we can’t be sure of anything at the moment.” 

Even more worrying, of course, for many wealthier farmers, are the threatened changes a Labour government might introduce in the way that agriculture is currently largely exempted from inheritance tax through agricultural property relief (APR), and from capital gains tax through rollover relief.  

The reasoning behind the watering down, or even abolition, of these reliefs is that they are driving up land prices to such an extent that young farmers are being forced out of the industry.

Measures might include a cap on APR and the introduction of compulsory purchase orders that would force landowners to sell land for residential or commercial development to councils at low values.  

One way or another, then, a red flag flying over Britain for at least the next five years could be quite eventful for some or even all of us.

My predictions are that we can expect more help with making food production profitable, but that life will be made uncomfortable for any farmers who own a lot of land and are intent on passing it on to their heirs.