[Mr Mike Weir in the Chair] — Common Agricultural Policy

Part of the debate – in Westminster Hall at 2:30 pm on 8 March 2012.

Alert me about debates like this

Photo of Anne McIntosh Anne McIntosh Chair, Environment, Food and Rural Affairs Committee, Chair, Environment, Food and Rural Affairs Committee 2:30, 8 March 2012

It is a great privilege to serve under your chairmanship this afternoon, Mr Weir. The Select Committee on Environment, Food and Rural Affairs is delighted to have secured this debate, which is welcome and timely.

The common agricultural policy has been on a long journey since it was first established, moving from a time of rationing through a time of plenty to a time of increasing fluctuation. Previously, the CAP took the lion’s share of the European Union budget. Now it accounts for approximately 40% of total EU spending. We are mindful of the fact that negotiations on the CAP reforms are continuing in parallel with the negotiations on the financial framework 2014-2020 for the European Union.

The CAP is at a crossroads. Decisions made now will determine our future food prices and availability and shape Europe’s countryside and rural communities. I want to thank all those who participated in the preparation of this report. I am also grateful to those who have contributed to our subsequent inquiry into the greening proposals contained in the communication. We have not yet had the opportunity to agree that and publish a report. I pay tribute to those who farm not only in Thirsk, Malton, Filey and the rest of north Yorkshire, but across the United Kingdom. They have the perils of the landscape and also the elements to contend with. They are not just feeding the nation, but are increasingly being called on to feed a hungry world.

The current round of CAP reform is being played out against a very different background to farm reforms. Food security is rising up the political agenda, placing a renewed emphasis on agricultural policy. I submit that there is a potential inconsistency at the heart of Government policy between food production and sustainability. We await the Minister’s response to hear where exactly the Department for Environment, Food and Rural Affairs is taking us in its negotiations.

We should not underestimate the challenge facing agriculture globally. We need to increase production significantly, but we cannot do that simply by using more land, more chemicals and more water. We already have problems in the UK food system. Prices are rising. We have food inflation running at about 4%, but farm incomes are falling for many farms. Grazing and livestock income is predicted to fall nearly 50% over the coming year.