Farm policies a Brexit success?

Responding to Nigel Farage, Downing Street yesterday said that Brexit has been a success, citing the ability of the UK to shape its own farm policies as a benefit.

Really?  A hollowed out Defra has found this a challenging task.   The new policies have been rolled out slowly.  The ELMS scheme is complicated and the relationship between policy instruments and desired outcomes is uncertain, albeit that is not an unfamiliar problem.  Measures to tackle the farm productivity problem are limited in scope and funding.

Downing Street also held its much vaunted food summit yesterday.   The farming press dismissed it as a 'talking shop' and admittedly my heart sinks when I hear the phrase 'breakout groups'.  All too often this means poorly focused discussions and brief feedbacks lacking clarity.   However, one needs to talk to identify feasible policies, although acting on ideas is another matter.

Rishi Sunak did offer an extra 10,000 visas for seasonal workers next year on top of the 45,000 already available.  It is estimated that £60m of produce remained unpicked last year.

The National Farmers' Union would like a minimum five year rolling scheme.   This would allow greater certainty to plan forward production.

Meat processors have struggled to recruit butchers because of the language requirements posed by immigration rules.  The sector has become reliant on butchers from the Philippines (also a source of labour for the dairy sector) but each work costs £12,000 to bring to the UK.

Commons committee slams labour shortages in food sector

In a new report, Labour shortages in the food and farming sector, MPs conclude that UK’s largest manufacturing sector faces permanent damage if the Government fails to address the lack of workers due mainly to covid-19 and Brexit.  

Despite the sector flagging significant concern, the shortage of labour in 2021 took a toll on food security, the welfare of animals and the mental health of those who work in the industry, MPs on the Environment, Food and Rural Affairs committee report.

The pig sector was particularly badly affected, with 35,000 pigs being culled due to a lack of butchers to process them. The Report calls on the Secretary of State to use the Department’s power to provide direct support to pig farmers.

The Committee was frustrated by the reluctance of Government to engage with the industry over labour shortages.  Despite valiant attempts by the industry, Ministers failed to understand the issues and even sought to pass the blame onto the sector. Today’s report urges Government to have a radical rethink to prevent future interventions coming too late.

Revised immigration measures could address the current crisis. For example, the Report calls for a review of the Skilled Workers Visa scheme including the complexity and costs faced by employers and tailoring the English language requirement to meet the needs of the sector.

While there have been welcome changes to the Seasonal Worker Pilot, the inclusion of the ornamental sector necessitates the Government to make available the extra 10,000 visas ear-marked and for the scheme to be made permanent.

However, a reliance on overseas labour must be reduced in preference for a long-term labour strategy that grows and develops home-grown talent, combining attractive education and vocational training packages with the deployment of new technology.

While the Committee welcomes some of the Government’s work in the area, it warns that without fundamental change, the UK is facing a chain reaction of wage rises, leading to price increases and food production being exported abroad.  

Chair's comment

The Chair of the EFRA Committee, Neil Parish MP, said:

“In 2021 farmers faced an extraordinary situation – crops were left to rot in the fields and healthy pigs were culled due to a lack of workers. This has serious implications for the well-being of the people who put food on our tables today and in the future. The Government’s attitude to the plight of food and farming workers was particularly disappointing.

“While some of the reforms put forward by Government have helped in the short term, and we agreed that we must look to expand the domestic workforce – this won’t happen overnight. In the meantime, it must use the powers available – including over immigration policy - to support the sector. Otherwise we will export our food production and import more of our food.

“Even more importantly, Government must change its attitude to the food and farming sector – trusting them and acting promptly when they raise concerns."

Good luck with that.

British workers challenged by picking tasks

In the past I have undertaken quite a lot of work which involved me talking to growers in the glasshouse and field vegetable sectors.  This included the work I did on biocontrol (ongoing) and a Defra funded project which looked at polytunnels among other issues.

I have seen this work being done and even with picking rigs in the field it is arduous, repetitive and requires high levels of concentration.

Everyone I interviewed was of the clear view that it was no use taking workers from the local unemployed pool.  They didn't turn up on time; they were less productive; and they soon gave up.  Anecdotally, this seemed to be confirmed by a programme that the BBC filmed in Wisbech.

It is therefore no surprise to learn from the Financial Times yesterday that although a local recruitment drive has been relatively successful, productivity among these workers is lower and in the case of one major grower a third have already left.  Half were not able to achieve the required picking rates.

This is a low margin business in which labour can account for 70 per cent of the costs.  According to the Pink 'Un net operating margins are just 9.5 per cent.

Normally there are 70,000 to 80,000 migrant workers in the sector.   A seasonal workers scheme this year let in 10,000 temporary non-EU farm workers.

Some crops such as asparagus have already been left unpicked this year because of the pandemic.  In the longer run, supplies could diminish and prices go up.   One doesn't have to be too impressed by food security arguments to realise that there is a case for having a good local supply of healthy fruit and vegetables.

Congratulations to Judith Evans who is a new FT reporter covering agriculture but has done some excellent reports.   I have spoken to her and she asks good questions.