The Food:Conservation Dilemma

No Government has developed a really sensible policy on Farming and the Countryside, for at least the last 30 years. Every Government has offered platitude after platitude to Farmers and Conservationists alike, but whether it is because in the main we have had some pretty inadequate Secretaries of State for Agriculture and latterly the Environment, or whether it has not been an important enough issue for the brightest and the best to focus on, the end result has been massively disappointing. We have as a result, had a pretty disjointed series of policies, often trying to reconcile the irreconcilable. Really sad, given the importance of this subject to the health of the nation, but also environmentally and financially.

However, this Government has so far been worse than anything that has gone before. It used to be said that Farmers always did best under a Labour Government, but that is certainly not the case with Sir Keir’s. The hapless Environment Minister (who really does seem to know absolutely nothing about his brief and probably does not want to either), has had to watch powerless as the Chancellor has introduced several fiscal changes, all of which have damaged UK Farms. It is difficult to see how things are going to get any better, certainly over the life span of this Government. Indeed, Labour is so unpopular now with Farmers (and many others!) that it seems likely that the Environment Budget will come under attack again, on the basis that they cannot really upset this type of voter any more, so at a time when money is very difficult to find, why not reduce the funds for this sector further?

“It is very much a question of battening down the hatches, reducing costs and where possible, increasing efficiency“

The root of the problem is that there really is not anyone in Government who has any understanding of the Countryside, other than as a place to visit. As a result, there is no empathy with the people trying, under increasingly difficult circumstances, to run viable farming and rural businesses. With few exceptions, as a firm we do not see anything at scale, which is very positive in terms of nicely profitable farming businesses for the next few years at least. Our definition of “nicely profitable” is a profit which reflects the risk:return. However, the IHT changes (will they even at this late stage be changed, like so much else?), will also adversely affect many mid-sized private business as well as Farms and Estates. All are going to struggle to find this new tax and most from declining pre-tax profits. Whilst it is not all doom and gloom, there is no doubt that running all businesses including Farms and Estates is becoming increasingly hard and will continue in that vein. Angela Rayner’s new Employment Laws will only add to the burden.

“There really is not anyone in Government who has any understanding of the Countryside, other than as a place to visit“ 

What is really telling is the lack of real vision and leadership, from both our politicians but also the heads of the various rural Government Agencies. One gets the feeling that provided food is on the supermarket shelf and we are seen to be “doing good” in Conservation terms, the how and why and indeed the longer term sustainability of producers (yes we do need them!) is being completely ignored. Sadly, this merely reflects the ignorance of those in charge. It is to be hoped that the opposition parties are using this time to seriously consider what they would do if they were in Government. Let’s hope so! In the meantime, it is very much a question of battening down the hatches, reducing costs and where possible, increasing efficiency. As a formula for growth, it seems very unlikely to be at all successful, but then if no-one in the Government nor in the Civil Service has ever run a for profit business, we probably should not be surprised!

Article written by Mark Osborne

Founder and Managing Director of JM Osborne Rural & Sporting