A third generation egg producer from Scotland has tentatively welcomed the government’s so-called ‘new deal for farmers’, while stopping short of offering his full support due to the ongoing controversy surrounding the proposed changes to inheritance tax.
Farmlay managing director, Iain Chapman, who runs Scotland’s second largest poultry farm in Aberdeenshire, has described some positives from Secretary of State for Environment, Food and Rural Affairs, Steve Reed‘s new vision for agriculture.
Reed detailed proposals underlying his new deal in a speech during last month’s Oxford Farming Conference, which included means of diversification, planning reforms to make it easier for farmers to construct infrastructure and a commitment towards a more equitable supply chain.
In a written statement, Chapman outlined his support for what he anticipates will be improved opportunities for farmers to profit from the sale of energy surpluses from solar panels and wind turbines on farms.
He also welcomed the new supply chain rules enshrined in the ‘new deal’, which aims for greater contract clarity, with amendments granted only upon mutual agreement of both parties, as well as the proposed £5 billion to be invested in public service catering contracts of British origin.
Chapman explained: “These would all be great news and in some cases, such as improving access to public service catering contracts, something that the industry has been banging on about for years, however, my initial enthusiasm will be kept in check due to the proposed farm IHT changes.
“In my opinion, the government’s plans will stifle all farming businesses from expanding. On a personal note, although we have started on succession, we have not yet completed and I, along with many thousands of others, am worried about the IHT impact.”
According to Chapman, his family and 70 employees, farm almost 3,000ac in Strichen, with more than one million hens in production, which generates over five million eggs every week.
“My dad started out at 15 on his parents 130ac farm. He had a dream of owning 100,000 hens and 1,000ac of farmland. Farmlay as a business, now owns more than 450,000 hens, with a further 550,000 owned by contract farmers,” he said.
“Although my father is an amazing man, it’s hard to imagine that sort of growth being possible if there had been the dark cloud of IHT hanging over him and other farmers.”
Egg producer
Reflecting on the favourable aspects of Reed’s new deal speech, Chapman feared the commitment towards making public sector procurement deals more accessible to British farmers, would only be applicable in England, as the agriculture budget has been devolved in Scotland.
A spokesperson for the Department for Environment, Food and Rural Affairs (Defra), has confirmed that the procurement policy is, at this point, restricted to England, as opposed to it being a national directive.
The new UK-wide supply chain guidelines, due to come into effect within the pig industry this spring, with other sectors to follow course, is of particular interest for Chapman, who was at the forefront of securing five-year rolling supermarket contracts for egg producers.
“We personally have long-term supermarket deals, but nobody can afford to get complacent. Food security is too serious an issue to leave to chance and hardly a day goes by in the news when this isn’t highlighted.
“Any new supply chain guidelines to support the UK farming industry’s world-leading field to fork story and help give us and other farmers security to expand is to be welcomed,” he added.
