As a new UK government emerges after a dramatic change in politics, farming leaders have said the proof will very much be in the pudding as to what it may mean for the industry.
Neil Shand, chief executive of the National Beef Association, congratulated the Labour Party on their success but said farmers and crofters will no doubt be nervous about what could be coming their way.
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“The National Beef Association has scrutinised the Labour Party’s Manifesto which gave little in the way of any commitment to the agricultural industry. In fact, there are only 87 words in the manifesto dedicated to agriculture,” said Mr Shand.
“With the SNPs losing dozens of seats to Labour overnight in Scotland, it will be a real wake up call to the Holyrood government and hopefully will make the leaders in Scotland a bit more prepared for constructive dialogue with the industry.
Only 87 words in Labour manifesto referred to farming
“It’s clear to see the British public has voted with their opinions of how political parties have governed in both Westminster and Holyrood, removing parties that have been incapable.”
The National Sheep Association says it is “cautiously” welcoming the newly elected Labour government and says it has a lot to do to secure rural confidence.
NSA chief executive Phil Stocker said: “Agriculture is still within ‘transition’ away from the Common Agricultural Policy, and in addition has suffered from several years of turmoil.
NSA ‘cautiously’ welcomes political change
“With the election now over and Labour in power it gives an opportunity to build on some good work that has been done, to deal with some of the gaps still left in our sector which should be seen as a strategically vital sector.
“During the election period, Labour made little reference to the farming industry and the manifesto was short on detail and depth. We are strongly of the opinion that current budgets are inadequate given the urgency of many challenges ahead.
“It is imperative there is not another U-turn in policy for the industry, instead existing policy needs to be built upon and fundamental issues raised by the wider industry addressed.”
‘Imperative there is not another U-turn in policy’ says NSA chief
Scottish Tenant Farmers Association chairman Christopher Nicholson says with agriculture being largely devolved to Holyrood, the STFA’s asks of the new Labour government focus on matters reserved to Westminster and will be similar to other farming stakeholders.
“We would like to see the new government reviewing the tax frameworks that are currently a major barrier to the creation of new tenancies,” said Mr Nicholson.
“At present our tax system does not favour the letting of land to tenants – any landowner doing so risks losing the tax status of a trading business and the associated loss of reliefs for Inheritance Tax and Capital Gains Tax, the implications of which are too great to ignore.
“Tax is a key driver of landlord behaviour and there is strong evidence that landlords are not letting land and removing tenants in favour of contract farming agreements in order to establish trading income instead of unearned income, ensuring continued eligibility for Inheritance Tax and Capital Gains Tax reliefs.
Scottish tenants need a fairer offer
“Evidence from other countries which have made changes to their tax frameworks to encourage the long term letting of farmland shows that landowners respond quickly to a fiscal carrot or stick. Without reforms to the tax frameworks affecting landlord decisions, it is difficult to see any increase in the amount of land being let to tenants.”
NFU Scotland says it will write to all 57 Scottish MPs next week highlighting its key asks and once the new cabinet in Westminster is formed, NFUS will be writing to key ministers including the Scotland Office, Treasury and the Department of Food and Rural Affairs.
NFUS officeholders plan to be in Westminster on the week commencing July 15 and will be arranging meetings with new or re-elected MPs.
Martin Kennedy, NFUS president, says the union has always worked “constructively” with whoever is in government in the best interests of Scottish farming and crofting but highlighted the Labour Party’s lack of support to the industry in its manifesto.
NFUS heading to Westminster soon
“Future agricultural and rural funding is key – an element that was not included in the Labour party manifesto for this election,” said Mr Kennedy.
“An immediate priority is securing a commitment from the new UK Government on an increased, ring-fenced and multi-annual budget for farm support across the UK that will enable farmers and crofters to invest, plan better and deliver.”
