My Lords, I declare my interest as a Suffolk farmer. It must be a matter of real regret that the Second Reading of this important Bill was, in effect, guillotined. Only six hours were allocated for that debate, meaning that some 65 of the 90 Members who wished to speak were able to do so—and they had only four minutes each. Frankly, if there had been another two hours at least the other 30 Members could have been heard.
I am glad that we have my noble friend Lord Gardiner to shepherd us through what will be a complicated and controversial Bill, with this mass of amendments. He is one of the two finest Agriculture Ministers that we have had in the 29 years that I have been a Member of your Lordships’ House, the other being the noble Lord, Lord Rooker, who sorted out the shambles with the Rural Payments Agency, which his predecessors had failed to do. Although I was not one of the lucky ones to speak at Second Reading, I have, of course, read the whole of the debate. This first group of amendments covers a wide spectrum, so I make no apology for focusing on the context in which they should be considered.
The move from the confines of the EU’s CAP is a moment of both opportunity and danger. We should remember that the three objectives when the CAP was first established back in 1962 have not lost their relevance today. They were market unity, protection of that market and the need for financial stability in rural communities. The late Lord Cockfield, who I think was the United Kingdom’s second Commissioner in Brussels, used to describe the CAP as the marriage contract for Europe between France and Germany. France would accept German manufactures and Germany would look after French farmers. Both countries flourished in this marriage: German manufacturers came to dominate Europe, while France led Europe with a highly efficient and constantly modernising agricultural system.
Agriculture has, over the decades, been subjected to huge pressures and swings between prosperity and depression. Much can be learned by following the price of wheat. It had been at dangerously high levels, causing much social distress, in the first half of the
19th century. During the Napoleonic wars it reached £28 a ton, without allowing for inflation. That price was not reached again until 1953. Those high prices were of course helped by the 30 years of protection under the corn laws. After the American Civil War and the railways opening up corn-growing in the Midwest, a great agricultural recession reached Europe by about 1870, with wheat prices reaching as low as £5 a ton by 1894. After a revival to £15 during the First World War, there was another major agricultural depression during the 1930s, already referred to this afternoon, when wheat went back to £6 a ton. After a revival of output during World War II, there was a prolonged period of agricultural prosperity.
Farming has become hugely dependent on the common agricultural policy which, for many medium-sized farms, comes to an average of 70% of any taxable profit. In some years, it is well over 100%, but it is seldom under 35%. The idea that agricultural production can be sustained if a large proportion of this money is—[Inaudible] —schemes is high risk, as far as any sustainability of the food supply is concerned. That is why the basic concept of a Bill that says that public money is payable for public good only, and that food production is not a public good, is dangerous thinking, not just for farming, but for the whole rural economy. Above all—[Inaudible]—must be protected not by tariffs—[Inaudible]—food production or imported food—[Inaudible.]