The recent Environment, Food and Rural Affairs (EFRA) Committee hearing brought to light significant challenges facing the Department for Environment, Food and Rural Affairs (Defra) as it navigates the evolving landscape of UK agriculture. The hearing, focused on the future of farming, underscored key shortcomings and areas of concern that could impact food security and the smooth operation of the food supply chain.

One of the most pressing challenges raised by the committee members was the uncertainty surrounding Defra's policy implementation. Farmers and stakeholders have expressed frustration over the iterative approach to agricultural transition, which, while allowing for flexibility and adaptation, has resulted in a lack of clear direction. The accelerated removal of direct payments was has been a significant concern, with farmers struggling to adjust their business models to the new subsidy framework. It's precipitated uncertainty over future livestock production levels.

The Committee questioned whether Defra has adequately considered the long-term viability of farms, particularly those that may struggle to meet the productivity improvements required to remain sustainable. They emphasised that Defra must strike a balance between environmental goals and maintaining sufficient domestic livestock supply to ensure a stable meat processing industry.

Committee members raised concerns about the viability of smaller and upland farms, many of which are integral to the meat supply chain. According to Defra officials, around 7-8% of farms may not survive the transition. Indeed Emily Miles commented that: "If they are not going to be viable obviously the market will act and do its thing. I do not think we can expect that every single farm will be viable, but if we are talking about 92 percent, 93 percent having the opportunity of productivity improvement, that is what we are aiming for." The EFRA Committee pressed Defra to provide more targeted support and advisory services to help these vulnerable farms navigate the changes.

While Defra officials pointed to a modest 1percent annual productivity improvement, the Committee highlighted that more significant gains are needed to offset the challenges posed by reduced subsidies. Competitive grant schemes, such as the Farming Investment Fund, have been oversubscribed, leading to concerns that many farmers are unable to access the support necessary to modernise their operations. The Committee stressed the need for more inclusive funding mechanisms to ensure all farmers, particularly those in the livestock sector, can invest in new technologies and practices that enhance efficiency.

One concern raised by the Chair is the continued absence of the long awaited Land Use Framework while a spending review and recommendations for productivity improvements continue to be worked on. According to Dame Tamara Finkelstein, it's due to be published in the coming weeks.

For the meat processing industry, stability in livestock supply and clarity on future farming policies will be crucial to maintaining operational efficiency and food security in the UK.