|
Speech made by Agriculture Minister Phil Gawne
PAG Meeting at the Empress Hotel, Douglas, 29 September 2008.
Fastyr mie.
I enjoyed reading the advert that was sent around for this meeting. I must be a really nasty minister! Doom and gloom. Job losses in agriculture. No more sheep on the hills. I need to look back in my family history and see if I’m related to the Big Bad Wolf or the Buggane of St Trinians.
You’ll not be surprised to hear that I don’t believe things are quite as bad as all that. In fact I’m hoping – with some degree of assurance – that things are about to start getting better for Manx food and for Manx food producers – so long as the policy changes we’ve been working on with the industry for the past three years are adopted by Tynwald later this year. This new package will provide a greater degree of fairness and a greater degree of freedom for all farmers.
I’d like to speak for about 30 minutes this evening – and before I go any further I think I should mention my background here. I’m not a banker or a lawyer – and having spent most of my life working on farms I can best be described as a farmer. It’s in my genes. The Gawnes have been farming on the Isle of Man back before records began - as a child I grew up on Pooyl Vaaish Farm. My grandparents, Ivy and Leslie, arrived at Pooyl Vaaish in the 1950s – and, after 30 years under the careful stewardship of my father Raymond, it’s now run by my brother Stephen and his wife Sheila. I don’t get out into the fields as often as I would like to – but when I can I’m still out ploughing at Cregneash with my horses, Charlie and Darkie.
Farming is part of my life, part of my family’s life - and part of Manx life: it’s part of our heritage – part of our landscape.
Pooyl Vaaish Farm is owned by my family but it’s valued by many more people than that. Walkers, trials bikers and wildlife enthusiasts from around the Island enjoy the land it sits on. Even just this weekend I joined dozens of people who’d volunteered their time to help clean up the rugged coastline that defines the southern edge of the farm – to clean up some of the rubbish that’s been washed in by the sea.
Farmers and the rest of the community working together to keep the Island beautiful.
Farming has helped shape our countryside for the last five thousand years, but beyond that it’s helped shape my own view of the world.
Farming and politics are pretty similar – you sow seeds like you sow ideas, and you watch them grow – then you reap the harvest as the big ideas become reality.
Agriculture on the Isle of Man is undergoing radical changes – and many of these changes (such as rising costs (feed, fertilizer, fuel), greater emphasis
on compliance with external standards, rising consumer expectations) are already having a dramatic impact both on and off the Island – but later this year I hope to win the support of Tynwald for new financial arrangements which will allow our nation to support Manx agriculture effectively well into the 21st Century in a way which will give our farmers greater freedom to run their businesses more efficiently and profitably.
It will be fairer deal for all Manx farmers – it will also be a fairer deal for the Manx tax payer.
These changes are a big idea – For the rest of Europe it was an idea planted by the European Union 10 years ago – but is now very much a positive reality.
On the Island we sowed the seeds of this big idea 3 years ago.
Since then we’ve run the largest and longest consultation process we’ve ever seen – with farmers, processors and consumers gradually coming to an agreement about the best way forwards:
- The best way to ensure the Isle of Man continues to produce food in the future;
The best way to safeguard rural job and lifestyles;
The best way to protect our environment, our wildlife, our biodiversity and our heritage;
The best and the fairest way to give farmers the freedom to respond to consumers in the market place;
The best and the fairest deal for the Manx tax paying public.
I know there are those who say the nasty Minster is imposing his will against the will of the working farming people of our Island.
Well, let’s take a look at the evidence - let’s take a look at what the new system aims to achieve – and let’s consider also how the world around us has changed.
World trade is now truly global – food can be produced and imported from abroad – often more cheaply than we’re able to produce it at home. Farmers may not like it – but that’s the way it is – we can’t just close our borders – apart from anything else other Manx people want that choice – and beyond that, farmers benefit from open borders too, through our trade into the rest of the European Union, which substantially supports our industry.
Not only that – but the food demands of customers have also changed. Our tastes have broadened – we expect to buy ingredients from everywhere in the world in any supermarket we choose to visit – the days when most people ate a basic meat and two-veg meal every day are gone.
In addition our eyes have been opened to the sometimes-devastating impacts our lifestyles have had on the developing world in the past – we now understand the impacts of dumping food commodity mountains in Africa or India (as happened throughout the 1980s and 90s) distorting developing markets and forcing poor subsistence farmers out of work and their families into poverty, bad health and sometimes starvation – As an international community we’ve agreed that this is not acceptable in the 21st Century.
At the same time China and India and other countries have emerged as new markets – importing and exporting – running hard to catch up with the more developed nations in the north – and sometimes even overtaking us.
Climate change is here - demanding immediate changes in our lifestyles – already affecting the supply of commodity foods around the globe. This year drought in Australia reduced the global supply of milk – biofuels are taking land out of food production – food miles from transporting goods contribute to CO2 emissions. We need to adapt our agriculture to ensure our land can produce food in the future while protecting our soils from the potentially ravaging, erosive effects that more intensive rains, winds and heat waves will bring. We need to stimulate our local food production, encourage greater ranges of Manx produce, and reward diversification as more farmers begin to process their own food and retail directly to the general public. This will help cut food miles and help ensure the security of our food supply on the Isle of Man. The climate isn’t someone else’s problem – it’s a problem for all of us – and supporting local food production is one way in which we all can help.
Changing appetites, free world trade, the growth of emerging markets, climate change, agricultural reform within the rest of Europe – all these things are affecting us already – So I hope you accept these factors are not the work of the nasty Minister dictating change from on high.
In truth the Isle of Man has managed to fend off the worst excesses of external changes and pressures in the agricultural sector for a long time - but the world has changed around us nonetheless – modernisation has happened – and we’re in danger of being left behind unless we get on that wagon soon… Elsewhere new generations of farmers are already benefiting from new systems of support – they’re capturing the new markets – they’re learning new skills.
If we don't jump into the future soon we may find ourselves left behind for good - unable to adapt effectively to change because new markets have already been saturated.
Since the 1950s Government has been telling farmers what to produce, and paid them substantially to produce it.
That policy ensured that the food shortages that existed after the Second World War became a thing of the past - but as I’ve shown, times have changed - and in the new fast-moving global trade community - we must find a new deal that makes things fairer for farmers - fairer for the taxpayer - and which substantially removes the Government from the roll of boss in the farming industry.
Government has been the boss of agriculture for 60 years - and farmers’ unions have become very good at negotiating with the boss. But farmers don't need a boss - they don't want a boss - and as a Minister I don't want to be the boss. I want Government to empower farmers to get on with their jobs - while ensuring there is a legislative framework in place - supported by the general public - so that taxpayers’ money is better directed to more effectively support individual agricultural businesses.
This new deal will ensure that more farmers receive financial support - not less.
This will give farmers the freedom to re-engage with the consumer - to find out what consumers want; what they will pay for; what they value - and to produce it because they choose to - not because Government tells them to.
This deal will guarantee that farmers on the Isle of Man continue to receive the same level of financial assistance as now – far into the future – across the next 10 years to 2019 - the current deal for farmers in Europe is due to end in 2015.
Not only that but last year I won an additional £5 million from Treasury to assist with initiatives to significantly restructure our whole food sector.
This allows DAFF to provide financial support to the three main processing units - the meat plant, the Creamery, Laxey Glen Mills - so that they are able to offer prices to farmers that are competitive with UK processors (regardless of poor economies of scale) so that we don't see a mass exodus of livestock from the Island, or our milling wheat being shipped off to other buyers elsewhere in Britain.
Not only this but farmers who embrace the entrepreneurial spirit of the new deal will be able to apply to the DTI for more money to develop their businesses further - for example to process their own food themselves so they can brand it and sell it as unique Manx products if they so choose - whether that's yoghurt, or muesli, or wool-fibre insulation - or to develop into the service sector providing retail outlets or cafes to promote their goods, or allotment areas for other local people to use their land.
This deal will create new job opportunities and new enthusiasm in the sector - not lose jobs as has been suggested.
I'm not interested in presiding over the death of Manx farming - I want to see it thrive and grow, and through this new deal farmers will be given the freedom to innovate and will be able to reap the financial rewards. I want see a fairer deal for all farmers – this new deal will achieve that.
It will also be a fairer deal for the taxpayer.
For 60 years taxes have been used to support food production. Prices have been kept low at the checkout because consumers have paid for food twice – often without realising it – once at the till – and then again through their taxes.
The new deal will see farmers receiving the same amount of money – allocated now according to land acreage – on the condition that their land remains in good agricultural condition (in whatever form of agriculture they choose) - but also that their land is kept in good environmental condition - that biodiversity is maintained and enhanced - and that our natural heritage is preserved.
This deal is good for farmers and taxpayers – and it's a good deal for the environment, for wildlife, for biodiversity, and for our Island's precious heritage.
So why isn't everyone raving?
The industry is understandably nervous - it's a big change.
But this deal is cautiously supported by the majority of farmers (most of who fully agree that maintaining the status quo is simply unacceptable) and by the main democratic farming groups on the Isle of Man. It’s supported by the Manx NFU - by the Milk and Fatstock Marketing Associations and the Isle of Man Agricultural Marketing Society.
Incidentally decoupling in the UK was supported strongly by the English NFU in 2003, and continues to be strongly supported by them in 2008.
Of course - as with any policy change there will be winners and losers in the short term.
Though I expect all farmers to find themselves in a better position to earn more in the medium and long term – there will be those who receive less direct support – some of whom have perhaps intensified their production levels in the past to ensure the highest subsidy.
But there will be others who will receive more assistance - and there will be some farmers, especially vegetable producers, who have never benefited from the previous production-based settlement - but who will now be eligible for funds for the first time.
It's a big change.
There are many farmers who are close to, or already at, the age that most of us would like to retire.
They don't want to change... of course… why should they?
That’s why we’ve agreed that the transition from the old system to the new will take place over ten years. Ten years! That's plenty of time for those who choose not to take up the opportunities presented through the additional freedom supplied through this arrangement to prepare for their retirement. We have already reformed the Tenancy legislation to provide those wishing to retire with a more flexible option.
We're not closing the farming industry - we're giving it the breathing space to find new chances, new energy, and new enthusiasm.
And these changes are not un-tested.
The Common Agricultural Policy (the CAP) - which governs agriculture across Britain and right across Europe – agreed to decouple Government support from production in 2003. At that point, UK farmers expressed similar doubts to the current concerns of our Manx farmers and none have been borne out in reality. Farm profits have mostly grown, we haven’t seen a mass exodus of workers, food volumes are still high but the product range has widened, innovation and diversification have grown, enthusiasm has been rewarded, as their farmers shift their production to meet new markets.
We on the Isle of Man have benefited from watching that change - we have learned from their mistakes - and from the things they have got right.
Throughout this process we at DAFF have worked closely with farmers and processors on the Isle of Man - through one of the largest and longest sector consultations ever to take place on our Island - to find the best way of embracing the benefits of the globalised economy – within the conditions laid down by the EU, our major trading partner. We all want to ensure Manx agriculture is given the freedom to succeed.
In consultation with all Manx farmers - and with the expert help of Andersons Farm Consultants (appointed by DAFF and the Manx NFU) we have cherry-picked the very best solutions for our industry – and where there is a sector that we genuinely believe cannot benefit from a market-based solution on the Isle of Man we are retaining direct production-based support.
In November of this year the European Union will conclude its scheduled Health Check of the decoupled Common Agricultural Policy. This is the latest in a long line of reviews, which is intended to continue the long term evolution of their policies to further assist farmers and deliver on their long term plans.
We will have a Health Check built into our own reforms too - scheduled to take place 3 years down the line.
Opponents to change suggest there will be big policy reversals in Brussels in November.
There won't be.
The Health Check is not to reverse policy but to adjust it.
The EU preamble to the Health Check states clearly that it is to achieve: 'streamlining and further modernising of the European Union's Common Agricultural Policy.' In other words the EU wants change to go further and faster.
The English NFU has clearly stated that they support this approach and have criticised the EU for not being even more ambitious in its programme for full decoupling. The majority of farmers in Britain are clear that a freer and fairer market environment provides them with a better deal.
The same will be true here.
Some farmers are worried that beef and sheep farming will become loss-making enterprises. Well – they’re loss-making enterprises now – held up by Government support. I’m not begrudging this – but farmers must recognise that they need financial assistance from the State, and therefore must respond to the changing demands of the taxpayer.
Many people strongly support local food production and recognise the value that farming brings both in terms of food security and in the maintenance of the countryside. The new system aims to reward both of these elements on behalf of the taxpayer.
But again – it’s not right for Government to tell farmers what to produce. Instead farmers need to listen more closely to their customers and produce the food that customers want – not simply produce what they’ve always produced because they’ve always produced it.
At DAFF we recognise the immense challenge change represents for some farmers.
As a result we are putting in place every single reasonable safeguard to ensure that farmers on the Isle of Man are able to compete fairly and competitively with other farmers in Britain. We will be financially supporting the main processors as well as the farming industry itself to ensure competitive prices are achieved on the Isle of Man.
Some farmers are suggesting that imports will increase - having a detrimental affect on the environment - contributing to climate change. These same farmers, concerned environmentalists (!), also tell me they’ll be choosing to export livestock for slaughter in the UK.
Neither will be necessary.
Again - our financial support for the industry is increasing - not shrinking.
When we lose the red meat derogation as we expect to in 2010 (which has sustained a protected meat market on the Island for almost two generations), we may see an increase in meat imports.
It’s up to our farmers and our meat plant to ensure that the meat they produce is of the very best quality available. DAFF has worked closely with Isle of Man Meats and with farmers across the last three years to achieve this - we have made great strides forward at the plant and almost all farms are now accredited to world class standards through Farm Assurance. Manx meat is fantastic. The taste and the quality are second to none.
In the new free market environment we do not expect to see a net increase in imports of all produce - providing farmers listen to consumers and supply exactly what they want to buy. In fact – we might even see an increase in home grown food sold at home if more farmers take advantage of the new flexibility provided by the new support structure and diversify into alternative food production. Wouldn't it be great to see more Manx cereal products, more vegetables, a greater variety of meat and dairy produce, and more herbs and spices.
At the same time let's not loose sight of the fact that we are keen exporters too.
Even now the export market is both valuable and essential to Manx food production. Exports of Manx branded cheese are vital to providing a fair price to dairy farmers – the branded cheese we sell in the UK provides the money that guarantees the existence of the dairy industry at home. Around 60% of the meat volume produced on the Isle of Man is sold into the UK too.
The evidence shows that we need the EU market - and if we want to benefit from EU consumers - we must play by some of their rules.
Climate Change is another important factor driving Government policy. I want to see more local food production. I want to see more farmers' markets and farm shops. By giving farmers greater freedom to innovate and produce what the market demands - we have the best chance of achieving this.
In the future I hope to see Manx farmers better reflecting the changing appetites in our society. In 1950 for example there were hardly any vegetarians - now 10% of people are vegetarian – if you listen to some farmers you might believe that these people are the devil incarnate – but they eat food too – so why not produce more of the food they want to eat, here on the Isle of Man. We could produce more exotic foods and more regional varieties here too – farmers who try something new will be rewarded by the market place.
We’ve already seen an increase in support for the organic sector – and by working closely with the Manx Organic Network we have been able encourage sustainable growth in this market. Organic food production is low input, and therefore a lower risk to the farmer – those who choose to convert, from conventional farming to organic production, can already claim additional financial support to help them through the transition.
Our farmers' markets have proven that there is a sustained high demand for locally produced food sold directly to the public.
Stephen and Sheila, my brother and sister-in-law, have taken up the challenge and now supply vegetables they have grown on their own stall at the farmers markets.
In the first year they set aside just 1 acre for vegetable production – this year it was 3 acres – and they still can't keep up with the demand...
I want to see farmers' markets – not every month – but every week across the Isle of Man – and I know that local consumers will respond, providing the produce is of a consistently high quality. People love the direct contact with farmers that the markets provide, they like the chance to try new things – and they enjoy the social aspects too. Farmers' markets have shown that Who Dares, on the Isle of Man, Wins.
Critics claim that Government funds will be diverted from agricultural production to just pay for countryside care.
This should be untrue. The best way to keep land in good agricultural condition is to keep it in production. There may be a reduction in the very short term as farmers reassess their businesses – but very soon we should expect production levels to increase once more.
Money will only be paid by DAFF on land that is kept in agricultural use - but which is also maintained to agreed standards of environmental care.
This means the taxpayer is getting a fairer deal. They will be paying farmers to produce food (without telling them what food to produce), but also to look after the environment, wildlife, biodiversity and heritage.
In the past environmental legislation has largely worked in a reactive or negative manner - we've told farmers to do such-and-such or face prosecution. Now we are being proactive and positive – rewarding farmers for their expert maintenance of our beautiful countryside.
Now, I’m not going to stand here today and tell you it’s all going to be easy. It isn’t.
It’s a substantial change in policy – and in the end to get the best out of the changes many farmers will have to take a good look at their businesses and plan the best ways to adapt them.
But there’s plenty of time to do that.
We’ve built it into the system.
Farmers will benefit from the breathing space we have written into the reform package – where for the first five years they will receive 100% of the money they historically received under the old system, though for the first two and a half years a link to production will be maintained for most producers. Then after that five years – as the transitional period progresses that percentage will gradually fall – and the percentage earned from the area-based assessment will increase – so long as their land is kept in good agricultural condition farmers will continue to receive financial support from the taxpayer. This is arguably the fairest deal for both farmers and the taxpayer in Europe.
I’m not just the Agriculture Minister - I’m also a farmer.
I’ve been brought up by farmers on a farm, and continue to hold ambitions to go back to farming in the future.
While it would make a great story if the Agriculture Minister pulled the sky down on top of the heads of the farming industry – it simply isn’t going to happen.
This new deal is to guarantee the future of Manx farming into and beyond this new century.
As an agricultural community we have worked together, with experts and with the support of the Manx public, to find the best and the fairest solution for everyone.
The Manx people are already showing their renewed support for local agriculture – having responded to the call of the I Love Manx campaign with vigour and passion. They are full-throated in their support of Manx food and Manx farmers.
I know that not everyone agrees with our proposals. I have tried over the past three years to reach consensus at all stages – but there comes a time when a decision has to be made.
We have spent three years and a lot of public money on this consultation process. And truthfully, the vast majority of Manx farmers – now – simply want us to get on with making the changes so that they know exactly where they stand – and can plan to succeed in the future.
Farmers are survivors.
They are also canny businessmen at heart.
I am wholly confident that if I speak to you again in five years time – the question you’ll be asking is this: why didn’t you do this sooner?
Thank you for your time.
|
