To ask the Minister of Agriculture, Environment and Rural Affairs what engagement he has had with the UK Government on the need for financial support for agriculture.

Mr Muir

I have written to the Secretary of State for Environment, Food and Rural Affairs on a number of occasions expressing my deep concerns about the future of the earmarked agriculture budget, with the current funding package coming to a conclusion at the end of March next year. I have stressed to him that any future settlement should, as an absolute minimum, maintain the current budget allocation, uplifted for inflation to allow for delivery of my Department’s policy objectives and ambitions. Most recently, we discussed that in person at the inter-ministerial group for environment, food and rural affairs in London on 16 September. Following that meeting, I wrote again to stress the importance of receiving early clarity on future earmarked agriculture support funding for next year and beyond. In my letter, I also highlighted the significant contribution that the agriculture sector in Northern Ireland makes to UK food security. I have stressed to the Secretary of State for Northern Ireland and the Secretary of State for Environment, Food and Rural Affairs the need for funding decisions to reflect the importance of a just transition. I also made the case that there should be a separate, specific, additional capital fund to support that just transition in agriculture. My Department is engaging with the Department of Finance on raising that with Treasury as part of the broader budgetary processes.

Mr Muir

It is absolutely key. I am committed to setting up a just transition fund for agriculture in the months ahead, but, first, I need clarity from the UK Government on the level of funding being made available in the years ahead. We need to ensure that the work that we need to carry out to reduce greenhouse gas emissions and reach net zero will be fair and will support people on that journey. That is why we need to provide those incentives and support. I will consider, in conjunction with Executive colleagues, the best approach to take on that and other requirements placed on us as a result of the Climate Change Act 2022, learning, where appropriate, from the experience of others. I have already stressed to the Secretary of State for Northern Ireland and the Secretary of State for Environment, Food and Rural Affairs the need for funding decisions that reflect the importance of a just transition. I support the EU's approach, which is outlined in the report 'Strategic Dialogue on the Future of EU Agriculture', that says that a temporary just transition fund should be established outside the common agricultural policy. The rest of Europe is moving on the matter. The UK Government need to support us to do likewise.

Mr McAleer

I am glad to note that the Minister continues to lobby the British Government on the budget. May I also suggest, Minister, if you have not already done so, that you include in conversation what was the pillar 2 rural development programme, which was also funded from the EU budget but is no longer available, so that pressure can be taken off the agriculture budget?

Mr Muir

I thank the Member for his question. He touches on a key issue that far too many people in Northern Ireland have forgotten . That is the loss to Northern Ireland of that rural development funding. A lot of promises were made during Brexit. Very few were fulfilled. One of those was rural support in our communities, and I lobby the UK Government hard for that support. That is because we should not lose sight of the benefits that it gave to our communities or of the need for that funding to come back to Northern Ireland and into those communities.

Mr Irwin

The Minister is aware that farm incomes fell to 46% in 2023-24 and that the basic farm payments are vital for the viability of many farms. I congratulate and commend his Department on getting basic farm payments out on 1 September; ours was one of the only regions in the UK to do so.

Mr Speaker

Is there a question?

Mr Irwin

Will the Minister undertake to raise with the Government at Westminster an inflationary increase to direct payments to farmers, given that, in recent years, inflation on direct payments has reduced in real terms the amount of money that farmers receive?

Mr Muir

I agree with the Member. An analysis that my Department undertook found that, in real terms and by using the consumer prices index, in 2020, £330 million, which was when the UK left the EU, would have been approximately £390 million at the end of 2023. Therefore, we need to ensure that future payments are indexed in line with inflation. I am glad to see that the basic farm payments went out last month. That follows progress that was made in the previous year. It is important to get the help out to people so that we can support the agri-food business in Northern Ireland.