Hardship fund expected to be launched for dairy farmers
The Government is believed to be considering a hardship fund for dairy farmers severely affected by the Covid-19 crisis.
It is thought the fund could take the form of a targeted time-limited payment for badly affected farming businesses, and comes at a challenging time for farmers who have seen demand for dairy products in the hospitality sector drop, with the closure of many cafes and restaurants.
Decreased demand from the food service sector and reduced collections has led to some dairy farmers with no other option but to dispose of milk on farms.
News of a potential hardship fund has been welcomed by North Shropshire MP Owen Paterson. He said: "There is an urgent need for some form of rapid hardship fund for the minority of dairy farmers, who temporarily have no market for their milk, to avoid seeing cows slaughtered."
The National Farmers' Union, Dairy UK and the Provision Trade Federation have proposed action including targeted grant support and a scheme whereby some cows would effectively be "furloughed".
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Jonathan Evans, NFU Shropshire adviser and regional dairy lead, said: “The Covid-19 outbreak is having a massive impact everywhere and farm businesses are not immune – in dairy some markets for milk have disappeared overnight and others have faced significant price cuts and been asked to reduce production.
“We have held high level talks on this and on other key industry issues with Government, as part of a bid to help our members’ businesses during these challenging and difficult times.
“We urged Shropshire farmers to make their voices heard and nearly 2,500 dairy farmers and supporters from across the country wrote to or emailed their MP – letters have been followed up with phone calls and virtual meetings as we continue to mobilise the sector.
Challenge
“The NFU and wider industry has called for a targeted grant scheme to help affected dairy farmers, particularly for those whose businesses have been hit hardest by Covid-19.
“All farming sectors are vitally important as Shropshire agriculture and horticulture step up to the challenge of feeding the nation and the NFU remains in close contact with its extensive network of members, to gather and relay important sector and Covid-19 information."
Defra Secretary George Eustice will discuss the hardship fund proposal with MPs and trade representatives this week.
His department has already temporarily relaxed competition to allow the dairy industry to address current market challenges posed by Covid-19, but farmers said this was not sufficient enough.
A Defra spokesperson said: "We have already relaxed competition laws to allow the dairy industry to re-route surplus milk and adapt to changes in the supply chain.
"We also welcome the initiative from milk suppliers and their farmers to temporarily reduce the amounts they are producing, through a range of options, so that when the demand returns it can be met by our dairy farmers.
"We will continue to work with the industry to understand the potential impacts on farmers and also urge them to access the existing package of government financial support available."
