Government Payment Reductions Threaten Future of Family Farm in Cumbria

Matthew and Liz Staley, who have managed a hill farm in Cumbria’s Mallerstang Valley for nearly five years, are deeply rooted in their home and profession. The couple, accustomed to the challenges of farming at an elevation of 1,000ft (304m) and enduring harsh winters, is set to become full tenants of their fellside farm next year. Despite their commitment, the Staleys confront significant financial difficulties. Incomes from hill farming have seen a decline in recent years. To supplement their earnings, Matthew undertakes freelance dry stone walling, while Liz manages a full-time business in addition to a part-time role, all aimed at sustaining the family. The Labour government’s initial Budget has introduced further financial pressures. Although industry attention has largely centered on inheritance tax adjustments, a different announcement from the chancellor is expected to have a more severe impact. Starting next year, the Basic Payments Scheme, which provides government support for agricultural production, will undergo substantial reductions. While the previous Conservative government had planned to completely phase out these payments by 2027, Rachel Reeves has expedited this timeline. For 2025, these payments are slated for a minimum 76% cut. Specifically, farmers receiving up to £30,000 this year will see a 76% reduction in 2025, with any amounts exceeding £30,000 being eliminated entirely. Given their current financial struggles, the Staley farm anticipates a significant adverse effect from these changes. Liz Staley commented on the situation, stating, “It’s a hell of a big drop for farmers,” and adding, “There is an awful lot of anguish out there. It feels like our culture and our industry is going to be taken out of business.” The government asserts that alternative support mechanisms are available, with Basic Payments being superseded by various subsidies within the framework of environmental land management schemes (Elms). However, the Staleys and other small-scale farmers report difficulties in accessing these new schemes, noting that some are not yet fully operational. Liz Staley remarked, “They aren’t working and there isn’t that cross over just yet,” further explaining, “They should have been implemented at the same time the Basic Payment Scheme was phased out, but that hasn’t happened.” Tim Farron, the Liberal Democrat MP for Westmorland and Lonsdale and the party’s spokesman for farming and environment, echoed these worries. He stated, “The rollout of the environmental schemes has been done too slowly, and they’ve got rid of the old payments too quickly,” adding, “This will hit the very poorest of farmers hardest, and in particular tenant farmers who’ll not be able to afford the rent, and within a year we might be seeing people evicted because of that.” Conversely, the government maintains that agricultural support has reached unprecedented levels. A spokesperson for the Department of Environment, Food and Rural Affairs (Defra) affirmed that its dedication to farmers “remains steadfast.” The spokesperson elaborated, “It’s why we have committed £5bn to the farming budget over two years – the largest budget for sustainable food production and nature’s recovery in our country’s history.” They also noted, “Over 60,000 agreements for our environmental land management schemes are now live and we will continue to evolve and improve them to support farmers, sustainable food production and nature recovery.” The Staleys express concern for the future of hill farming, not only for their own livelihood but also for their sons, Lewis, 17, and Luke, 22, who aspire to continue in the industry. Matthew Staley shared, “I am really proud to see them enjoy what they’re doing on the farm,” and added, “They both love the environment and love where they live, but it’s just going to be tough for them.” Liz Staley described how watching her sons on the farm “brings a tear” to her eye. She stated, “The boys love working the land, and it’s really what they want to do. We are being pushed out of business. The government is being really cruel.” Liz Staley also directed a message to Prime Minister Sir Keir Starmer, recalling his prominent expressions of fondness for the Lake District during the July general election. In a party political broadcast, he conveyed his appreciation for childhood holidays in Langdale to former England footballer Gary Neville. Liz Staley questioned, “Keir Starmer has spoken of his love of Cumbria, and of Langdale in particular,” and continued, “Can he not see what he’s doing? If he loves coming to these places he needs to see it’s the farmers who make it look that way with their livestock.”