NFU raise sector concerns and US trade deal threat at Driffield Show

Yorkshire farmers and those across the country who grow sugar beet, wheat and other crops used to produce bioethanol are worried about the impact to the region following recent trade agreements between the UK and US to allow greater access to the UK market as part of negotiations to cut US trade tariffs.

E10 petrol, introduced in 2021 to help cut carbon emissions, contains up to 10% bioethanol and the plants that produce it, including some in the North East, not only take local farmers crops but also produce animal feed, which is a useful by-product of the bioethanol production process.

Government is looking to remove a 19% tariff on imports of US ethanol, replacing it with a tax-free quota of up to 1.4 billion litres.

NFU President Tom Bradshaw has highlighted the importance of upholding British standards in trade deals and not undermining farm business and associated industry.

Some UK biofuel plants are currently consulting about their future and the NFU has said allowing a tax-free quota could have a marked impact for farm businesses looking to sell and a lasting impact on domestic production.

Mr Bradshaw said: “Just as family farm businesses stand to be crippled by the proposed changes to inheritance tax, and ongoing challenges with dry weather, there are real concerns for Yorkshire arable farmers with the current bioethanol proposals on the trade table.

“The biofuels industry represents an important market for the combinable crops sector here in Yorkshire and across the country, creating significant domestic demand and playing an important role in balancing supply and demand while also producing a vital source of animal feed as a by-product.

"Opening up our ethanol marketplace to such a huge volume with the US could lead to the loss of a significant market for our arable growers.

“The NFU is pushing government to take on board our concerns about this and protect farmers and growers. UK agriculture can’t continue to be used as a bargaining chip in trade negotiations and deals to protect other business sectors.”

Farmer Andrew Sewell, NFU East Yorkshire chair, who runs a beef, poultry and arable farm near Pocklington, said farmers had little left to give following a challenging year and concessions over bioethanol production would be a real blow but there were many issues that needed further discussion with MPs.

He said: “We are living with the consequences of the deal struck in May and the very real threat that beyond August bioethanol plants may be struggling.

“These plants offer a market to our farmers and growers, produce animal feed and carbon dioxide, CO2, that is essential for agriculture and a variety of other key sectors.

“We spoke with politicians about the threat to production and our bioethanol plants, which a lot of arable farmers use, and the knock-on effect with the US trade deals."

Defra figures reveal that farming contributes more than £3.8 billion to the Yorkshire economy and rural tourism and provides more than 30,000 jobs in the county, something farmers what to see championed and valued, with investment to achieve more.

Yorkshire farmers also protect the countryside, support the environment and work to the highest standards of animal welfare while delivering healthy, safe and traceable food.

Poppy Smith, NFU East Yorkshire county adviser, said: “Faming is vital to the county and it was great to be part of the show which celebrates all that is great about food, farming and the countryside.