Direct Payments to Farmers (Legislative Continuity) Bill
Tuesday 21st January 2020
(4 years, 11 months ago)
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The Secretary of State for Environment, Food and Rural Affairs (Theresa Villiers)
I beg to move, That the Bill be now read a Second time.
This is a Government who are backing Britain’s farmers. We will always recognise the importance of the work that they do to care for our countryside and our natural environment and, of course, to put food on our plates. We know that, if we are to level up the rural economy in the way we want to for our whole country, we must support the agriculture that is at the heart of our rural communities.
The Bill is a short technical piece of legislation with a simple purpose: to empower the UK Government and the devolved Administrations to pay basic payments to farmers for the 2020 scheme year. It therefore maintains the status quo for pillar 1 for this final period before we start to leave the common agricultural policy behind completely.
The core purpose of the Bill is enacted by clause 1, which puts direct payment legislation for 2020 on the domestic statute book. That provides a legal basis to make such payments for the 2020 scheme year. As hon. Members will be aware, almost all EU legislation was imported on to the domestic statute book by the European Union (Withdrawal) Act 2018, but funding for the 2020 basic payment scheme will come out of the 2021 EU budget. That would therefore have involved the UK in the next EU multi-annual budget cycle. In the negotiations, the EU and the UK agreed that they did not want that to happen, so the CAP provisions providing the basis to issue basic payments in the UK for 2020 were disapplied by the terms of the withdrawal agreement reached last year.
That policy decision has left a legal gap, which we are now proposing to fill. This legislation will provide clarity to farmers on funding support this year. If Parliament were to reject the Bill, no direct payments could be made by the UK Government or by the Administrations in Scotland, Wales or Northern Ireland. That would have serious consequences for farmers across the nation who have planned their businesses on the basis of continuity of direct payments for this scheme year.
Jonathan Edwards (Carmarthen East and Dinefwr) (PC)
The next European multi-annual financial framework will run from 2021 to 2027, but this Bill will allocate funds for one year only. What is the British Government’s intention: will there be a multi-annual framework for farming support, or will the decision be made annually?
Theresa Villiers
In our manifesto, the Government set out our commitment to retain 2019 levels of support for farmers throughout the current Parliament. The exact basis of the allocation and division of those funds remains to be determined, but we will work closely with the devolved Administrations in taking decisions.
Harriett Baldwin (West Worcestershire) (Con)
I welcome the certainty given to farmers and food producers for 2020. What advice would the Secretary of State give to an estate agent in my constituency on how it should value a significant estate currently in receipt of quite a lot of common agricultural payments?
Theresa Villiers
It will be important for the estate agent in question to follow developments relating to the transition to a new system of farm support in England. I will outline that later in my remarks, but we view leaving the common agricultural policy as a vital opportunity to create a better system that more effectively supports our farmers and enables them to deliver crucial public goods, including for the environment and animal welfare.
Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)
Further to the points raised by other Members, long-term planning is very important for farmers. They might, for example, plan to build a hay shed two years hence. Moreover, any lowering of the value of the pound would have an impact on farmers, because the price of fertiliser would go up and any machinery not made in the UK has to be imported. May I appeal to the Government, therefore, that the value of the pound be calculated into any sums as they are worked out for our farmers?
Theresa Villiers
The hon. Gentleman makes an important point about farmers’ need for certainty and continuity, which is one of the reasons why we have brought forward this Bill today. That is also why we propose a seven-year transition period to move away from the basic payments of the common agricultural policy and towards the new approach of environmental land management for England, which this House will have the chance to debate within the next few weeks.
Seema Malhotra (Feltham and Heston) (Lab/Co-op)
I echo the concerns raised about farmers’ need for continuity, but may I ask a slightly different question? What protections for vulnerable habitats does the Secretary of State envisage this Bill supporting?
Theresa Villiers
The Bill is a vital stepping stone to getting us to the transition period in 2021, when we will start to introduce our national pilot for the environmental land management schemes, which will replace the common agricultural policy in the United Kingdom. We have every expectation that those schemes will enable farmers to do even more than they presently do to protect habitat and valuable biodiversity.
Theresa Villiers
I give way to the Chairman of the Select Committee on Environment, Food and Rural Affairs.
Neil Parish
I am the former Chairman at the moment. I very much welcome the Secretary of State’s statement. It is great to have continuity. I want to return to the point made by the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone) about the value of the payment. At present, the payment is made in euros; the rate used is the average rate in September. Does my right hon. Friend expect this year’s payment to be virtually the same as that for last year? In the past it was based on the value of the euro at the time of the payment, but I imagine that that will not be the case this time.
Theresa Villiers
My hon. Friend is correct to say that taking over domestic responsibility for the payments means that the currency fluctuation, which has had such a significant impact in past years, is not likely to affect payment levels in the same way. None the less, we have yet to decide the exact levels of basic payments, although the Chancellor has set out the overall spending envelope with which to fund such payments.
Tim Loughton (East Worthing and Shoreham) (Con)
As we move towards the transition period—more will be appearing in the Agriculture Bill—we obviously welcome the environmental sustainability measures. One thing that is not mentioned here is the fact that many farmers look after places of archaeological interests—scheduled monuments that have access for the public and need to be maintained. Does the Secretary of State envisage that the payment system will recognise that farmers are not just there to enhance agriculture and produce food; they are also stewards of historical and archaeological monuments, for which they need to be compensated?
Theresa Villiers
My hon. Friend will be pleased to hear that clause 1 of the Agriculture Bill, which Parliament will have the chance to consider very soon, does recognise the importance of access to the countryside, and to our culture and heritage, by listing that as one of the public goods that we can potentially support through our new farm support scheme. He makes an important point.
I am pleased to say that the Chancellor confirmed on 30 December that overall levels of funding available for direct payments for 2020 will be the same as those for 2019, so the Government will provide £2.852 billion of support, topping up remaining EU funding. That announcement from the Chancellor, combined with this Bill, provides reassurance to the devolved Administrations in Scotland, Wales and Northern Ireland that they will be able to issue basic payments to their farmers in 2020. All four Administrations have said that these payments will be made, and that is in addition to the £216.6 million of further funding secured in the summer for farmers in Scotland and Wales.
Scott Mann (North Cornwall) (Con)
I welcome the £3 billion announcement from the Treasury supporting our farmers, showing again that the Conservative Government support our rural communities. In the transition period from the current system to the new one, could this be done on a multi-annualised basis, so that some of our farmers can invest in some of their infrastructure to prepare themselves for the challenges that lie ahead?
Theresa Villiers
In setting out the seven-year transition period, we have recognised the concerns that my hon. Friend raises about the need for a multi-annual period. We will be providing further information on how the transition to environmental land management will work in due course. No doubt the debates on the Bill will give us a further opportunity to discuss and develop how the transition period will operate in practice.
Cat Smith (Lancaster and Fleetwood) (Lab)
Will the Secretary of State give way?
Cat Smith
I thank the Secretary of State; she is being very generous. One of the concerns that my constituents will have is around the payments from the Rural Payments Agency, which has received huge cuts since 2010. The civil servants who are working to deliver payments to farmers obviously work very hard, and I have some very positive stories in casework that I could show her. However, a huge proportion of farmers in Lancaster and Fleetwood are concerned about the delays in payments. She talks about maintaining the status quo. Will she change the status quo in terms of reforming and re-staffing the Rural Payments Agency to ensure that farmers can actually receive the money in a timely manner?
Theresa Villiers
I hear what the hon. Lady says. Clearly, there have been difficulties in the past, but I would say that the RPA’s performance in recent months has been better than for many years, with, last year, 93% of farmers receiving payments by the end of December. But there is always scope to improve, and I will certainly follow this matter very closely, not just in terms of the 2020 scheme year but in relation to the role of the RPA as we move forward with the reformed system.
The additional funding that the Government have allocated consists of £160 million for Scottish farmers to correct a perceived historical injustice in relation to past years’ allocations. The remainder was awarded following the recommendations of the Bew report. Neither commitment would have been secured without the strong campaign led by Scottish Conservative MPs to get a fairer share of agricultural support for their farmers. I pay tribute to all of them, including those who sadly did not retain their seats at the election: Colin Clark, Stephen Kerr, Kirstene Hair and Paul Masterton.
Provision for the uplift in funding resulting from the Bew report and the campaign by Scottish Conservatives is made in clause 5. What is more, as I have said, the Government have a manifesto commitment to match the current overall budget for farmers in every year of this Parliament, so the Bill is an essential mechanism to provide continuity and stability for our agriculture sector as the United Kingdom leaves the European Union.
The Bill is narrow in scope in terms of subject matter and duration. Its provisions are consistent with the approach agreed by Parliament in the European Union (Withdrawal) Act 2018. Clause 2 sets out the approach to be taken by the courts regarding the interpretation of EU law. Clause 3 will enable secondary legislation to make operability amendments and to allow us to keep pace with post-exit regulatory change concerning 2020 direct payments, should the UK choose to do so. For England, the Bill bridges the gap between the common agricultural policy and the start of the agricultural transition in 2021. It does not change our policy, nor does it alter our ambitious vision for the future of food and farming in England.
The next steps in our radical reform of farm support in England will be debated in this House on Second Reading of the Agriculture Bill. That legislation will finally enable us to break free from the common agricultural policy. It will ensure that we take back control of our farming policy and our farm support payments. That will enable us to replace the perversities and constraints of the deeply flawed CAP with a new system that pays public money for public goods. We will reward farmers for environmental stewardship and high standards of animal welfare. Our farmers have always played a crucial role in safeguarding our countryside and our environment. As we deliver this far-reaching transformation, that role for farmers will become even more pivotal in delivering goals such as cleaner air and water, healthier soil and better access to the countryside.
This will be one of the most important environmental reforms in this country for decades, and it is a major benefit delivered by Brexit. It needs to play a central role in tackling the two great environmental challenges of our time: reversing the disastrous decline of nature and biodiversity and protecting our climate.
Duncan Baker (North Norfolk) (Con)
I come from the rural constituency of North Norfolk, where farmers form one of the most important sectors. Does the Secretary of State agree that the Agriculture Bill brings an excellent opportunity to tackle climate change head-on and that, as an industry, the farming community has an important part to play in helping with our environment?
Theresa Villiers
My hon. Friend makes a strong point. We believe that our new system of farm support can work for farmers and our environment. We believe that we can do a thousand times better than has been the case under the CAP.
Bill Wiggin (North Herefordshire) (Con)
My right hon. Friend must surely agree that the purpose of subsidy is to ensure that British agriculture can compete with agriculture in the European Union and, indeed, the rest of the world. Will she therefore ensure that her Department does the necessary research, so that when we move from direct payments for acreage to public money for public goods, the money does arrive on the farm? We cannot afford for our farmers to be poorer because of these excellent intentions.
Theresa Villiers
We will be looking carefully at all aspects of the scheme. This is a hugely challenging thing to deliver, which is why we will phase it in over seven years. Of course, it is essential to get the funds to the farmers who are delivering the public goods that we want to secure. Because change always brings its challenges, to ease the introduction of the new system, we will adopt a seven-year transition period, and the Bill is a vital step in smoothing the path towards the start of that period.
This legislation may be less radical than the forthcoming Agriculture Bill, but it is still vital for the livelihood of farmers across our United Kingdom. I hope that Members will give their backing to this short but crucial legislation, so that we can give our farmers continuity, certainty and support as we move towards exit day and our departure from the European Union. The Bill provides a stepping stone to a more profitable, more productive, more resilient and more sustainable future for farming in this country, so that our hard-working farmers can continue to produce high-quality, high-welfare, iconic British food that is prized around the world and appreciated so much by all of us here at home. I commend the Bill to the House.
Luke Pollard (Plymouth, Sutton and Devonport) (Lab/Co-op)
I feel immensely honoured and privileged to speak at the Dispatch Box in my first outing as the shadow Secretary of State for Environment, Food and Rural Affairs. I would like to begin by paying tribute to my predecessor, Sue Hayman, and my former shadow DEFRA team colleagues Dr David Drew, Jenny Chapman, Dani Rowley and Sandy Martin. Each was formidable in their own right and worked tirelessly to scrutinise the Government and get the very best for our farmers, our wildlife and our environment. I was proud to work with Sue when we first proposed that Parliament should declare a climate emergency, and myself, my party and the planet will be grateful for her work.
Mr Speaker, you would expect me to have a link to our incredible countryside, as a proud west country lad, and I do. I declare an interest, because I am very proud to be the brother of a sheep farmer and of someone who works in wool marketing, one of whom receives CAP payments.
There is an irony that the first piece of legislation we are considering now that the Government’s Brexit Bill has nearly passed is one that extends the EU’s farm payments system for a further 12 months. Labour will not oppose this Bill, because we think it is important that our farmers are paid, but there are still issues that I would like to raise with the Secretary of State. These are just the first rumblings of a stampede of Bills to come out of DEFRA. We still have the Agriculture Bill, the fisheries Bill and the environment Bill to follow.
I am pleased that the Government have accepted that Labour was right to argue repeatedly during our previous debate on the Agriculture Bill that we need long-term funding for direct payments, which has now materialised in the Bills that have been published. These Bills form the legislative framework for fishing, farming and the environment for the next 30 years. They come as our planet is on fire and our nation is plunging deeper into climate crisis. Every one of these Bills is an opportunity to protect our planet for the future, to cut carbon in bolder and faster ways, and to ensure that climate justice walks hand in hand with social justice, so that no one is left behind, whether in towns and cities or coastal and rural communities—and every one of these Bills falls short.
Seema Malhotra
My hon. Friend is making a good speech, and I join him in paying tribute to colleagues who are no longer in this place but have done so much work in this area, including Sue Hayman and others. Does he agree that it is incredibly important, as we debate these Bills, to ensure that there is an assessment of when the UK agricultural sector will achieve net zero?
Luke Pollard
I thank my hon. Friend for that comment. I was proud that our party went into the general election with a commitment to have a path to net zero by 2030, and thanks to some of the amazing work being done by farmers up and down the country, the National Farmers Union has a plan to get to net zero by 2040. But 2040 is too late. I want to send a message loudly and clearly to the Secretary of State that we need bolder and swifter action. The Bills that she is proposing fall short in ambition, planning and detail, and I hope that she will take our criticism as a friendly gesture to try to improve these Bills, because they need to be improved if we are to tackle the climate emergency fully.
John Redwood (Wokingham) (Con)
Does the hon. Gentleman think that people need to change their diets? How can we have more British-grown food?
Luke Pollard
I am grateful to the right hon. Gentleman for raising that point. We need to talk about food miles much more. We need to be buying local. That does not only mean buying from the region we live in, buying British and looking out for the Red Tractor symbol on the food we buy. It also means calculating the food miles of the trade deals that will be done in the future. It is a nonsense to have trade deals that will encourage consumers to buy food from the other side of the planet, at huge carbon cost, when there is perfectly good, nutritious, healthy food grown and reared to a high standard in our own country. I will return to that point time and again in this Parliament.
Tonia Antoniazzi (Gower) (Lab)
There are some excellent agricultural community groups in my constituency. I have visited one called Cae Tan, and I am so impressed. We talk about farm to fork, which is key. What can we do to encourage these brilliant organisations that are working so hard to make sure that we can eat local?
Luke Pollard
I thank my hon. Friend for making that point. Perhaps the Minister who winds up the debate will make some remarks on what the Government could do. We need to lead by example. It is fine sampling delicacies from around the world, but we need to understand that the seasonality of our food is important. Britain produces some of the finest seasonal food all year round, but sometimes it is produced at carbon costs that should not be absorbed into our carbon budgets in the future. Let us celebrate the food we grow in the seasons when we grow it, and let us encourage all our constituents to eat local and lead by example.
Sir Greg Knight (East Yorkshire) (Con)
I welcome the hon. Gentleman to his shadow Front-Bench position. Does he agree that we could do a lot more to encourage people to buy and eat British by improving food labelling?
Luke Pollard
I am grateful to the right hon. Gentleman for mentioning that. At the weekend, I was talking about the fish that goes into pet food. As the Secretary of State will have seen from her press cuttings, I am concerned that there is not enough labelling on tins at the moment for people to understand what is in them, including the risk that there could be vulnerable and endangered species of fish in pet food. I hope she will take that seriously. Whether it is being fed to our children or our pets, we need to ensure that what is in the tin is what is on the tin, and that is not always the case at the moment.
I will make some progress before taking further interventions. The Bills presented by DEFRA reflect a new form of managerialism that has permeated the Department ever since the former Secretary of State, the right hon. Member for Surrey Heath (Michael Gove), left. I disagreed with him on a great many things, but there is no doubt that under him, DEFRA was at the heart of government and at the forefront of media attention, with consultations aplenty and a whirlwind of ambition, cunning, drive and the cold wind of change. That contrasts unfavourably with where we are now.
Brexit should mean that DEFRA is at the beating heart of a new vision for governance after we leave the EU. With so much change expected for farming, fishing, food and environmental standards, every journalist in town and every Government Back Bencher should be beating a path to the Secretary of State’s door. But they are not, and this is a challenge for the Secretary of State to show the bold leadership and the courage of her predecessor. These Bills do not do enough to cut carbon, and they do not do enough to protect vulnerable habitats. There is an opportunity in the process of revision to look on a cross-party basis at how we can do more, because our planet needs us to, and I hope that that opportunity will not be missed.
The Bill that we are considering today should be unnecessary. If the Government had made progress with the Agriculture Bill in the last Parliament, we would not need it now. The last Committee sitting of the Agriculture Bill was in November 2018. Instead of bringing the Bill back to the House of Commons to be reviewed and passed, the Government sat on their hands. That Bill would already be on the statute book, and we would already be moving on with “public money for public goods”, if the Government had not been so cautious and timid about bringing it forward. We need bold vision in agriculture, similar to the vision in the Agriculture Act 1947 introduced by the groundbreaking Labour Government. Ministers need to show a greater degree of courage.
Labour supports the public money for public goods approach, with the addition of food as a public good. It was omitted from the last Agriculture Bill, and I am glad that Ministers have rectified that between the two drafts being published. If that Bill had been passed instead of the Government long-grassing it, there would be no need to extend the CAP for 12 months, because we could have moved on to a new system by this point.
The Bill also implements the recommendations of the Bew review, which set out the right steps to correct the historical wrongs for farmers in Scotland, Wales and Northern Ireland. That is long overdue. I would like the Minister of State, in his concluding remarks, to place on record a statement to confirm that this will not be paid for by English farmers. I believe that is what the Secretary of State hinted at in her opening remarks, but there is concern among farmers that extra money for farming is something that rarely appears from Governments, and I would like the Minister to make it clear that this is extra money and that English farmers will not have their funding cut to correct that historical injustice. I think that is what the Secretary of State was saying, but I would be grateful if that could be set out.
I am grateful to my hon. Friend the Member for Lancaster and Fleetwood (Cat Smith) for mentioning the Rural Payments Agency, because in a Bill about direct payments to farmers, the omission of the Government agency that is responsible for them seems to be an oversight. Improvements in the past year have helped to speed up payments, but there is nothing in the Bill that guarantees a better service for farmers from the Rural Payments Agency. There are no service commitments or guarantees of swift payments during a period of payment turbulence, and there is no certainty of support in the future. There is nothing in the Bill that provides adequate resources for the civil servants in the Rural Payments Agency, which has seen its budget cut from £237 million in 2010 to just £95 million in 2018. That is showing in the service that many farmers have received, including delayed payments. When we are subject to so much potential change in the payment system, it is important that the civil servants in that agency have the resources they need. In DEFRA questions over many years, I have heard hon. Members across the House raise legitimate concerns about the speed of payments and about ensuring that delays in payment do not adversely affect the sometimes fragile financial situations of our farmers. I think that is worth picking up on.
With this Bill, it looks as though Ministers are legislating for a new cliff edge. It provides for only another 12 months of certainty for farmers before the Agriculture Bill comes in. Introducing such a complex scheme as public money for public goods—for which we have seen no consultations or further details—means that it could be necessary for the Government to extend these provisions for another 12 months afterwards, but there is nothing in the Bill that allows them to do that. I know that the Prime Minister is no fan of extensions, but when it comes the details of this proposal, I do not want to see the Secretary of State back here in six months’ time needing to pass another piece of legislation because the systems are not in place as she intends today. Labour will table amendments to enable the Government to extend systems such as this with an affirmative vote of the House, to ensure that our farmers have the certainty they need. After the long-grassing of the Agriculture Bill and the Fisheries Bill, I am sure that the Minister will forgive us for not having confidence that Ministers will precisely deliver what they have set out in grand speeches. Labour does not stand in the way of a new system for payments, it is just that the Government’s record in sitting on those Bills does not inspire confidence.
At the heart of what we are talking about today in fishing and farming is the climate emergency and the necessity to decarbonise everything that we do. The Conservative ambition to see net zero by 2050 is a long way away. I will be 70 in 2050, and as far as I am concerned, that is my entire lifetime away. That target is simply not ambitious enough. We need to be hitting net zero by 2030 to make any meaningful contribution to tackling the climate crisis. Minette Batters and the leadership of the NFU have provided a direction that shows that reducing carbon—to net zero by 2040 in their case, but earlier for some sectors in our agricultural sector—is not only possible but preferable. That can be done through supporting the livelihoods of small farmers in particular.
One area that was missing from the Agriculture Bill and is missing from this Bill is the protection of hill farmers and those who rear rare breeds. Those are two areas that we know will be under direct assault from the Government’s proposed changes to the farm funding system. Hill farming and rare breed farming do not get a huge amount of airtime in this place, but they need to. Hill farming in particular has created the landscape of many of our rural areas over many generations, and it needs to be protected.
Richard Drax (South Dorset) (Con)
The shadow Minister was talking about the public good. Given the beautiful countryside that we have, thanks to the many farmers in this country, and the millions of people who come here to enjoy it, I can think of no better cause than that the money should go to the hill farmers who make this country look so stunning.
Luke Pollard
I agree with the hon. Gentleman. I think that that was a remark directed more at his Front Benchers than mine, because there is an absence of such a provision in the Bill.
Lurking in the shadows of the Bill is the prospect of lower standards, lower environmental protections and lower animal welfare standards with a post-Brexit trade deal. There are many grand sentences and lofty ambitions, but the reality of a trade deal with Donald Trump’s America is that farm standards would be lower, and there is a risk that our farmers would be undercut by farming methods that do not have the same animal welfare or the same focus on quality as UK farmers have at the moment. Conservative Members may shake their heads, but this issue is being raised by the NFU and farmers’ groups right across the country. It is a valid and real concern in our rural communities, and this Bill and others still do nothing about it. Trade deals must not be allowed to lower standards. We do not want to be left with Donald Trump’s rat hair paprika, hormone-treated beef or chlorinated chicken. The show of hands at the Oxford farming conference about the confidence farmers have in the Secretary of State and the ability to protect farmers in trade deals showed that there is still work to be done by Ministers to win the confidence of farmers in that respect.
Jonathan Edwards
The hon. Gentleman is making a vital point. During the Secretary of State’s initial remarks, she had high praise for the Chancellor, but over the weekend the Chancellor said that the strategy of the British Government would be to disalign from Europe in all standard areas. We know that 90% of Welsh exports go into the single market. The British Government are about to cut the throats of Welsh farmers.
Luke Pollard
I am not really interested in Brexit soundbites, but I am interested in Brexit detail. It might be easy for the Chancellor to give a quote about divergence in the media, but divergence on farm standards means the potential for disruption at the border, difficulty in exporting our products and lower standards. It is important that Ministers come out and explain what divergence means in the context of agriculture, because divergence from high standards often means lower standards, and no matter what assurances are given, until it is written into a Bill that our standards will be protected and that there will be no divergence and no lowering of standards, there is every chance that people will doubt the motives of those who offer lofty soundbites but take different actions.
Alicia Kearns (Rutland and Melton) (Con)
We talk about welfare standards and the standards of the food we are producing, but who decides those standards? Ultimately it is our farmers. It strikes me as slightly concerning when the Opposition continue to say that we are going to have lower standards after Brexit, because it is ultimately our farmers who decide what standards we have. I have full confidence that they want to continue to have the high welfare standards that we have at the moment. Our farmers have no interest in lowering standards. Does the hon. Member agree that this ultimately comes down to the farmers, and that they are not going to lower standards in any way?
Luke Pollard
I think the hon. Lady is agreeing with me, but from a different angle. I agree that our farmers want high standards. They pride themselves on the high standards of the food they produce and the animals they rear. The risk with a trade deal is that there will be access to the UK market for farmers producing food at lower standards and thus undercutting our markets. That is the concern of the NFU, and I would encourage her to speak to her local farmers about this, because I think there is a genuine risk of that happening.
Richard Drax
The shadow Minister talks about chlorinated chicken—we hear a lot about that—but would he like to comment on the chlorinated water that we all drink in this country?
Luke Pollard
The hon. Gentleman invites me down a cul-de-sac about water policy that I am not quite sure is worth going down, but I would advise him not to drink too much swimming pool water when he is next having a little dip.
The important thing here is that we want to maintain the high standards of British farming, as do British farmers, and we need to ensure that we have a farm support system that gives them certainty, so that they can invest and employ people to pick the crops and rear the animals. We know that up and down the country crops are rotting in the fields because there are not enough people working in the area. We also know that the seasonal agricultural workers scheme is not delivering the number of places that we need to support our industry and that the Agriculture Bill, although lofty in its ambitions, is light on any detail that would enable farmers to invest. There is an opportunity here for Ministers to clarify and build on this.
Ministers have set out that public goods money will come in over a seven-year period, but they have also said that there will be no changes to the funding period over the next four years. That means that they will be loading in massive change over the final three years of the period, which come, interestingly, just after the next general election. We agree that public money for public goods is the right approach, but farmers will quite legitimately be asking, “How is that going to affect us? What is the financial formula that will affect our region? What will it incentivise us to invest in, and what will it disincentivise us to invest in, and how can we plan?” How do we ensure that types of farming that are sometimes less profitable, such as the rare breeds and hill farming that was mentioned earlier, are protected and encouraged, and how are we recognising the potential disruption that Brexit could bring to the communities affected?
There are some real opportunities to get this system right in the next three months with these Bills, but there is also a real risk that we will be creating framework legislation that does not deliver for our rural and coastal communities. On behalf of the Opposition, I make the Secretary of State an offer that we will work with the Minister and her Department to make sure that we are reflecting the concerns of farmers and fishers—those people who want high standards—and to make sure that we can support the legislation. We will not be opposing this Bill today, but I invite the Secretary of State to look again at the ambition and the drive of her Department, because if we are truly to tackle the climate emergency, we will need better than what she has achieved so far.
Neil Parish (Tiverton and Honiton) (Con)
It is a great pleasure to see you in the Chair, Mr Speaker. May I welcome the hon. Member for Plymouth, Sutton and Devonport (Luke Pollard) to his new post as shadow Secretary of State for Environment, Food and Rural Affairs? I want to pay tribute to Sue Hayman, David Drew and Sandy Martin, because I worked very well cross-party with them when dealing with the previous Environment, Food and Rural Affairs Committee, and I would like to put that on record.
Naturally, I very much welcome the Secretary of State’s statement about the continuity of payments to farmers because I think this is very important. We stand at a great moment when we can create a much better policy than the common agricultural policy. This is a moment of truth, shall we say? We now have not only this Bill, which will allow for payments to be made for the next year in a very similar way to how they were made in the past, but then the transitional period of seven years from one type of payment to the other, which gives us a real opportunity to look at the way we deliver payments.
The Rural Payments Agency has finally got delivering the basic farm payment right. What does slightly worry me, however, is that the one payment it finds great difficulty with delivering is that for the stewardship schemes. Whether that is a combination of Natural England and the Rural Payments Agency, there does seem to be a problem there. We have time to iron it out, but we have to be absolutely certain, as we move to new policies that are going to be much more in line with the stewardship schemes, that we get the system right and get this paid on time.
The interesting point about the transitional period and new payments for farmers is that some farmers are perhaps under the slight illusion that they are going to be able to get exactly the same level of payment from the new system as they do from the basic farm payment. Of course, like it or not, probably over half the farmers in this country rely on the basic farm payment for part of their income. Historically, it has always been said that farmers should set aside those payments and should not put them into their budget, but, as a practical farmer for many years, I can assure Members that those payments have always gone into the farming budget. About the only time that the bank manager ever smiled at me was when that payment came in, because it was a good lump sum.
Bill Wiggin
Not only am I grateful to my hon. Friend for giving way, but I smile at him too. Does he not agree with me that the purpose of subsidy is to keep those farm businesses competitive with our international competitors? Therefore, if he is right—I hope his Committee, when it is reconstituted, will investigate this—and this money does not go to those businesses, that competitive edge will be lost. From a food security point of view, if nothing else, it is vital that that money does arrive in the pockets of our farmers and then of their bank managers.
Neil Parish
My hon. Friend raises a very good point, which I am leading on to. As we deal with farm payments in the future, we have to make sure that we build on our environment and that we do not forget food production, healthy food and delivering British food at high standards. I think it is the NFU that says:
“You can’t go green if you’re in the red!”
That is the issue. We have to make sure that there is enough money flowing into farming businesses to ensure that we have good healthy food.
The one little criticism I have of the new Agriculture Bill is that there is possibly not quite enough in it on farming and food production. It is better than it was, and I give great credit to my right hon. and hon. Friends on the Front Bench who have worked very hard to get that into the Bill, but I still want to ensure that an Agriculture Bill is actually about food production and about agriculture. It is also about the environment, but I would like those to be equal parts of it, and I think that is the great challenge.
Julian Sturdy (York Outer) (Con)
My hon. Friend is making a really important point. Does he not agree that we have to make sure we secure fair trading arrangements for food producers in future trade deals? If we do not do this, we can talk about the vast environmental policies we want, but ultimately if we do not get those correct future trading relationships, that could destroy British agriculture.
Neil Parish
My hon. Friend, who was on the previous Select Committee, raises an extremely good point. Again, not only does the income of farmers come naturally from the support payment, but much of it comes from what they sell. Of course, farmers would like to be able to make sure that they can sell their product at a good price so that they do not have to rely so much on public support, so these trade deals are going to be very important.
I do worry about the future trade deals, but provided we are sensible and put forward a trade agreement that maintains our high standards of environmental, crop and animal welfare protection, and that we make sure those products coming in from trade deal are meeting the same standards, then I have not got a problem. What I do not want to see is this being massively undermined by lower standards, because with lower standards come lower costs and, basically, that is what will put farmers out of business in the end.
I think there is a bright future for farming provided we get this right. I think we can, and I know that the agriculture Minister, my hon. Friend the Member for Camborne and Redruth (George Eustice), is very keen on reducing bureaucracy and on delivering a more simple payment. I am looking forward to all this coming before us so that the Select Committee can look at it in great detail, because this is a great opportunity.
I made this point in a debate last week or the week before, but we now have the interesting idea that we must have a three crop rule. The three crop rule was introduced because eastern Germany has produced maize after maize for a generation, and to break that continuous maize production, the three crop rule has been brought in. However, in a country like our own—especially on the western side of this country in particular, from Scotland right down to Cornwall—we find that there is so much grass production, including a lot of permanent grass, that we really do not need a three crop rule. It is completely unnecessary.
We also do not need re-mapping every three years when we make payments, and there is an issue there. I think farmers should be considered innocent until they are proven guilty. At the moment, they are guilty until they can prove they are innocent. They are always being checked on, and then fined if there is a slight discrepancy between the maps and the areas of claim. If there are some rogues out there—dare I say it, and I speak as a farmer, but every community has one or two rogues—and they are really defrauding the system, we should come down on them like a ton of bricks. However, for a lot of farmers, what they do is very genuine and the way they make their claims is very genuine, and even if there is a small discrepancy, we should not have to be checking on them all the time, giving fines and all of these things. There really is a great deal we can do there to simplify this, and I look forward to my hon. Friend coming forward with those ideas. We can make farming the solution for the countryside, and ensure that we deal with the environment. The Opposition talk about having zero carbon emissions by 2030. We cannot get there by then, but much of farming could get there by 2040. When we take payment from direct support systems, perhaps we could put those payments into getting agricultural and other buildings to store slurry and the like.
Anthony Mangnall (Totnes) (Con)
Does my hon. Friend recognise that there must be a balance between the environmental and productivity aspects of how our farmers produce in this country? We now have a new opportunity to produce in this land like never before, and that is what leaving the European Union on 31 January will give us.
Neil Parish
My hon. Friend, the new MP for Totnes, makes a good point. When considering an agricultural policy that is, rightly, much more linked to the environment, we must ensure that we do not stop the means of production. We must look at new technologies. Some in this House will throw up their hands in horror when I talk about gene technology and other things, but there are ways to reduce the amount of crop protection we use, while still keeping a dynamic and productive agricultural industry.
Take oilseed rape, for instance. In this country we cannot use neonicotinoids, yet all the oilseed rape we import has largely been treated with a product that we cannot use here. We must be careful not to throw the baby out with the bathwater—we want a productive agricultural industry and to produce food in this country, and that will be the great challenge for us. As we look for a new policy, plant trees and help our environment, let us ensure not only that we plant those trees, but that we are smart about where we plant them. At the same time we can help to stop soil erosion and flooding, and we can make a real difference. During the election there was a sort of bidding war over how many trees each party could plant, and it got to some ludicrous figure in the end. I am not sure where we will plant all those trees, but I think we can plant them and do so smartly.
I have made this point in the Chamber before, but as we plant trees we must ensure that there is an income from doing so. Let us return to my dear bank manager. If I bought some land, had a big mortgage and said, “I will plant some trees and come back to you in 50 years when there might be an income”, I think he would say, “It’s probably best not to buy it in the first place, and do not borrow the money from my bank if you do so.” To be serious, however, if we are to look at land and those who own it, we must ensure that there is a support system, so that the right trees are planted in the right places. We also need a support system that takes people through a period of time, and ensures a crop of trees. People should be able to replant trees where they need to, or take wood from those areas, because they are sustainable. I am putting on my hat as a farmer and landowner, but at the moment people might be cautious about planting too many trees on their best land, because they cannot be certain that they will get an income from it in future, or that they will ever be able to cut those trees down. This is about ensuring that we improve the environment, but also that we have enough land for really good food production.
We have spoken a lot about the Agriculture Bill, and that is for the future. I expect you want me to shut up in a minute, Mr Speaker—[Interruption.] I am still waxing lyrical, because I am keen to ensure that we have good food and enough land to produce it. We also need affordable food. If I have any criticism of the Agriculture Bill, it is that it rightly focuses on high welfare and high standards, but also probably on quite highly priced food. This country has a highly competitive, productive poultry industry that delivers good poultry to good standards and at an affordable price. Dare I say that most of us in the House—I can talk about myself in particular—are fairly well fed, and we probably do not worry about buying food? To make a serious point, however, a lot of the population have to look at their budget and be careful about how much they spend. We can produce food in this country, even under intensive conditions, to a much better standard than the food we import. We must be careful that we do not exclude intensive production, but then import it from elsewhere in the world where there are much lower standards, including on welfare. That is key.
Neil Parish
My hon. Friend must have read my mind because—you will be glad to hear this, Mr Speaker—my final point is that as we consider ways to improve the environment in this country, we must remember that part of that involves food production. If we reduce our food production but import food from Brazil, where they are ploughing up the savannah and cutting down the rain forest, that will not improve the world environment—it will make it much worse. When we import food from drier countries, we also import their water to grow that food. There is a great drive to have a good agriculture Bill that is linked to the environment, but we can also produce a great deal of good food in this country, and I think we have a moral duty to do so.
Several hon. Members rose—
Mr Speaker
Order. We have a second debate later, so perhaps we could work towards a time limit of 10 minutes. First, however, we have another Front-Bencher—Deidre Brock.
Deidre Brock (Edinburgh North and Leith) (SNP)
Happily, Mr Speaker, my contribution is confined to the content of the Bill, so it will be quite a lot shorter. [Interruption.] Revolutionary, indeed.
I welcome the new shadow Secretary of State to his place, and congratulate him on taking on that important position. I look forward to working with him in future, and will he please pass on my best wishes to his colleagues, with whom I very much enjoyed working in the previous Parliament?
Here we are here again, just as I predicted back in the good old days when we discussed the old Agriculture Bill, which, as some Members will recall, we were told was “absolutely essential” before Brexit. It turns out, however, that it was essential only until the Prime Minister fancied an election, so here we are with emergency legislation that is being done in a rush to cover the Government’s failure to plan ahead.
Some former Scottish Tory MPs are no longer with us, and none of those left is in the Chamber to hear this debate, which rather surprises me. They said at the time that all Scotland needed was a schedule on the back of that essentially English Bill, because that would ensure continuity for Scotland without us Scots having to bother our pretty little heads about it. But here we are. The UK Agriculture Bill has been shelved and needs to restart, this panicked Bill is needed to allow payments to keep farms and crofts running, and UK agriculture policy is down the pan. Three and a half years of planning for Brexit, and the Government are still in chaos without a single clue about what is going on. In the Scottish Parliament, the Agriculture (Retained EU Law and Data) (Scotland) Bill is proceeding in a steady, measured and orderly fashion—the kind of thing that can only be dreamed of here. In the interests of keeping farmers and crofters in business, and seeking to ensure that some food continues to be produced—that being the point, I would argue, of most agriculture—Scotland’s Parliament has agreed to allow legislative consent for this Bill: sensible politics. The Bill needs to get through to safeguard livelihoods and food supplies, and that necessity should give the Government pause for thought as we trundle on towards the next attempt to get an agriculture Bill through. What is the purpose of agriculture support? Is it food production or is it something else?
We will not oppose the Bill, so I will keep my remarks short and confined to its substance, but I will lay down a marker or two. The convergence money that was swiped from Scottish farmers—I point out to the Secretary of State that that was not simply a matter of perception, but theft plain and simple—was to be returned under the Bew recommendations. It should still be paid to Scottish farmers and I will continue to pursue that. They should also be paid interest and compensation for the initial theft, but, frankly, I hold out no prospect of that happening.
Clause 5 will allow an uplift in the moneys paid to farmers. Given the chaos that Brexit is bringing and the shutting off of the mainland EU markets by this Government’s actions, we will be looking for that money to get a substantial boost just to keep the farming lights on. Scottish farmers and crofters have seen a succession of Tory promises made and discarded in recent years. That will not be allowed to continue. For the short period before the forthcoming independence referendum, SNP MPs will stay on the Government’s case and we will continue to press for the needs of Scotland’s farmers and crofters to be addressed. My hon. Friend the Member for Angus (Dave Doogan) addressed one of those points—the need for seasonal workers—at Prime Minister’s questions last week, showing the benefits to Angus of electing an SNP MP who is willing to put in a full shift once again. We will be back over and over again.
There will be questions to be raised on farm payments as in the Bill, but also on the other issues on agriculture that Brexit threatens.
Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)
We need to bear in mind that for crofters and farmers the big uncertainty will be the autumn markets if there are tariff barriers and trade hurdles with the EU. That should really leave an open-ended cheque for the gamblers in the UK Government, who have given blithe assertions that all will be fine—if it is not fine, it should not be the crofters and farmers who pay.
Deidre Brock
I absolutely agree with my hon. Friend. The tariffs could have a shattering impact on many of our most important agriculture industries in Scotland and the Government should be fully aware of the recompense they should be making to farmers and crofters as a result of that possibility.
There are questions to be raised on farm payments in the Bill, but also on other agriculture issues that Brexit threatens: the import of fertilisers and other crop treatment products; the import of animal feed; the export of the high-quality produce we create in Scotland; the protection of the domestic market, which has been raised, from poor quality US produce; maintaining sanitary and phytosanitary standards; and protection from GM incursions.
Brexit’s Pandora’s box is open and the furies are taking flight. What hope remains for England is unclear, but Scotland has an option that we are likely to exercise soon. In the meantime, let us pass the Bill. Let us legislate in haste and amend at leisure. Let us get on with the business of keeping farmers and crofters in business, at least for the next wee while. Let us see if we can get to the other business in good time to avoid another round of disaster legislation.
Edward Timpson (Eddisbury) (Con)
Thank you very much, Madam Deputy Speaker, for allowing me to make what is, in essence, my second maiden speech—or maiden speech 2.0, to coin a modern phrase—and for the indulgence of the Chair in according a freer than usual range. Having been asked by the great British public to find my happiness elsewhere for the past two and a half years, I am delighted and grateful to be given the opportunity by the good people of Eddisbury to have another go.
I would also like to acknowledge the contribution made by my predecessor Antoinette Sandbach during her own tenure in Eddisbury. As I discovered during the recent election, Antoinette is a passionate and committed campaigner, no more so than when speaking up on issues close to her heart. In particular, Members will recall her moving and powerful pleas to improve services for those who suffer baby loss. Our respective political paths may have diverged, but I want to take this opportunity to thank Antoinette for her service, and to wish her and her family well for the future.
My return to Parliament at this election has been rather less dramatic than my initial entry and exit. During the 2008 by-election, Fleet Street decamped to Crewe and Nantwich to dissect what became a national test for both Gordon Brown and David Cameron. In the end, Labour’s class war campaign was roundly rejected. Within days, I found myself at Westminster in the Opposition Chief Whip’s office being inducted by Patrick, now Lord, McLoughlin. The only other person present in the room was the then Member for Henley, now Prime Minister, who was there to head off to the Chiltern Hundreds, he having been recently elected as Mayor of London. Little did we both know that just over a decade later we would be back on the same Benches, both representing new constituencies with majorities the polar opposite of the ones we had when we first met.
Losing my seat in 2017 by all of 48 votes, after three recounts, was also a far from benign experience, and not one I am looking to repeat. While formatively humbling and professionally devastating, it did enable me to enjoy those precious early years with our fourth child, Nell, as well as opening up new roles for me to continue my mission to support struggling children and families, namely as chair of Cafcass—the Children and Family Court Advisory and Support Service—and chair of the newly formed National Child Safeguarding Board.
Eddisbury is one of those mystery seats that many people, including Members of this House, would struggle to place on a map. But as someone who has lived in Eddisbury, home to me and my family for 35 years, I am confident that it is Britain’s best kept secret. Named after a pre-Norman conquest shire hundred and the hill up on the sandstone ridge that runs down its spine, Eddisbury occupies the bulk of the Cheshire plain, nestled between the Peak district to the east and the Welsh hills to the west. It has a proud history of dairy farming that to this day is the bedrock of the local economy; the source of about 3% of the UK’s dairy products, including the famous Cheshire cheese.
Eddisbury farmers have found it tough going in a climate of market volatility and uncertainty about their future. That is why this Bill, and the Agriculture Bill set out in the Queen’s Speech, are such crucial measures. They need to recognise and maintain the high food safety, farming and animal welfare standards we have worked hard to achieve, while ensuring we have greater control over farm practices in Eddisbury and right across the UK. We must use the year ahead to provide the dairy and wider agriculture industry with the longer term clarity, support and freedom they need to invest, grow and prosper. If we genuinely back British farming, whether it be reducing food miles or tackling climate change, our farmers can deliver.
In contrast to the patchwork of fields, interrupted by the criss-crossing of canal boats, is the town of Winsford. With a population of over 30,000, well-situated close to the M6 and connected to the west coast main line, Winsford has come a long way since a salt industry was established there along the River Weaver in the 1830s. Now a logistics and manufacturing base, Winsford has over 4,000 people employed on the Winsford industrial estate, including Tiger Trailers, Rolls-Royce and Compass Minerals to name but a few. Its town centre, like many, is in dire need of renewal, and I look forward to working with the Government, and Cheshire West and Chester Council, to help revitalise a much needed commercial and community space that local residents can be proud of.
Winsford is also home to some amazing charities run with the help of armies of volunteers, such as the NeuroMuscular Centre of Excellence—where I held my surgery last week—St Luke’s Cheshire Hospice and Home-Start Cheshire, of which I am a patron.
Eddisbury boasts a scattering of resplendent villages, from Farndon, Bunbury and Tattenhall to Audlem, Tarporley and Malpas, not forgetting Tarvin, Waverton, Wrenbury, Acton, Barrow, Tilston, Kelsall and Church Minshull— among many others. They thrive through the vibrancy and activity of local people, who care deeply about their community, yet they can become isolated without good connectivity with the world around them, whether that is through reliable and regular rural bus services, road networks in a decent, pothole-free condition, easy and timely access to GP services, or better—much better—broadband.
Eddisbury also has an enticing array of entertainment on offer, being home to Oulton Park racetrack, which hosts the British Superbike championship, Delamere forest, Cheshire’s largest area of woodland—where I confess I once watched Rick Astley in concert—the majestic English Heritage site of Beeston Castle, CarFest North at Bolesworth, and the Cholmondeley Pageant of Power. Eddisbury is no sleepy backwater and we have plans to play our part in the north-west in levelling up our nation, whether that is economically, socially or potentially even politically, with the now inevitable relocation of the House of Lords to Cheshire.
You will know too, Madam Deputy Speaker, that my time in Parliament has been very much shaped by my lifelong passion and determination to improve the lives of vulnerable and disadvantaged children. I am reminded of the words I used during my first maiden speech to describe my motivation for speaking up for kids who need the most help:
“Having spent the past 25 years living with, and helping care for, many foster children, and the past decade working in the care system, I know only too well the fundamental importance of putting children first and giving them the childhood that they deserve.”—[Official Report, 16 June 2008; Vol. 477, c. 747.]
I see no reason to alter a single word. Indeed, my late mother, Alex, who opened up our home to over 90 foster children, instilled these virtues in me from an early age and helped to guide me through my nearly five years as Minister for Children and Families. It was therefore encouraging to see the commitments made in the Conservative manifesto, not just to our farmers but to children’s social care: the creation of family hubs; the prioritisation of loving, stable homes for children who find themselves in care; and a review of our care system more generally. I advise the Front Bench team that a blueprint already exists for delivering an excellent children’s social care system, entitled—you’ve guessed it, Madam Deputy Speaker—“Putting children first”, which the Government published during my time as children’s Minister in July 2016.
Since then, we have seen the number of good and outstanding children’s services rise markedly, albeit from a low base, and the number of inadequate judgments fall by nearly half. However, we all know that the pressure on the system remains, and with around 400,000 of the 12 million children in England in the children’s social care system at any one time, this is an area of public policy that we simply cannot ignore.
The good news is that the dedication, compassion and professionalism of those on the frontline of social work is there for all to see, but what they need, too, is the freedom and support that enables them to innovate in their practice, to use their professional judgment to make good decisions on behalf of children placed under their wing, and to grow trusted relationships with families in need of their help. Policy should promote such a culture, not stifle it. Only then can we have the confidence that every one of those 400,000 children will get the right level and quality of intervention, protection, placement and planning of their future when they need it, for as long as they need it. In doing so, we can continue to build the foundations that break down what all too often is a destructive cycle. Let us unleash every child’s potential.
In acknowledging that I have strayed a little from the subject matter of this debate, I end by saying to all the people of Eddisbury, however you voted, and to all those children who do not have a voice but need to be heard: I am here for you—after all, that is my duty.
Tim Farron (Westmorland and Lonsdale) (LD)
It is a privilege to follow the hon. Member for Eddisbury (Edward Timpson). I recall the Crewe and Nantwich by-election in 2008—the weather was quite nice, and I congratulate him on his first victory. I spent some time in Eddisbury in, I think, ’99 for the by-election, when Stephen O’Brien, his predecessor but one, was first elected, so I know where it is—there is a good chippy in Winsford, if I remember correctly. I genuinely mean it when I say that the hon. Gentleman was an excellent children’s Minister. This will massively hamper any rise he may subsequently make, but if the Prime Minister should be thinking of a reshuffle, he could look no further than him. I also thank him for paying tribute to his excellent and very principled predecessor, Antoinette Sandbach, my former hon. Friend.
Let me make a little confession. Some years ago, before Brexit was even a thing—back in the day when the Prime Minister thought it was madness to even countenance leaving the European Union—I said that I could see one advantage in the United Kingdom departing the EU: I could see how we could spend the common agricultural policy money better than it is often spent through the current system. That does not mean that I predicted that a future Government would spend it better, but I could see how they could—that is an important caveat.
The Bill is necessary and provides a modicum of certainty for farmers as we leave the European Union in just a few days’ time. It permits a small island of temporary predictability in a sea of uncertainty. It kicks the can a few yards down the lane, but it will do nothing to disguise the chasm that is opening up for farmers as we leave the EU. The Government believe that they have a mandate to “get Brexit done”, but nowhere is the nonsense behind that statement laid bare more than in the case of our farming industry.
I will tell the House what Brexit has done: according to the Secretary of State last week at the Oxford farming conference, it has done for the basic payments scheme—which constitutes 85% of the income of the average livestock farmer—starting in less than 12 months. It has done for free access for British farmers to their most important export market—90% of Cumbria’s farm exports are to the European single market. If the Chancellor of the Exchequer is to be believed, it has also done for our alignment with the single market and will therefore usher in a new era of red tape, costs on farm businesses and non-tariff barriers to trade.
The idea that a 12-month stay of execution for farmers equates to certainty is, frankly, laughable. Even if the Government were to make a commitment for the whole Parliament, anyone who thinks that even five years constitutes the long term in farming cannot be taken seriously.
The Government’s stated position—reiterated again at the Oxford farming conference—is that the BPS will be phased out over a seven-year period from next January. I am privileged to chair the all-party group on hill farming and I was very pleased to hear the shadow Secretary of State, the hon. Member for Plymouth, Sutton and Devonport (Luke Pollard), refer to the importance of hill farming to our country as a whole. In our view, it is a dangerous thing to start phasing out the basic payment when we have yet to clarify what will replace it: the ELMS—the environmental land management scheme—which will be available for some farmers in 2024, we are told, but not all farmers until 2028.
With all due respect, farmers lack confidence in Governments of all colours and their ability to deliver an as yet undefined new payment on time because they have consistently failed to deliver existing payments over the last two decades. Being told for certain that you will lose 85% of your income while being offered the dubious possibility that you might have something else in future is unlikely to get Britain’s farmers dancing in the street.
The Bill is a necessary one-year fulfilment of the obligations of the withdrawal agreement. It is not a real commitment to farmers. Even if the Government were to bodge together extensions of one year at a time for the inevitable slippage on the roll-out of ELMS, what does that do for the ability of farmers to plan for the medium term, let alone the long term?
Why does this matter? It matters because over the transition period of seven years, the Government’s plan will reduce Britain’s capacity to feed itself in the future. We think far too little about food security. Some 50% of the food that we consume is imported. Twenty years ago, the figure was more like 35%. It is an extremely worrying trend. If the ability of farmers in the UK to make a living and compete is further undermined, this situation will only get worse. That will be bad for the environment, for British farmers and for the security of our country, as we cut ourselves off from our most important trading partner.
We need to think of the bigger picture and the long-term impact. You can tick the boxes with legislation such as this and “get Brexit done”, but that is a slogan with a heavy price tag—a price tag that in the case of our farmers could be fatal. The production of food must be considered a public good, but it is certain that the loss of BPS with an as yet undefined replacement will see people leave the industry. Some will flee before it gets too bad, others will be forced out when they cannot make ends meet. To put it bluntly, if we are to deliver public goods through farming, we need to make sure there are some farmers left to deliver those public goods by 2028. Without those farmers, who will deliver biodiversity programmes? Who will deliver natural flood management schemes? Who will deliver growth and maintain the woodlands and peatland necessary to absorb CO2? In Cumbria, including the lakes and the Yorkshire dales, who will maintain our footpaths and our rare historic breeds? Who will beautifully keep and present the landscapes that inspired Wordsworth and inspire 16 million people to visit us every single year?
Jim Shannon (Strangford) (DUP)
This morning, the National Trust held an event downstairs. It was keen to show what it was doing on the environment. It has plans across its 500 properties to plant more trees and thereby be the lungs of the United Kingdom. There are many groups and landowners doing lots of things to help to tackle climate change.
Tim Farron
The hon. Gentleman makes an important point. Farmers are at the forefront of tackling climate change—they see the climate changing before their eyes, they are the eyewitnesses to our changing planet and the damage being done. In the uplands, in Cumbria and elsewhere, it is they who have the ability to help to protect the towns and villages from flooding by planting more trees, managing the land and more generally ensuring the carbon sink that will help to protect our planet. Without them, who will maintain the backdrop to the tourism economy in Cumbria, which is worth £3 billion a year and employs 60,000 people? Indeed, 80% of the working-age population of the Lake district currently earn their living there.
How can farmers be expected to invest in the long term if they can only look ahead one year at a time? Like most farmers, I accept that in the long term BPS needs to be replaced by public payment for public goods— no argument there—but “public good” needs to be defined widely enough for farmers to make a living, especially farmers in the uplands of Cumbria. I am not saying, therefore, that we should scrap ELMS and keep BPS forever, but I am saying that the Government should not delude themselves into thinking they can make radical change as seamlessly as they appear to think.
The Bill is necessary and we will support it—not just not oppose it—but it does not answer the need to pave the way for a new system. The Government cannot be permitted to do the bare minimum to fulfil the obligations of the withdrawal agreement, with no thought to the impact in real terms. The Government must protect British farming and therefore the environment—and therefore food security, rare breeds, heritage, landscape, our tourism economy—so will the Government now commit to transition arrangements that allow farmers to survive that transition? In short, I say to the Government: do not remove a penny of BPS from anyone until ELMS is available for everyone.
Scott Mann (North Cornwall) (Con)
I welcome the new shadow Secretary of State to his place. It is nice to have a fellow west country MP there and I look forward to working with him on the Agriculture Bill and the fisheries Bill and, importantly, on putting provisions on angling into the latter.
I am pleased to have been called to speak on Second Reading of this very necessary Bill. The Government’s manifesto commitment to invest £3 billion in our farmers and farming communities over the lifetime of this Parliament is to be welcomed. Continuity is so important to our farmers now, with all the uncertainty in the marketplace, and the Government have proved again that they are committed to our farmers and our farming communities. We are moving from a rather ridiculous system where people are paid for land rather than public goods. Farmers in the UK receive £3.5 billion annually in farming support under the common agricultural policy. More than 80% of the support is paid directly to farmers, based broadly on land and land management. A lot of that is taken up by hedge funds and other financial organisations, which receive an annualised income. We have to move away from that system to something that supports our farmers and farming industry.
The previous CAP had nothing in place for soil erosion. We lose 2 billion tonnes of top soil into our rivers every year. We need a replacement to ensure that that does not happen. There is very little in there about habitats, save for the rather dysfunctional element of pillar 2 of the CAP funding; very little about production, other than silly things about people having to grow three crops; and nothing about catchment farming. I hope we are moving away from a system where our farmers have to map their land. I have dealt with countless constituents who have brought cases to me where their topographical land management has been done from an aerial viewpoint and where the numbers the RPA says they have they do not actually have. Moreover, many of my moorland farmers have been waiting three years for payments under pillar 2—the higher stewardship element. That is unacceptable. We need to move away from the historic system to a better system.
What do we want from a new agricultural scheme? I am no expert, but I tend to listen to people who are. I have regular meetings with farmers in my constituency of North Cornwall. They are the custodians of the countryside and understand what they want from a future agricultural system.
Jim Shannon
The National Farmers Union has a clear idea of what it wants from the changes, and its sister organisation back home, the Ulster Farmers Union, of which I am a member, has the same ideas on going forward. The hon. Gentleman has mentioned the importance of touching base with our farmers and whose who own the land. How important is it that the Government listen to the NFU and the UFU?
Scott Mann
It is vital. My hon. Friend speaks from a position of strength. He is always in the Chamber speaking up for his farmers and fishermen and he makes a relevant point about the Government listening to the NFU.
My farmers want a less bureaucratic system and one that is locally administered, has local support, supports younger people to get involved in farming, supports more tenant farms and recognises that local factors and local contributions can be submitted. They want a scheme that supports diversification in farming through the planning system to allow them to diversify into other projects. As the shadow Secretary of State said, they want to move away from having to supply around the country to more localised supply chains and localised control.
I want to explore what “public good” might mean. I am proud to have the Camel cycle trail running through my constituency, from Padstow to Bodmin. It gets 500,000 visitors a year. We could do much more in the “public good” element in the Agriculture Bill to expand cycleways across the country—I am hoping there might be Members on both sides of the House who want to create a cycleway all the way from John o’Groats to Land’s End in Cornwall.
There is much to consider. We have a footpath network, which is administered by the local authority currently, that is not fit for purpose. The Government have an opportunity to take some control over that and for farmers to be paid for upkeep and better access to the countryside, be that cycleways or footpaths.
When I first became a Member of Parliament, I had the pleasure of taking part in a soil inquiry in the House of Lords, and heard about all the good-quality topsoil that was being flushed into the rivers every year. It struck me that farmers were investing in their soil but receiving no benefit from that investment. It would be nice to see some benefit resulting from improved soil quality.
Anthony Mangnall
Perhaps it would be an idea for farmers to consider new, innovative ways of looking after their soil, such as min-till farming. Does my hon. Friend agree that that would offer an opportunity for the future of farming and soil fertility?
Scott Mann
Absolutely. One of the issues that we discussed during the inquiry was how we could maintain better soil access. He is no longer in the Chamber, but the former Chairman of the Environment, Food and Rural Affairs Committee—or hopefully the new Chairman; I know that he is standing for re-election—mentioned the importance of planting more trees around rivers and ensuring that some of that soil erosion does not happen.
When I had the pleasure of visiting a higher-level stewardship scheme in Tregirls, near Padstow, I learnt about the reintroduction of the grey partridge—its numbers had diminished over the years, but the populations were growing—and the work that was being done to provide nesting grounds for corn buntings. I also had the pleasure recently of meeting representatives of the Westcountry Rivers Trust, who showed me some of the work that they were doing with upper catchment farming. I believe that if we can take the slurry pits out of some of our rivers, we will be able to improve water quality as well as the environmental management of farms. Those were joint projects involving both the trust and South West Water, and I think that they will provide a good basis for a catchment-sensitive farming package.
I want to say something about the upper catchment in particular, and about the spawning grounds for salmon and sea trout. We have a big problem when our rivers are in spate and all the water goes into the river very quickly. The water then tends to flush out to sea very quickly as well, wiping out all the biodiversity in the river. I think that we should invest much more in our salmon and sea trout grounds so that their spawning beds are there for the future and the species are returned to the river as far as is as possible.
The Angling Trust said this about the Agriculture Bill:
“We believe this Bill presents a once in a generation opportunity to address the impact agriculture has on our freshwater environment and, therefore, on healthy fish populations. We welcome the emphasis on good soil management and restoration. We will be looking for a clear framework to effectively manage pollution from agriculture and from residential pollution and to ensure that any future…payments scheme incentivises good land management in relation to water and penalises poor practices. This must be supported by effective regulation and advice to farmers”.
I would be grateful to hear from the Minister whether the amounts for future years can be paid in one go. I intervened on the Secretary of State about this. One of my local farmers said to me recently, “If we know that the payments will be made over a longer period, would it not be wise to give farmers the option to have them rolled up into one payment so that they can invest in their farms at an early stage?” I thought that that was quite a sensible idea, because it would allow farmers to invest in their businesses when they needed to do so.
May we also have a scheme that allows payments on day one? I have engaged in numerous discussions with the Rural Payments Agency about that. It would be nice if we wrapped up this discussion very early so that farmers can receive direct payments on day one of the new legislation.
What am I looking for as the Bill progresses? I am looking for a locally administered scheme, with payments agreed from the previous year and made on day one, to be run in conjunction with organisations such as the Royal Society for the Protection of Birds, the Environment Agency, the Soil Association, the Westcountry Rivers Trust and the Woodland Trust. We could bring in Sustrans to look into whether a cycleway is a possibility. I am passionate about cycling, and I think that we have a real opportunity to open up our countryside so that more people have access to it.
We could also work alongside local anglers. Yesterday, the Norwegian fisheries Minister and I discussed what was happening to fisheries and agriculture in Norway. The Norwegians impose an obligation in regard to boats and quotas—financial organisations cannot invest in them. We might well want to consider that in the context of agriculture.
I am getting the nod from you, Madam Deputy Speaker, so I shall wind up my speech. Our farmers are going through monumental change, and I am pleased that the Government are investing in and supporting them. We have the ability to improve drastically on the existing model of the common agricultural policy and I look forward to being involved in that. We should show the public exactly how good our farmers are. We know about higher animal welfare standards, but it would be good if farmers were given an incentive to invite schoolkids on to farms to show them some of the great practices in which they are engaged.
I am happy to support the Bill.
Madam Deputy Speaker (Dame Rosie Winterton)
It is a great pleasure to call Dave Doogan to make his maiden speech.
Dave Doogan (Angus) (SNP)
Thank you very much, Madam Deputy Speaker. I, too, extend my welcome to the new shadow Secretary of State and wish him good luck in his post.
It is the greatest honour for me to stand here representing the people of Angus and the Scottish National party. My greatest ambition is to do the very best that I can for the people who have placed their faith in me, and also to play my part in delivering our country from the United Kingdom and back into the international community of nations. I thank all those in Angus who voted to send me to this place, and assure all those who did not of my unconditional service to all. I am so grateful to my amazing SNP Angus team, who worked tirelessly and in all weathers to ensure that we got the job done.
I must also pay tribute to my predecessor, Kirstene Hair, who represented Angus for two and a half years. In that time she sought to advance a range of important issues, the principal one being the seasonal agricultural workers scheme. That is a cause of vital importance to the people in Angus and one that I have already taken up with the Prime Minister. Kirstene fought a hard campaign to be returned to this place, and I wish her—and, more important, her staff—every success in the future.
Madam Deputy Speaker, you will of course recall with fondness my predecessor, and your former colleague, Mike Weir, who represented Angus with distinction from 2001 until 2017. I got to know Mike much better over the last three months as we canvassed the streets of Angus together. It is a measure of his sense of duty that after 16 years in this place, he still campaigns tirelessly for the people of Angus and the cause of Scottish independence.
I am delighted to follow the hon. Member for North Cornwall (Scott Mann) and to be making my maiden speech as we consider the Direct Payments to Farmers (Legislative Continuity) Bill, which relates directly to the challenges and opportunities facing many in my constituency. However, if the Secretary of State were still in the Chamber, I would suggest to her that the notion that the Bill affords any reassurance and continuity to farmers is for the birds.
My constituency of Angus showcases the best of Scotland’s landscapes, with some of the richest farmland anywhere on these islands to the east, and the wild uplands, glens and mountains to the west—a haven for wildlife and outdoor pursuits. Our prime farmland extends right up to our dramatic coastline. If, Madam Deputy Speaker, you should ever be lucky enough to find yourself in the picture-postcard hamlet of Auchmithie, you may well see farmers ploughing along the clifftops amid the breathtaking spectacle of our unique landscape.
It is, however, the people of Angus who give life to those landscapes. Angus has a thriving voluntary sector, and there are many outstanding examples of community capacity taking control of key local issues, often in support of our most vulnerable. A healthy rivalry also exists between the burghs but, heeding my strong sense of self-preservation, I will resist airing any views on which might be the best! So, in no particular order, I will highlight just some of Angus’s contribution to innovation, the arts, culinary excellence and Scottish history.
Brechin was the birthplace of Sir Robert Watson-Watt, whose discoveries led to the invention of radar, and the Davidson family, of Harley Davidson motorcycles, hailed from nearby hamlet of Aberlemno. Arbroath, the largest settlement and a much-visited coastal town, is the birthplace of Alexander Shanks, inventor of the lawnmower, and James Chalmers, who created the concept of the adhesive postage stamp. Arbroath, also a retail centre, is home to the famous Arbroath smokie—the delicious smoked haddock delicacy which enjoys the EU’s protected geographical status.
Forfar is the vibrant county town in the heart of the constituency. It is home to significant manufacturing and retail, and Angus Council’s headquarters. But the jewel in Forfar’s crown is the delicious, iconic meat-filled pastry crescent, the bridie. With all due respect to the six Cornish Tories—one is in the Chamber—your pasties are pleasant, but our bridies are brilliant!
Kirriemuir knocks it out of the park with its famous sons including Sir Hugh Munro, who recorded every one of the 283 Scottish mountains over 3,000 feet, 10 of which are in Angus; Bon Scott, the lead singer of AC/DC; and J.M. Barrie, whose works, including “Peter Pan”, the House needs no further introduction to. Montrose is the birthplace of the acclaimed Scots writer Violet Jacob and home to the amazing natural tidal basin—a haven for birds and marine life where, at the appropriate sunset, someone may just be lucky enough to witness the most beautiful array of colours. In addition to its retail centre, Montrose has long been home to state-of-the-art pharmaceutical manufacturing.
And of course it was in Angus—at Arbroath abbey—that, 700 years ago, the nobles of Scotland became signatories to the declaration of Arbroath that was sent to Pope John XXII, which asserted Scotland’s position in the world as an independent kingdom. While this work remains in progress, I believe a satisfactory conclusion to Scotland’s position in the world is close at hand.
I am touched to have been so enthusiastically welcomed by Angus SNP colleagues as their candidate in the first instance, and by the wider electorate thereafter.
Scotland is a country that has always looked outward and welcomed others. My late father was Irish—born in partition, into the grinding poverty of British maladministration. He came to Scotland, working as an agricultural contractor, with his business reaching across the rich farmlands of Fife, Clackmannanshire, Perthshire and Angus. My enduring memory of him was his equal comfort in speaking with the laird or with the labourer, showing each the same respect. I have always sought to emulate his humanity and humility.
Separately, my mother also fled Ireland’s poverty as a young adult. The refuge that she and her family found some 70 years ago was in Forfar, the county town of my constituency. Madam Deputy Speaker, my mother today is what you might call a big age, but the pride that she has in the fact that her youngest child is now the Member of Parliament for Forfar is not insubstantial. My family are indebted to, and a product of, Scotland’s hospitality.
Like many children of immigrant parents, I was brought up to appreciate that while no task is beneath me, no target is beyond me, and that though no one is more worthy than I am, I am no better than anyone else. As we say in Scotland, “We’re all Jock Tamson’s bairns.” And so it is with my country. Scotland is no better than any other nation but, let us be clear, we are not any worse either.
The people of Scotland are watching the events that happen in this place, and it is they who will be the final arbiters of Scotland’s constitutional future. I look forward to celebrating with them in their wisdom and their ambition.
I conclude on a personal note. My children and my family have been tremendously supportive to me in my long journey to this Parliament. I must, however, express my limitless thanks to my wife. It is by the gift of her strength and kindness that I was able to give up my job in the Ministry of Defence 13 years ago and then go to university, become a councillor, start my business and disappear for months on end campaigning. Over these long years, she has kept our family’s show on the road.
While I am here in this place, I must work within the system. I will do so in the service of my constituents and my country. I hope at all times to be collegiate and pragmatic, but do not confuse that with any acceptance of London rule. I will always seek to be constructive and courteous in transacting our business down here, but do not mistake that for submission or fondness for the status quo. I and my SNP colleagues are here to settle up, not settle down. We are here only to help to open the door to a progressive independent future for our country. And when Scotland walks through, into the progressive future of independence and the normality that that brings, the honour will fall to me and my SNP colleagues here gathered to firmly close the door of this place behind us and leave for the last time, taking Scotland’s brighter, independent future with us. [Applause.]
Bill Wiggin (North Herefordshire) (Con)
It is a pleasure to follow the new hon. Member for Angus (Dave Doogan). Making a maiden speech is terrifying; following one, particularly one as good as that, equally daunting. I commend the hon. Gentleman for saying that he will do his very best; that should apply to us all. He of course thanked voters and his predecessor, Kirstene Hair, who was a lovely and wonderful Member of this House. It is deeply important for all of us to heap praise on our predecessors, no matter how difficult it may be—it certainly was when I made my maiden speech—because we are all united here in doing the best we can for our constituents.
I liked listening to the hon. Member’s description of the landscape, and the Harley-Davidson motorcycle reference was particularly dear to my heart. When I look at Angus I think of the second-best breed of British cattle, the Aberdeen Angus, which from Herefordshire is not a difficult one for me to tease him about. I look forward to his maintaining the status quo for at least the next five years here, and I wish him every success with his career, which I suspect will go from strength to strength.
Colleagues should bear in mind that declaring one’s interests is very important in these debates—in fact, the most important thing. I am the lucky recipient of a very small cheque from the RPA once a year for my smallholding in Herefordshire.
I absolutely reject the purpose of subsidy in all fields except agriculture, because although our farmers produce the finest food in the world, they do so from a playing field that is anything but level, so we need to help them maintain the skills necessary to provide the food security that we may need at any time. It is easy to forget that epidemics such as foot and mouth, which hit our country in 2001, can happen anywhere in the world. We have also seen bluetongue and avian influenza, for example. Our food supply is always vulnerable. One cannot learn how to farm quickly; it takes years—generations—and great skill and appropriate qualifications. That is why, for the security of our country, we need to support our agricultural industry.
It is worth it. We put £3.5 billion into agriculture every year, but our food exports alone are worth £22 billion. We are 60% self-sufficient; 60% of the food we eat is produced here. I believe that the future for agriculture is that it will provide a healthier diet for our country. So as we will not only be providing the security that we need and a wonderful export market, but saving ourselves a fortune through the NHS, by ensuring that our population are healthier, better-fed and thriving. Of course, we can do that only if we control what comes into our country according to its quality and the production methods used.
That, if nothing else, is a good reason to support the Bill, but I am pleased to say that there is more. I, too, have had problems with the RPA—oh my goodness! I have also given it a fair few problems of my own, but it has always handled them extremely well and politely. However, the burden that the RPA lands on farmers, such as the one in my constituency who had to undertake the re-mapping of every hedge on his farm because the data had been lost, is horrendous. Having the power not to have to follow the EU’s rules will be tremendously positive for all those working for the RPA, and we should not be looking at spending more money on it, but making its job easier by demanding less from it. I look forward to that as one of the future steps to easing the burden on our constituents and on farmers, by ensuring that the RPA regulations are more straightforward.
In any change to agriculture, the biggest thing is that we take the public with us. Food labelling is therefore the most fundamental thing to get right. The problem with food labelling is that our eyesight is not necessarily good enough to read the small writing necessary to include all the information we need on small amounts of food. That is particularly true of restaurant menus, on which we cannot see where, say, the chicken has come from. That is just taken as the restaurant’s corporate responsibility.
The problem is that, until we conquer the challenge of industrial food production, we will not be able to protect standards, even if we want to, so I urge the Government to look carefully at how to ensure the public are properly informed. I suggest they pay particular attention to private Member’s Bill No. 17, which seeks to address this issue in great detail not only in the labelling of food but in how meat is graded.
One problem we have with meat is that we care about how fat the animal is and how much meat and muscle it has, but we do not care about what it tastes like. That is a fundamental mistake when we expect people to eat it. We should be doing a great deal more on eating quality, as the Canadians and the Australians do. There is a huge benefit to eating quality, because the calmer and more placid the animal, the better it tastes. A calm and placid animal is considerably safer to have on a farm, which means the risk to farmers of being killed by their cattle—that risk is particularly serious for older farmers—is considerably reduced.
Nearly all the people who die on farms in animal accidents are farmers aged over 60. They die, whereas younger farmers are able to recover. We lose about seven farmers a year to such deaths, and we could do a great deal more just by having better-tasting meat. What a great success that would be.
On the subject of saving lives, I come to chlorinated chicken. I have a huge number of poultry producers in my constituency, and the nightmare for them is campylobacter, which causes food poisoning that kills about six people a year. If we chlorinate our chicken, we should save those lives. Do not be fooled by the anti-chlorination argument. There are terrible problems with hormones in beef, which I will not touch on—I will leave it to those who wish to criticise American food production—but chlorinated chicken is not the monster it is made out to be.
Deidre Brock
The hon. Member for South Dorset (Richard Drax) spoke about chlorinated chicken and how we put chlorine in our swimming pools, and so on. The main point to which people object is that chlorinating chicken disguises the poor welfare standards that lead to the amount of germs and bacteria in the meat that is presented to us.
Madam Deputy Speaker (Dame Rosie Winterton)
Order. I remind Members that the Bill is about payments to farmers and not much wider farming issues. I am sure the hon. Lady has made her point.
Bill Wiggin
Madam Deputy Speaker, you have completely torpedoed my response because, of course, the only sector that is not subsidised is the pig and poultry sector. It is worth bearing in mind how long chickens live in those broiler houses: normally 29 days.
Adam Afriyie (Windsor) (Con)
Having studied agricultural economics many years ago, the last time I saw a very healthy-looking animal was on my hon. Friend’s farm. It strikes me that farmers are not just raising cattle or growing crops but are doing an awful lot of other activities that maintain our environment and maintain the health and beauty of the countryside. Does he agree that if we had control over the direct payments we make to our farmers, we would have better control over their activities and the levels of profit they can make?
Bill Wiggin
I absolutely agree. Another element to direct payments is that, by paying our farmers, to some extent we control what they are doing. I hope we will get away from that when we cease to be controlled by the common agricultural policy, but it does mean that, as taxpayers, we have a say in the beauty of our countryside. Of course, when one looks at the size of the tourist industry or, indeed, any of the other industries that live off our views or our environment, we see that this is a tremendous advantage. That is why it is critical that the Bill is passed.
Victoria Prentis (Banbury) (Con)
I thank my fellow farmer for giving way. He mentioned that it is significant that farmers develop their skills over many years and often many generations. When considering direct payments, does he agree it is important that farmers are able to plan for their future by knowing what subsidies they are likely to receive so that they can tailor their farming practices accordingly?
Bill Wiggin
My hon. Friend makes a vital point, and it is why the Government have a seven-year tail to this policy. The Bill does not do as much as she and I would both like it to do in delivering certainty. That is a huge problem in my constituency. I have 10,500 people working on farms in my constituency, 88% of which is farmland. Some £23.2 million a year comes into my constituency in subsidy, and it is critical to those farm businesses that they know exactly what is happening.
One problem I face is the current trend away from eating meat, which is a disaster for British agriculture. I was stopped during the general election campaign by someone who said, “Mr Wiggin, you don’t like vegetarians.” I said, “That’s not strictly true, but I do have an issue with this desire to go to a plant-based diet, because it means importing soya from Brazil. It means living with the big pharmaceutical companies determining our diet.”
I am keen that we get back to direct payments for livestock farmers, particularly in Herefordshire, and that we return to British food for British voters, constituents and consumers, so I thoroughly look forward to seeing this Bill become law, and to the Agriculture Bill that follows, so that we can get a lot of these details on to the statute book for the benefit of all concerned.
Ben Lake (Ceredigion) (PC)
It is a pleasure to follow the hon. Member for North Herefordshire (Bill Wiggin). I agree with a lot of the points he raises, particularly on the importance of maintaining a level playing field for our farmers, both in trade and, as I will discuss, within the UK internal market in so far as it exists.
Seeing the crowded Government Benches reminds me that the hon. Member for Brecon and Radnorshire (Fay Jones) will shortly be making her maiden speech, and I congratulate my constituency neighbour on what I am sure will be a very impressive first outing.
The Minister can sit easy, because I confirm that Plaid Cymru will not be opposing the Bill today. In so far as the Bill is being introduced to ensure that farmers in Wales who are participating in the basic payment scheme in 2020 can be paid from December, we fully support it. I am glad the Bill has been introduced to offer some certainty to farmers in Wales.
I am also glad that we have this opportunity to discuss the broader elements of the Bill. This Bill and the Agriculture Bill, which we will discuss soon enough, will largely determine the future of agricultural policy across the four nations of the UK for years to come. The Minister will have previously heard me preach about the need to replace some aspects of the common agricultural policy, particularly some of the associated frameworks that, taken together, have provided the financial and legislative basis upon which the four national Governments of the UK have formulated their agricultural policies for some years.
I raise this today because, particularly when it comes to funding, divergences and distortions can arise if we are not careful. As the four UK countries develop their agricultural policies, the question of how they will co-operate to ensure the effective functioning of the internal market in these islands looms ever larger. I am sure that greater flexibility and a more bespoke agricultural policy for each of the four nations will be championed in parliamentary debates, and rightly so, but we should also ensure that some of the CAP’s objectives in preventing excessive market distortion and maintaining a level playing field for our farmers within the countries of the UK do not fall by the wayside as we transition to this new settlement. Before I am challenged on this by Scottish National party Members, let me make it clear that that is not to say that we should prohibit policy divergence of any kind. Rather, I am trying to say that the four Governments should come together to agree financial and regulatory parameters to facilitate the functioning of the internal market, while allowing each—
Jonathan Edwards
My hon. Friend is making an important point. Do we not need structures that enhance joint decision making, rather than just Westminster making decisions on behalf of the four countries?
Ben Lake
My hon. Friend has put it far more impeccably than I could. The important thing is having co-decision making on these issues and the agreements being jointly made between the four Governments of the UK, so as to ensure that the internal market is not undermined. Such an endeavour would require us to tackle issues such as the principles underpinning agricultural policies, the quanta of funding that can be allocated to different objectives and the specific challenges relating to cross-border holdings, of which the hon. Members for Montgomeryshire (Craig Williams) and for Brecon and Radnorshire will be aware. We can come to some sort of agreement on all these measures, which is what I am trying to emphasise this afternoon. I am not pretending that this will be easy, far from it, but I am saying that it is deeply important that we do reach some sort of arrangement. Frameworks currently exist and they address the issues and questions I have just raised. They ensure that the national Governments can base their policies on a set of common objectives. In other words, they are boundaries within which the four nations and the Governments of the British Isles can tailor their policies to address the specific challenges that face their respective industries, while preventing harmful market distortion and disruption to supply chains. These questions need to be addressed anew to ensure that unfair advantages do not arise and that the internal market is not compromised. Many of the issues will have to be addressed as part of the discussions on the UK Agriculture Bill and in collaboration with the devolved Governments, but this Bill does offer us a brief opportunity to raise some questions about the funding framework, to which I hope the Minister can respond as he concludes the debate.
As I have mentioned, the Bill allows BPS payments to come from domestic UK funds, and in that sense it is mainly a housekeeping exercise. One question that has been raised by stakeholders in Wales is whether the Bill requires devolved Governments to spend these moneys in this way or whether they have discretion as to how to spend them. I would be grateful if the Minister addressed that point. The Bill also raises some questions about long-term arrangements for UK agricultural funding. My hon. Friend the Member for Carmarthen East and Dinefwr (Jonathan Edwards), and the hon. Members for Westmorland and Lonsdale (Tim Farron) and for North Cornwall (Scott Mann), have touched on the need for multiannual financial frameworks. As the Secretary of State mentioned in her opening remarks, the Bill also implements a lot of the findings of the Bew review. It has been received warmly across the House, but in Wales there are severe concerns about the allocations and the decision that the review came to on the UK funding allocations. For example, the Farmers Union of Wales has pointed out that the total difference between average annual Scottish and Welsh farm payments has now diverged to about £16,200, which leaves the average farm payment for Scotland at about 175% of the average Welsh payment. This is not me begrudging farmers in Scotland something they deserve; the question I am raising is: is there not a case to be made for Welsh farmers receiving an equivalent amount of funding, so as to ensure that we maintain that level playing field that the hon. Member for North Herefordshire mentioned?
The distortions that the allocations outlined by the Bew review have made clear surely highlight the need for a proper financial framework, agreed by all four Governments, that secures long-term funding for agriculture across the four devolved nations and is based on a fair and objective formula that minimises market distortion. I have grave reservations that the Bill, on its own, will not do that, so I would welcome any insight that the Minister can offer on how the UK Government intend to tackle this. Furthermore, by what intergovernmental mechanism will these questions be resolved? If any disputes arise, how will they be settled? Do the Government acknowledge something that I raised in the Committee considering the previous Agriculture Bill, which is that some sort of more formalised intergovernmental agreement system, based on co-decision making and co-operation, could make multiannual financial settlements easier to implement and would ensure that we avoid the sort of market distortion that unions in Wales are so fearful of, which will ultimately make Welsh farmers worse off?
Several hon. Members rose—
Madam Deputy Speaker (Dame Rosie Winterton)
It is now a great pleasure to call Fay Jones to make her maiden speech.
Fay Jones (Brecon and Radnorshire) (Con)
Thank you, Madam Deputy Speaker. First, may I congratulate the hon. Member for Angus (Dave Doogan) on giving an excellent maiden speech, which set the bar high for me? I feel humbled and privileged to be here this afternoon, serving as the Member for Brecon and Radnorshire. I am only the 17th person to have that honour, and it is an honour and a responsibility I will never forget. It is also very special for me to be one of the first three female Conservative Members of Parliament from Wales, and it is a pleasure to have both the others with me on the Benches this afternoon. Together we have made a mark in history that is long overdue, but very welcome none the less. I also thank my hon. Friend the Member for Wrexham (Sarah Atherton) for bringing in the throat sweets that are keeping me going this afternoon. I am delighted to have my first opportunity to speak in this House on this particular legislation, and to follow my hon. Friend the Member for North Herefordshire (Bill Wiggin) and the hon. Member for Ceredigion (Ben Lake).
I represent one of the largest beef and sheep farming constituencies in the United Kingdom, and this Bill will directly affect many thousands of my constituents, but I will return to that point in a few moments. Before I go on, I want to pay tribute to my predecessor Jane Dodds. Jane’s brief tenure in this House was marked by her principled and courageous stance. She continued in the long tradition of distinguished Liberal Democrats to represent Brecon and Radnorshire; many Members will remember Roger Williams fondly, and indeed the late Lord Livsey. I was struck during the election campaign by just how many constituents still refer to both Roger’s and Lord Livsey’s passion for Brecon and Radnorshire, something that I fully understand and share. Liberals and Conservatives in Wales have a tendency to fight hard, but there is a trend for co-operation. Indeed, Roger Williams was at one point the landlord of Jonathan Evans, who would serve as the Conservative Member for the constituency between 1992 and 1997. Jonathan left this place for the European Parliament, where, in 2003, he gave me my first job, as a stagiaire in his office in Brussels. That began a long period of job swapping between the Evans and the Jones families. Jonathan would later return to this place as the Member for Cardiff North, a seat once occupied by my father Gwilym, whom I am delighted to see in the Gallery this afternoon with my mother and brother. For me now to occupy Jonathan’s former seat is a somewhat amusing development and puts a new spin on the phrase “keeping up with the Joneses”. Chris Davies, my immediate Conservative predecessor, is a man I look up to enormously. Like Lord Livsey, he was an outstanding steward for his constituency. You cannot go into a pub, a livestock market or a coffee shop without someone confirming that they know Chris well and saying what a good person he is. I will strive to be as devoted a champion for my community as Chris was.
I feel enormously fortunate to be in this House today for many reasons but largely because of the area I represent. Brecon and Radnorshire encapsulates everything I am passionate about, particularly farming, books and the military. As the largest constituency in England and Wales, there is an awful lot of Brecon and Radnor to admire. A view that will live in my mind from the election campaign comes from the top of Llanbister, right up in roof of Radnorshire. It is of the rolling green fields below, dissected by the River Ithon and neatly partitioned by hedgerows, but the beauty of that view is in its productivity and what it represents. Those lands are cultivated by farmers who keep us going, and who feed not just our stomachs, but our hearts and souls. I am enormously proud that Brecon and Radnorshire is home to thousands of farmers and farming families, all of whom ensure that our villages and towns have a positive future. In this Chamber, and in this job, I will be devoted to their service, championing what they do to produce world-class food and steward our precious natural environment.
Before I came into this House, I spent my career working for both the National Farmers Union and the Department for Environment, Food and Rural Affairs, but in Brecon and Radnor, we see that farming is the beating heart of Wales. It is not an antiquated sector that belongs to another time; it is a dynamic, interconnected industry that contributes more than £9.5 billion to the UK economy. Providing 58,000 jobs in Wales alone, it catalyses rural Britain. Tourists who flock to constituencies such as mine come because they want to see rolling green hills grazed by sheep and cattle, in a grass-fed, cattle-based system that is good for our health, our economy and, above all, our environment.
Brecon and Radnorshire is not purely farming. We are home to world-class cultural festivals such as Brecon Jazz, the Green Man festival and, indeed, the Hay literary festival. The Hay festival is known to many as the Woodstock of the mind. It is a bastion of literature and independent thinking, and the town itself is, too. With 22 independent bookshops, Hay-on-Wye is paradise for a reader like me. Over the coming years, I hope to welcome many Members to Hay for the festival, but I hope that as they arrive, they will think of the man who put Hay on the map: Richard Booth, the self-appointed king of Hay, who declared Hay an independent kingdom in 1977. One of the most beautiful bookshops in Hay still bears his name. Despite our having lost Richard in August last year, the independent spirit with which he imbued Hay-on-Wye is thriving even now. However, I would like to reassure my colleagues, the Whips on the Front Bench, that I will curb any independent spirit that I might once have had.
It was once said that the first world war might have been won on the playing fields of Eton, but the Falklands war was won on the hills of Brecon. We are a proud garrison town and our military links are obvious from the moment someone drives off the A470, when the Infantry Battle School and Brecon garrison are some of the first things they will see. Although the Brecon Beacons are breathtakingly beautiful, I am proud that our military strength comes directly from the training that they get in our outstanding national park. I wholeheartedly applaud the Government’s efforts to acknowledge the service given by our military personnel. Our bravest deserve nothing but our respect and gratitude, and they can certainly be assured of mine.
There is one military link that I am especially keen to promote. During the election, I was pleased to meet a Major Khusiman Gurung, who served as Gurkha Major of the 1st Battalion the Royal Gurkha Regiment. The Gurkhas are well known for their strength in battle, but also for their devoted service to the Crown. With the strong Gurkha community living and working in Brecon, the relationship between Brecon and the Gurkhas is special and ongoing. It was cemented last year, when the town was twinned with Dhampus in Nepal. In many ways, I think it may be slightly easier to get to Nepal than around Brecon and Radnor. I am very grateful to the Gurkha community for their service and look forward to supporting them as their Member of Parliament.
The Bill is small but mighty—much like myself, in many ways. It offers farmers the one thing they need: certainty. Farmers are able to withstand drought, disease and even Government interference, if they are able to plan. As we leave the European Union, this Bill gives the farming sector the confidence it needs to go forward. In the coming weeks and months, we will work closely with the farming sector, not against it. It is only with that sort of approach that we will make any difference to the enormous challenges that this country faces, particularly the impending threat of climate change. It is my firm view that farmers are a tiny part of the problem but an enormous part of the solution.
When I was elected as Member of Parliament for Brecon and Radnorshire, I won first prize in the lottery of life. I thank every single one of my constituents—those who put their faith in me and those who did not. It is the honour of my life to serve them all and to serve in this one nation Conservative Government.
Dr Caroline Johnson (Sleaford and North Hykeham) (Con)
I congratulate my hon. Friend the Member for Brecon and Radnorshire (Fay Jones) on her wonderful maiden speech. I campaigned in Brecon and Radnorshire last year and can testify to the fact that as well as being a long journey from Lincolnshire it is an incredibly beautiful constituency, and it is very lucky to have such a passionate campaigner representing it.
Before I talk about the Bill, I should mention that I am married to a farmer who receives some money from the payments to farmers.
Dr Johnson
He does deserve them; my hon. Friend is right.
The Bill is narrow in scope but, as my hon. Friend the Member for Brecon and Radnorshire said, it is small but mighty. The Bill in essence fills a legislative gap caused by our leaving the European Union. When we leave, the rural payments from the EU, unlike some other payments that will continue to the end of the year, will need to stop at the end of January, because the payments that farmers apply for this year in March and that are paid at the end of the year will come out of the 2021 EU budget, of which I am pleased to say we will not be part. The Bill will fill a small legislative gap and continue the scheme for the whole UK.
Leaving the EU is a great opportunity for the United Kingdom. The voters in Sleaford and North Hykeham voted overwhelmingly for it and, at the general election in December, the Conservative party received a huge mandate to deliver it. This morning, I went to Conservative campaign headquarters, where I saw the clock counting down the 10 days until we deliver Brexit and take back control of agriculture policy, among other things. That will give us the opportunity to develop better agriculture support for farmers, help them with economic opportunities, improve the labelling and quality of our food and improve our exports and trade with countries outside the European Union.
The budget for farm payments currently stands at £3.5 billion a year, of which 80% is largely based on the acreage that the farmer farms. Last year, £21 million was given to farmers in Sleaford and North Hykeham alone. It is really important money because 42% of farms would not be profitable were they not to receive the money from the Government. This is not supporting unproductive business, but instead is supporting our farmers and helping them to deliver high-welfare, environmentally sound, healthy food production.
Carla Lockhart (Upper Bann) (DUP)
The hon. Member referred to her constituency; she will well know that in Northern Ireland the agri-food sector and agriculture make up to £5 billion of turnover in the economy. Does she agree that it is vital to take into account the size and type of farm and land in the policy going forward? The Government should engage directly with farmers in Northern Ireland. In that vein, I invite the Minister to my constituency in Upper Bann to visit farmers and see the difference between farming in Northern Ireland and farming on the mainland. Does the hon. Lady agree on that point?
Dr Johnson
I cannot promise that the Minister will visit, but I certainly agree that there is great importance in looking at the different size of farms and the different types of schemes that will be right for each different type of farming as we leave the EU. I will discuss that later.
It is noticeable that we are the party of farmers—of supporting farmers and rural communities. That is obvious today as we look around the Chamber and see how well supported this debate is on the Government Benches compared with on the Opposition Benches.
Simon Hoare (North Dorset) (Con)
Does my hon. Friend agree that one task of everyone in this place who supports British farming and agriculture is to make the clear argument, as she is, about the importance of the sector to an increasingly urbanised media, commentariat and, indeed, House of Commons? There are more urban MPs than there are rural. We need to make sure that the needs of agriculture in this country are well understood.
Dr Johnson
I could not agree more with my hon. Friend; he is absolutely right. I have a new map for my office wall that shows the constituencies by colour, as per the recent election result. It is noticeable that rural Britain is overwhelmingly blue in representation, because we are the party of the farmers. I am sure we will continue to make the arguments positively and that Ministers will continue to do the same.
Karen Bradley (Staffordshire Moorlands) (Con)
I thank my hon. Friend for giving way. I would like to build on the comments of my hon. Friend the Member for North Dorset (Simon Hoare) in his recent intervention. My farmers in Staffordshire Moorlands contribute so much to the local economy. They often say that what they really want is a fair price for what they produce, but they need support to be able to achieve that. Does she agree that the challenges that the farmers in Staffordshire Moorlands face are different from those of the farmers in her constituency and that therefore we need a scheme for rural payments that recognises the differences across the country?
Dr Johnson
I absolutely agree with my right hon. Friend. The challenges in farming are certainly very different from the uplands to the lowlands and to the flat areas of some of the eastern counties, and we need schemes that reflect that without their being so overly complex that nobody knows which ones are right for them.
We have £3.5 billion, which comes in part from the UK Government budget and in part from the EU— although one should perhaps reflect on the fact that the EU money coming back to us was probably ours to start with. I have a few questions for the Minister. We have committed to keeping the budget the same in this Parliament. Is that the total budget that would have come from the UK Government and the EU, or is it just from the UK budget? It is likely that costs will increase over time—tractors and fertiliser become more expensive. Will the money come in the form of a cash budget, or will it increase in line with inflation over the next four years?
I also have a question about the currency. Today, €1 is worth 85 pence, but it might not be in September. Normally, the budget is set in euros and, in September, the currency is reviewed and the money for British farmers converted into pounds. This will affect our farmers’ costs and competitiveness, so if, in September, it looks like they will receive less as a result of the currency changes between now and then, will that be adjusted accordingly?
I understand that when the CAP is abolished under the withdrawal agreement payments to farmers will be exempt from state aid rules, provided they are equivalent to the CAP. How would the currency fluctuations affect that rule?
I wish now to look at the different types of payments that are made. As I have said, 80% goes broadly to acreage, but 10% of people get 50% of that money, and the smallest 20% of farms get only 2% of the money. This fact is often published in the media. Indeed, £2.8 million is given to farmers in Westminster when there are no farms in Westminster. This does make it a less popular scheme, and it makes it very difficult for new entrants to farming—people who want to be farmers but who were not born into a farming family—and creates an increase in the drive for size of farms. That is why I welcome the changes that the Government are making. Their new schemes will be much more sensitive, because they will look at what the farmer delivers rather than how much land the farmer owns. That is a much more positive scheme.
Many of my constituents write to me almost every day with their concerns about the environment. This is something that the country can really get behind. They want farmers to produce good food and they want the environment to be supported, so giving farmers money on the basis of what they do, rather than on how much land they have, is a very positive change. Indeed, 96% of farms are run by families—combinations of parent, child and grandparent—who see themselves as generational custodians of the land, rather than the owners of property. They also care about ensuring that the land is well looked after and that the environment is cared for so that it can be a profitable and productive farm, producing great food in the next generation.
I know that my farmers locally in Sleaford and North Hykeham welcome the Government’s scheme to produce clean air, clean water, quality soil, biodiverse habitat and a beautiful rural environment and to continue all those things. None the less, I do have a couple of points on this matter, too. The first is about size and complexity. At the moment, one criticism of the scheme is that the money goes to the very richest farmers. If there is a plethora of different schemes—we recognise from the contributions made so far that there needs to be different schemes for different types of farming—or if they are too difficult to understand, only the largest farms with an office full of staff, who are able to weigh up the pros and cons of different schemes, will be in a position to take advantage of them. Farms run by small family combinations, or even a solitary farmer, will find it much more difficult to work out which scheme will work for them.
That is also true of the design of the schemes. For example, one of the laudable aims of the Government is to increase the accessibility of the countryside to the public. However, that is much easier for a huge landowner who does not live on their farm to achieve than it is for a farmer who lives in a very small farm and who may be suffering from the effects of rural crime and not really want people coming through their farmyard.
Ian Paisley (North Antrim) (DUP)
I appreciate that the hon. Member has given way. She is making an absolutely excellent point about how these schemes work. I am sure that, like my farmers, farmers in her constituency will work out quite quickly which schemes benefit them the most. Does she agree that the key issue in this direct payments matter is to ensure a rebalancing of the relationship between the primary producer—the farmer—the supermarkets and the processors in between? If that relationship is right, farming really can flourish for all of our nation.
Dr Johnson
I thank the hon. Gentleman for his intervention. He is right that, for too long, farmers have not necessarily been treated fairly by all the supermarkets. The Groceries Code Adjudicator and some voluntary schemes by some of the supermarkets are improving the situation, but I do agree that there is still a long way to go to ensure that farmers receive a fair proportion of the reward for food production.
Will the Minister elaborate on what guidance and help will be available to smaller farmers to ensure that they can easily understand the scheme options, rather than having to go through lots of government papers?
Finally, I want to echo a couple of points that have been made on the multi-year settlements. Minette Batters, head of the National Farmers Union, and some Members in the Chamber today have talked about the importance of a multi-year settlement. This Bill does great things in ensuring that farmers know what they will get this year, but, as yet, although we know the size of the envelope, we do not know how the money will be targeted for the year after. When designing environmental schemes, I would encourage the Minister to design longer-term ones as far as possible, because if a farmer is to plant trees or plough up fields to create a meadow, they need to know that that will be there for a long time, and that they will not have to change it again, or be incentivised to plough that meadow up again in two years’ time.
Virginia Crosbie (Ynys Môn) (Con)
Does my hon. Friend agree that the farmers of Ynys Môn are vital to our economy and to our communities and that they and their families—she mentioned much about families and the family farm—need certainty to plan for their children’s future and for their own future?
Dr Johnson
I thank my hon. Friend for her intervention. She is indeed right that we need certainty and a multi-year settlement. Farmers also need paying on time. There was a reference earlier to the RPA. As part of the Environment, Food and Rural Affairs Committee in the previous Parliament, I can say that we did an inquiry into how quickly those payments were made to farmers after they were applied for. I am pleased to say that, under the tenure of this Government, that has improved and the target of 90% was met. In fact, it was exceeded this year, but there have been huge difficulties with mapping. I look to Ministers to ensure that, as these new schemes are introduced, the Department is well resourced and has the right type of staff to be able to ensure that farmers receive payments promptly when they deliver these great public goods for our community.
Finally, I want to talk about one public good in particular. As a children’s doctor myself, I am very concerned about the health of our children. Some 22% of five-year-olds in the United Kingdom now are obese. Only 8% of children get their five a day, and that has not massively changed over the past 30 years. However, what has changed is that, 30 years ago, 83% of that fruit and veg was produced in the UK, and now only 54% is grown here. That means that we have a huge capacity to improve the amount of home-grown fruit and veg. In fact, we could grow the sector by 66% overnight if people were to consume their five a day immediately. I encourage the Minister to think of the public good of producing extra food as well as producing environmental access improvements. We should think of food production, particularly fruit and veg production, as a great public good for our society, as it would really help to improve the health of our nation.
Richard Drax (South Dorset) (Con)
As I stood up, I received a text message saying, “Wind up”. I do not think it referred to me personally, but I will not keep the House for too long. I refer Members to my entry in the Register of Members’ Financial Interests; it is very important that I do so in this particular debate.
I welcome the hon. Member for Plymouth, Sutton and Devonport (Luke Pollard) to his place. It is nice to have a shadow spokesman who comes from the land and who understands how the farming community works. I also congratulate the hon. Member for Angus (Dave Doogan) on his excellent maiden speech, and my hon. Friend the Member for Brecon and Radnorshire (Fay Jones) on her very passionate speech. May I pick up on two points she made? First, as an ex-solider, I have marched up and down Pen y Fan more times than I care to remember, and my back is still paying the price. Secondly, she talked about curbing her independent spirit, but may I urge her not to do so and to stick with it?
May I rename this the “Common Sense Bill”? As the MP for South Dorset I have hosted farm meetings in my constituency over the past nine years, and the consistent message to Government—the Minister has visited on two occasions, which has been extremely appreciated—is that common sense is needed in agriculture. There is not a farmer in the land who wants to destroy the soil, pollute the water or damage the air and ground—they just do not exist. Farmers live on the land because they love the land. They want to produce good food, and, on the whole, food standards in this country are among the highest in the world. Please can Ministers not forget that? While there are calls on climate change and one thing after another—and of course we accept that as farmers—can common sense dominate the legislation?
We are leaving the EU on 31 January. I for one, along with many others, have fought to do so, and I welcome that huge move. We will still be vulnerable, of course, to EU rules until December 2020, when hopefully a deal will be struck. In that time, can we please ensure that the EU does not impose more rules and regulations on the farming community, which it would have the power to do?
I will be brief. I want to pick up on the phrase, “public money for public goods”. The Policy Research Unit note lists measures such as enhancing air and water quality, improved access to the countryside, reducing flooding, tackling climate change and improving animal welfare. As I said at the start of my speech, every single farmer in this country is already doing that. They do not need any more heavy-handed legislation. When we leave the EU, will the Government please remove, as they said they would, the big boot of the state and give farmers the responsibility to produce food, as most of them already do? The words “food production” were missing from the previous Agriculture Bill, but I am glad that that is now being promoted.
The key thing is that food be bought at a fair price. The National Farmers Union has provided a sobering figure. I hope I am quoting it correctly, but it told me that were we to get a fair price for wheat now, it would be about £450 per tonne. At present, it is about £120, £130 or £140 per tonne, and that figure has not changed for decades. The point I am making is that we still get cheap food, which is one of the reasons why subsidies are given to farmers. As has been pointed out by my hon. Friend the Member for Sleaford and North Hykeham (Dr Johnson), if that did not happen, many farmers would go bust.
I never hear any Government Minister—in fact, I do not hear anyone—talk about profit when it comes to farming. Everyone seems to think that food should just arrive on their plate, it should be cheap and there should be masses of it. Farmers have to be taken into account, and the Government have to think far more carefully about the future, to protect our farmers.
Simon Hoare
I am grateful to my county neighbour for giving way. He is talking with his customary sense on these issues. Does he agree that we all need to remember that at no time in our history have we spent a lower percentage of family income on our food? We need to make a better argument on the point that he is making, which is that provenance and quality have a price?
Richard Drax
I absolutely agree with my hon. Friend and neighbour. The point of the CAP, with all its faults, was to provide cheap food and to provide it consistently. One could argue that the system was flawed—in many ways it was—but that was the honourable aim of it.
I want to touch on one or two points connected to the Bill. We hear time and again about the need to reduce flooding. I hear the word “rewilding” being used more and more. Before long, I am sure there will be wolves back in Scotland. There is now talk of putting beavers back in Dorset. A beaver creates a dam. A beaver has younger beavers and they go off and create more dams. The rivers in Dorset are tiny, and if they are dammed and protected—as surely they would be by the environmental lobby—there will be flooding on an epic scale. Can we please look at evidence-based beaver rewilding, rather than just banging beavers back into Dorset or anywhere else without any thought for the consequences? While welcoming wildlife, which we all do, can we please have some common sense in its reintroduction?
Points have been made about the multi-annual budget. Farmers desperately need consistency and certainty of income because, as we have heard, they are reliant on the weather. The weather is not always particularly kind to farmers, but it is vital that they have incomes to survive.
We have all had experiences of the RPA. I sat on the Environment, Food and Rural Affairs Committee with my hon. Friend the Member for Tiverton and Honiton (Neil Parish). The RPA attended on many occasions, and each time it had fallen short. It has to make sure that the money gets to the farmers.
Ben Everitt (Milton Keynes North) (Con)
Certainty is absolutely paramount. When the single farm payment was introduced, I asked my dad, who was the manager of a farm, “Have you got your single farm payment?” He replied, “Some of it.” We really need to sort out the RPA payment issues.
On a wider point, as my hon. Friend the Member for Tiverton and Honiton (Neil Parish) has said, if we value something, we should pay for it. My hon. Friend the Member for South Dorset (Richard Drax) has mentioned wheat prices and the true price of wheat. There is a cost to husbanding the countryside and we should recognise farmers’ traditional role as custodians of our countryside, nature and biodiversity. If we value that, we should find a way of paying for it and of communicating that to society, so that the role played by farmers in their communities and society can be recognised.
Richard Drax
I absolutely agree with every word my hon. Friend has just said. I have huge respect for the Minister, who is himself a farmer. On valuing farmers, they have to have access to grants to meet all the environmental rules. It takes more than a few hundred pounds to dig a slurry pit, for example; we are talking about tens or even hundreds of thousands of pounds to make sure it meets all the various criteria. Small farmers just do not have access to such vast sums of money. They either go bust or ask a bank if they can borrow money, and in most cases the answer will be no. Farmers, particularly small farmers, need access to grants to help them to farm efficiently and to address all the environmental concerns.
I have two final points to make. I absolutely concur with the shadow Minister on food security. Food in this country will be affected by scares all around the world and, in the worst-case scenario, war. We have been there before with world war two. I am not saying that we are going to go to war again, but all sorts of dramas and strategies around the world could lead to some sort of food shortage. Therefore, food security—looking after food production in our country—is absolutely crucial.
Finally, I agree with the NFU that there is no point in meeting all the extraordinary standards set in this country, with which I entirely concur, only to be undermined by imports from other countries, particularly third-world countries, where the standards are nowhere near as high as ours and they can reduce the price of their food. Of course, people purchasing food, particularly the large supermarkets, will be tempted to go down the cheaper route, so may I urge the Government to keep an eye on that?
Alicia Kearns (Rutland and Melton) (Con)
I congratulate my hon. Friend the new Member for Brecon and Radnorshire (Fay Jones), who gave a wonderful speech, and who will bring experience, and also a great deal of heart, to the role. The new hon. Member for Angus (Dave Doogan) spoke passionately about his geographically protected foods. I hope he will join the new all-party parliamentary group on geographically protected foods that I intend to establish.
This debate on the direct payments Bill is of such importance to my constituents. Rutland and Melton is an agricultural hub for our country, with arable, dairy, sheep, pig, poultry, bison and many more types of farmers, as well as—as it turns out—not just two geographically protected foods, but three, as I have learned since my maiden speech: Rutland bitter, Stilton cheese, and, of course, the pork pies, on which I refer Members to my entry in the Register of Members’ Financial Interests. The agricultural sector not only powers Melton as the rural capital of food but powers our amazing cattle market in Melton Mowbray, which is visited every week by farmers from across the country.
Given the importance of agriculture in my constituency, as well as the referendum result where we voted to leave, I am pleased to support this Bill. It ensures that we honour the result of the referendum but also provides the continuity and support that our farmers need. The certainty that this decision on direct payments will provide for farmers will have real benefits, and not just to farmers. In Leicestershire, for example, there are over 1,000 people employed in cheese and meat factories, often working with locally sourced products in a way that respects the local environment. According to 2018 estimates, there are nearly 40,000 agricultural workers in the east midlands, and the vast majority are in my constituency.
While certainty is delivered, I am also pleased the Government have promised, along with this Bill, to introduce a new payment scheme that will encourage farmers to tackle climate change, protect our water and improve animal welfare. Giving farmers certainty matters, because food is a national security issue. There are countries out there that seek to undermine our economy by flooding the market or withholding goods to achieve their strategic intent, so protecting our farmers matters, to protect our environment, to feed our people, and for our shared national security.
I take this Bill to be the first step in fostering an agricultural step change in the United Kingdom that will transform the agriculture industry by recapturing our sovereignty, by defending the farmers, who are the lifeblood of many of our communities, and by protecting our country—particularly those in Rutland and Melton, for whom farming is their lifeblood and their life, and who proudly feed this country.
Daniel Zeichner (Cambridge) (Lab)
It is a pleasure to wind up for the Opposition on the very wide-ranging debate that we have had. I echo the words of my hon. Friend the Member for Plymouth, Sutton and Devonport (Luke Pollard) about some of our predecessors in the shadow Front-Bench team: the former shadow Secretary of State, Sue Hayman; my good friend and near neighbour, Sandy Martin; and the inestimable David Drew. As Members may note, we have suffered a few casualties along the way, which is why I find myself at the Dispatch Box today.
Some may have thought that this Bill seemed like a warm-up lap for the Agriculture Bill, which we will be coming back to. However, we have had some excellent contributions, including three hon. Members making their first speeches in this House. The hon. Member for Brecon and Radnorshire (Fay Jones) gave a very exciting and vivid account of a beautiful constituency, speaking about the importance of tourism and farming to its economy, the huge cultural contribution it has made, and the very important contribution made by the military. We heard another moving account from the hon. Member for Angus (Dave Doogan)—witty, but also with quite a political sting in the tail that I am sure will be noted by many.
We also heard from the hon. Member for Eddisbury (Edward Timpson), mark 2. I echo much of what the hon. Member for Westmorland and Lonsdale (Tim Farron) said in his thoughtful speech, but particularly his words about the hon. Gentleman. He was a Minister early in my time here, but he was, I think, a highly regarded Minister. Although it is not customary for Labour Members to welcome some people back, I think he knows what I am getting at. It was an excellent speech very much painting the picture of a lovely constituency.
Alongside those speeches, we had a number of very powerful contributions, including perhaps some warnings from the Conservative Benches that there are certain views about these issues, particularly the importance of producing food in our agricultural system, the difficulties around currency fluctuations, and some of the difficulties around the Rural Payments Agency. I was particularly struck by the contribution from the former Chair, and aspiring Chair, of the Select Committee, the hon. Member for Tiverton and Honiton (Neil Parish), who spoke in his customary wide-ranging style across the whole range of issues. He made some telling points, particularly about the complexities of the stewardship schemes that the future models may well be based on, and—most importantly of all, as we heard from others as well—the issue of standards, which I suspect will dominate the debates ahead.
Looking back to the election campaign, I cannot help but reflect on the fact that, throughout, the Prime Minister described his plans as being “oven-ready”. I am not sure about his culinary prowess, but looking at this Bill, it seems that the plans have been far from oven-ready. In fact, I would say that the bird was in very, very deep freeze, if not a long way from its conception, because far from being ready to go, the very first thing this Government are doing is introducing legislation to make sure that nothing changes. All that excitement about 31 January, and nothing changes—you really couldn’t make it up.
But on this point we actually do agree with the Government; I think we can all agree on it: financial certainty for our farmers as the Government take us out of the European Union is extremely important. That is why this Bill matters and why we will be supporting it today. There is a clear funding gap between the ending of direct payments to farmers under the CAP and the Government’s only-just-reintroduced Agriculture Bill, which will introduce a new system. That Bill, as we have heard, has been languishing on the sidelines for over 14 months. The question has to be asked: why the delay? Why the 14 months of inactivity, indecision and uncertainty, with payments not set to begin until 2021? So while it may not be desirable, it is right that farmers should not have to be made to pay for this Government’s shortcomings and that this Bill be brought forward to continue CAP direct payments for this year. Of course, not much has been said to farmers about what the future is going to look like. Last summer’s five-page glossy document, “Farming is changing” was a fairly brief account, frankly, and for people who are planning on a longer-term cycle, how difficult that must be.
Before raising a few points of detail about the Bill, let me say that people across the world know that we are facing a climate emergency and environmental crisis. It may be an unfortunate add-on for some Members, but we also know that modern destructive agricultural practices are, in some cases, contributing to this. In the past year, oceans have recorded the hottest temperatures on record, and insects and farmland birds have continued to decline. The result of the Government dropping the ball on this is that we are still years away from moving to a system in the UK where farmers are paid and supported to protect our environment, and we are now legislating for another stop-gap year of the CAP, which, as has been acknowledged, was simply not designed to address these important environmental issues.
The Government could have been bolder and used this Bill to fast-forward some of the environmental land management pilots that are set to replace the CAP. But as the National Audit Office’s report, “Early review of the new farming programme”, has shown, these are far from ready to go. The Government’s plan, as outlined in the Agriculture Bill, is for a three-year pilot of the ELMs to start in 2021, but it seems that DEFRA’s ambition for the level of take-up expected has already been scaled back. It was initially planned for 5,000 farmers to sign up by the end of the first year of the pilot in 2022, but that is now reduced to just 1,250. As we have heard, there are very many questions around the environmental land management schemes to which answers will need to be found to ensure that they succeed, not least whether the reduced pilot that is being talked about will provide sufficiently robust evidence across the full range of farm types and locations to properly inform the development of the new payment system. These are all points that we will develop at the Second Reading and Committee stages of the Agriculture Bill.
We welcome the key recommendations of the Bew review, which are being applied in the Bill to address some historical inequalities that we have seen in the distribution of EU funding. That clearly disadvantaged some areas, particularly Scotland and Wales. Again, however, it is disappointing that the extra funds that the Government have found for this are not being used more quickly for environmental purposes. I draw attention to a couple of points in the Bew review. Its second wider observation was:
“Ministers should try to avoid giving farmers in any one part of the UK an unfair competitive advantage when deciding future allocations.”
That point was raised by the hon. Member for Ceredigion (Ben Lake). In their response, the Government acknowledge that post-2022 funding should avoid unfair competitive advantage, but quite frankly, it is very unclear what measures they intend to take to address this conundrum. Perhaps the Minister could clarify.
It is also unclear what the Government’s answer is to the review’s third wider observation, which advocates financially recognising both
“the social value of upland farming in particular and the challenges facing those practising it”.
In their response, the Government skirt around this issue. They do recognise the
“vital role upland farmers play as stewards of the countryside and the range of social benefits that they contribute.”
Some clarity on that would also be welcome. Do the Government agree with Bew on the social value of upland farming? What do they see as those “social benefits”? Again, could the Minister clarify?
Unsurprisingly, many farmers continue to be concerned about their future funding. The CAP undeniably had many flaws, and there is no doubt that environmental degradation in the past few decades has been severe. Indeed, I dug out a dog-eared copy of Labour’s rural White Paper from November 2000—I suspect the Minister is far too young to remember it. Even then, Labour was warning that:
“Subsidies which simply reward production have damaged the countryside and stifled innovation.”
What the CAP did do over many years, however, was give some financial certainty. As the Government push forward with the Agriculture Bill and a post-Brexit trade stance still swathed in unanswered questions, that is in danger of being replaced with the certainty of constant uncertainty. For this year at least, farmers and the rural economy are being spared that because, effectively, the CAP continues.
How ironic that the very first act of the Big Ben bongers is to keep things the same. Our fear is that far from bells of liberation ringing through parishes across our countryside, the real danger is that not a lot will happen nearly quickly enough. If things prove as complicated as seems likely, and the Government do not move swiftly on the Agriculture Bill, we may well find ourselves revisiting a sunset clause in this Bill and looking at a continuation of the current CAP direct payments yet again.
In conclusion, we support these proposals, although there will be much more to say when it comes to the detail of the Agriculture Bill. However, we do see this Bill as an early warning that the Government have already wasted years, and have moved too slowly and with insufficient urgency to tackle the key climate and environmental issues that we all now face.
The Minister of State, Department for Environment, Food and Rural Affairs (George Eustice)
We have had a good and comprehensive debate, with a number of excellent maiden speeches along the way.
Many Members talked about the future of agriculture policy after the implementation period. That is a matter for the Agriculture Bill, which was presented to the House last week and will be debated in due course. A number of hon. Members made reference to trade deals and the vital importance of maintaining our standards as we enter them. I agree with that, and our manifesto set out clearly the Government’s approach to maintaining standards as we negotiate future trade deals. These issues will be reflected in future trade mandates.
The Bill before us is about a very simple issue and covers one year only—namely, the year 2020. It is required as a consequence of the withdrawal agreement, because article 137 disapplied the direct payments regulation and the horizontal regulation. The reason it disapplied that particular regulation is down to a quirk of EU CAP funding, in that the basic payment scheme payments for 2020 are funded out of the 2021 budget year. The UK will not be part of the multi-annual financial framework from 2021. It will therefore not contribute and must fund the scheme domestically for this year. The Bill simply makes the common agricultural policy, as we have it today, operable for the current year.
Secondly, the Bill addresses the issues highlighted in the Bew review. It creates the powers necessary to change the financial ceilings to implement in full the recommendations of the Bew review, so that there will be an uplift in funding for Scotland and Wales to reflect their severely disadvantaged area status. The shadow Secretary of State asked whether that fund would be new money or whether farmers in England and Northern Ireland would have their funds top-sliced to pay for it. I can confirm that the uplift for Scotland and Wales will be paid for with new funds. There will therefore be no loss to the BPS payments for English or Northern Ireland farmers.
The shadow Secretary of State, whom I welcome to his position as a fellow west country MP, claimed that the Bill before us would have been unnecessary had the Agriculture Bill passed in the last Parliament. However, he will be aware, having debated these issues with me in the Bill Committee, that in the last Parliament it was envisaged that the withdrawal agreement would be concluded, agreed and implemented before the Agriculture Bill concluded.
For reasons I am sure no one in this House need be reminded of, the withdrawal agreement became a quite protracted debate. In the event, because certain forces in the last Parliament came together to try to block Brexit altogether, that issue had to be resolved before Bills such as the Agriculture Bill could progress. I am pleased to say that it was eventually resolved through the general election. This Government now have a clear mandate to leave the European Union at the end of this month, and to do so with the withdrawal agreement that the Prime Minister negotiated in October.
It is also wrong for the shadow Secretary of State to say that had we passed the Agriculture Bill earlier, we would have been in a position to begin the agricultural transition sooner. Both our White Paper and the Agriculture Bill always envisaged the transition period starting in the 2021 scheme year. We are back on course. There is therefore no need for the Bill to cover anything other than the current year. The Agriculture Bill, which we will debate shortly, will deliver everything we need for future years.
Neil Parish
I very much welcome what the Minister is saying, because the transitional period from 2021 to 2028 is exactly the way to do it. The key will be making sure that we have the new policies in place in time for farmers to take up the new payments.
George Eustice
My hon. Friend makes an important point. Obviously, the transitional period is a feature of the Agriculture Bill that we will debate in the coming months.
The performance of the Rural Payments Agency was highlighted by the shadow Secretary of State and a number of other hon. Members. I pay tribute to Paul Caldwell, the chief executive of the RPA, and his team for the huge progress that they have made to get the current CAP system stabilised and back on track. They have just lodged their best performance for many years, with more than 93% of farmers paid by the end of December and many more paid since then. The environmental and countryside stewardship schemes have been stabilised, with those payments back on track too. In recent years, making sense of a hopelessly bureaucratic common agricultural policy has certainly had its challenges, but I urge Members to refrain from criticising the RPA while it tries to deal with those bureaucratic challenges, and I thank it for the work that it has done.
That brings me to the point raised by my hon. Friend the Member for Tiverton and Honiton (Neil Parish) about the scope to simplify schemes. The truth is that, in this particular year, the horizontal regulation and all the CAP regulation will come across, and the scope to change or simplify is very limited. There will, however, be a margin of appreciation, with the absence of draconian EU audit requirements, for us to consider how we implement those things. There will be some modest changes, but the big changes he seeks, such as addressing the problems of the three-crop rule and wider regulatory problems in the scheme, will be provided for in the Agriculture Bill and are a matter for the future.
The shadow Secretary of State and a number of other Members alluded to rare breeds. I am sure that the shadow Secretary of State has read the new Agriculture Bill, and I am sure he will read it again closer to its Second Reading. He will presumably have noted that we have made an addition to the list of objectives for public goods, to include native breeds and genetic resources, so that we will be able to directly support and recognise the public good value of rare and native breeds.
The hon. Member for Edinburgh North and Leith (Deidre Brock) made the point that this legislation is important for all parts of the UK. I am pleased to say that both the Scottish Parliament and the Welsh Assembly have granted a legislative consent motion. This Bill is uncontentious. We will have many disagreements on elements of the Agriculture Bill, but this piece of legislation is necessary for all parts of the UK.
The hon. Lady also mentioned wider issues, including seasonal agricultural workers. I would like to pay tribute to Kirstene Hair, the former Member for Angus, for the considerable work that she did on that issue. The Conservative party and the Government are now committed to quadrupling the size of the seasonal agricultural workers scheme from 2,500 to 10,000. That was largely due to the work done by Kirstene Hair. I am pleased to welcome the hon. Member for Angus (Dave Doogan) to his seat, and I am reassured to hear that he has already picked up on this issue, since the soft fruit industry in his part of the Scotland is vital. I commend him on an admirable speech.
I also commend the excellent maiden speech by my hon. Friend the Member for Brecon and Radnorshire (Fay Jones). She spoke with passion about her constituency, and I know that she will be a champion for it. As a former DEFRA official, she will certainly bring plenty of expertise to the House on Bills such as this.
It is a great pleasure to welcome back my hon. Friend the Member for Eddisbury (Edward Timpson). I have fond memories of the month that I spent assisting him in the Crewe and Nantwich by-election in 2008, the first time he was elected, and it is great to have his expertise back in the House. My hon. Friend the Member for North Cornwall (Scott Mann) raised issues about the rolling up of payments in future agriculture schemes. That is provided for in the new Agriculture Bill. I know that he is passionate about public access for schoolchildren and perhaps even cycling, and I will discuss those issues further with him.
My hon. Friend the Member for North Herefordshire (Bill Wiggin) is a committed enthusiast for our native breeds, the pasture-based livestock system and food labelling. We will debate those issues further on Second Reading of the Agriculture Bill. The hon. Member for Ceredigion (Ben Lake) asked an important question about whether this money will be required to be spent on the BPS. It has to be paid and spent within the parameters of the direct payment regulations. In theory, there is some discretion in how the Welsh Government spend it. In practice, the rules of the direct payment scheme are so prescriptive that the scope to do anything different is very limited. I point out that, under the Bew review, there has been an uplift for Wales, albeit less generous than the one for Scotland.
My hon. Friend the Member for Sleaford and North Hykeham (Dr Johnson) asked about the budget and currency fluctuations. Article 13 of the state aid rules was retained through the European Union (Withdrawal Agreement) Bill, and we do not believe that there will be any implications of having fixed the exchange rate in the year just gone for the forthcoming year. My hon. Friend the Member for North Dorset (Simon Hoare) talked about the importance of profit in farming, which I concur with. In conclusion, I hope that I have covered as many of the different points raised as possible, and I commend the Bill to the House.
Question put and agreed to.
Bill accordingly read a Second time.
Direct Payments to Farmers (Legislative Continuity) Bill (Programme)
Motion made, and Question put forthwith (Standing Order No. 83A(7)),
That the following provisions shall apply to the Direct Payments to Farmers (Legislative Continuity) Bill:
Committal
(1) The Bill shall be committed to a Committee of the whole House.
Proceedings in Committee, on Consideration and up to and including Third Reading
(2) Proceedings in Committee, any proceedings on Consideration and any proceedings in legislative grand committee shall (so far as not previously concluded) be brought to a conclusion two hours after the commencement of proceedings in Committee of the whole House.
(3) Proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion three hours after the commencement of proceedings in Committee of the whole House.
(4) Standing Order No. 83B (Programming committees) shall not apply to proceedings in Committee of the whole House, to any proceedings on Consideration or to other proceedings up to and including Third Reading.
Other proceedings
(5) Any other proceedings on the Bill may be programmed.—(Leo Docherty.)
Question agreed to.
Direct Payments to Farmers (Legislative Continuity) Bill (Money)
Queen’s recommendation signified.
Motion made, and Question put forthwith (Standing Order No. 52(1)(a)),
That, for the purposes of any Act resulting from the Direct Payments to Farmers (Legislative Continuity) Bill, it is expedient to authorise the payment out of money provided by Parliament of:
(1) sums required by the Secretary of State for making payments to farmers under the direct payment schemes provided for by the Direct Payments Regulation (Regulation (EU) No 1307/2013) as incorporated into domestic law by the Act;
(2) any increase in the sums required for that purpose where the increase is attributable to a decision made by virtue of the Act to increase the total maximum amount of direct payments in the United Kingdom;
(3) administrative expenditure of the Secretary of State incurred by virtue of the Act in connection with the operation of those direct payment schemes;
(4) any increase in the sums payable out of money so provided by virtue of any other Act where the increase is attributable to the Act and arises in connection with the operation of those direct payment schemes.—( Leo Docherty.)
Question agreed to.
Direct Payments to Farmers (Legislative Continuity) Bill
Tuesday 28th January 2020
(4 years, 10 months ago)
Lords ChamberRead Full debate Read Hansard Text Amendment Paper: Committee of the whole House Amendments as at 28th January 2020 - (28 Jan 2020)
Direct Payments to Farmers (Legislative Continuity) Bill
Tuesday 28th January 2020
(4 years, 10 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Committee of the whole House Amendments as at 28th January 2020 - (28 Jan 2020)
The Chairman of Ways and Means (Dame Eleanor Laing)
With this it will be convenient to discuss the following:
Clauses 2 to 9 stand part.
That schedule 1 be the First schedule to the Bill.
Amendment 8, in schedule 2, page 12, line 11, leave out “3(1)(a) or”.
This amendment together with Amendment 9 would make regulations under Clause 3(1)(a) subject to affirmative resolution procedure rather than the made affirmative resolution procedure.
Amendment 9, page 12, line 13, leave out “3(1)(b), 3(b) or (4)” and insert
“3(1)(a), (1)(b), (3)(b), (4) or 6(1)”.
This amendment is linked to Amendments 8 and 10.
Amendment 10, page 12, line 16, leave out paragraph 3.
This amendment together with Amendment 9 would make regulations under Clause 6(1) subject to affirmative resolution procedure rather than negative resolution procedure.
That schedule 2 be the Second schedule to the Bill.
The Minister of State, Department for Environment, Food and Rural Affairs (George Eustice)
Clause 1 provides the legal basis for the Government and devolved Administrations to make payments to farmers under the direct payment scheme for 2020. The clause is needed because article 37 of the withdrawal agreement means that the EU legislation governing the 2020 common agricultural policy schemes will no longer apply in the UK on exit day. This was fully intended; it is part of extracting the United Kingdom from the European Union’s next multi-annual budget cycle, which starts in 2021, and it allows us to take back control of agriculture policy and domestic agricultural funding.
The Bill is needed because of a quirk in the way that the EU common agricultural policy is funded. Pillar one payments—the so-called basic payment scheme payments —are funded from the following year’s budget, unlike pillar two payments for things such as countryside stewardship, which are funded from the budget year in which they apply.
Sir Desmond Swayne (New Forest West) (Con)
Does clause 1(3) include the higher level stewardship regime, or is that part of a separate settlement?
George Eustice
It includes the basic payment scheme. Only direct payments are in the Bill’s scope, and that includes the annual area payments that most farmers would receive.
As we are not contributing to the next multi-annual financial framework, we have decided that we should fund this year ourselves to provide farmers with continuity. The withdrawal agreement therefore disapplied the direct payment scheme to the UK. The European Union (Withdrawal Agreement) Act 2020 applies that agreement, and disapplies the direct payment scheme, so to pay farmers for this year, we have to provide this regulation.
Vicky Ford (Chelmsford) (Con)
Chelmsford is largely an urban constituency, but when I visited one of my local farms just before Christmas, it was devastating to see that, because of the wet weather, people there had not been able to plant any of their winter wheat. They are doing some fantastic work with new crops such as millet, so that we do not need to import that. Will the Bill help to give farmers across Essex and the east of England the certainty they need at this challenging time?
George Eustice
The Bill will absolutely give them that certainty. The Bill is essential if we are to give farmers their direct payments—those area-based payments—in December. If this direct payment regulation did not come into UK law, we would be unable to do that.
John Redwood (Wokingham) (Con)
Will the Minister confirm that as we move on to the new policy, there will be an emphasis on growing more food at home for import substitution, so that these general moneys can lead on to moneys that help us to build a bigger domestic food industry?
George Eustice
My right hon. Friend will be aware that we have presented a separate Agriculture Bill, which has had its First Reading. It sets out all the powers we would need to reform agriculture policy. The direct payment regulations before us bring the CAP into UK law and on to the UK statute book, and in the Agriculture Bill, there are powers to modify these regulations, so that we can remove the rough edges and simplify them. There are also powers in the Agriculture Bill to strike a very different course for our agriculture—a course based on payment for public goods, but also on providing farmers with grants to invest in new technology, so that they can improve their profitability or add value to their produce. That Bill also recognises that our food security is vital, and commits the Government to reviewing it every five years. That, however, is obviously a matter that we will debate in the coming weeks and months; I want to return to this direct payments Bill.
Simon Hoare (North Dorset) (Con)
My hon. Friend the Member for Chelmsford (Vicky Ford) mentioned the need for certainty in her arable sector. We have a strong arable sector in North Dorset. Does the Minister agree that the certainty that this Bill provides to our farmers is of particular importance to those involved in the dairy and beef sectors, both of which are incredibly strong in North Dorset?
George Eustice
I very much agree with my hon. Friend. The Bill will give certainty and clarity about this year to all farmers who currently make a BPS claim and have done for some years. That will include, of course, dairy farmers and beef farmers. Beef farmers in particular have been through a rather difficult year, in which beef prices have been suppressed, and the knowledge and clarity that there will absolutely be continuity this year, and that payments will be made, will be very welcome to them.
Tim Farron (Westmorland and Lonsdale) (LD)
The Minister’s own Department’s figures recognise that 85% of livestock farm income comes through basic payments. Of course, this 12-month stay of execution will be welcomed by many of my farmers, but from next January, he is planning to phase out BPS, and the danger is that there will be no certainty about its replacement before 2028. Does he not worry that we will lose many livestock farmers during that seven-year transition, and does he agree that he should therefore delay the phasing out of BPS?
George Eustice
It is important to recognise that a significant proportion of sheep farmers in particular do not receive the basic payment scheme area payment, because they are on contract farm agreements and the landlord receives that money. Nevertheless, the hon. Gentleman makes an important point. I think the principle of investing in public goods has support across the House, but we need to strike this new course sensitively and ensure that agriculture remains profitable. We want a vibrant and profitable agriculture industry, which is why the Agriculture Bill also makes provision for payments to improve productivity, and sets a quite long transition period of seven years, so that we can gradually phase out the old legacy scheme. He will be reassured to hear that the Bill before us makes no changes at all for the coming year. Farmers in his constituency can rest assured that once this Bill is passed, the direct payment scheme will operate this year in exactly the same way as it has in previous years.
Ben Everitt (Milton Keynes North) (Con)
Does the Minister agree that there is a balance to be struck between incentivising productivity and rewarding farmers for their role in looking after our countryside—the hedges, copses and spinneys that make England, and indeed Scotland, Northern Ireland and Wales, so unique in their character, and so different from some intensive agricultural operations in European and beyond? If we are to remain competitive and our land is to remain productive and profitable, we need to find a system that balances those priorities, protecting what we love about our countryside, while recognising the wonderful contribution our farmers make to our agricultural economy.
George Eustice
My hon. Friend makes a very important point. It is all about striking the right balance. The premise behind the direction of agriculture policy is this: rather than trying to put on a sticking-plaster, and masking poor profitability in agriculture, we ought to have a coherent policy that rewards farmers properly for their work to improve the environment, create new habitats and so on, and that makes them able to become more profitable by investing in new equipment, adding value to their product and improving transparency in the supply chain. That is our approach—tackling the causes of poor profitability, not masking them with an arbitrary area-based subsidy.
Simon Hoare
My hon. Friend is being characteristically generous in giving way. I hope he will agree with me, and probably most people in this House, that as important as this Bill is—so, too, is the Agriculture Bill, to which he referred—it will be for nothing if we do not have some form of equivalence clause on food imports to ensure standards of animal welfare and public health. All of the Minister’s good intentions, both for this Bill and the Agriculture Bill, will come to nothing if we suddenly find ourselves swamped by cheaper imports that make all the countryside issues to which my hon. Friend the Member for Milton Keynes North (Ben Everitt) referred absolutely irrelevant.
George Eustice
My hon. Friend makes an important point. Obviously, that is not a matter for this Bill, but our party’s manifesto makes a clear commitment to our maintaining standards as we approach new trade deals, and to our ensuring that we do not water down our standards or undermine our producers.
Neil Parish (Tiverton and Honiton) (Con)
The Minister says that there will be complete continuity of the basic farm payment over the coming year. Does that include continuity of the three crop rule and all the regulation that goes with the present system? Farmers will need to know that. They have got used to the system, and so has the Rural Payments Agency, so we need to know whether the system will be exactly the same, or whether there will be some changes.
George Eustice
My hon. Friend makes an important point, and I will come on to that when I describe some of the regulations that will be brought across by the Bill. The system will be exactly the same, including the so-called three crop, or crop diversification, rule, the requirement for environmental focus areas, all the scheme deadlines for getting forms in, and the penalty matrix. I am not a huge fan of many of those things, and have been critical of them in the past, but we have taken a decision that charting a different course is a matter for the Agriculture Bill. This is a short Bill that is about providing farmers with immediate continuity and legal certainty that they will get their payment in exactly the way they used to—for this year only; then we will set out a different approach and a different course.
John Redwood
Can the Minister remind the House how, in the implementation period, we will avoid having to pay twice—both sending money to Brussels and paying direct?
George Eustice
As my right hon. Friend will be aware, under the financial settlement in the withdrawal agreement, we did not make a contribution to the next multi-annual financial framework, so the UK will not contribute to the EU budget from 2021 onwards, and will therefore not contribute to the budget that would fund this current year of BPS. We will fund it domestically, and that is why the direct payments regulation must be brought on to a UK regulatory footing.
Neil Parish
There is an argument that for many years the UK has actually contributed much more to the common agricultural policy than we have received from it. Can the Minister assure me that as we will not make those payments, we should save some money for the Exchequer?
George Eustice
My hon. Friend will remember the debate that took place in 2016. The UK has typically received back roughly half of what it put into the EU budget, and our contribution to the common agricultural policy on average has been double what we have received from it, historically.
James Cartlidge (South Suffolk) (Con)
Further to the intervention from my right hon. Friend the Member for Wokingham (John Redwood), and so that I understand this point, am I right that in this transition year we effectively pay as if we were members, but we are also funding domestically this farming payment under the Bill? Is it netted off, or are we in effect paying more for this year overall? Does that make sense?
George Eustice
It is complicated—as ever—with the common agricultural policy, but I tried to explain this point in my opening remarks. It is a quirk of the way that the EU budget works that the EU borrows the money for the pillar one payment—the BPS and area payments—from next year. Because the payments are made typically from December onwards, the money comes out of the 2021 budget. The pillar two payments come out of the 2020 budget—the year in which the money is spent. Put simply, we have not contributed to the 2020 capped budget because it is borrowed from 2021. I know that is complicated, but in essence we are not paying twice.
Fay Jones (Brecon and Radnorshire) (Con)
Am I right in saying that the Welsh Government take 15% of the direct payment away from farmers and transfer it into pillar two, and that that is the most that any Government across the European Union can take?
George Eustice
Yes, my hon. Friend is right. Under the common agricultural policy, there is provision for something called modulation, under which member states are able to transfer a chunk of money from pillar one to pillar two. Wales transfers 15%, or modulates by 15%, from pillar one to the pillar two budget. England modulates at the rate of 12.5%, and Scotland and Northern Ireland modulate considerably less, but still a little bit. There is a provision for that, and the Bill brings that regulation into UK statute.
Without clause 1, neither the Government nor the devolved Administrations would be able to continue to operate the 2020 direct payment schemes, and that would severely affect the agricultural industry, threatening the financial viability of agricultural producers who have planned on the basis of continuity of payments for this year. The direct payments basic legislation, and the implementing and delegated legislation, will become domestic law on exit day, as opposed to at the end of the implementation.
Siobhan Baillie (Stroud) (Con)
Climate change is a threat that we must all take action to tackle, and my constituents and farmers care deeply about it. Does my hon. Friend agree that the Agriculture Bill and these changes will provide us with a great opportunity to encourage greener practices in the world of agriculture?
George Eustice
Yes—my hon. Friend makes a very important point. As we chart a new course on agriculture policy, one key objective set out in the Agriculture Bill, which was recently published, was on climate change. It is absolutely the case that we should support farmers to farm more sustainably and reduce their greenhouse gas emissions, and that will be a matter for future policy. This Bill does not envisage radical change compared with what has gone before. Some provisions—the so-called “greening provisions” that are brought across by the Bill—will potentially have a modest impact on our carbon emissions and climate change, but addressing that issue properly will be a matter for future policy.
Clause 1(3) sets out the regulations that are covered. That includes the direct payments regulation, apart from article 13. Article 13 of the direct payments regulation is still there in retained EU law, because the withdrawal agreement Bill brought that element of the regulation across, so we do not need to do that a second time. We need that state aid provision because the withdrawal agreement committed us to an equivalent approach to the EU for this year. There is also the Commission delegated regulation (EU) No. 639/2014, which supplements the direct payments regulation, and Commission implementing regulation (EU) No. 641/2014, which lays down rules for the application of the direct payments regulations.
Joy Morrissey (Beaconsfield) (Con)
In Beaconsfield, we are still very keen to receive these payments, and the Minister is right to bring forward the Bill. Many of my farmers would like to produce more, but that is currently restricted under the CAP. Does the Bill deal with that? For example, I have a chicken farmer who would like to increase the number of chickens and eggs that they produce, but there are restrictions because of the common agricultural policy payments. Is there anything in the Bill that will allow them to increase productivity as we move out of the EU?
George Eustice
If my hon. Friend writes to me on the specific issues for the chicken producer that she mentions, I am happy to look at that. As a general rule, poultry producers tend not to qualify for the basic payments scheme, because it is area-based. Of course, it could be a mixed enterprise, where the producer has a poultry unit and some land on which they claim BPS. There are also some domestic environmental regulations and a licensing scheme that the Environment Agency runs that would affect certain establishments in the poultry sector.
The Bill brings across existing legislation exactly as it is and does not envisage any change. The only change might come from the absence of EU auditors, as this is no longer an EU budget. Therefore the absence of the risk aversion that is a feature of Whitehall—where we have perpetual legal jeopardy and the constant threat of infraction, of disallowance risks and of arbitrary fines slapped on by EU auditors—means that we may be able to have a margin of appreciation in how we interpret some of these regulations, so that we can, for instance, send farmers a warning letter, rather than stinging them with a fine as we are required to under EU law.
Alex Chalk (Cheltenham) (Con)
It is very welcome to us in Cheltenham that in future the Government plan to use state support to promote biodiversity on farms to a far greater extent than is permissible under the CAP. However, will the Minister indicate how we can expect our landscape to change as a result of these very welcome policy changes?
George Eustice
The Agriculture Bill, which is a matter for future discussion, envisages in clause 1 that we would support, for instance, measures to reduce climate change and carbon emissions and measures on carbon sequestration. We have a commitment to establish additional new woodland areas. In some areas, I suspect that there would be some land-use change. We also want to use our future policy to support a more sustainable approach to farming, for instance getting more farmers involved in catchment-sensitive farming schemes, integrated pest management, better soil husbandry and better stewardship of our hedgerows. All these issues will have an impact on our environment and its biodiversity.
Simon Hoare
The Minister talked about having a lighter touch, in terms of moving to a warning letter rather than having fines, and many farmers will breathe a huge sigh of relief at that. What scope does he see in the Bill to build on the trend of performance improvement, which we have started to see from the RPA but where there is still headroom for further improvements, therefore hopefully further de-stressing the art of agriculture in this country?
George Eustice
My hon. Friend makes an important point, which links to something I said earlier about the removal of the perpetual legal jeopardy that Whitehall has been subjected to while we have been an EU member. The issue, particularly in the CAP, is that there is a system of fines relating to what is called disallowance risk. The UK typically pays around £100 million a year in disallowance risk fines, often for very trivial errors such as a supposed lack of accuracy on maps, with a requirement that we map fields to four decimal points of accuracy, and issues about how things are recorded—even though they may be recorded, it may not be in the form that the EU auditors require. Some EU audits retro- spectively make things up, so we never know how an auditor will interpret the regulations in front of us. That means that officials who work very hard in DEFRA to make sense of these complex regulations will often take a view, have legal advice and interpret a regulation in a particular way. Subsequently, auditors will come along with a different view and that creates a disallowance risk. It is a very difficult situation to have a constant sense of legal jeopardy, which leads to risk aversion and people being very cautious and sometimes quite draconian in how they deal with farmers. That has been a constant problem with the existing scheme.
Simon Hoare
As a former Parliamentary Private Secretary to my hon. Friend, I am pretty forensic on these matters, as he will know—I am grateful to him for his indulgence. What plans do he and our right hon. Friend the Secretary of State have for communicating, monitoring and embedding the change of culture in the RPA? I do not say this to be rude to the RPA, but it will have been trained in a certain way of doing things and, rather like people who have been held prisoners for 40 years, will have no idea how to deal with its freedom once it is released. How will he ensure that the lighter touch that is now available as a result of the domestic legislation is communicated to all levels of the RPA so that as soon as possible, from day one, farmers will feel the benefit? A legislative change, if not implemented by the practitioners, is no change at all.
George Eustice
My hon. Friend makes an important point. All of us—officials in Whitehall, Members of this House, and indeed, generally as a country—have to get used to our freedom and to enjoying it, and develop the confidence to exercise judgment in all fields as we leave the European Union and become a genuinely self-governing country again, which is what we will do.
I have already had a meeting with the chief executive of the RPA. It has made considerable progress over the past 18 months in improving its performance, but I have tasked him with looking at any changes in process—anything that could be adapted, removed or changed—that would make the application of the scheme easier once we have removed the constant threat and legal jeopardy caused by EU auditors, so we are doing a piece of work on this.
John Redwood
I just want to say well done to the Minister. It is really uplifting that there is something positive and that we can save some money.
George Eustice
I thank my right hon. Friend for that comment. He and I have taken a similar view of pan-European legislation for some time, and obviously there will be many opportunities as we leave.
Mr Richard Holden (North West Durham) (Con)
Many upland sheep farmers, particularly in my constituency, will welcome not only the extra year of payments and the confidence it will give them, but the less draconian approach that the Government seem intent on taking. With the Agriculture Bill coming, can the Minister further reassure farmers in my constituency that there will be a phased approach so that they have time to get used to the new measures?
George Eustice
Yes, my hon. Friend makes a very important point. Today’s Bill today simply brings across the existing schemes, including, as I have pointed out, all the so-called greening rules, all the cross-compliance rules, and so on. There is a small margin of appreciation that we can apply to interpret these sensibly and proportionately, which we have not been free to do to date. That said, we recognise the importance of a gradual transition to our new agriculture policy, which is why that policy envisages a seven-year transition, with a gradual phasing out of the BPS and with support to ensure that farmers have a prosperous and profitable future.
Alexander Stafford (Rother Valley) (Con)
Now we are getting rid of the cosh of legal threat hanging over our hard-working farming community, including in Rother Valley, can we use this as an opportunity to help, educate and upskill our farming community on the importance of biodiversity and so increase the flora and fauna in our beautiful areas? The farming community in Rother Valley already knows this, but what other support can the Government provide to encourage these things?
George Eustice
There are several important schemes, such as the Government-funded Farm Advisory Service and the various wildlife campaigns that also support farmers to farm in a more environmentally sensitive way. The future agriculture policy envisages that we will provide advice and support to farmers—direct on-farm advice—about what might work on their particular holding, with their particular soil, landscape and topography. It is an exciting future, and having the right technical advice will be an important part of it, so my hon. Friend makes a good point.
Pete Wishart (Perth and North Perthshire) (SNP)
The Minister will have seen the Scottish Affairs Committee report on agriculture in Scotland. It recommends that in considering the funding envelope across the UK he support less-favoured areas and that the funding follow the quality of the land. He was not particularly enthusiastic about that suggestion. I wonder if he has changed his mind. If not, on what central tenet does he see the distribution of funding across the UK being based?
George Eustice
Obviously we will work with the devolved Administrations on future funding. The Bill—in later clauses, so I will not dwell on it now—deals with recommendations for the allocation of funding this year, pertinent to the conclusions of the Bew review, which I will come on to. More generally, future policy envisages payment for public goods, but it also envisages a long transition towards that. We have given a commitment to keep the agriculture budget the same at least for this Parliament. [Interruption.] Within the UK, yes, there will be some discussions on allocation, but every component of the UK is likely to adopt a transition period during which they would want to keep, at least for a time, something akin to the current system as they move to a new one. That said, the funding settlement is for a future day and discussion, not for the Bill today, which covers this year only.
Dr Neil Hudson (Penrith and The Border) (Con)
The Minister talked about public goods. As a veterinary surgeon, I am proud to say that in Penrith and The Border, in Cumbria and across the UK we have the highest standards of animal welfare and farming. Does he agree we need to articulate the fact that those standards will not be watered down and that these Bills are an opportunity for the UK to become a beacon for the rest of the world and that we will be able to raise animal welfare standards in our future trading partners?
George Eustice
Yes, my hon. Friend makes a very important point. As I have said, we have a manifesto commitment to protect animal welfare and food standards in future trade deals. Moreover, future policy envisages our being able to make payments to farmers—for instance, those who enter into a high welfare or high animal health scheme. We have an exciting opportunity to support high health and welfare schemes that could, for instance, reduce our reliance on antibiotics, which has been identified as a clear public good for future policy.
I will return to clause 1, as I realise there have been many interventions, which I have taken because clause 1 contains the meat of the Bill in that it brings across all the regulations.
The Chairman of Ways and Means (Dame Eleanor Laing)
Order. For the sake of clarity and because new Members are present who might be concerned about sticking to the rules, I should explain that in addressing clause 1 the Minister is perfectly in order and absolutely right to address all the other aspects of the Bill because we have grouped all the clauses and amendments together, and any Member may at this point refer to any aspect of the Bill they wish to raise.
George Eustice
Thank you, Dame Eleanor.
The Bill also covers the horizontal regulation, which governs the way paying agencies should operate; Commission delegated regulation 907/2014, which supplements the horizontal regulation with regard to paying agencies and other bodies, financial management, clearance of accounts, securities and use of the euro; Commission implementing regulation (EU) 908/2014, which lays down the rules for the application of the horizontal regulation with regard to paying agencies and other bodies, financial management, clearance of accounts, rules on checks, and securities and transparency; Commission implementing regulation 809/2014, which lays down rules for the application of the horizontal regulation with regard to the integrated administration and control system—the so-called IAC system—rural development measures and cross-compliance; and Commission delegated regulation 640/2014, which also supplements the horizontal regulation with regard to the IAC system and conditions for refusal or withdrawal of payments and administrative penalties applicable to direct payments, rural development support and cross-compliance.
Duncan Baker (North Norfolk) (Con)
Does my hon. Friend agree that these proposals show how the Government are leading the fight on climate change while also protecting our precious farming community? Not only will this Bill safeguard our payments for the next year, but the whole thrust of the Agriculture Bill is to allow our farmers to farm in a sustainable, environmentally friendly way that rewards them for protecting and helping our environment, which has to be applauded.
George Eustice
Yes, my hon. Friend makes a very important point, and that is why we have set a very different course with our future agriculture policy, though it is based on payment for public goods. It is important that we support our farmers and properly reward them for the work they do for the environment.
James Cartlidge
Farming in South Suffolk is fairly horizontal—fairly flat—so I welcome these regulations. On a key technical question, under all those regulations the top level of payment awarded at EU level is in euros, whereas, of course, the allocation for the payment in UK law is in pounds sterling. Is there therefore any currency risk through the year to the payments that will ultimately be received by our farmers?
George Eustice
There is no currency risk for British farmers in this year, because the total size of the budget has already been set by the Treasury, and it has been set at the same level as last year. Under the regulations, we have to go through the formal process of setting the exact payment rate, but, because the budget has been guaranteed and it has been guaranteed that the payment system will be the same, farmers have a high degree of confidence that—barring any minuscule changes—their payment will be the same as it was last year.
My hon. Friend has put his finger on an important problem with the common agricultural policy. It introduced an entirely unnecessary exchange rate risk for our farmers, in that money was sent to the European Union in pounds and was then denominated in sterling at a fixed point in time, typically in September each year. That meant that if the pound had had a good year and had rallied against the euro, farmers found that their payment would be lower, whereas sometimes when the pound fell, as it did after the 2016 referendum, they had an early Brexit dividend and received a higher payment than they might otherwise have expected. That unnecessary exchange rate risk has now gone, and the budget is set for this year.
I do not want to bore people too much with these regulations. I have listed them all in detail, and there is a reason for that. In the European Union, particularly in the context of the CAP, there are three types of regulations. There are the basic regulations, which the Council of Ministers has quite a bit of involvement in shaping, and on which, through working groups, the member states have a vote. There are delegated Acts or regulations, in which there is far less involvement for the member states. They collectively have a kind of veto power, but have less of an amending role. Then there are the implementing Acts or regulations, which the Commission pretty much just makes up without any particular involvement of the member states.
That said, I am conscious that Members will never have debated any of these regulations. Ministers will have been aware of debates and discussions taking place in working groups as the basic regulation was formed, and they will have received submissions letting them know that something alarming had been handed down in an implementing Act and we could not do anything about it. Obviously, as we make regulations in future, the scrutiny of the House will be brought to bear, and Members will be able to engage in and scrutinise every bit of the detail of future agricultural policy.
The regulations that I read out earlier may have seemed like a list of rather meaningless numbers, but I can tell Members who are interested in what they mean collectively, in terms of what the farmer is required to do, that basic payment scheme rules are published annually by the Rural Payments Agency. Let me give Members a flavour of those.
The publication “Basic Payment Scheme: rules for 2019” sets out the key dates during that scheme year to which farmers must have regard. It includes, for instance—and all this is born out of the regulations that are being brought across today—the setting of 1 January as the official start of the year. The period between 1 January to 30 June is regarded as the
“EFA period for EFA fallow land” .
That is the period during which land must be fallow if farmers want to claim it. On 13 March, the “window opens”, and farmers can start sending in their applications. Between 1 May and 30 June, the so-called three crop rule kicks in, along with the
“EFA period for nitrogen-fixing crops”.
During that period, farmers must demonstrate that in that window and that window only, they have three crops on their farms. Another rule states that one of those crops can be fallow land, but the qualifying period for that type of fallow land is different from the one for the type that is covered by the EFA period.
There is a deadline of 15 May for farmers to submit their BPS application forms. They are then given a couple of weeks’ grace during which they can make changes, and they have until 31 May to do that. There is then a “late application” deadline, which means that farmers are effectively given 21 days to submit late applications, but will lose, typically, 1% of their payment for each late application day.
Siobhan Baillie
Will my hon. Friend tell us a little more about the legal provisions enabling amendments and corrections to be made after we have left the EU, and how it can be ensured that the Bill is operable and can continue to be implemented?
George Eustice
My hon. Friend has made an important point. Let me say two things. First, clause 3, which I was going to come on to—I understood that you wanted me to address all the clauses simultaneously, Madam Deputy Speaker—deals with that issue in respect of the claim year 2020, in that it gives us powers akin to those that were in the European Union (Withdrawal) Act 2018 to make particular modifications and changes, simply to make this body of law operable. For instance, it enables us to replace the words “European Commission” with the words “UK Minister”, or, indeed, “devolved Administration Minister”, and it gives us the power to introduce subsequent statutory instruments to make the legislation operable.
Secondly and more broadly, for the purpose of future policy, the Agriculture Bill includes a power to modify policy. This Bill does not modify policy, but it gives us the power to make operable changes akin to those in the European Union (Withdrawal) Act.
Ben Everitt
I think it important to learn the lessons of our involvement in the common agricultural policy over the years, and to consider some of the things that have gone wrong with it. In the context of implementing future changes in regulation, we should recognise that, for example, the set-aside rule—which those of us who were in farming in those days know and love—would sometimes represent the difference between profit and loss for a farm. To put it bluntly, the difference between the farm being viable and not viable was what the EU paid farmers not to grow anything. How can we incorporate that balance between productivity in our land and a viable economic agricultural and rural sector in our future legislation? I am heartened to hear that we are keeping that option in this Bill.
George Eustice
I agree that we must learn the lessons of the common agricultural policy. Having dealt with it for some seven years in total, I know that it is something of a bureaucratic quagmire. It is very difficult to navigate, and we tend to find that the more rules we invent, the more rules we need in order to make sense of the ones that we already have. That is why we end up with all sorts of complexity, as set out in the 127-page document containing guidance and rules for farmers.
The real lesson to be learnt is that whatever we do in future should be less rules-based and more based on delivering outcomes, and should also be tailored to the needs of an individual farm. When farms have poor profitability, we should try to tackle the causes of that poor profitability by helping farmers to invest and improve fairness in the supply chain, rather than by means of an arbitrary area-based payment. That is the direction of travel that we have set out.
Victoria Prentis (Banbury) (Con)
Does my hon. Friend agree that those like me who have smallholdings are often overwhelmed by the body of rules, and end up not claiming money that they should rightly claim? Has that been a problem historically, and are there any records that show how many people are covered by this?
George Eustice
Every month I have to deal with appeals lodged by farmers following decisions made against them involving, for instance, penalties or disqualifications for their particular claim year, perhaps because they were late in submitting their claim. There is often a tragedy behind those stories, and the scope for a Minister to address that within the boundaries of EU law is often quite limited, but we will have the chance to address it in the future.
Jonathan Edwards (Carmarthen East and Dinefwr) (PC)
I do not think that anyone will disagree with the Minister about the need to get rid of overt bureaucracy, but on Friday I attended a farmers’ breakfast with representatives of the Farmers Union of Wales, and I know that my local farmers fear that they will lose access to their biggest export markets. Over 90% of Welsh lamb and beef goes into the European single market. What assurances can the Minister give that access to that market will remain unfettered following the completion of the negotiations?
George Eustice
The hon. Gentleman makes an important point—a number of others have raised it—about the importance of trade. That can be about protecting our standards in respect of the trade deals that we do, but it can also be about access to the European market, which is particularly important for some sectors, notably the sheep sector. That is why the political declaration that was agreed as part of the withdrawal agreement—effectively a heads of terms—sets out the ambition to move to zero-zero tariffs on all goods. That is the approach that we will be taking, as outlined in the political declaration, but it is not dealt with by this particular Bill.
Jonathan Edwards
I know I am pushing the boundaries slightly, but was the Minister at all concerned by the comment by the Chancellor of the Exchequer about a week ago that there would be no alignment with European standards? If that is the case, there will be no access to EU markets, will there?
George Eustice
The political declaration was very clear, and it is implicit in the withdrawal agreement that we have now put in place that there will be no alignment with EU law. We are seeking agreement on the recognition of equivalence and understandings based on equivalence. It is understood that, yes, there could be some border checks and some additional paperwork, because we will not be aligning with EU law and those rights. I was not alarmed by what the Chancellor said, and I was not surprised by it, as it has been in our manifesto and it is also in the political declaration. I fully support that approach.
Simon Hoare
A moment ago, my hon. Friend was setting out the timetable for applying for the new basic payment. Could he, for the benefit of the Committee, set out in a little more detail when farmers can expect to receive those payments, on the presumption that an application has been legitimate and cleared all the necessary hurdles in order to secure that payment? Are we just going to mirror what exists at the moment, or are we going to create something different?
George Eustice
For this year, the 2020 year, the payment window will be exactly the same as in previous years. The payment window opens on 1 December. Last year, the 2019 year, we paid around 95% of farmers by Christmas or the end of December, and the latest intelligence I have is that up to 97% of farmers have now been paid. So the vast majority of farmers—well over 90% and probably more like 95%—can expect to be paid in December 2020.
Fay Jones
On that point, I have a farmer in my constituency who is still waiting for his basic payment from last year. Rural Payments Wales is in a mess over a degree of payment. Will there be any opportunity, either in this Bill or in the forthcoming Agriculture Bill, to include a measure to allow compensation when farmers’ payments are delayed by Rural Payments Wales or the Rural Payments Agency?
George Eustice
That is a matter for the Welsh Government. I know that the RPA has had its issues in the past. All paying agencies in all parts of the UK are dealing with an incredibly complex body of law with a complex audit structure around it. As I say, with that being removed, I anticipate that all parts of the UK will find it easier to get payments out in a timely fashion by the end of this year.
I want briefly to touch on some of the other types of rules that are covered by this body of regulation. It sets out all the eligibility criteria—for instance, for common land and how to apply for it. It sets out specific requirements for areas such as the New Forest, which has a separate type of approach. It also sets out all the rules on transferring entitlements. There is a feature of EU law that states that someone can only claim on an area of land on which they have also lodged a so-called entitlement attached to that land, and there is a market in the transferable entitlement. The body of regulation also sets out all the so-called greening rules that were added in the last CAP reform. That includes the crop diversification rules for arable land, which stipulate that such land must have at least three crops. It includes the environmental focus area, which is the calculation someone can apply for their hedges to count towards that area. It lists the types of crops that qualify as leguminous crops for the purpose of the EFA rules. It sets out all the rules on buffer strips, including how wide a buffer strip must be when it is alongside a watercourse, and whether someone is allowed to have arable land or pasture alongside and adjacent to that buffer strip. The list goes on. It lists the types of crops that can count towards the three crop rule. For instance, it stipulates that a cabbage can be deemed to be the same as a cauliflower for the purposes of the three crop rule because they come from the same family. In other cases, it stipulates that certain crops are to be treated as separate.
Hon. Members may well be asking why on earth we will be bringing across regulations of this clunky nature. The answer, as I said at the beginning, is to provide clarity and certainty to farmers for this year only. The common agricultural policy, as currently designed, is a bureaucratic quagmire and we have no intention of retaining it for the long term. However, we recognise that evolving from the system that we have to the one that we want will take some years, and in this particular year we are proposing no change at all.
Dave Doogan (Angus) (SNP)
I am grateful to the Minister for this information and for the insight, albeit at a slightly higher level, about how we are to proceed from the Bill into a future relationship between Government and the agricultural sector. How will he detail the relationship between Government, the devolved Administrations and the industry? Can they look forward to a two-way communication whereby they can have confidence that the Government fully understand the ambitions and pressures in the sector as we develop further legislation?
George Eustice
I can say that, for the Bill before us today, we have received legislative consent motions for every part of the UK, including Scotland. It is universally in the interests of every paying agency to have this Bill agreed and on the statute book so that they can pay for this year. Future policy will be a matter for the devolved Administrations, and I know that the Scottish Government will be charting their own course and setting out their own legislation. I know that the Welsh Government, while seeking some provisions in a schedule to the Agriculture Bill, will also now be predominantly striking their own course and making legislation in their own Parliament. It will be very much an issue for the Scottish Government to work with Scottish farmers, but of course we have procedures to co-ordinate around the UK and to set up frameworks where necessary. We also have Joint Ministerial Committees, which I regularly take part in it with my opposite numbers in the devolved Administrations.
Joy Morrissey
Regarding tribunals and disputed claims, are we going to set up a temporary agricultural tribunal or legal system to handle the processing of such claims or disputes? For example, there could be disputes over a buffer strip or over payments or claims, or perhaps when a family member of a deceased farmer has to make a new claim. Will a process be put in place as a temporary measure to handle the necessary legal framework?
George Eustice
My hon. Friend makes an important point. The short answer is that we have an appeals system in place. We have the independent agricultural appeals panel, which is drawn from agricultural experts, lawyers, land agents and farmers. It is a lay panel, but it hears complaints and legal objections to penalties coming from farmers. Once the appeals panel has made a recommendation, it comes to the relevant Minister, which is me. I have spent seven years dealing with these appeals, and I can reassure my hon. Friend that I leave no stone unturned in ensuring that farmers who lodge an appeal are given a fair hearing and that the issues they raise are taken into account.
Ben Lake (Ceredigion) (PC)
On the matter of disputes, when it comes to funding allocations between the different Governments of the United Kingdom, how does the Minister envision any disputes on that level being resolved?
George Eustice
In terms of our discussions with the devolved Administrations, these are issues that we resolve through the Joint Ministerial Committee. We have frame- works to do that.
I will take no further interventions, because I want to address the other clauses before we move on to other speeches. I am sure that other hon. Members have a great deal to say. Clause 2 applies the provisions in the European Union (Withdrawal) Act 2018 to the direct payments legislation. This is simply about interpretation, to ensure that our courts interpret this legislation in a way that is consistent with that Act.
Moving on, clause 3 contains regulation-making powers for the Secretary of State and the devolved Administrations in relation to the retained direct payments legislation. The parliamentary procedures that apply are covered in schedule 2, which is about the power to make operability changes to correct deficiencies, such as changing the words “European Commission” to “the relevant authority in England” and so on. It is simply about making the particular provisions that are brought across operable. I will address the amendments to schedule 2 when winding up, because the shadow Minister will want to make his points before I deal with them.
Daniel Zeichner (Cambridge) (Lab)
I am sure the whole House is grateful to the Minister for his extended and detailed account of clause 1. It was a gentle rural ramble that suddenly finished with a sprint, so a cynic might imagine that the Government have finished drafting their statement on Huawei, but that would be a very cynical view.
The Opposition have of course enjoyed the great interest shown by Government Members this afternoon. After listening to some of the comments, I hope that there have been no misunderstandings, because I think I heard at one point a suggestion that the CAP was going to be used to pay farmers for not producing anything, when of course that is the whole thrust of this Government’s policies. I hope that Government Members will look closely at what the Government are suggesting.
The Opposition, of course, support this Bill and the direction of travel, because there is a clear funding gap between the ending of direct payments to farmers under the CAP and the Government’s considerably delayed Agriculture Bill, which will set out the new system of payments from 2021. We fully appreciate the need for financial security for farmers in the interim, but we have several continuing concerns about this Bill, because it has been rushed to make up for the fact that the Government have lost the last 14 months to delays and wrangling and have reintroduced the Agriculture Bill just days before we leave the European Union. Unsurprisingly, farmers are anxious, and of course the urgent environmental action that we need at a time of climate crisis is also being delayed.
In this last-minute rush to fill the legislative gap, there have been several missed opportunities and a number of proposals that cut corners on the parliamentary scrutiny of which they are worthy. Our surviving amendments challenge the need for Ministers to take the direct powers included in the Bill by too often using the negative or made affirmative procedure. It was a delight to hear the Minister at one point extolling the virtues of full scrutiny, and I very much hope that he will be able to transfer that thought into support for our amendments.
In clause 3(1)(a), the Government stipulate that the regulations to remedy any deficiencies in EU law being retained in the Bill will be subject to the made affirmative procedure, and so will be decided and implemented without parliamentary debate, which we think is wrong. Clause 6(1) contains a broad Henry VIII power that would effectively allow the Secretary of State to make any regulations they deemed appropriate as a consequence of the Bill—a wide approach that has been made subject to the negative resolution procedure, which allows for no parliamentary scrutiny of the decisions being made. That comes despite the Lords Delegated Powers and Regulatory Reform Committee having said that any Henry VII power included when changing primary legislation should be subject to the affirmative resolution procedure to allow proper debate.
We appreciate that swift action might be needed in both cases, and we continue to be supportive, but we are simply making the argument, which the Minister made himself, that there should be the opportunity to scrutinise such further regulations properly, which of course is a legitimate role of this House.
With reference to schedule 2, amendment 8 deals with clause 3(1)(a) and amendment 10 relates to clause 6(1), to subject both clauses to the affirmative resolution procedure to allow for proper debate. Amendment 9 is linked to amendments 8 and 10. I stress again that we offer those amendments in a constructive spirit. We want the new Agriculture Bill to work to incentivise a whole range of public goods in return for public money, but the urgency of the need for this change in our farm payments system cannot come at the expense of unnecessary ministerial power grabs.
Clause 3(8) is a sunset clause, and we think there was a missed opportunity here to allow greater certainty for farmers. The key question that we ask people to consider is the Bill’s relationship with the Agriculture Bill and whether we are giving farmers sufficient certainty while we await the passage of the latter. Without prefiguring the discussions around the Agriculture Bill, we know that it will be highly controversial, because we do not see any guarantees from the Government that, in post-Brexit trade deals, they will guard against imports of food produced to lower standards than our own. That is a very big debate—many organisations stressed the point strongly in a letter to the Government at the weekend, and whether there will be a great future for British agriculture depends on the defending of standards. The matter is not likely to be resolved quickly and will likely be a protracted issue in any negotiations with the USA. One would have to be a great optimist to assume that the situation will necessarily be resolved in detail by the end of the year.
Simon Hoare
The hon. Gentleman gets to the nub of the argument about equivalence, animal welfare and general agricultural standards. Notwithstanding the fact that the negotiation will be detailed and probably tricky at times, does he take any comfort at all from the words of the Prime Minister, the Secretary of State for Environment, Food and Rural Affairs, the Minister of State and, indeed, other Government spokesmen about the starting point from which they begin, namely that there will be equivalence and that our markets will not be swamped? I represent a very rural constituency, and this matter is a worry for me—he will remember that from previous agriculture Bill proceedings—but I am certainly taking great comfort from what those on the Treasury Bench are saying.
Daniel Zeichner
I am sure that we will return to this issue over the coming weeks and months. We hear what the Government say, but the simple way of resolving the matter would be to put something into the Bill, which is what many people would like to see. The point in this context is that we would all agree that this is not easy. It may well take time, and it will be difficult.
Alongside the potential delays, the National Audit Office has pointed to teething problems with the Government’s planned environmental land management schemes, which are terribly important to how our rural areas will be supported in future. Added to the 14-month delay to the Agriculture Bill, the Opposition are simply not convinced that everything will be in place for the new farming payment system by the end of the year.
We want to see an urgent shift to a payment system that rewards public goods, environmental protection and welfare standards, but there is a danger of continuing uncertainty for farmers who will have to make decisions in just a few months’ time about their plans for the following year. If the introduction of the new payment system is delayed, it is imperative that a continuation mechanism is in place in this Bill.
The new Agriculture Bill proposes powers to extend direct payments in future, so we will doubtless discuss those powers at that point, but the fact remains that, as we stand here today, that Bill has not even had its Second Reading. We are starting with this Bill, and we believe it would have been wiser for the Government to have re-examined the sunset clause to allow the possibility of extending the provision of direct payments to farmers beyond 2020 in the event of any delay. That would have given confidence and, frankly, would have reflected what many of us think is likely to happen anyway.
Tim Farron
The hon. Gentleman is making some important points. As things stand, we are certain that the BPS will begin to be phased out in 12 months’ time, and there is a possibility that we will have the environmental land management scheme by 2028. In principle, he and I probably agree that scheme is a good thing but, in practice, it does not yet exist. Does he agree there is a danger that, in the seven-year transition, we will lose many of the farmers we need to deliver those public goods?
Daniel Zeichner
I suspect that discussion will continue, but the hon. Gentleman makes an important point. As I said on Second Reading, we have replaced the certainty in the system. The only certainty we have now is of future uncertainty, which makes it extremely difficult for people who are planning ahead.
The Government have expressed total confidence that a further period of direct payments will not be needed. I wonder whether we will be having this discussion again in a year’s time. They are absolutely confident that there will be no further delays and, frankly, we hope they are right, but if they are not, I suspect we and others will be quick to remind them of the problems they caused by failing to prioritise safeguards in such an extension.
Another missed opportunity is the exclusion of measures to provide potential compensation to those farmers who have faced, and likely will face, delays to their payments. I cannot help noticing that the hon. Member for Brecon and Radnorshire (Fay Jones) made this point, and I am sure she will happily support us when we return to this topic in future.
Although the Government have rightly lauded the efforts of the Rural Payments Agency to pay farmers on time this year, I am afraid we are all well aware of the previous difficulties, poor performance and delayed payments in its management of direct payments to farmers.
Of course, it is not only about the Rural Payments Agency’s past performance. Look at what it is facing now: there is a real risk that it will be diverted by planning ahead for changes next year while we enter this period of uncertainty about our post-Brexit trade negotiations and the complex provisions of the Agriculture Bill. The danger is that we will find late payments building up again at precisely the time when farmers will most need financial certainty. A sensible response to that threat would have been to make provisions to enable farmers to be compensated if they suffered hardship or financial loss because of a delay in payments under this Bill. I hope the Government will duly consider a compensation mechanism for any such delays.
Several hon. Members rose—
The Chairman of Ways and Means (Dame Eleanor Laing)
It is a great pleasure to call the newly re-elected Chairman of the Select Committee on Environment, Food and Rural Affairs, Mr Neil Parish.
Neil Parish
I thank Members for reappointing me as Chair of the Environment, Food and Rural Affairs Committee. As I said in my spiel on seeking re-election, my door will always be open to Members on both sides of the House. That was not just a ploy to be re-elected; it is very much my philosophy. I encourage Members to stand for membership of the Committee.
I direct Members to my entry in the Register of Members’ Financial Interests.
I welcome this Bill, as it is essential that farmers have certainty for the coming year. Fifty-eight per cent. of farm profitability comes from the basic payment scheme, and we need to make sure that we not only retain those payments. As we look to our trade deals and our future agricultural production, it would be great to see more of our farming income coming from what farmers are paid for their produce, rather than just from support payments, much as we welcome them.
Bim Afolami (Hitchin and Harpenden) (Con)
Does my hon. Friend agree that, on this question of rural payments, many of the changes needed are not just cultural but ministerial? They do not require extra changes in legislation, so there is an opportunity for the Minister, the Department and, indeed, Members of this House to get things right over the coming months. I have many constituents, as I am sure he does, who complain about the system very much.
Neil Parish
My hon. Friend raises a good point. If I interpret the Minister correctly, there will be much more flexibility to look at individual cases and have some discretion. I would like to see that written in blood before I am certain it will happen, as we have had so many problems over the years. My hon. Friend will know that we have had these problems not only in his constituency but across the country, and not for the want of the Minister trying to get this sorted. I believe he will, but we need to be aware of it.
I also welcome the Minister’s setting out that the entitlements for claims and all those things will be covered not only under this Bill, but in the new system. Entitlements for making claims have always been a major problem over the years, and as the systems have changed many people have fallen out of the various systems for being able to make a claim and then have had to appeal. Some of those appeals have been allowed, but some have not, and there has been some real hardship in some cases. This issue is important as we move forward.
One Conservative Member made a point about smallholdings, and it will be interesting to see what we do on that in the future, because at the moment we exclude those under 5 hectares from payments. If it is an area payment, I can see some logic to it, because of the number of claims, but if we are to move to a more environmental system, should not some of those smallholders also be entitled to a payment? I accept that that is very much for the next Agriculture Bill, but today’s Bill does allow for a continuation of payment and, we hope, some flexibility.
The Bew report recommended changes to the way in which the UK CAP funds are distributed among the UK nations. Following the review, the Government increased the amount of direct payment for Scotland and Wales. I very much welcome the money going to Scotland and Wales, but as an English farmer and someone representing an English seat, I naturally want to make sure that that goes as extra money and not at the expense of those payments coming to English and Northern Irish farmers. I think I have had the assurance from the Minister that that is the case.
Fay Jones
Does my hon. Friend agree that farmers in my constituency are at somewhat of a disadvantage, in that the Welsh Government want to phase direct payments out much faster than the UK Government? My local farmers who sit on the border between Wales and England will be looking over the hedge at neighbours who enjoy an awful lot more support from their Government.
Neil Parish
I very much welcome my new hon. Friend—it is great to have her here representing Brecon and Radnorshire. She makes an interesting point. I believe we are almost going too fast in transferring from one payment to another, given the history of not always getting these things correct in the first place, and so I would take a bit more time. The Welsh Government are going faster and that is the wrong way to go, because we have to make sure that the environmental schemes are up and running, and that they are not only delivering for the environment, but delivering cash into the pockets of farmers. I made this point last week when I said on Second Reading that some farmers believe they can replace all the money that comes from the basic farm payment with the new environmental schemes. They may or may not be able to do that. Perhaps some on permanent pasture, upland and grassland might do so, but others might not, and in Wales, that will be piling on the agony if they are not at all careful.
James Cartlidge
Obviously, I congratulate my hon. Friend on his re-election success. I very much agree with him that we need a lengthy transition and a stable period as we move to the new system; surely the important thing is investment from farmers, as ultimately we need higher productivity, but in order to get to that they need to have stability in the interim to plan that investment, with security about the outcome, until the new system is in place.
Neil Parish
I welcome my hon. Friend’s comment, because he is absolutely right. I see a problem in the future, not only with this Bill, but with the future Bill; we rightly talk much about enhancing the environment, but we also talk about the productivity and profitability of agriculture, and we must make sure the two knit together. I am absolutely not convinced that they do at the moment—I am sure the Minister and Government will persuade us otherwise. I accept what my hon. Friend the Member for South Suffolk (James Cartlidge) says, because farmers will not want to earn all their income from environmental payments, and that is not the way forward, so they therefore need to earn an income from what they produce. That is the important bit: how we have a productive agricultural system and a more environmentally based one, and how we incorporate the two. I am sure that we can, and I know the Minister has many ideas, so I look forward to that.
This Bill also deals with the Rural Development Programme for England—the development money that sometimes goes to rural areas; it goes into village halls and all sorts of wider aspects. I take it that the Bill will also cover those sorts of payments for the forthcoming year, because I know that in my area in the Blackdown hills and in others it is very important.
I intervened on the Minister to ask about the issue of our payments to the EU, but I do not think I got a complete answer. He assured us that we will not be making a double payment—the payment we pay to our farmers will not then also be paid to the EU. At the moment, we pay more into the CAP than we receive from it, so, to some degree, we subsidise agriculture across the whole of the EU. As we leave this year, we will not be making that payment to them and so we should be saving money. My question was about that and he may be able to deal with it in his summing up. I do not know whether we have the detail of that yet, but it is essential that we make that saving.
Going back to Wales and Scotland, I very much welcome the extra money there. I am very much looking forward to the Second Reading of the Agriculture Bill next week. One thing that we hope we will be able to do when we get the Select Committees back up and running is look at detail about how these new schemes are going to work on the ground, and how they are not only going to deliver a better environment and better biodiversity, but allow good quality, high animal welfare production. We very much enjoy that in this country, across the whole of our four nations, and it is essential.
One or two Conservative colleagues might throw up their hands in horror at this last statement. We have to make sure that as we roll out the new system, we take some of the parts of the basic farm payment scheme and the CAP that have worked reasonably well and we do not throw all the babies out with the bathwater. We need to make sure we take those aspects of what is good about the current system and enshrine them in the new one, while making it more adaptable and much lighter on its feet, and changing the culture of the RPA and DEFRA. We have good Ministers and a Secretary of State who will be able to interpret and help farmers into this new world, so that in the end we can deliver a better environment and better food production, and produce more food in this country, not less, and look forward to a bright future. I very much welcome this Bill.
Deidre Brock (Edinburgh North and Leith) (SNP)
At the risk of repeating myself, I am going to repeat myself. The Bill is needed only as a result of the Tory party’s descent into a Brexit fetish. Having to craft emergency legislation to do what was until now normal and routine seems almost a metaphor for the chaos to come. Here we are compensating for a Government who failed to plan and seem surprised that the logical consequences of Brexit are coming to pass. Like those Brexit supporters who have been surprised to discover that the loss of freedom of movement will in fact apply to them, too, the Government seem ill prepared for a future outside the EU.
Simon Hoare
I welcome the Bill for several reasons. First, it provides us all with an opportunity, in this increasingly urbanised media and world, to remind ourselves of the important role that farming plays, not only crucially in respect of food security but, as other Members have alluded to, in respect of landscape management, which clearly assists our tourism sector, and water quality, which clearly affects tourism in coastal areas.
The role that agriculture plays is pivotal. Part of the problem is that a lot of people glean their knowledge or experience of farming and the agricultural sector only from “Countryfile” and “The Archers”, which provide a slightly narrow picture of what it is like. They are both great programmes; they are staple listening and viewing in the Hoare house—and, indeed, where I live, as well. Sorry, I just could not resist. Nevertheless, too many people think that farmers are loaded and that the Bill is just a bung to already wealthy people. Those of us who know farmers, represent farmers and talk to them in our constituencies know that that is very far from the truth.
It is important that in times of uncertainty, as we transition from a 40-year membership of the EU to striking out on our own, we provide certainty where we can. As I said to the Minister in an intervention, arable of course needs certainty, but so too do those sectors where there are greater fluctuations, either in consumer trends, price fluctuation, weather or disease. The lamb sector, beef sector and dairy sector are the mainstays of the Blackmore Vale’s agricultural focus, while the Cranborne Chase in the east of my constituency is more chalk land—
Simon Hoare
Yes, chalk land, just like the constituency of my hon. Friend the Member for Cheltenham (Alex Chalk). I thank my hon. Friend for that sedentary heckle. It is more chalk land and therefore is predominantly, although not exclusively, arable.
Certainty is important because we are dealing with long-term planning. Do farmers have the confidence to ask lenders for money to buy a new piece of farm equivalent? Do they have the confidence or certainty to plant a certain crop? Some of my local farmers in North Dorset now grow milling grains for the German beer sector. Some of them are growing white poppies, the stalks of which are exported to Hungary for medical purposes—so that medical opium can be extracted to provide painkillers. If someone is going to put their herd or flock into a growth spurt, and if they want to see them calve and lamb, they want certainty that there is some basic underpinning to their sector. That is what the Bill does, which is why it is to be supported.
The huge scope for agritech is important, and I am certain that we will hear that echoed in the debates on the Agriculture Bill—this Bill and the Agriculture Bill are in effect two sides of the same coin. Again, the agritech sector needs certainty. There are productivity benefits and environmental benefits to it, so we must make sure that the sector, which is growing and really taking root in the UK, has the confidence to continue.
My final point is with regard to audit. Various Members have probed the Minister about the performance of the Rural Payments Agency and how, effectively, it will look. Some within the agency will be suffering from Stockholm syndrome, and they need to be freed from that and to be able to take a lighter touch. However, in reference to the point about the audit trail made by the Chairman of the Select Committee—I congratulate him on his recent election—we must not throw the baby out with the bathwater. The British taxpayer must be certain that the payments made to farmers are fair, needed and transparent. Therefore, let us make sure that there is a clear audit trail on this homegrown UK system, so that not only British farmers have confidence and certainty, but the British taxpayer has certainty that their money is being put to good purpose to support and to encourage agriculture, that vital mainstay of the British economy.
Jim Shannon (Strangford) (DUP)
It is a pleasure to follow the hon. Member for North Dorset (Simon Hoare). I congratulate the hon. Member for Tiverton and Honiton (Neil Parish) on his re-election as Chair of the Select Committee. He brings a wealth of experience to that position, and we wish him well in it.
I am very pleased to speak in this Bill Committee, both on direct payments and on the commitment that the Minister has given. As always, I am pleased to see him in his place. He understands agriculture, just as he understands fishing, for which he also has responsibility. We look forward to his co-operation with the Northern Ireland Assembly, and particularly with the Minister for Agriculture, Environment and Rural Affairs, Edwin Poots, who is my party colleague.
The agrifood sector is vital to the economy of Northern Ireland, and of my constituency in particular, whether we are talking about milk, beef, sheep, lamb, poultry or arable crops. Sustainability, to which the Minister referred, is critical to enable the agricultural sector to maintain its high food standards, and to gain through its partnership with the manufacturing companies.
Neil Parish
I am sure that my hon. Friend agrees that family farms are a structure that is to be found across the whole United Kingdom, but nowhere more than in Northern Ireland. This Bill and the future of agriculture are critical to Northern Ireland.
Jim Shannon
I thank my hon. Friend for his intervention. I agree wholeheartedly, and will go into that shortly.
I want to talk about the farmers who do well, the companies that work through them, and the partnerships that are established. Lakeland Dairies, which employs some 260 people, produces milk and powder and exports them across the world. There is also Rich Sauces, Willowbrook Foods and Mash Direct. Those are just four of the companies in Northern Ireland that work in partnership with farmers. Farmers with direct payments enable those companies to produce good products, which they sell across the world.
Farmers in my constituency and in Mid Down are ranked second for milk production across the whole of Northern Ireland. I declare an interest, Madam Deputy Speaker: I am not only a member of the Ulster Farmers Union, but a farmer, so I understand the importance to my neighbours of milk and the whole sector. I received correspondence from the Ulster Farmers Union, the sister organisation of the National Farmers Union. I welcomed the announcement from Her Majesty’s Treasury on farm funding for 2020, as it delivers on the commitment made by the Conservative party, and by the Minister. It is essential that Northern Ireland’s share of UK farm funding is maintained. It is my understanding that Her Majesty’s Treasury has confirmed to the Department of Agriculture, Environment and Rural Affairs in the Northern Ireland Assembly that the money will be rolled over from 2019 to 2020.
We hope that DAERA will be able to pay 100% of payments by mid-October. Has the Minister had an opportunity to discuss the nitty-gritty directly with the new Minister in Northern Ireland, and is there an understanding of how we will achieve the things that we wish to?
Getting a new Northern Ireland agriculture policy up and running by 2021 will be very ambitious, but I hope that the Government are up to the challenge. Last week, the Ulster Farmers Union’s beef and lamb policy committee met to discuss the priorities for the new Northern Ireland Agriculture Minister. The UFU’s hill farming policy committee will meet this week to look at its key priorities. I tell the Minister that because it is important that we work together, and that what is happening in Northern Ireland is mirrored by what is happening here.
Dave Doogan
I have very much enjoyed the observations from around these islands in this debate. I would like to reflect on the answer that the Minister gave me, and offer him an opportunity to expand on it a little in his summing up. I asked how Ministers in the UK Government would interact with the agricultural sector, its representative bodies—the NFU and the National Farmers Union of Scotland—and Ministers in the various devolved Administrations on how we take forward the next cycle of developing a post common agricultural policy, post-EU agricultural framework for the United Kingdom.
Although the devolved Administrations have substantive authority and control over many of these issues, they are necessarily subsidiary to the UK. I definitely wish that that was not the case, but in so far as it remains the case, it is incumbent on Ministers to take a co-operative and collegiate approach to setting objectives for developing, and delivering the very best for, our agricultural sector. I would like to hear how the Government intend to do that.
In the Minister’s response to a question from the hon. Member for North West Durham (Mr Holden), we heard about the phasing of the changes as we evolve after the common agricultural policy, and about how that phasing would be undertaken. That is a key element of understanding exactly what farmers and representative bodies wish to see. As the Chair of the Select Committee pointed out, there are elements of the CAP that are worth keeping, and the Minister would do well to ensure that he liaises with people on the frontline of agriculture about what those elements are. There must be recognition that although the Bill bridges a gap, it does not give an opportunity for the meaningful transition of long-term planning. Many colleagues across the House have spoken about the need for investment in capital equipment and machinery because of the changes in the produce of farms. It is important that there is some indication or signposting about transferring and evolving the post-CAP scenario into something that will really deliver meaningful material change for agriculture.
George Eustice
I wish to address some of the points raised by hon. Members, including the shadow Minister, who tabled some amendments.
On the claim that the Bill has been rushed, the reason that we need to get it through Parliament now is that we cannot allow an air gap to open up in the application of these regulations. We leave the EU at the end of January. Members will be aware, from what I said earlier, that the scheme year is already open. Farmers are already making decisions about cropping and how much land they must leave fallow. Many of the deadlines are already upon us. The scheme window opens in March, so we must have the legislation in place to ensure that the schemes can be implemented. That brings me to my main point, regarding Opposition amendments 8 and 9 to schedule 2, which would remove the made affirmative procedure. The regulations must be made by exit day so that there is not an air gap. If we waited for the affirmative procedure, these necessary regulations would not be in place in time; there would not be operable law in place. That is why the made affirmative procedure is appropriate for clause 3(1) and (3).
The shadow Minister suggested that we needed a provision to extend the Bill. We do not need such a provision because the Agriculture Bill will replace these arrangements. As far as compensation and late payment penalties are concerned, the simple fact is that we need to simplify the scheme to ensure that people are paid on time, not to have lots of complex remapping. That is what we intend to achieve through this legislation.
Question put and agreed to.
Clause 1 accordingly ordered to stand part of the Bill.
Clauses 2 to 9 ordered to stand part of the Bill.
Schedules 1 and 2 agreed to.
The Deputy Speaker resumed the Chair.
Bill reported, without amendment.
Third Reading.
George Eustice
I beg to move, That the Bill be now read the Third time.
I thank the House for the debate on this Bill, which is so vital for the agricultural sector across the UK. I recognise the frustrations that some Members might have had because of the need for the Bill in the first place, given that the Agriculture Bill is on its way. Let me reaffirm that this Bill makes no policy changes; it is about continuity. It is a small, technical Bill to ensure that the Government and devolved Administrations are able to pay direct payments to farmers for the 2020 scheme year. Our future intentions for agriculture in England have been laid out by the Government in our Agriculture Bill, which was introduced on 16 January. We know that farmers need stability, certainty and a smooth transition to our new system of public money for public goods, so we will not switch off direct payments overnight. That would be irresponsible. There will be a seven-year agricultural transition period, allowing a system of public money for public goods to be introduced gradually.
I acknowledge that the Bill is being passed according to a tight timescale. However, it is imperative that it and the necessary secondary legislation are in place and in force by exit day, which will be upon us at the end of this week. The withdrawal agreement will stop the CAP direct payments legislation applying in the UK for the 2020 scheme year. This was intended so that the UK would not have to pay into the EU’s next budget cycle, which funds the 2020 direct payment year.
Neil Parish
I am going to try once more to get an answer from the Minister. We will not be paying into the common agricultural policy money that comes back to us, but will we be paying the amount that we paid before, which contributed to the CAP across the rest of the European Union?
George Eustice
I am sorry that I was not able to address my hon. Friend’s point previously. We will not be contributing to the next multi-annual financial framework or the 2021 budget. Therefore, not only will we not be contributing and getting back money for our farmers—we will pay that ourselves—but we will not be paying into this scheme year for EU farmers, because we will not be contributing to that part of the budget.
I am pleased that the Bill is becoming law so that we can ensure that farmers in each and every part of the UK have the certainty they need as we leave the CAP, and embark on our new and ambitious programme. The Bill has received legislative consent motions from every part of the UK, including Northern Ireland, even though the new Administration formed only recently, and I concur with the point made earlier by the hon. Member for Strangford (Jim Shannon).
Luke Pollard
I thank the Minister for repeating what he said in Committee of the whole House. There is cross-party support for the Bill but, as my hon. Friend the Member for Cambridge (Daniel Zeichner) said, that does not mean that there are not some issues worth highlighting. As I said on Second Reading, I declare an interest in that I am a proud brother of a sheep farmer in Cornwall who farms rare breed sheep and is married to a beef farmer; in fact, they are both based just up the road from the Minister’s constituency.
We will not be opposing the Bill, but I need to add the climate crisis to the context that the Minister set out, because listening to the remarks of Government Members there seems to be a slight disconnect between what is in this Bill and the forthcoming Agriculture Bill, and what is in the notes that they are being given to read out. It is really important that we get this right. The Government are proposing moving from a system of supporting farmers via the land they own to a system of supporting farmers based on environmental land management and other environmental public goods. This will be a good scheme if delivered correctly. It is not a subsidy for productivity or food production. After listening to some of the speeches on Second Reading and today, I am concerned that not all Government Members have quite understood this, so I encourage colleagues to consult the recently re-elected Chair of the Select Committee on Environment, Food and Rural Affairs, to whom I pass on my congratulations; it is always good to see Members from Devon in places of authority.
It is important that we get this right because if we are fighting on the wrong pitch, we cannot do a decent job of scrutinising the biggest fundamental changes to our agricultural system since the Labour Government’s introduction of the Agriculture Act of 1947. That is why we need to make sure that this is done properly.
The Minister could address elements raised by his hon. Friends and, indeed, by my hon. Friend the Member for Cambridge, about the future of the Rural Payments Agency. The hon. Member for North Dorset (Simon Hoare) raised some valid concerns about the culture of the RPA. I commend the work of the officials there who have been working under immense pressure not only because of the potential changes how the CAP has worked but because their budget has gone down from £237.6 million when the Conservatives came to power in 2010 to just £95 million in 2017-18. If we are to change our agricultural system, the culture of the organisations that work in agriculture will also need to change, and that will need to be properly scrutinised and given time to bed in. It would be worth the Minister reconsidering our amendments that would have given Ministers slightly more leeway to look at that.
This Bill needs to be seen in concert with the Agriculture Bill. I appreciate that the Minister said that time is of the essence, and indeed it is, but time has not been of the essence over the past 14 months as Ministers sat on the Agriculture Bill, the Fisheries Bill and the Environment Bill. They have been taking it very easy, with a laid-back and pedestrian attitude. It is therefore somewhat cheeky but appropriate for the Minister to say in this context that parliamentary scrutiny cannot be delivered now because we have taken so long to get to this point. That excuse needs a bit more work, because we need to guarantee that Henry VIII powers are not being used disproportionately. I fear that in this setting they should have been used in a slightly different manner. We do need to get this right.
There are also elements of how we can support rare breeds, and other items that were discussed on Second Reading but were not mentioned in Committee and are still issues of concern for our rural communities—not only for hill farming, which I mentioned before, but for crofters, as raised by colleagues in the Scottish National party. We need to make sure that those specific types of farming are supported in any extension or new form of agricultural support. The Minister has a timeline whereby he wishes to reform agricultural support in the next few years or so, but by loading all the changes towards the end of that process, and not the start, we are giving our farmers notice that there will be considerable changes but not enough time to get it right.
The hon. Member for Westmorland and Lonsdale (Tim Farron) spoke about the importance of the ELM schemes and getting those right. This is a technical detail that I am not sure that everyone has been following. If we are to get this right, it is really important that the ELM schemes are properly scrutinised and given time so that we can not only see what the consequences are but improve them before there is a large-scale roll-out. The farming sector is willing to work with Ministers on this to get it right. We know that the “public money for public goods” approach is a philosophy that is supported by many in the farming communities, but we cannot have a new philosophy, a new approach and a new funding system implemented too fast without the proper time to bed it in and improve it to make sure that it all works. The Minister is speeding through this Bill when we could have the option of looking at whether the system needs to be extended for a further year in due course.
Jim Shannon
On the point about the importance of this transfer, does the hon. Gentleman feel that it is very important in terms our sheep markets, as the hon. Member for Westmorland and Lonsdale (Tim Farron) said? The hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards) referred to the 95% of lamb produce that goes out of Wales. In Northern Ireland the figure is 97%. With the changes coming in, it is very important that we hold on to the markets where we can sell that stuff in the meantime.
Luke Pollard
I thank the hon. Gentleman for that comment. This goes to the heart of some of the debates that might transition into our discussions on the Agriculture Bill.
I want us to have a farming system that reflects the climate crisis, taking due cognisance of food miles and the carbon intensity of importing food from one side of the planet to another when our home-grown local produce is of exceptional quality and something that we can be very proud of. Speaking as a west country MP—indeed, the Minister is another—I think we need to recognise that the south-west creates some of the most fantastic foodstuffs in the country. Representatives from right around the country have their own produce that they can be very proud of. British produce is something that we should be very proud of. I encourage all Members to support buying goods with the red tractor logo to make sure that we take steps to encourage consumer behaviour in buying local.
That is really important, because in any future trade arrangements discussed in other legislative vehicles, we need to ensure that our UK farmers are not undercut. It is important that we set out what that means, because chlorinated chicken and hormone-treated beef are of concern to many people. This does not mean that UK farmers will be treating their chickens with chlorine or using antibiotics on an industrial scale as US agriculture does; it means that we will be allowing access to our market for food produced in that way. It is not the chlorine or the antibiotics that are the main concern—it is the fact that they are used in the first place because the animal welfare standards for those animals are so low. We will need to rehearse and repeat this argument as we get closer to Second Reading of the Agriculture Bill.
It is also important to set out that we need a fairer form of farm support that makes sure that our farmers get their payments on time. Improvements have been made but there is still more progress to be made. We need to support our farmers in decarbonising agriculture, partly by allowing our natural habitats to thrive. We must ensure that farm run-off does not pollute our watercourses, as we heard earlier. We must create a system where we are moving effectively and efficiently towards public money for public goods, not a form of farm subsidy.
This Bill completes a technical amendment that the Minister could, should and probably would have made a year ago, if he had been allowed to by the Whips. I am glad it has been done now. However, as we lead up to the Agriculture Bill, we must make sure that we have a system of farm support, and a debate, that is worthy of the importance of the high-quality, nutritious, locally produced, decarbonising food production that all our farmers and, indeed, our voters want to see.
Deidre Brock
I thank the Minister for his contributions, but I was saddened that he chose not to answer any of my questions, so I will just put them on the record once again.
I was certainly waiting for an answer to my question about convergence moneys. Convergence money was supposed to level up—that being the phrase du jour—our support for farmers and crofters across the UK, paid as it was for the extent of less-favoured areas in which they are largely located. Ensuring that Northern Irish and English farmers retain their uplift means that the whole purpose of convergence moneys being awarded has been effectively ignored. I would love to hear what the Government will be doing to address that.
May I ask again what compensation for currency fluctuations farmers and crofters can expect? When can we see the details of multi-annual financial frameworks, the future basic payments, and, very importantly for Scottish farmers and crofters, the settlement that the devolved Administrations will receive?
Mr Steve Baker (Wycombe) (Con)
I listened carefully to what the hon. Lady said and have taken a moment to digest it. She mentioned compensating farmers and crofters for currency movements. Does the SNP propose to compensate all international traders for currency movements? Could she tell us a bit more about what she proposes?
Deidre Brock
We are talking specifically about the payments that are being made at the moment, so I am not really sure why the hon. Gentleman wants to drag in a completely separate subject.
Given the currency fluctuations that are occurring and have of course occurred since the EU referendum and the plummeting of the pound, most farmers would expect that some sort of compensation should be at least contemplated by the Government going forward. That is the extent of my contributions for now, but I hope that at some stage, perhaps during the passage of the Agriculture Bill, some of the questions that I have raised can be addressed by the Minister.
Tim Farron
Adding to comments that others have made, this is undoubtedly necessary legislation and we certainly will not seek to oppose it. It is a small amount of certainty in a sea of uncertainty for our farmers—certainly for mine in Cumbria.
When I speak to farmers throughout the lakes and dales and the rest of south Cumbria, they tell me that their concerns regarding our departure from the European Union are manifold. One undoubtedly is the future of direct payments and the environmental payments that we now refer to as coming under pillar two, but the concern about trade deals is massively significant. Over 90% of Cumbrian farm exports are to the single market, so a deal is critical. The problem is, of course, that if we are desperate for a quick deal, the chances of us getting a good one are, almost by definition, reduced.
It seems to me that there are three options; I cannot think of a fourth one. Option one is that we align wholly with single market rules, either officially or unofficially, in which case we have lost control, not taken it back one little bit. Option two is that we de-align and increase our standards, as many people say we would, but that will likely mean increasing input costs, making British farming less competitive at home and abroad. Option three, which is most likely, is that we de-align and reduce the standards of our production, meaning that we may be competitive, but we undermine everything that we said we hold dear and everything that our farming community holds dear. I see no alternative to those three options. We need there to be a deal, but the chances are—in fact, the certainty is—that it will not be as good as the one we currently have.
I am glad that the Government are committing to this legislation, which gives some stability and predictability for the next 11 months. While there is a commitment to £3 billion or so a year for the life of this Parliament, we have no clarification about where that money will go. For all its faults, the CAP money that came to this country was restricted for use on agriculture and the environment. If we are making up our own rules, to which there are many advantages, who is to say that the £3 billion that the Government have allotted will not end up being siphoned off to other rural pots? That might be all well and good, but it would reduce the amount of money going into agriculture. In fact, when I questioned the former Secretary of State for Environment, Food and Rural Affairs on that point, he specifically said that he could not promise that all the £3 billion would be spent on agriculture and the environment. I would like the Minister to comment on that. Will all this money be ring-fenced for agriculture spending? There is nothing to force the Government to do that at the moment. It is a likely cut in the money that will go into our agricultural sector.
Over the last 45 years or so that we have been in the European Union and the Common Market before it, we have not had to debate whether it is right to subsidise food, but we do, and if we stop, we will notice. The average spend on food in 1970 was roughly 20% to 25% of household income. Today, it is around 9%. Whether it is right or wrong to subsidise food, we have done so, and choosing not to will have enormous consequences for the lives of every one of our constituents and colossal political consequences. Thinking this through is vital.
We must consider the unintended consequences. As several Members have said, there is an understanding throughout the agricultural community—indeed, across the country—that we should be spending public money on public goods, and I completely support that, but there is great vagueness about that as things stand. For instance, farmers in my community have always opened their doors to local primary schools, so that children can look around, enjoy being on a farm and get a sense of where their food comes from. In the future, will he or she have to formally bid for funding to provide that public good? Are we in danger of getting to a stage where we account for everything and take the heart out of the public role that farmers currently provide willingly and freely?
So many of those public goods are hard to pin down. How do we make a payment to a farmer in Troutbeck, Kentmere, Longsleddale or the Langdale valley to compensate and reward them for the aesthetics of their land—for ensuring that the Lake district continues to be our premier rural tourist destination and the second biggest tourist destination in the country? How do we put a price on that or fund it? These things are massively important and will not be easily done overnight.
We must think about the value that farmers bring to the United Kingdom. In terms of the production of food, we already import nearly 50% of that which we eat. It is so important that we maintain at least what we currently produce and preferably expand our production. Farmers also maintain rare and natural habitats, promote biodiversity and look after our rich heritage landscapes, which underpin our tourism industry, worth £3 billion a year to the Cumbrian economy and providing 60,000 jobs. What about the water management work in the uplands, protecting the towns and villages from flooding? All those things are massively important, and we will have nobody to deliver the environmental goods that we so desperately need if there is nobody working in the farming industry—especially in the uplands—at the end of the seven-year transition period. If we care about the environment, we care about protecting the livelihoods of those people who are there as our partners to protect our environment.
That is why I am so concerned about the Government’s plan to start phasing out basic payments from next January, which make up 85% of livestock farm incomes in this country. That is a certainty; it is what they face. It is, if you like, a seven-year notice to quit. For all the benefits that I believe and hope environmental land management schemes will bring, they will not be available to everyone until 2028. That is seven years during which British farming has to hang in the balance. Many farmers will either choose to leave the industry before it gets bad or will go under because it has got bad. If we care about our environment and protecting the public goods that farmers bring to this country, we must do the right thing—I challenge the Minister to do this—and agree not to phase out the BPS until 2028 for anyone until ELMS are available for everyone.
Jim Shannon
It is a pleasure to follow the hon. Member for Westmorland and Lonsdale (Tim Farron), who speaks passionately for his constituents. He talked about the importance of farming to his constituency and the high-quality products that his farmers produce. My farmers in Strangford produce equally high-quality food that goes all over the world. One example is a milk product that goes to Lakeland Dairies and then travels as far as China. The former International Trade Secretary helped to secure a contract with the Chinese authorities worth £250 million over five years for that product. That high-quality produce made in my constituency is so important.
Sammy Wilson (East Antrim) (DUP)
Does my hon. Friend accept that, while it is important that any payment system to farmers be directed towards protecting the rural environment, it is equally important that there should be no disincentive to produce high-quality food?
Jim Shannon
I thank my right hon. Friend for his intervention and agree wholeheartedly with him.
Direct payments have made some really important environmental projects happen across Northern Ireland—projects that probably would never have seen the light of day and that tie into the Government’s policies on the environment and climate change. As I said to the hon. Member for Ceredigion (Ben Lake) earlier, it is not possible to stop those environmental schemes, especially where tree-planting is involved, because it is important that a number of organisations continue that work over time. The National Trust has made a commitment to plant trees in 500 of the properties for which it has responsibility. The Ulster Farmers Union and the National Farmers Union are encouraging their members to do likewise. It is vital to ensure that those schemes continue. We cannot remove a tree-planting scheme and turn the land back to agricultural land; it is not possible.
Jim Shannon
Absolutely. The Government and the Minister have ensured today that the regional Administrations in Scotland, Wales and Northern Ireland are part of this project together. It is my hope that, under this Bill as it is coming forward, direct payments can continue. I would like them to continue long beyond that, but this process moves us towards where we need to be.
There is a very important point for Northern Ireland. The Chair of the Environment, Food and Rural Affairs Committee, the hon. Member for Tiverton and Honiton (Neil Parish), referred to this earlier, and I want to conclude with this comment. In Northern Ireland, we have a history and a tradition of small farms. My farm —the farm we have in our family—is only 62 acres. Farms are getting bigger now because they have to do so to move forward, but I think it is really important that this direct payment scheme enables small farms to be viable and makes them sustainable for the years to come. Many, myself included, probably across all of Northern Ireland, were reared on a farm of 60 or 70 acres, with their children going to school, and their whole life was sustained on that. It is really important for the future that Northern Ireland and those small farms can be sustained, be viable and have a future. We wish to have that future within the United Kingdom of Great Britain and Northern Ireland. We do not want to be any different; we want to be treated the same in Greyabbey, where I live, as in Gloucester or anywhere else.
Neil Parish
It is a great pleasure to speak on Third Reading, and to follow the hon. Member for Strangford (Jim Shannon), including to raise some of the points that he made. A point made by those all across the House is that this is a continuity Bill that we very much welcome to keep the payments going as they are. However, the hon. Member for Plymouth, Sutton and Devonport (Luke Pollard) made the point for the Opposition that the last Agriculture Bill was in the 1940s, after the war, when we were looking to increase the production of food. Later we went into the common agricultural policy, which spent all of its life increasing production across the whole of the European Union until we got to the 1980s, when we had milk quotas and all sorts of restrictions to try to limit production, and so on. We have seen a whole period of agriculture and food production that has very much been linked to production.
I very much want to raise this point: as we move forward not only with this continuity Bill but with the new Agriculture Bill, we can actually take forward production and enhance the environment at the same time. I have made this point in this House so many times. The countryside we see across the whole of the four nations of the United Kingdom is not there just as God provided it, but is a managed landscape. It is managed by farmers. That is why we can have production, but also have a great environment.
As we talk about carbon and about growing trees, we sometimes forget about the amount of carbon that permanent pasture holds in the ground. If we have permanent pasture, we as humans—I do not want to be too facetious here—cannot actually eat grass, so we do need livestock and red meat production. We also need to look at varieties, species and rare breeds to make sure that we can have a very diverse agriculture in the future.
As has been said, I think there is much to be done, and sometimes we do not realise the enormous nature of what we face. Before I got to this House, I tried to make my living as a farmer. For the whole of our lives, farming policy has been dominated by the common agricultural policy, with 28 countries of the European Union wanting different forms of crops and different types of agriculture. Even if we take sheep production, which across the four nations of this country is very much an extensive form of production, we can see in France that it is a much more intensive form of production. Farmers in France produce their sheep in a much more intensive way, whereas for us it is grassland production, and I think grassland beef and sheep are going to be very important in the future market.
The hon. Member for Strangford raised a point about smaller farmers and family farms. That is where we have to be careful to say that having good-quality, high-welfare, intensive production is not all wrong. We very often say that we have some of the best poultry units in the world, but that is intensive production. As the shadow Secretary of State said, if we compare that with the production that takes place in America, we see that the density of population of chickens is two or three times that of our own, and we see the use of antibiotics in the water as a precautionary mechanism, which we have not used now for many years.
We have spent a lot of time in this country creating agricultural production that is welfare-friendly, reducing antibiotics and making sure that we can deliver high-quality production. What we do not want to see in any future agriculture Bill or certainly in any new trade deal is those high standards of welfare being watered down, including—dare I say—in any mechanism to get a trade deal across the Atlantic. Therefore, it is absolutely key, as we move not only to the continuity of payments Bill but to the new Agriculture Bill, that we do not take our eye off the fact that we need a good trade deal. The point has been raised that, while we are talking about the continuity of payments this afternoon, many farmers out there, especially in the poultry sector, do not actually receive any payments at all. They are very keen on the trade deal that will take place to make sure they can carry on having a living.
As we move forward with the Agriculture Bill and look at the new system of payment, it is important that we in this House do not actually put farmers out of business. We want to make sure that we enhance farming; make sure that farmers can then deliver good-quality agricultural production and can afford to remain in business; and very much make sure that we can deliver the agriculture that we need.
Question put and agreed to.
Bill accordingly read the Third time and passed.
Direct Payments to Farmers (Legislative Continuity) Bill
Wednesday 29th January 2020
(4 years, 10 months ago)
Lords ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Committee of the whole House Amendments as at 28th January 2020 - (28 Jan 2020)
The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Gardiner of Kimble) (Con)
My Lords, I should at this juncture declare my farming interests as set out in the register.
The Bill before your Lordships is concerned with government spending and not changes to policy; it has consequently been certified as a money Bill. I will therefore focus my remarks on discussing the principles and contents of the Bill.
The Direct Payments to Farmers (Legislative Continuity) Bill is of critical importance. Principally, this small technical Bill seeks to provide continuity and stability to farmers by enabling direct payments to be made in all four parts of the United Kingdom for the 2020 scheme year. These payments are currently worth nearly £3 billion per annum to UK farmers.
The need for the Bill arises from the fact that Article 137 of the withdrawal agreement will on exit day—at 11 pm on 31 January 2020—stop the EU legislation on 2020 direct payments from applying in the UK. This is part of removing the UK from the next EU multiannual budget, in which the UK will not be participating and it would not be appropriate for this country to continue to contribute towards.
The Government are ensuring that, before we begin to reform our agricultural system to suit our own domestic circumstances, the interests of UK farmers are protected in the meantime. It is time sensitive, as the Bill and all necessary secondary legislation must be in place on exit day, because after that point the EU direct payments legislation will cease to apply in the UK for the 2020 scheme year.
This gets to the heart of what the Bill is—and, crucially, what it is not. The Bill will lift and incorporate the EU direct payments legislation for the 2020 scheme year on to the domestic statue book. It will allow the Government and devolved Administrations to make operability fixes to that legislation so that it works and can be used to continue to make payments to farmers for the 2020 scheme year. The Bill does not allow for wide and sweeping agricultural policy reforms.
The Government are committed to ambitious and wide-ranging agriculture reform in England. The Agriculture Bill will introduce a new domestic agriculture system based on the principle of paying public money for the delivery of public goods, such as clean air and water and healthy soil. This will be achieved over a seven-year agricultural transition, starting in 2021, during which direct payments will be phased out in England. But this is not the Bill to bring about these changes.
The Bill’s purpose and scope are narrow and sufficient to provide the Government, devolved Administrations and farmers with the legal certainty that payments can be made for 2020. It is important to provide certainty to farmers, and I hope that farmers will be assured by the recent Government commitment to provide £2.852 billion in funding for 2020 direct payments in the United Kingdom. This means that the overall levels of funding available for direct payments for 2020 will be the same as for 2019. The Government have also committed to maintain the current overall annual budget to farmers each year until the end of this Parliament.
This Bill will give Defra and the devolved Administrations the legal basis for paying direct payments for 2020. This Bill legislates and works for the whole of the United Kingdom. The Government have worked closely with the devolved Administrations, which have had a unity of purpose in safeguarding the interests of the United Kingdom’s farmers.
I want to address one further important point. In September 2019, the Government accepted the recommendations of the review of the noble Lord, Lord Bew, concerning the allocation of farm support funding in the United Kingdom. I thank the noble Lord for the essential work he did on this review, which paved the way for the Government agreeing to an increase in the funding allocations for Scotland and Wales. The Bill enables the Government to deliver on their promise to uplift the funding for Scotland and Wales, while maintaining the funding for England and Northern Ireland, for 2020.
Turning to the Bill’s main provisions, Clause 1 incorporates the EU legislation governing the 2020 CAP direct payments scheme into domestic law on exit day. This will ensure that the Government and the devolved Administrations can make payments to farmers for this claim year.
Clause 2 applies Sections 6 and 7 of the European Union (Withdrawal) Act 2018 for the purpose of the legislation being domesticated under this Bill. In applying Section 6 of that Act, it provides certainty to the domestic courts about what can and cannot be considered. In applying Sections 7(2) and (3) of that Act and the Schedules, it makes it clear how the legislation we are domesticating can subsequently be amended.
Clause 3 contains five powers. There are two powers, one conferred on the Secretary of State and the other conferred on the devolved Administrations, to make operability amendments to the law we are domesticating to make sure that it works in a domestic setting. For example, it would be used to replace references to the European Commission with the domestic equivalent. I must say, particularly looking at the Opposition Front Benches, that your Lordships will be familiar with this, not least because it is akin to the power in Section 8 of the European Union (Withdrawal) Act 2018, under which the many EU exit SIs were made. There are another two powers, again one conferred on the Secretary of State and the other conferred on the devolved Administrations, to replicate any changes made by the EU to its equivalent legislation during 2020, should it be considered appropriate to do so. Quite simply, this is a discretionary keeping-pace power. Finally, there is a power conferred on DAERA in Northern Ireland to retain policy flexibility for its Ministers to continue to move entitlements in Northern Ireland towards a uniform unit value, like the rest of the United Kingdom.
Clause 4 makes provision for the domestic publication of EU regulations relating to direct payments. It also enables regulations made under the European Union (Withdrawal) Act 2018 on rules of evidence to apply equally to the body of law we are domesticating under this Bill.
As I said, Clause 5 enables the Government to implement, as far as they relate to 2020, the recommendations of the noble Lord, Lord Bew, detailed in the review bearing his name. It achieves this by making amendments to the direct payment regulation. This clause demonstrates the Government’s commitment to all farmers across the constituent parts of the United Kingdom.
This is a small technical Bill but it is none the less significant. It is about providing continuity and stability to farmers. Where the Agriculture Bill provides for the beginning of a transition in England towards a new system of paying public money for the delivery of public goods, this Bill will enable us to pay direct payments for the 2020 scheme year across the United Kingdom while also delivering on the Government’s promise to provide fair funding allocations. I beg to move.
Baroness Young of Old Scone (Lab)
My Lords, I declare my multiple environmental, food and farming interests as listed in the register. I do not know whether noble Lords have noticed, but agriculture Bills are a bit like buses, or indeed men—there is not one around for ages and then two or three come along all at once. We have had approximately one Bill a decade since the 1940s but we have had three in the past two years.
As the Minister said so eloquently, this Bill is about continuing the current system of support for farmers for one more year, and, as it says on the tin, it is simply about legislative continuity. It will continue the current system where direct payments, which make up around 80% of all payments made under the common agricultural policy in the UK, are based on the amount of land that is owned or managed by a farmer and not by any other criterion such as the food they produce, the environmental benefits they manage or any other public benefits they provide.
This of course presents a real opportunity arising from Brexit. I confess that I never thought I would see the day when the words would cross my lips—but it is an opportunity, one of the few coming out of Brexit, because the current support system is not a good way to support farmers, to deliver public benefits or to protect the environment, so we all look forward to the future changes that will not arrive with this Bill but will arrive with the next one. It will deliver on the Government’s commitment to paying public money for public goods; making payments based on environmental and other benefits that we need farmers to provide but which will not readily be delivered by the market.
The Bill before us is very routine, but we did have another agriculture Bill—one of the other three—that was introduced in 2018. That has now been withdrawn and a new version came out on 16 January. It will eventually come to your Lordships’ House and we will then have an opportunity to talk in more detail about how we can reshape support for farmers to ensure that the system is effective in fighting the twin emergencies of climate change and biodiversity decline. As I say, that is one of the few silver linings offered by Brexit.
When it comes, that Bill will need to deliver five things. I should like to take the opportunity of this Bill to remind the Minister about those five things. Just in case he has so far not slid those requirements into the legislation, perhaps he could do so between its Commons stages and it coming to us.
The first thing is the core principle of public money for public goods. How are we going to use the support system to help farmers deliver the things that the market would not necessarily deliver? Land management plays a key role in environmental benefits and animal welfare. The Government have shown a consistent commitment to these, but it would be good to get the Minister’s assurance yet again that public money for public goods will be a core principle of the Bill.
The second issue is that we should not widen the definition of public goods too far because that would dilute it. We will have other opportunities to tackle other issues delivered by agriculture. Work is well under way on the food strategy, and I think that food production should be dealt with in that strategy rather than being part of the public goods debate so that we do not see the public paying twice for a benefit: that is, at the supermarket checkout or at the farm shop for the produce they are buying, as well as paying through their taxes.
The Government have said that they are committed to delivering payments that will enhance agricultural and land management productivity. I will sound a note of caution on that. They should not be in opposition to or separate from measures that deliver environmental benefits or public goods. It would be a real shame if one part of the subsidy system was at odds with another, which was so often the case under the common agricultural policy.
Another issue that we need the future agriculture Bill to deliver is some security in the face of future trade deals. We must not see future trade deals undermine the ability of UK farmers to deliver not only thriving businesses but public goods if the Government cut trade deals that allow access to the UK market for imported food that is produced to lower environmental, welfare and safety standards.
The third thing we need the Bill to do is maintain the level of funding. It is good to get from the Minister a recommitment of the £3 billion or so figure. This is not because a farmer of my acquaintance recently muttered to me that farmers need every penny, but because, if you look at the calculations done by some of the member organisations of Greener UK, it estimated that £2.9 billion was required to deliver the environmental benefits alone, without any of the other public goods. We must not see an erosion of that £3 billion; in fact, it may need to grow. I hope we can get some assurance from the Minister that, once the public benefits have been established in what will become the Agriculture Act, the requisite funding will be there to support whatever is established by that Act.
My fourth requirement of the future agriculture Bill is that we introduce powers for better legislation to regulate for a basic minimum of environmental and other standards that must be adhered to by all farmers and land managers. That is not currently in the Government’s plans, and I would like the Minister to comment on how we can be reassured that there will be a baseline of good performance for all land managers.
The fifth point I will raise is the provision of an independent voice for farmers. We are likely to see a massive change in the way land is managed by farmers in this country. They will need all the help they can get if they are to deliver effectively and use public money effectively in the delivery of these public goods. It is not likely to be delivered entirely by their response to the marketplace or subsidy. There will have to be an upskilling and a degree of help with management of change.
That is really important, because 70% of our land surface is managed by farmers, so I also ask that the Government—independently of these pieces of legislation—think of starting work on a land-use framework. We are not making any more land. The pressures on it are increasing. We need regenerative and agroecological farming methods of the sort outlined in the recent report by the Royal Society of Arts’ Food, Farming and Countryside Commission, which I declare that I sat on. We need land to help us combat climate change; we need more trees—I declare my interest as chair of the Woodland Trust; we need to protect our water resources; we need land to help with natural flood-risk management; and we need heat reduction. We need our countryside to help with health and mental health. We need to stabilise our soils. But we also need land for development, housing and infrastructure—even the dreaded HS2. We need food security; do we want to produce more food in future than the amount we currently produce domestically? Do we want to continue to be a massive net importer of timber, or do we want to become more self-sufficient in our timber production?
All these things need land. They cannot all happen to the maximum without some thought being given, on a strategic basis, to what we want our land to be for and the appropriate balances. So I simply put the Minister and the Government on notice that, for however long it takes, I will bang on about the need for a land-use framework for England. We have them for Scotland, for Northern Ireland and for Wales; we need one for England.
My last request is my only request about the current Bill; I have really been a bit of a cheat in the way I have structured this, but never mind. The Minister quite rightly referred to the provision about statutory instruments and secondary legislation flowing from Bills such as this. There will be quite a raft of secondary legislation coming from consequent legislation following Brexit. The environment Bill, the Agriculture Bill and the fisheries Bill—a huge number of Bills—will have a raft of secondary legislation. It would be greatly welcomed if two things could happen. First, the Government could commit to consulting as widely as possible, providing it did not take an age, on secondary legislation before it is laid, so that there is still an opportunity to make it better before it is set in concrete and can only be prayed against. Secondly, could draft statutory instruments be readily accessible, not only to Members of our House but to the public at large and civil society, so that people know that they are being worked on and can head for the bloke holding the pen? Oh dear; I apologise for that sexist remark. It would help the SI process dramatically.
I look forward to the Minister’s response to all my questions, which he would be entitled to ignore since they are absolutely nothing to do with this Bill. I also very much look forward to the proper Agriculture Bill reaching this House in due course.
Baroness Bakewell of Hardington Mandeville (LD)
My Lords, I thank the Minister for his introduction, and for his time and that of his officials in providing a briefing. I feel certain that the fact this is a money Bill will not prevent your Lordships commenting very fully on it.
While it is important that direct payments legislation for 2020 is entered into the statute book, what will happen in future years? I am grateful for the Minister’s assurance that funding is guaranteed at the same level for the length of this Parliament, but this is somewhat at odds with the funding remaining the same for the first four years and then tapering off as farmers change to the new system of payments. Will this mean a multiannual framework for farming support, or will the decision be made annually? The latter would be very unsettling for farmers, who need to plan ahead.
In agreeing specific sums for payments, what arrangements have the Government made to calculate the rate of exchange of the pound against the euro? Fluctuations in currency can have a damaging effect on farmers. I understand that previous payments have been calculated on the average value of the euro in September. Can the Minister say whether September will continue to be the touchstone for exchange rates?
While the Government are providing £2.852 billion of support for 2020, there is no mention of what support there will be in the following years. Can the Minister provide some assurances that support will not drop off dramatically?
In her speech last Tuesday in the other place, the Secretary of State said in answer to a Question on multiannualised funding:
“We will be providing further information on how the transition to environmental land management will work in due course.”—[Official Report, Commons, 21/1/20; col. 173]
Will the Minister say whether this information has been calculated or whether it is the case that it is not ready to be released as it is still under review?
There has been criticism from across the board of the Rural Payments Agency, which the Government have strongly defended as having improved its performance. However, continuity is everything for farmers. A consistent service is needed from the RPA. Some moorland farmers have waited three years for payments under Pillar 2. This is simply unacceptable.
It is not right for farmers who have looked after their land diligently to be worse off as we move towards the environmental land management scheme. The prospect of losing 80% of their income, with no real certainty about what the replacement income will be, will not incentivise all farmers. It is likely that many small farmers might decide that now is the time for them to leave the land. Farming is not an easy option as a career choice. In my community, we have seen three deaths of farmers in recent years. These have been men who were not at the end of their life expectancy—far from it. We are too painfully aware of the increased rate of suicide among farmers. We must tread carefully to ensure we do not discourage farmers from their vital husbandry role of the land.
There has been mention of the Bew report and of reinstating money to Scottish farmers that they have lost in the past. I look forward to the speech of the noble Lord, Lord Bew. Can the Minister give the House reassurance that this reinstatement will not be at the expense of English farmers? Will this be new money in addition to the money that has already been mentioned? Can the Minister also say what measures will be in place beyond 2021 for the Scottish farmers? Are they to get only two years’ reinstatement? Will this money be added to their base budgets, as we say in local government circles?
Given that the Government have made a commitment that there will be no payment changes for the first four years of the seven-year transition period, this means that in the final three years, as the ELMS begins to come into effect, there will be massive change. All of us—especially the Minister, who has first-hand knowledge—know that farming is not a short-term function. It requires planning a long way in advance in order for farmers to get the best from their land, livestock and crops. I am extremely concerned that farmers will be somewhat in the dark as to exactly what their income is likely to be beyond 2024. I would be grateful for the Minister’s comments.
While Brexit is now inevitable and is welcomed by large numbers of people, including within this Chamber, it brings a degree of uncertainty. For me, some of that uncertainty is about food security, as we have already heard. Currently, around 50% of the food we eat is imported. This has risen from 35% nearly 20 years ago. It is important that, in changing the system of payment from acreage owned or managed to ELMS, we at worst preserve our food production at its current level; at best, we should strive to increase this above 50% and aim much higher.
I am sure I am not alone in wanting to buy and consume produce that has been grown or nurtured in the UK. One area where I have concern is protection for hill farmers and those who rear rare breeds. As we know from frequent questions in this Chamber, many of your Lordships are concerned about the fate of hill farmers. Could the Minister give a reassurance that hill farmers will not disappear from our countryside as a result of the change to environmental land management payment regimes in farming generally?
While there are hill farmers on Exmoor, Somerset is famous for its levels. Farming there is extremely challenging during winter months, as it can be almost guaranteed that the land will be under several inches, if not feet, of water. While this looks beautiful, with swans and other waterfowl gliding on the rhynes and water, it means that the land is not available for either grazing or crop planting. The point is that, even in one county, there will be many different forms of farming. I am sure that the Minister recognises this and will encourage the Government to ensure that their payment schemes for farmers reflect the many different types of farms, that the contribution each makes to agriculture as a whole will be recognised and that each gets a sufficient income from the land which they manage in order to live and bring up their families.
I cannot say that I am looking forward to a number of SIs, but they will not doubt come along in due course.
Earl of Devon (CB)
My Lords, it is an honour to follow the noble Baroness, Lady Bakewell. I will echo many of her fine words. I declare an interest as a Devon farmer and a recipient of BPS payments administered by the Rural Payments Agency. I therefore have a direct interest in this Bill and in the Agriculture Bill that will soon follow.
I note that this Bill was introduced as recently as 9 January. It made expedited progress through the other place and is due to complete all Lords stages today, with a view to becoming law by the time we cast adrift from Europe later this week. This appears to be a hurried timetable. Can the Minister explain why such haste was necessary? The Government have been considering the implications for UK agriculture of leaving the EU for at least four years, yet we have little to no time for scrutiny of this Bill. Can the Minister state when Defra first became aware that the EU direct payments legislation will not apply in the UK for 2020, and when he became aware of the need for this Bill? I hope that he can allay the obvious concern that policy is being made up on the hoof.
I note that Clause 1(6) of the Bill purports to have retroactive effect, treating the incorporated EU legislation as having formed part of UK domestic law from 1 January 2020. Yet, confusingly, the guidance notes state:
“In relation to the 2020 claim year, farmers will be governed by EU law for January 2020 and by domestic law thereafter.”
Does that mean that, once this Bill is passed, farmers will be subject to both EU and domestic law at the same time and for the exact same purpose during this month of January 2020? That seems odd and potentially unprecedented.
In announcing this legislation and the confirmation of agricultural funding for 2020, the Government have repeatedly trumpeted the “certainty” that this will provide to farmers,
“allowing them to plan for the future, sow their crops and care for their livestock with confidence.”
With due respect, certainty is the last thing that the Government’s agriculture policy is affording farmers right now. While the common agriculture policy had many weaknesses and imperfections, farmers at least knew what they were dealing with. Since I took over our family farm five years ago, the industry has been wracked by uncertainty as to its future, wholly unclear as to its purpose, its funding and the competition that it will face. That uncertainty seems destined to continue, with this Bill providing only 11 months of clarity, with the Government then proposing an ill-defined transition period between 2021 and 2028. In an industry that runs on an annual cycle and requires long-term strategic investment, these timelines are inadequate.
I expect that the Minister will point to the forthcoming Agriculture Bill as a purveyor of clear skies ahead. However, as he is only too well aware, the devil is in the detail, and we have no detail. The principles of environmental land management and the provision of public funds for public good have been long discussed, but the scheme remains skeletal and little meat has been put upon the bones. While I am pleased that the provision of food has been introduced as a public good, the real detail of how our land is to be managed remains as obscure as the view of Cornwall from the top of Dartmoor on a wet January morning. I would appreciate the Minister providing insight into the progress of the various ELMS pilot schemes being run around the country and when we can expect an update on their progress and their learning. Such detail will be essential when we are debating the Agriculture Bill.
Farmers and our rural economy are nothing if not resilient, but with the ever-increasing impacts of climate change and extreme weather patterns, the last thing that farmers need is further years of legislative uncertainty. Given the glacial progress of the previous Agriculture Bill, can we really expect to have a settled agriculture policy and replacement payment system in place by the end of 2020? Why do not the Government give themselves and our farmers some breathing space by making this BPS extension two or even three years instead of a mere 11 months?
As the Minister is well aware, farming productivity in the UK has been in relative decline for many years, and continued uncertainty, which will continue until 2028 at the earliest, will only hinder further investment. The average age of farmers is increasing, as new entrants to the business decrease. At the same time, we are entering a period when our farming industry will be thrown open to unprecedented global competition. Just as we are shaken by increasingly violent transatlantic weather, so we are bracing ourselves to be inundated by transatlantic farming imports without the ability to compete fairly or the confidence to invest for the challenges ahead.
Illustrative of that uncertainty is last week’s Committee on Climate Change report on land use. The headline recommendation of that report was the reduction by 20% in consumption of meat and dairy products, suggesting an equivalent decrease in livestock farming. This decrease would impact mostly the ecologically fragile pasture-rich farmlands of the western counties. This assault upon our farting ruminants is therefore a direct threat to an ancient, world-leading and highly sustainable farming practice.
Furthermore, to mix land use metaphors, it fails to see the wood for the trees. As the Minister is well aware, the huge growth in middle-class affluence, particularly in Asia, is resulting in a massive shift in diet, particularly the increased consumption of dairy and meat products. Many noble Lords will have seen the Royal Family’s valiant, yet much criticised, efforts to promote the sale of Jersey milk to the Chinese this week. Ministers will be aware of the 2016 Defra report that confirmed that a pint of milk produced on British pasture requires approximately 40% of the carbon of an average pint of milk globally. In other words, our dairy farmers are world leaders in the production of low-carbon dairy products. We also have global dairy brands—think of Devon cream—that are unsurpassed. Rather than seeking to restrict and limit our dairy and meat production, we should surely be looking for all opportunities to expand upon it and dominate the global market for ecologically sustainable, low-carbon meat and dairy.
A final word goes to the hard-working staff of the Rural Payments Agency. Delays in the delivery of rural payments can be debilitating to many farmers who are hugely dependent upon this income, and I recognise the improvements in recent years in the promptness of payments despite the considerable cuts to the RPA budget. Given the appalling conditions facing arable farmers in particular this year, with an almost complete wash-out of the sowing season in many northern and eastern counties, the prompt payment of BPS in winter 2020 will be an essential lifeline. This legislation will obviously introduce administrative changes to the manner in which payments are managed. What certainty can the Government provide that payments will be administered efficiently and made promptly? In particular, what insight can the Minister provide about funding and staffing levels at the RPA? Will civil servants be redeployed from their preparations for a no-deal Brexit to assist in the smooth deployment of rural payments?
Earl Cathcart (Con)
My Lords, before I start, I should say that I farm in Norfolk and that I am in receipt of these payments. As my noble friend Lord Gardiner has already so eloquently explained, when we leave the EU on Friday, the EU rules that allow these payments will no longer apply to Britain. Due to a peculiarity of EU basic payment funding, the 2020 payments are funded out of the EU’s 2021 budget year. As Britain will not be contributing to the EU’s 2021 budget, we must fund our 2020 basic payments ourselves, hence this Bill.
Obviously, I support this Bill. It maintains the status quo for British farmers and brings them some certainty, for one year anyway. I also congratulate the Government on accepting the Bew review, whereby the Government will maintain the payment allocations for 2020 to 2022 for farmers in England and Northern Ireland and give an uplift in funding for farmers in Scotland and Wales. I look forward to hearing the contribution of the noble Lord, Lord Bew, in a minute.
I am sure that noble Lords realise just how important these basic payments are to farmers. They account for about 60% of farm incomes, and more than 40% of farmers would make a loss without their basic payment, so this small Bill should be supported as it gives certainty to farmers, in the short term anyway, until such time as the rules change once the Agriculture Bill is enacted. There has been much criticism, including from farmers, that the EU basic payment scheme rewards farmers according to the size of their holding, rather than for the size of the benefit that farmers bring to the environment. The Agriculture Bill aims to address this.
With the best will in the world, farmers are naturally nervous about what the future will mean to them, as the details are very sketchy, but that debate is for another day.
Lord Bew (CB)
My Lords, I support the Bill and thank the Minister for his kind words from the Dispatch Box concerning the independent review of policy for Defra that I led, which drew on all the devolved Administrations. I shall return to that point. It also drew on the wisdom of my noble friend Lord Curry, who gave wonderful advice at various points during the progress of that review.
I am delighted to note that the results of the review have not been attended by any acrimonious controversy. That could not have been predicted at the beginning, but I notice, for example, that in the other place the Labour Front Bench seems to support at least this part of the Bill and the application of the elements in the Bill which apply the review.
Having said all that, I should briefly explain the background. My review was tasked to look at what factors should determine the distribution of so-called convergence funding to farmers between 2020 and 2022. The substance of the financial recommendations was made clear in the Minister’s statement. I want to stress other points that were made in our conclusion which did not have the same weight in dealing with the Government. In other words, the burden of our report was, “We really do think you should follow these financial conclusions, but there are a couple of other points that we wish to make for your consideration.” One has already been echoed in this House: the viability or otherwise of the concept of per hectare payments in the future, about which careful remarks were made. The second point, also echoed in speeches this afternoon, is the importance of farming in the more difficult parts of the country, particularly the upland areas. So there are some additional remarks that go beyond the purely economic recommendations.
I feel a debt of gratitude to the secretariat at Defra, led by Charles Hotham. I also want to say something about interaction with the devolved Assemblies. I am greatly relieved that our review has, in the end, landed rather kindly, without the acrimony that might have occurred. The noble Baroness, Lady Bakewell, raised a very serious point in her speech about the dangers. Essentially, the danger is this. There was a strong feeling among Scottish farmers that the settlement of 2013 discriminated unfairly against them. It was not immediately clear how you could redress that grievance, if well founded, without harming the interests of farmers in other parts of the United Kingdom. There was an intense dialogue about this point, and with Her Majesty’s Government.
It was not an easy thing to do. The Belfast News Letter, which I read on a Saturday, has an excellent farming supplement. I picked it up early on in the review, to discover that my report was likely to lead to disturbances in the streets in Northern Ireland—it quite ruined my weekend. That was on the basis that money would be taken from Northern Irish farmers, who are perceived to have done quite well out of the 2013 settlement, and given to Scottish farmers.
In the end, the dialogue with the devolved Assemblies was extremely detailed. Of course, at that time the Northern Ireland Assembly did not exist, but we did meet its political leadership and all the parties that are now in the Executive many times in Belfast to discuss these matters. We needed flexibility from the Government.
I do think there is a moment when we obviously must acknowledge, as other speakers have, that Brexit raises certain uncertainties in the minds of farmers. It was important to produce a result which reinforced stability across the four nations of the United Kingdom. A model of working emerged of intense collaboration between the devolved Assemblies, involving the exchange of information between Belfast, Cardiff and Edinburgh, and dialogue with London. It was ongoing—regular communication and regular refinement of ideas.
When I was preparing this speech, I found a letter I had written to Fergus Ewing, Scotland’s Agriculture Minister. In it, I said:
“The support that you gave to the panel and the secretariat has been invaluable and we are sincerely grateful”.
I could have written that to any of the other devolved entities. The noble Lord, Lord Gardiner, was quite right to refer to this issue in his speech. This was a model of the devolved Assemblies working together, with flexibility on the part of the Government. It did require some flexibility and a willingness to accept that, financially at least, certain changes might have to be made. The flexibility shown by the Government here allowed things to move ahead, and we now have consensus in this area. We have at least, on this tricky subject, not added to the instability and to the other doubts and concerns that farmers have, of which I am perfectly well aware.
Baroness Byford (Con)
My Lords, I am very grateful to my noble friend for introducing the Second Reading of this small but important Bill, which, as has been said, enables the Government to continue paying the basic payment scheme allowances to farmers for 2020 alone. Like others, I declare my farming interests as given in the register: we have a family farm in Suffolk that receives payments under this scheme.
I too would like to pay tribute to the noble Lord, Lord Bew, and his team. I am very glad that he mentioned the contribution of the noble Lord, Lord Curry, to the review. I have read it all the way through and there is a lot of meat in it, but I will not talk about that today as it almost touches on the Agriculture Bill, rather than the little Bill we are debating today. I ask the Minister not to presume from my comments that many of the things in the review will be raised today. Its findings are hugely important but I shall try to comment mainly on this very small and precise Bill.
The Bill brings continuity and legal certainty to farmers, who have been anxious about their payments for 2020. I have also been asked whether the current rules will continue to apply—for example, the three-year cropping rule and many others. My understanding is that they will, but perhaps the Minister will clarify that.
As I understand it, the Bill does not modify policy, so, as I said, I shall keep many of the broader questions on policy for the Agriculture Bill. Can the Minister give us any information on when that Bill will be forthcoming? I hope I am right in thinking that the fisheries Bill will have its First Reading in this House and the Agriculture Bill will start in the House of Commons, with each going to the other House in due course. From the point of view of agriculture, which we are talking about today, is it likely that the Agriculture Bill will come to this House in this Session? The Minister is nodding, so I take it that I am right, in which case it is all the more important that we keep our thoughts today to this Bill.
As I indicated, I particularly thank the noble Lord, Lord Bew, and his colleagues for their review. It has highlighted the challenges that will face food producers and farmers once we leave the EU. One of the recommendations, which has been touched on by others, concerns the position of Scottish farmers, who have been at a disadvantage since the changes were made in 2013. However, looking at the various Hansard reports, I understand that this will be new money that the Government have committed to allocate. Presumably that money will be ring-fenced for Scottish and Welsh farmers, but will it continue to be forthcoming in the seven years thereafter? I have read the reports carefully but am still uncertain.
The Bew report recognises the importance of food security and acknowledges the uncertainties in future policy and market trading conditions. It is important that welfare standards are taken into account in any future trade deals, and I was pleased to see that that was a manifesto commitment of our party. Importantly, the Bew report recognises that future policy must be fair to all farmers across the four countries of the United Kingdom. Maybe that is for the future but how will it be achieved? It is quite a big challenge. It might be outwith this Bill but it is worth raising it now.
As has been said, 2019 was a very difficult year for some farmers, who experienced difficulties with heavy flooding, resulting in crops rotting in the ground. Their land is still waterlogged and decisions have to be taken on whether to plant spring crops or keep the land fallow for the rest of the year. Variations in climate patterns affect other countries around the world, putting greater pressure on food security. The effects of climate change will be a challenge for us all, be it drought—as we have seen, sadly, with the fires in Australia—flooding or the spread of disease, which has not been mentioned. Therefore, as reflected in the Bew report, we must be flexible in formulating our future plans. We must not be constrained by past rigid rules from the EU, some of which are outdated. Technology and other things have moved us forward.
Returning to the Bill before us, how confident is the Minister that the payments will be made promptly? That is key. Can he also update us on payments for countryside stewardship schemes—a matter referred to by the noble Baroness—over the past three years? I understand that there have been delays in those schemes, with in some cases, farmers not having received the payments. I believe that could affect their willingness to participate in future countryside schemes, which would be a retrograde step. Therefore, I also ask the Minister: will the planned ELM scheme pilots use some of the existing demonstration farms, such as LEAF farms, which are already part of environmental schemes, or will they start with a completely blank page? It would seem a shame not to use the experiences that already exist.
I support the Bill and reflect on its importance, as conservation and food production go hand in hand. Both are important for the health and well-being of the countryside, but—no one has touched on it—farmers need to make a profit. You cannot go green if you are in the red. It is hugely important that farmers make a profit. As I said, I support this small Bill. In future, I look to schemes that will allow us greater flexibility, are more focused on outcomes than they have been in the past and, if possible, are tailored to the needs of individual farms, particularly those in upland and less favoured areas.
The Earl of Caithness (Con)
My Lords, I am delighted to follow my noble friend Lady Byford, with her knowledge, day-to-day livelihood in farming and the expertise that she brings. I thank my noble friend the Minister for bringing in the Bill. The Government promised it, they have delivered, and we have a little bit of stability for the farmers for this year. It is nice to be able to welcome a Bill that has six principal powers in it, five of which have sunset clauses at the end of the year. That is not something that happens very often in legislation in this House and is to be commended; this Bill is an eleven-month wonder.
I will make one comment about farmers. We have talked—as we tend to do in the House—about farmers in generality, all receiving grants. Not all farmers receive grants. I agree that the great majority do, but there are some forms of land management and farming that do not receive grants, and we must not forget that there are such people in this country too.
I turn briefly to the forthcoming Agriculture Bill. I will not follow the noble Baroness, Lady Young, in setting out what I believe should be in that Bill, but I think that the words of the noble Earl, Lord Devon, and of my noble friend Lady Byford are well worth taking on board in Defra. We need that Bill as soon as possible. If we do not get it, the farmers will be severely prejudiced in future. It will obviously suffer the guillotine process in another place, but this House does not have a guillotine, and nor should we. There will be a huge amount of discussion on the Bill; we will need the expertise of people such as the noble Earl, Lord Devon, and my noble friend Lady Byford. Where I do agree with the noble Baroness, Lady Young, is that I too shall be concerned about bringing a land-use plan into that Bill. That was one of the recommendations of the House of Lords committee, and I shall raise it again in two weeks’ time when we come to our forestry debate, because it is relevant to that too.
I have five or six quick questions for my noble friend the Minister. Is he confident that all the farmers in England know exactly what is going to happen in the next year? I got an email from the Scottish NFU today saying that it has emailed all its farmers to tell them exactly what the process is and that they have to abide by the rules to get their payments. We live in the Westminster bubble; we think we know what is going on but, if you are a busy farmer who has been subject to recent weather conditions, you might not know. It would be very sad if some farmers were not kept as up to date as possible.
The Countryside Stewardship Scheme is not as I understand it part of the Bill, but is there any flexibility for increasing payments this year? On DAERA and Northern Ireland, when does the Minister expect the uniform entitlement to come into operation? It is, as he rightly said, operational in England, Wales and Scotland. When can we expect it in Northern Ireland? Also, talking of the devolved Administrations, do we have the legislative consent orders from Scotland and Wales yet? If not, does this pose a problem? We are told that the Bill must be passed by 11 pm on 31 January. If we do not get the legislative consent orders by then, will that mean that the Scots and the Welsh will not be able to claim money this year?
On greening, under Pillar 2, I ask my noble friend to bear in mind the point again mentioned by the noble Earl, Lord Devon, that there are a number of farmers in the upland and West Country who have not ripped out hedges, who farm on small fields and who are not so prone to being able to get greening under Pillar 2. It would be wrong if they were penalised for having been the good guys all along.
It was a delight to hear the noble Lord, Lord Bew, comment on his review. I will not say any more, because my noble friend Lady Byford covered that. So I hope that my noble friend will be able to answer her points and therefore mine.
Baroness Bennett of Manor Castle (GP)
My Lords, the gestation period of a cow is about 280 days. I make that reference not to remind your Lordships that my first degree was in agricultural science but to reflect on the fact that most of the calves that will be born under the Bill that we are about to pass have already been conceived. As the noble Earl, Lord Devon, said, this is policy-making on the hoof. For a farmer who is deciding whether to plant a tree in a shelterbelt or to plant a new hedge, the timeframe for seeing the returns on that are much greater, well beyond even the planned seven-year phase-out of the basic payment system that we expect to see in the forthcoming Agriculture Bill.
The decision to disapply CAP in the withdrawal agreement was probably unavoidable but it has left our farmers in a state of great uncertainty, as we have heard from many noble Lords who are themselves farmers. Yes, they had promises that it would happen, but those are only words. We have heard many words, some of them referring to your Lordships’ House, but I doubt that anyone has yet consulted their removers on the cost of moving their residence up to York.
If the Government had made progress on the Agriculture Bill—stranded since November 2018—in the previous Parliament, we would not need this one. I remind your Lordships’ House that that is a reflection of the huge problems that we have in the quality of governance, independent of its ideological content, and the way in which our unreformed political system is simply not working.
I make another systemic point, this time about the Rural Payments Agency. A number of noble Lords have referred to the delays in farmers receiving payments. The RPA saw its budget cut from £237 million in 2010 to £95 million in 2018. This is austerity. We hear talk about austerity in lots of other contexts, but let us recognise that this was a decision made across government that has had real consequences right across society.
The Bill is narrow in scope and duration but I want to take this opportunity to focus on the level of uncertainty that our farmers and growers are facing, relating to both policy and climate—that is, the uncertainty of what the climate emergency will bring them. We have of course heard references to the weather this year. I thank the Minister for his response to my Written Question HL541 about independent advice to farmers. In response he referred to
“considering both private and public sector options.”
I am disappointed not to see in that Answer any reference to farmer-led advice and research.
Last year I was at the Oxford Real Farming Conference. I heard a German minimum-till organic vegetable grower talking about how government-funded academics had come to his farm, conducted research to answer the questions that he wanted answered and then provided him with advice based on that research. The farmers and growers in the room gasped. They were gasps of astonishment that government-funded research could work in that way, and perhaps also gasps of envy because they would like to see something similar. We have seen so much advice farmers have had to rely on coming from commercial interests based on commercial research by seed companies and agrochemical companies. Facing this state of uncertainty, how will we ensure that farmers get answers to the questions they need answered in the next seven years and beyond?
I am very aware of the narrow scope of the Bill. We are all of course looking forward to the Agriculture Bill. I will make three brief points with regard to what we have seen of that thus far. I do not believe that we have seen anything like an understanding from the Government of the need for the utter transformation of our agriculture and land use that the climate emergency and our nature crisis demand. We will also get to a social crisis. UKSSD looked at Britain’s ability to meet the sustainable development goals and we are not on track to meet any of them. Farming and land use are an important part of how we reach those goals.
We have heard some reference to the food strategy. That needs to be integrated with the land use strategy. We also need to be thinking about incomes policy, benefits and welfare, with people being able to pay for the food they need so that farmers and growers get a decent return. That is part of agriculture policy. It is all interrelated. Control of the supermarkets is crucial. We need to think about food security and feeding ourselves; that has to be the most basic requirement of government. We also need to think about food quality. I heard an academic being asked what kind of food and farming we need and they said, “I can answer that in one word: vegetables.” Only 18% of children in the UK eat their supposed five a day. That five-a-day recommendation was decided by sociologists, not nutritionists. Nutritionists will tell you that it is 10 a day. That means we need to grow at least eight times as much fruit and vegetables in the UK as we do now to head towards healthy food self-sufficiency.
This may be my most unpopular point—noble Lords might be surprised to hear that. I am sure most noble Lords would agree that we need to tackle food waste. When thinking about our future agricultural policy, I put it to your Lordships that feeding perfectly good food to animals in factory farming is food waste and has to stop.
In concluding, I come back to the point on which I started: the quality of governance. This Bill is fundamental for security and we are racing it through just days before the deadline. That is no way to run a Government. A Member of your Lordships’ House commented that they thought I would come back to democracy in every speech I made—that is probably just about true. I refer your Lordships to an excellent little book called Nation of Devils by Stein Ringen that shows that countries with democratic proportional electoral systems have a better quality of governance, make better decisions and do not end up in an utterly last-minute, on-the-hoof race, as we have today.
Baroness McIntosh of Pickering (Con)
My Lords, it is a pleasure to follow the noble Baroness. I refer to my interests in the register. In particular, I sit on the Rural Affairs Group of the Church of England Synod. I welcome the Bill and congratulate my noble friend the Minister on bringing it forward, particularly on giving a legal basis to allow farm payments to continue and to make the appropriate budget allocations.
I remind my noble friend of my particular interest in the plight of tenant farmers, which relates both to the Bill allowing direct farm payments to farmers to continue and to the wider provisions of the farm reforms that we will come to in the Agriculture Bill. Could my noble friend clarify whether in his introductory remarks he committed to ensure that the funding will be given for the whole of this Parliament? Is that provided for in the Bill? If not, are we to continue on a year-by-year basis? I know that tenant farmers will be particularly pleased if this is the case; in their view, this would have been the ideal place to put into effect our manifesto commitment to ensure that funding to the agricultural industry is retained until the end of this Parliament.
Livestock is central to hill farms and upland farming. The Government must be aware of the potential for damage to livestock farming if they are minded to introduce a ban on live trade in animals. I repeat my plea here that we must not proceed to ban livestock. It is a limited, highly regulated trade but extremely important in maintaining price. In particular, when spring lambs go to France to be fattened and finished, they are not immediately sent to slaughter. I hope my noble friend will take this opportunity to give a commitment that no ban will be imposed on live trade. It would be particularly difficult to do so at that time, being mindful of the fact that tariffs may well be introduced on the Irish border or between this country and Northern Ireland, leading to a disparity between deadweight and live animals.
Does my noble friend also agree that trees have their place, none more so than in flood protection? I am proud of the Pickering pilot scheme, which has been very successful to date, but after planting trees it takes some 30, 40 or 50 years for those trees to mature. In all probability, any support for planting trees will go to landowners. My concern is that tenants will no longer benefit, as they currently do, from stewardship schemes. I hope my noble friend will continue to have sight of that.
Why are the pilot projects under the ELM schemes so secret? A number of your Lordships referred to this. Why can we not have the results of those pilot schemes at this stage, long before we go on to consider the elements of the Agriculture Bill, in which it will be vital that we understand them? The debate on the Agriculture Bill will be substantial; linked to it, of course, is the rather voluminous environmental Bill, and my noble friend moved the First Reading of the Fisheries Bill today. I put down my real concern that we basically wasted two years of the previous Parliament, when those Bills could have been taken, along with the immigration Bill and the two trade Bills—one the rollover Trade Bill and the other the new trade agreement Bill. I hope that the Opposition Front Bench will take the point seriously when I urge the Government that we need proper time to conduct proper scrutiny. In passing this Bill expeditiously today on a very narrow, technical, budgetary issue, we should not lose sight of the wider debate where we will look at changing farm policy for the first time—and the greatest extent—in 50 years. That will take proper consideration and both Houses of Parliament must be given due time for it.
Will my noble friend put my mind at rest that central to the Bill and the wider issue are our food security, food standards and self-sufficiency? I ask this because I recently asked a Question, HL459, on food security and self-sufficiency. In the reply that I received from my noble friend Lord Goldsmith of Richmond Park, I was told that the Government are minded
“to regularly report on food security to Parliament”.
That is all well and good but some concrete measures would be interesting as well. I was very disappointed that that parliamentary reply was completely silent on self-sufficiency. This worries me greatly because I understand that, while it is difficult to get a proper figure, for the first time in a long time it has fallen below 60%.
Like other noble Lords, I echo the concern that we need to end the uncertainty. In particular, I echo what the noble Baroness, Lady Young of Old Scone, asked for: either the statutory instruments that will form part of the next round of farm reform should be published, so that they can be properly considered, or the criteria that farmers will be asked to meet under the ELM scheme should be published sooner rather than later. Clearly, this debate will take some time to come to fruition, but it is important that we do not lose sight of those points.
Are the Government still minded to commit to remapping every three years? Is it really necessary in the context both of the Bill and particularly of future payments? Will the Minister confirm that a balance will be sought between the environmental and productivity aspects of how our farmers are to produce food; that we will focus in the Bill and future Bills on affordable food, allowing farmers to earn a living or—as my noble friend Lady Byford stated—to make a profit; and that we must not take imports from elsewhere in the world which are farmed to much lower standards, whether in food production or in welfare? I obviously welcome the Bill, but I hope my noble friend will do justice to the concerns raised today.
Lord Inglewood (Non-Afl)
My Lords, like a number of other contributors to this debate, I must begin by declaring my interests in the register. I farm in Cumbria, both in the uplands and on the lower ground, and I am now and have been for some time in receipt of basic payment scheme payments. I have received those because it was considered that what I was doing was in the public interest and should be supported.
That has been the case for a long time. For decades, not to say centuries, agriculture has been a market regulated in the public interest, but the problem now is that what I am being paid for is not thought a particularly good way of supporting me to do what I am doing, and nor is it necessarily supposed that what I am doing is in the public interest. It is thought more desirable that there should be different outputs that are produced and procured in a different way.
That seems an entirely reasonable proposition. What we are seeing today is a change which began in the 1990s and reversed a tendency that came into being at the end of the Second World War. The view that rural Britain was essentially the location of a single activity—namely, farming—is being replaced by a view that it is a place where there are multiple outputs and not a single one, food production. Let us remember, however, that food production is still important.
The hard part of this transition is the detail of where we go from here. A number of speakers today have detailed some of their concerns. I do not wish to go over that ground again, other than to say that we need also to look at the taxation system for both full-time and part-time farming, which is an equally important part of the rural economy, and at farming businesses from the perspective of sustainability. It is not desirable in the longer run for those businesses not to be able to fund reinvestment in those activities from the profits they generate.
It is also worth remembering—a point I raised in the debate on the Queen’s Speech—that rural England is similar in many ways to the north of England and the Midlands, on which the Government are placing considerable emphasis. As I said, I come from Cumbria, and I am chairman of the Cumbria local enterprise partnership. The economic condition of much of rural England is equivalent to that of the north and the Midlands, which have seen their standards of living and quality of life degraded by failure to keep up with the increased prosperity that we have seen in the south, and in particular in the south-east.
When thinking about the future of farming, it is also terribly important not to forget that we can generalise, but farms are different, random parcels of land. Many of the land uses and other things deemed desirable may well cross boundaries and it may be difficult to get people to agree on how this should be taken forward. Finally, it is very important that whatever emerges runs with the grain of land and water. We have to enlist people’s hearts and minds in the rural communities towards achieving an outcome that is considered in the national interest.
We already see cross-compliance attached to agricultural payments, and the direction of travel implies an extension and wider application of this principle. That does not seem to me remotely undesirable. Clearly, a combination of leaving the CAP and a reconfiguration of the definition of public goods means a new basis for payments. Hence the Agriculture Bill in the last Parliament; hence this Bill, now to be followed by the forthcoming Agriculture Bill just introduced in the other place.
The reality of the current state of affairs is that the Government have little alternative but to introduce the Bill in front of us, and I commend and support it. I also thank the noble Lord, Lord Bew, for his work on various aspects of the payments system, particularly his emphasis on the desirability of solidarity across the United Kingdom as a whole. I would add that those in the north of England, whose agriculture is very similar to that of Wales, Scotland and Northern Ireland, feel when you talk to them that they are getting a raw deal and that they are being discriminated against. It is important that this is both recognised and acted on.
Having said that, and as a number of other speakers have said, the Agriculture Bill introduced in the other place does not really get us a great deal further. By itself, it is very little help to those who are trying to look at the framework and financial implications of a new era and want to work out where to go from here. It is important to appreciate that, looking forward, this is both a science and an art. I feel slightly conscious in saying this that I might be portrayed like one of our 18th-century predecessors, although I would not go as far as the nobleman who is reported to have commented that he was very anxious to die before Capability Brown because he wanted to see heaven before he improved it.
It is clear that, if the new regime depends on an embedded system of public money for public goods, the requirements and terms and conditions attached to it are crucial. Currently, as Professor Julia Aglionby—recently appointed professor in practice at the Centre for National Parks and Protected Areas at the University of Cumbria—has pointed out, many in the uplands are currently staring into an economic black hole because there is no indication of what will happen next. This is a chasm as deep as that which separated Dives and Lazarus, lying between where people are today and a future sketched out by senior political leaders in statements of generalised policy tinged in green, painting a picture of sunny uplands a decade hence. Unless detail is forthcoming, and forthcoming shortly, I believe we shall have to come back to this debate 12 months from now and have a similar Bill to this one.
Lord Teverson (LD)
My Lords, I confess to having a roughly 4 acre field for which I get no subsidy whatever, except for an electricity pole for which I get about £200 a year—maybe less than that. I am also a co-chair of the Cornwall and Isles of Scilly Local Nature Partnership.
I will approach this in a slightly different way. I support this Bill, which is a sort of sticking plaster between now and 12 months’ time. It is quite delicious to me, in a way, to see the Conservative Front Bench going out strongly for state aid for a particular sector—something that normally the Conservative Party would not necessarily associate itself with. I know that this is a money Bill, so we will, quite rightly, not have much influence over it, as it is the other end’s business. We say that perhaps rather glibly as the Bill goes through, but this is big bucks—it is a lot of money. We put state aid into this industry of between £3 billion and £4 billion a year. That is quite a bit of money. In fact, if you look at it per household in the United Kingdom, every household contributes about £120 to the agricultural industry. That is just a little less than the TV licence fee, for instance. I guess that the 1.6 million people who use food banks might find it quite ironic that, on average, as a household they also pay £120 towards the food production sector in this country. That may well be necessary, and I will not argue against it here, but we should be aware of that, because that money can be used for other things as well, and increasingly will be, we are promised, over the next eight years.
I must admit that I am particularly impressed by the noble Lord, Lord Bew, who has somehow managed to persuade the Treasury, almost it seems without any argument, to add about a quarter of a billion pounds to this. That is excellent—perhaps we could find a way to do that with other sectors. I would like to have a masterclass from him afterwards on how he managed to achieve that.
The noble Earl, Lord Devon, in his excellent speech, talked about trying to get more certainty in this area. In fact, he mentioned that one good thing about the common agricultural policy, with all its faults, was that there was predictability. However, I should remind the House that, at the moment, the EU Commission is going through a major reform of the common agricultural policy which is in fact so fundamental that it has had to postpone it for one year. That has two strands: one is semi-renationalisation of agricultural policy, and the other is that some 25% of the EU budget, of which agriculture is a major part, will be dedicated to the climate change challenge. Ironically, therefore, even if we had stayed in the European Union, which clearly we will not, some of these issues regarding our agricultural sector would have come anyway, and maybe the Government could have come up with some of the same solutions that they are coming up with now. However, I am concerned that that uncertainty will be extended over some seven years—in fact you have to add this year on as well, so there will be eight years of transition to the next form of final implementation of the new system regarding payments for public good.
Actually, I want to praise Michael Gove as Secretary of State in Defra for changing the agenda here in a forthright, brave and courageous way to make a radical change in how this works. I regret that he will no longer be the custodian of the 25-year environmental plan, of which this effectively is a key part, because there is public expenditure here on a big scale, and a way to do it.
I was quite surprised that the noble Baroness, Lady Bennett, did not mention that we have a biodiversity crisis in this country at the moment. If you look at the State of Nature 2019 report, which came out at the end of last year, you will see a list of all the species, particularly in rural areas, which are heavily challenged and the numbers of which have decreased since 1970. That is urgent, yet we have an eight-year transition period until we put in a scheme that has some hope of reversing that biodiversity challenge. I say to the Minister that, both on getting more certainty for the sector, as the noble Earl said, and on our environmental challenges, surely we can start to make that transition shorter. We had a debate on the landing obligation for fisheries—the Minister did not answer it, but he was there—and, although that was a European and partly British issue, we know that you tend to wait for deadlines to happen before you get round to doing something about them. I think that eight years is too lazy; it risks leaving those major reforms to the last few years, which to a large degree it already does. So let us bring it forward.
Of course, the real challenge to the sector is not this one. The destabilising factor is not the funding mechanism; it is international trade. Let us be under no misapprehension whatever that, with the United States, with Canada—which has refused to do a rollover deal with the United Kingdom on its EU agreement—with South America and with Australasia, the key asks for those trade deals will be on agricultural entry to the UK market. How that is done is down to how good we are at negotiating as a country with those other nations. I hope and pray that we will be very good at doing that, but the uncertainty about those trade deals, how they will be interpreted and who has power—that power equation—will be unknown for some time.
I want to ask the Minister a couple of questions. As he is probably aware, in the Northern Ireland protocol under the withdrawal agreement, Article 11 states—clearly for once; it is a pretty unclear document otherwise—
“consistent with the arrangements set out in Articles 5 to 10, and in … respect of Union law”—
that is, European Union law—
“this Protocol shall be implemented and applied so as to maintain the necessary conditions for continued North-South cooperation, including in the areas of environment, health, agriculture”.
Under the state aid provision in Article 10, it states:
“The provisions of Union law”—
that is, again, European law—
“listed in Annex 5 to this Protocol shall apply to the United Kingdom, including with regard to measures supporting the production of and trade in agricultural products in Northern Ireland”.
Will this and future state aid to the agricultural sector be constrained by that Northern Ireland protocol?
My other question is this. Previous speakers have mentioned the Rural Payments Agency. The RPA has done a lot better on Pillar 1 payments. We are never confident about it, given its history, but what concerns me is that, as my noble friend Lady Bakewell pointed out very well, the current delay relates to Pillar 2. Effectively, the future support mechanism will be a Pillar 2-type process. How that is managed, enforced and communicated will be very complex. I wonder whether Defra has taken into account how much of the capacity of the RPA will be needed under the future regime.
My last question is this. A fundamental change that has not been mentioned in this debate is that at the moment, under the CAP, the money comes from Brussels a year later, as we heard, to cover the cost of the CAP paid out by the UK Government. That changes. This will now be an integral part of Defra’s budget. Given the fact that it is quite difficult to predict payments, there will be a difference from what has been budgeted for in government expenditure—Defra expenditure in particular—at the end of the year. If it is 10% of £3.5 billion, that is quite a bit of money. Will that be taken off Defra’s budget if it has under-budgeted or, if it goes over, will it be sent straight back to the Treasury? I know that in the past Defra has often suffered from Treasury cuts, and I am concerned that, if it gets its budgeting wrong, other essential services it provides will be prejudiced by the fact that the Treasury will be very unhelpful at the time.
Baroness Jones of Whitchurch (Lab)
My Lords, I am grateful to the Minister for setting out the purpose of the Bill so clearly today and for arranging a helpful briefing with officials beforehand. As he said, the Bill has a simple intent, which is to continue the direct payments to farmers scheme for a further year until 2021 to ensure continuity of payments. As this is a money Bill and will provide important guarantees of funding to farmers, we will not oppose it today.
However, I want to comment on how we have ended up here today. This Bill should never have been necessary—a point made by the noble Baronesses, Lady McIntosh and Lady Bennett, among others— because the Government have had more than enough time to prepare for the transition from CAP payments. It is nearly four years since the Brexit referendum, when so many promises were made to farmers about the sunny uplands, post CAP, and it is 14 months since the Government halted consideration of the previous version of the Agriculture Bill, which began to set out the details of a post-CAP regime and which we are having to revisit again today.
Since then, farmers have been left in limbo, uncertain about their entitlement to payments in the short term and desperate for a clear understanding of the payments regime that will apply from 2021. It goes without saying that commitments on the application of funds for individual farmers are crucial for their long-term planning and investment, so it is unsurprising that they are frustrated with and angry about the delays; a number of noble Lords, including the noble Earl, Lord Devon, and the noble Baroness, Lady Bennett, have reflected that frustration this afternoon. It has resulted in a degree of paralysis, which is unhealthy in a sector that thrives on innovation and introducing new farming applications.
By any measure, Defra has not handled this well. This was confirmed in a National Audit Office report last year, which criticised the department’s handling of the replacement of CAP as lacking proper planning, lacking support for farmers to prepare for the change and lacking a proper analysis of the impact of the change on the overall economy. Again, these issues have echoed around the Chamber this afternoon. For example, the noble Earl, Lord Caithness, asked—quite rightly—whether farmers have been properly advised about what is going on, whether they understand the detailed discussion we are having here and whether they understand the legislative process that will follow from that, since they may think that they are dealing with more important issues on a day-to-day basis.
Although we accept that the need for this Bill is now inevitable, we certainly do not accept that it is ideal. It is of course welcome that the Government have agreed to maintain the total pot of £3.2 billion during the transition to 2025. However, questions arise. I was interested in the questions asked by the noble Lord, Lord Teverson: what will happen if all the money is not spent year on year? Will it go back to the Treasury? What is the implication of that? Can the Minister clarify whether that commitment to £3.2 billion, however it is worded, is inflation-proofed? Can he reassure farmers as to what payment pot is envisaged from the end of the five-year Parliament in 2025 to the end of the seven-year transition, because there is a payment gap for the last couple of years? How will that be calculated? Can he also clarify whether the Bill has any impact on the Pillar 2 payments, which are not part of the CAP basic farm payments scheme? Again, a number of noble Lords raised this issue. Will those payments be claimed separately in the usual way until 1 January next year? Can he reassure noble Lords who have struggled with the Rural Payments Agency that the current payments will be made in a timely manner?
In terms of the wording of the Bill, we have another specific concern. As it stands, the Bill allows for the extension of the basic farm payment scheme for one year only, as the Bill includes a sunset clause. So we may be legislating for a new cliff edge on 1 January 2021, after only another 12 months of certainty for farmers, before the new Agriculture Bill is due to come into effect. What certainty can the Minister give that we are not just going to move from one regime to another and that there will be a smooth and proper handover for these two pieces of legislation?
I would say that we are all enthused about the opportunities that the new Agriculture Bill offers in shaping the payments scheme based on public money for public goods, and I agree with the noble Lord, Lord Teverson, that we probably have something to thank Michael Gove for about that. He certainly raised the game on how we might face the challenges ahead. I also agree with my noble friend Lady Young that this is one of the real opportunities post Brexit which we should grasp with both hands. The new Agriculture Bill places a welcome new emphasis on improving the environment, adapting to climate change and protecting the welfare of livestock, but the Minister will know that passing the Bill is only the first step towards a new regime. It is in effect an enabling Bill. The detail is yet to be set out in regulations which will need to be drafted and approved before farmers can be sure about what the payments system will mean for them, so with the best will in the world, as we stand here now in January 2020, it is hard to see that all that work will be completed before the end of this year, particularly if farmers and stakeholders are to be properly consulted along the way. There is also the added frustration that the regulations that we are promised but have not seen will come in the form of secondary legislation which we will be unable to amend. Given that, I agree strongly with my noble friend Lady Young that consultation on these SIs in advance of them being laid would be extremely helpful. I would be grateful if the Minister could explain whether that is being considered.
At the same time, it is unclear how the outcome of the pilot environmental land management schemes, which of course should provide the basis for future payments, can be properly rolled out and evaluated in time to determine the rules for the next seven years, a point that has also been made by the noble Baroness, Lady McIntosh. Again, we would feel more reassured if the Minister could clarify that because, for the pilots to have any merit, they need to roll on for a considerable period of time. How is that going to influence the starting point of the schemes?
All this is intensely frustrating. We support the principle of public money for public goods, with all the environmental advantages that that implies, and we want to move on to the new regime as quickly as possible. However, we want to ensure that the new scheme is robust, properly monitored and measured, and transformative. We need to be somewhat persuaded that the transitional payments as envisaged in the Agriculture Bill will be ready for implementation on 1 January next year. If that is the case, why is the Bill before us today restricted to one-year payments when it could have retained more flexibility? Can the Minister also explain why the Agriculture Bill itself seems to give the Secretary of State the flexibility to extend the basic payments scheme for future years rather than including that option in this Bill?
Finally, the Bill does include some good news. All noble Lords have expressed their gratitude to the noble Lord, Lord Bew, for his report into the allocation of farm support across the UK. He has recommended that a greater share of the direct payments should be allocated to Wales and Scotland, and he is right to note that Labour definitely supports that proposal. I pay tribute to him for his detailed work and the great acts of diplomacy that he has had to carry out in brokering a deal—congratulations on doing that.
We are pleased that the Government are implementing the recommendation of topping up these payments while the allocations to England and Northern Ireland are maintained, but can the Minister clarify how that recommendation will apply in future years? Can he confirm that this will not just be a two-year top-up, but will be a principle that is carried forward into the new payments scheme? Further, as the noble Baroness, Lady Byford, asked, will it be ring-fenced in the future? Again, that is another challenge. I look forward to his response on these issues.
While I am on my feet, I thank the Minister and officials for the careful and considerate way in which this Bill has been stewarded through this House. I am sure it sets a good precedent for the much greater challenges ahead when we come to debate the Agriculture Bill.
Lord Gardiner of Kimble
My Lords, in many respects this has been a preliminary to our deliberations on the Agriculture Bill; I fully expected that. I will first address in particular the noble Baroness, Lady Young of Old Scone. I am worried that she is going to be worried, because I can identify in the Agriculture Bill so much of what she said. In my view, every single element that she mentioned—including soils, floods and climate change—is engaged in Clause 1(1)(a) to 1(1)(j). Because this comes up again, I also want to discuss the balance of all that we want to do. If your Lordships will forgive me, as we have had a preliminary on the Agriculture Bill, I think it is important that I set out the Government’s bona fides.
The noble Lord, Lord Teverson, hit on something that I as a farmer have often reflected on. As a farming sector, we will now have to look to the British taxpayer and say, “We would like your support.” The way in which to look at this is very much Michael Gove’s legacy: the public are prepared to support farmers in doing all the many things in Clause 1(1)(a) to 1(1)(j) in the Agriculture Bill to enhance the environment. With over 70% of our land farmed, the farming world can play an invaluable role in restoring biodiversity and nature recovery.
I also want to emphasise Clause 1(4) of the Agriculture Bill, which says:
“In framing any financial assistance scheme, the Secretary of State must have regard to the need to encourage the production of food by producers in England and its production by them in an environmentally sustainable way.”
The Agriculture Bill is not a proposal for us not to produce food. I hope that the noble Baroness, Lady Young of Old Scone, and other noble Lords who have raised so much of this, will take some reassurance in what is before us when we come to consider that Bill. I also say to the noble Baroness and other noble Lords that the food strategy that Henry Dimbleby is undertaking is absolutely about bringing forward by the summer a national food strategy that goes from farm to fork.
I want to say in the preliminaries that the noble Earl, Lord Devon, has hit on something that I think is very important for us as a nation and our pastoral farming. By that, I mean the best traditions of pastoral farming. Moving from British meat products to plants produced in other parts of the world where we have seen environmental degradation —be it in the production of almond milk, avocado or soya—we should be careful of being buffeted by fads and fashion. I think of what pastoral farming does to the landscape and rural environment in so many parts of the world. We should be very cautious about moving towards a system of jettisoning and disregarding the importance of livestock agriculture to very high standards in this country.
I am grateful to the noble Lord, Lord Teverson, for raising the issue of public money. Let us take ourselves back to earlier caps: could we really face the nation and talk about lakes and mountains, as we had to before, if we are to receive public money?
The noble Baronesses, Lady Jones of Whitchurch and Lady Bennett, and the noble Earl, Lord Devon, asked: why are we here now? The Bill is dependent on the terms of, and has no effect without, the withdrawal agreement. Therefore, we could not introduce this Bill any sooner than we did. Royal Assent cannot occur before Royal Assent to the European Union (Withdrawal Agreement) Bill.
The noble Baroness, Lady Jones of Whitchurch, asked why we were not doing more on future support in the Bill. The Bill is, as I have described, a small technical Bill to lift the 2020 payments mechanism for us to deal with 2020. There are many provisions in the Agriculture Bill that will enable us to outline and deal with the mechanism for continuing to support farmers in their essential work and the production of food.
I will reiterate what I said in my opening remarks on funding. The Government are committed to matching the current overall budget available to farmers in every year of this Parliament. I am not in a position to say what a future Government might do after a future general election, but my view is that we are right to match that overall budget. That is a government commitment. As I said, on 30 December the Chancellor of the Exchequer announced funding for direct payments that matches the total funding for direct payments available for 2019. I think that that is an indication of a Government who are not being cavalier but who absolutely understand that farmers need to have an understanding of where they are this year, and as we go through with all the transitional arrangements and the continuance on a tapering scale of direct payments, so that they can work with the new system and we can progressively reduce direct payments. There are powers to do that.
The noble Baroness, Lady Young of Old Scone, mentioned scrutiny, which is important. Defra will consult before making SIs under the Agriculture Bill. We had some very successful results from scrutinising the exit SIs, for instance.
In no particular order, my noble friend Lady McIntosh asked about live exports for the second time this week. I repeat what I said before and it will not change: we are extremely concerned about the long journeys that live animals are undertaking. The veterinary profession is very concerned about this and it is something we will work on.
My noble friend Lady McIntosh also asked about tenant farmers. This Bill is about status quo for the scheme in 2020, but new provisions on tenancies in the Agriculture Bill will ensure what we believe will be a vibrant future for agricultural tenancies, providing tenants of agricultural holdings with agreements that have more flexibility and removing barriers to investment and productivity.
On remapping, in future years we will look to simplify the administration of existing schemes for farmers and the RPA. On the RPA’s payment performance, it was generous of the noble Earl, Lord Devon, to say that the RPA was working very hard. This year I think that we are up to 97% already being paid. We will obviously focus on completing the remaining claims and releasing payments as soon as possible.
On the issues that the noble Baroness, Lady Bakewell of Hardington Mandeville, raised, my colleague the Minister of State, George Eustice, has had meetings with the RPA’s chief executive. There have been considerable improvements over the past 18 months, but I and they are very conscious that we need to improve the position in particular on the environmental schemes and the countryside stewardship schemes. It has been improved, but there is more room on that.
My noble friend Lady Byford asked about timings on the Agriculture Bill. The Second Reading will be in the other place on Monday 3 February, so clearly it will reach your Lordships in the due time of its deliberations in the other place. I look forward to that. As I said, I think that we have had a very good preliminary.
My noble friend Lady Byford and the noble Baroness, Lady Bakewell, asked about trials. We are currently running a programme of tests and trials. It is important to say that these are about co-designing with farmers in all sorts of topographies in the country. This will be so that we have a range of trials, because part of the work of an ELM in certain parts of the country will quite clearly be somewhat different. The focus might well be on elements of paragraphs (a) to (j) of Clause 1(1) of the Agriculture Bill, for instance. We are working closely with a range of environmental and agricultural stakeholders to design collaboratively the new ELM scheme, so that it is fit for purpose. We will provide further information over the coming year, but, following these tests, we want to refine the co-design to ensure that it works on the ground for farmers and other land managers, and that it delivers the environmental outcomes that we and the farmers want.
The noble Baroness, Lady Bakewell, asked about the rates of exchange. The level of funding available for direct payments in 2020 for each part of the UK will be the same as for 2019; the funding is based on the same financial ceiling and exchange rate.
Several noble Lords, including the noble Baroness, Lady Young of Old Scone, raised trade. We should be proud of our British produce for domestic and export consumption, and of its reputation as being of the highest quality. As I have said so many times to your Lordships, any future trade agreements must work for consumers, farmers and businesses. We will not water down our standards on food safety, animal welfare or environmental protection as part of a trade deal.
On the review by the noble Lord, Lord Bew, it is a great privilege to have one of your Lordships undertaking a review that clearly was knotty. Your Lordships were right; the noble Lord’s skills will become legendary. This was a knotty problem for all sorts of reasons. Also important is the noble Lord’s confirmation of the collaborative spirit across the devolved Administrations. It is a feature of life that we are always wanting to find the areas of disagreement rather than agreement. I say to my noble friend Lady Byford, and the noble Baroness, Lady Jones of Whitchurch, that this money will be ring-fenced, to be spent on farmers in Scotland and Wales respectively. I assure your Lordships that this money will not be taken by farmers in England or Northern Ireland. It is additional money, resulting in an overall funding increase of £56.6 million for UK farming over the two-year period.
As I mentioned before, the transition period, raised by the noble Baroness, Lady Jones of Whitchurch, and the noble Earl, Lord Devon, is a seven-year transition. We intend to introduce changes steadily. In 2021 we will start applying reductions to direct payments. Reductions will apply progressively. We will offer land management schemes throughout the transition. Countryside stewardship will remain open to new applicants until 2023-24. Additionally, existing high-quality countryside stewardship and environmental stewardship agreements will be extended, protecting their environmental outcomes and farmers’ incomes. The new environmental land management scheme is being developed, with full ELM rollout across England in late 2024.
Food security was raised by the noble Baroness, Lady Bakewell, and my noble friend Lady McIntosh. The Agriculture Bill includes a new requirement to report on food security. I say to my noble friend Lady McIntosh that on self-sufficiency, we are at 75% of UK production for indigenous grown food, but there are many things that the consumer likes that we do not produce here, so self-sufficiency is not the point. It is about food security. Candidly, I know about tea in Cornwall, but not about coffee and citrus fruits. We need to be conscious of food production, but conscious of food security too.
The Government believe that upland farmers play a vital role as stewards of the countryside and our iconic landscapes, and that across the land they are well placed to benefit from new ELM schemes, which will reward farmers for what many in those areas are already doing.
My noble friends Lord Cathcart and Lord Caithness asked about transition. I get the Farmers Weekly and the Farmers Guardian every week and there is no doubt that there is an awareness and considerable discussions, individually and across farmers generally, about this period of change and the co-design. I emphasise again that none of this will work if it is not the farmers’ idea and concept, too. It is vital that we get it right by co-designing these schemes with farmers.
In response to a point raised by my noble friend Lady Byford and the noble Lord, Lord Bew, on the devolved Administrations, the Government are committed to engaging with the devolved Administrations to develop a fair approach to future funding allocations. We agreed to consider the needs of farmers in England, Wales, Scotland and Northern Ireland, recognising that agriculture policy is and will remain devolved.
My noble friend Lord Caithness asked what amendments Defra expects the EU to make to the CAP this year. We are not expecting the EU to make significant changes but the Bill includes a power, but not an obligation, for us to undertake any amendments. He also asked about greening under pillar 2. Under our new ELMS scheme we are considering how best to reward farmers and land managers for the good work they do in managing the countryside.
On the countryside stewardship scheme, a new round of countryside stewardship will be open for applications in February, with the agreement starting in 2021. This will be a stand-alone domestic grants scheme and we have made an SI on that matter. My noble friend Lord Caithness also asked about this in relation to Northern Ireland. It is a matter for DAERA. Since the start of the current scheme, payment entitlements in Northern Ireland have been moving towards, but have not yet reached, a uniform unit value.
The Scottish Parliament, the National Assembly for Wales and the Northern Ireland Assembly have all granted legislative consent Motions for the Bill, and the NFU has welcomed it.
On the issue of the carry-over of the three-crop rule, raised by my noble friend Lady Byford, the Bill does not introduce new policy. The basic payment scheme, including the greening rules, which include the three-crop rule, will apply for 2020. The Agriculture Bill will allow us to simplify the current scheme from 2021. However, the Rural Payments Agency has recently updated its GOV.UK online guidance on flooding and wet weather so that farmers are clear on rules and possible alternative options which will allow them to remain compliant.
On the Northern Ireland protocol, an issue raised by the noble Lord, Lord Teverson, spending that supports the production of trade in agriculture products in Northern Ireland is exempt from state aid rules when meeting Article 10.2 conditions. I do not have time to say more on this matter but if there was anything further on it I would.
The noble Baroness, Lady Jones of Whitchurch, also raised the issue of pillar 2. Under the withdrawal Act 2020, Defra and the devolved Administrations will continue to deliver rural development programmes under the terms of the EU regulations, which are not the subject of this Bill.
My noble friend Lord Inglewood raised a number of pertinent points but I am afraid that taxation is above my pay grade.
Obviously, there are issues—many of which will come up in the Agriculture Bill—but I want to take the opportunity with this short Bill to put on record my thanks to the Bill team and all noble Lords who have engaged in these deliberations. The Bill is necessary. I hope I have explained why we are doing it now and why we could not have brought it forward before although it was an issue we understood we would need to manage. It has also enabled the Government to address the review of the noble Lord, Lord Bew, dealing with 2020.
These measures have been agreed by the other place and are overwhelmingly supported by the devolved Administrations, stakeholders and farmers across this country. As I have said, this Bill is certified and is therefore a money Bill. I will look at Hansard because there are many questions which go beyond this Bill. If any particular points come up in other deliberations, I will come back. In the meantime, I beg to move.
Royal Assent
Thursday 30th January 2020
(4 years, 10 months ago)
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