The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Gardiner of Kimble) (Con)
My Lords, I agree entirely with your Lordships that we should congratulate my noble friend Lady McIntosh on securing this debate on agriculture and farm support. I declare my farming interests as set out in the register.
As we leave the European Union, the Government are clear on establishing a strong and productive agriculture and food industry which promotes great British food, strengthens rural communities and maintains high animal welfare standards—all while enhancing our environment. As your Lordships have said, we have a world-class food and farming industry generating more than £100 billion a year for our economy. More than 70% of UK land is farmed. The production-to-supply ratio of indigenous food is 76%, as we heard from my noble friend Lord Caithness. I also agree with my noble friend Lord Caithness that farming and food production are the very backbone of the countryside—and in my view of the country. Farmers have an essential role in ensuring that we leave our environment in a better state than we found it. After all, earlier generations of farmers and landowners, as the noble Lord, Lord Cameron, said, were the architects of our extraordinarily beautiful landscape. A vibrant agricultural sector and the enhancement of our natural environment are entirely complementary. Given the salutary lessons from New Zealand, as outlined by my noble friend Lord Caithness, I need not say much more. So leaving the common agricultural policy provides us with an opportunity to ensure that future agricultural policy supports farmers to grow, sell and export more great British food, as pointed out by my noble friend Lady Redfern.
We are actively engaged with farmers and farming organisations as we develop policies that we believe will provide support more effectively than the CAP does. As highlighted by the noble Lord, Lord Cameron, we must ensure that we have a system of agricultural support that respects the work of farmers and rewards environmental protection and enhancement. That means support for natural capital and ecosystem services, referred to by the noble Lord, Lord Whitty, and my noble friend Lady Wilcox, such as woodland creation and tree planting, encouraging biodiversity, and high standards of animal welfare. By using public money to reward environmentally responsible land use and activities that enhance the countryside and protect landscapes, we provide the taxpayer with better value for money.
The Government absolutely understand that clarity is required in the farming sector at this time of great change. The noble Lord, Lord Cameron, rightly raises the importance of how a smooth transition for farmer is required. That matter was also referred to by the noble Lord, Lord Whitty, and my noble friend Lady McIntosh. We have therefore made a commitment to maintain the same cash total in funds for farm support until 2022 and to honour agri-environment agreements made while in the EU, provided that they align with domestic priorities and our future farming vision.
The noble Lord, Lord Whitty, and a number of your Lordships mentioned labour. Defra is considering the latest data and working closely with the industry and across government to monitor labour demand and supply, including the seasonal workforce. We want to enable farmers to develop new markets and provide vital public services. We must therefore support the adoption of new technologies and techniques to improve productivity in food production. In 2013, the UK Government agri-tech strategy was launched, with £80 million invested in four world-class centres of agricultural innovation to support the adoption of innovation and technology in the food and farming supply chain, while improving biosecurity. Last week, at Harper Adams I observed the benefits of precision farming and the importance of such centres in bolstering young farmers’ expertise. In response to my noble friend Lord Kirkhope, the enthusiasm of this next generation of farmers, and their appreciation of the intrinsic interdependence of food production, the environment and animal welfare, was one of the most evident features of my visit. Further to this, as my right honourable friend the Secretary of State announced, the Government have allocated £40 million to the countryside productivity scheme to help farmers improve productivity through investment in innovative technology. Indeed, the Government’s industrial strategy further commits to boosting the adoption of technical precision farming.
When we leave the EU, we will remain global leaders in environmental protection and animal welfare standards, maintaining our high-quality produce for British and international consumers. Noble Lords have rightly raised the importance of trade. We are a trading nation; we always have been and always will be. I was most grateful to my noble friend Lady McIntosh for referring to the work we are undertaking with our food counsellor in China and the other work going on overseas.
For the first time in more than 40 years, whatever our views on last June’s result, we have a golden opportunity to negotiate trade deals with the world. Around 60% of UK agricultural exports currently go the EU, as noble Lords have mentioned. Therefore, our focus is on securing the best deal for farmers in our negotiations, transition and readiness for day one as we leave. We are conducting a rigorous analysis of the full range of trade scenarios on UK agriculture to ensure the best possible trading future for our farmers. My noble friend Lady Wilcox asked about the WTO arrangements. We are currently considering what tariff rate quotas and amber box allocation the UK should create as part of our detailed work in preparation for the draft of the UK’s independent WTO schedule. My noble friend Lady McIntosh also asked dispute resolution in regard to which conflict resolution procedure will apply when we leave the EU. This issue will form part of our negotiation with the EU, as one would expect.
We should be proud that we have some of the highest animal welfare standards in the world. Let me be clear to your Lordships: there will be no reduction in our welfare standards, our food security standards or our environmental protections as we leave the EU. The Government have committed direct funding to research programmes with the Animal Health and Welfare Board for England, the Farm Animal Welfare Committee, the Animal and Horticultural Development Board and research councils. Only this morning, I was having a discussion with the chairs of those boards and that committee about advancing knowledge on welfare.
I should clarify my noble friend Lady McIntosh’s remarks regarding the live export of animals. Once we leave the EU, and in line with our manifesto commitment, we can take early steps to control the export of live farm animals for slaughter. This has been widely welcomed but I want to clarify that traditionally we have also exported live animals because their breeding standard is of the best. I particularly want to refer in the short time that I have to equines. I am fully seized of the importance of this, as the passports currently used for the travel of thoroughbreds used in racing and breeding, as well as other sport horses in the tripartite agreement, is tremendously important. The TPA will be the subject of negotiations when the UK leaves the EU and the Government will seek the best deal possible, as exemplified in the new TPA that was signed off in 2013. Indeed, I have been in correspondence only this morning on these matters.
Our partnership and ongoing engagement with a wide range of stakeholders will ensure that we have a farming and environmental land management policy which supports current and future generations of farmers to follow the best approaches to soil health management. A number of your Lordships raised this crucial point. The policy will also support them to adopt advances in agri-tech, produce quality food and enhance our natural environment. We recognise that future policy must work effectively for all UK agriculture—the noble Lord, Lord Grantchester, and my noble friend Lady Wilcox spoke of this. The Secretary of State meets devolved Administration Ministers regularly to discuss the importance of co-operative working and future frameworks. We are committed to continued flexibility in how the devolved nations manage their future farm support subject, we believe correctly, to preserving a single internal market and compliance with our international obligations.
The European Union (Withdrawal) Bill will convert the existing body of EU agriculture law into UK law. We will introduce an agriculture Bill and we intend to consult widely with interested stakeholders ahead of publishing plans for that Bill. The Secretary of State has signalled his intention to consult in the new year and I hope that the noble Lord, Lord Grantchester, and all of your Lordships will participate. Our proposals for the future agricultural policy will reflect the Government’s aim of securing a better future for agriculture and food production, while enhancing the environment and rural communities. As my noble friend Lady McIntosh mentioned, we must support farmers across the UK, from the uplands to the lowlands. I agree with my noble friend Lord Kirkhope and, as a member of the NFU and a supporter of the RABI, I share his remarks as to the social pressures and challenges of farming. I also know and understand that farming is exposed to great degrees of volatility, so we must develop a system that helps farmers to face the future.
Our vision for British agriculture is based on a sustainable, productive and competitive industry. This will be set out in our 25-year environment plan, which I hope will please my noble friend Lord Caithness. A great deal of work is under way on what our future farming policy will look like. This is being undertaken through active engagement with all farming interests. We are committed to supporting agriculture, food security, high- quality food and, essentially, the British farmer.
Baroness McIntosh of Pickering
My Lords, I congratulate my noble friend on the success of the Beijing consultant. Will the Government be minded to look at other such in other countries?
Lord Gardiner of Kimble
My Lords, we are looking at a global trade situation, so I am sure we will be looking at all parts of the world.