Agriculture Bill (Third sitting)

(Limited Text - Ministerial Extracts only)

Committee stage & Committee Debate: 3rd sitting: House of Commons
Thursday 13th February 2020 Public Bill Committees

[The Chair]

We will now hear oral evidence from NFU Cymru, the Farmers’ Union of Wales, and the Welsh Government. Thank you very much for coming and welcome. We have until 12.15 for this panel. Would you introduce yourselves before we move to questions?

Huw Thomas: I am Huw Thomas, NFU Cymru political adviser, based in Builth Wells.

John Davies: I am John Davies, president of NFU Cymru.

Tim Render: I am Tim Render, director for environment and rural affairs in the Welsh Government.

Dr Fenwick: I am Nick Fenwick, head of agricultural policy for the Farmers’ Union of Wales.

[The Minister of State, Department for Environment, Food and Rural Affairs (George Eustice)]

Q 141 Schedule 5 to the Bill makes explicit provision for Wales, and in particular gives the Welsh Government the power to amend, modify and improve the legacy common agricultural policy scheme. What would be your priorities for that simplification? What are your key concerns about the existing CAP, and, if the Welsh Government had a free hand to improve and simplify it, what would you like them to do?

John Davies: Thank you, Minister. Obviously, we await any announcements eagerly. We would look to amend where there are, we would say, unfair penalties for minor infractions. There are major improvements to be made there, for instance. There will be a need for more trees to be planted in future; where there are hedgerows or woodlands, at present, they are taken out of any calculation. There are minor adjustments to be done there that could reduce stress quite significantly in the interim period, I would suggest.

Dr Fenwick: We entirely agree with that. Penalties are a huge issue. It is widely recognised that they are very often completely disproportionate to things that have no impact on the wider environment or the general public. Things that may have cost Government, for the sake of argument, a few pounds, can incur fines of many thousands of pounds.

Greening is another issue. The 100 trees per hectare limit has had a very big impact and goes completely against the current thinking on the importance of trees. The way that it has been implemented in Wales—understandably, given the wording of the European legislation—seems counter-intuitive, given the priorities in terms of silviculture and agriculture co-existing.

Tim Render: From the Welsh Government perspective, we consulted on this question in our last document on ideas for taking farming policy forward and future farm support measures. We also identified that, as part of the transition, you would need to look at simplification. The four things that we flagged were very much penalties, as union colleagues have identified; some of the issues around cross-border payments and the single application rule; the basic payment scheme window for unvalidated beneficiaries; and how the environmentally sensitive permanent grassland rules operate. As I say, those are things that we consulted on. We are assessing the consultation responses at the moment and will make policy decisions on how to implement that when we have the powers, through the Bill, to implement—potentially from 2021.

Huw Thomas: One thing to point out is that the powers relating to Wales in schedule 5 are far more modest than those described for England in clause 9. The scope of the ambition for Wales is perhaps somewhat curtailed by that. In relation to England, you have far more powers to remove and reduce burdens, penalties, financial costs and so on; for Wales, the powers are a bit narrower in scope. That is just something to note.

[George Eustice]

Q What about the so-called greening rules? When those were introduced, environmental non-governmental organisations said that that was greenwashing and farmers said that it was green taping. Perhaps both were right, in that it has not delivered much, if anything, for the environment and it is responsible for about 50% of all the guidance that we have to issue. Do you take the view that it is better just switched off altogether, so that we do not have the crop diversity rule and do not have the ecological focus area rules, either?

John Davies: I would say that it is very difficult to farm in a prescriptive way. We have a real challenge this year with the weather, which will cause real issues around the three-crop rule, so we need to be flexible in our approach there, because it is simply not practical in some areas at some times. We need more flexibility.

Dr Fenwick: We agree entirely. Something that is aimed at certain types of farms has actually had an impact on the types of farms that it was not aimed at—I am talking about the impacts of greening. Indeed, that has been recognised across the EU. The European Commission is undertaking the same process of looking at greening and how it should be improved, and has taken steps in that direction. I think it is universally recognised as completely disproportionate.

Tim Render: We would be happy to look at that in the light of the consultation responses we get.

[Daniel Zeichner (Cambridge) (Lab)]

Q Good morning, Mr Stringer, and good wishes to those on the Government side who may have a nervous day ahead—we wish you well. My question is one that we have put to other witnesses before. We are obviously very concerned about the potential threat to farmers if food is imported that was produced to lower health and welfare standards. What is your view on that and what do you think could be done about it in the Welsh context?

John Davies: We have a very clear vision and ambition to lead the world in producing the most climate-friendly food, and that is to be realised with proper policy and proper support going forward. Obviously, it would be a disaster if that were then undercut by food production systems that are illegal in the United Kingdom, so we would be deeply concerned about the opportunity there and we would like to see that much more strongly identified in the Bill and ruled on.

We welcome the comments that a number of you made during the Second Reading debate. Also, Liz Truss, International Trade Secretary, said last week:

“In addition, nothing in any agreement will undermine the Government’s commitment to tackling climate change.”—[Official Report, 6 February 2020; Vol. 671, c. 15WS.]

We lead the world with our commitment to net zero by 2040, so we look to that being honoured. That is an absolutely key statement to us going forward.

Dr Fenwick: In clause 36, which relates to organic products, subsection (5) makes it clear that it is possible to restrict or prohibit the import of organic products. That will be legislated for once the Bill becomes an Act. We would have expected an equivalent paragraph or provision relating to other production standards to have been incorporated in the Bill. It is there for organic, yet it is not there for all these other issues and in particular the key issue that John raised—our environmental and climate change obligations.

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[The Chair]

The acoustics in this room are appalling. Can you speak up and project your voice?

Gareth Morgan: Yes, will do.

[George Eustice]

Q You know that in the new Bill, compared to the one in the previous Parliament, we have added an explicit purpose around soil quality. Will you describe for us how best to measure soil quality or soil health? What kind of management interventions should we encourage under the Bill’s provisions?

Gareth Morgan: Unsurprisingly, we were delighted to see that addition, which we thought was a grave omission last time round. There was a rather arcane debate around whether soil health was a private or a public good. What matters is that we achieve better soils, because we know that there is a soils crisis. Indeed, Michael Gove highlighted that in some of his speeches.

The other problem, as you allude to, Minister, is that soil is highly geographically variable and contains many different parameters, from organic matter in terms of the ability to sequester carbon to soil biodiversity, productive capability and the rest of it. That challenge has made it very difficult to set standard provisions around soils for farmers to follow. I suspect that that side of it will probably be best developed through the 25-year plan in the Environment Bill, so in a sense the Agriculture Bill is the place where the tools for farmers to improve their soils can be placed, and where the provisions around what sorts of soils we need, and where, will need a lot of research and geographical specificity. Farmers will need assistance to understand their soils, so a top-down approach to the same soils everywhere is probably not the right way to go.

One exception is that the concept of a steady increase in the carbon content of soils seems to be widely accepted. I think the UK is in the “4 per 1000” club on this, which is around a steady percentage increase of organic matter in soils. That will be a useful single aspiration for farmers and policy makers to coalesce around.

[George Eustice]

Q Soils have been around for a very long time and the human race has worked out how to grow crops on them, so I never understand why people say we need huge amounts of research when we know how soil works. Soil science is not new.

Gareth Morgan: The lack of knowledge should not be used as an excuse to not do anything. I agree with you that far. In terms of understanding at the field level what a particular farmer needs to do, I do not think I agree that that is always obvious. You might have shared the same train journey that I had today from Bristol. Going through Wiltshire and looking at the waterlogged soil-laden water lying on the fields, so that it is pouring into the River Avon at the moment, is a signal to me. That is not necessarily the fault of the farmer, but there is a gap between academic understanding of what soils should be like and what is happening in practice in the fields. There is a huge need for farmers to better understand what is appropriate on their farms. That will involve a fair bit of Government investment to help them in that process.

[George Eustice]

Q Some suggested as long ago as the 1930s—such as Albert Howard, who was seen by many as the father of the organics movement—that humus in soil is the key criterion to target, because that links to mycorrhizal activity and soil health more generally, carbon in the soils and the growth of various micro-organisms. Would you subscribe to that?

Gareth Morgan: Yes. The Soil Association is rooted in the philosophy that the essence of successful farming lies in the soil. There has been a welcome resurgence of interest in soil over the last few years. It is not an exclusive club; there are things such as minimum tillage, which is not necessarily an organic philosophy. A lot of farmers are increasingly focused on soil as the central organising principle of productivity, pest resistance, carbon sequestration and biodiversity, but that recognition still has a long way to go. I do not think organic is the only way in which that can be achieved, but it is one simple codified way of farming that we know builds on that understanding of soil and organic matter in soil.

[George Eustice]

Q If we tried to return to a general principle of more sustainable farming practices and husbandry, but recognising that the majority of farmers will probably want to stop short of becoming fully organic, could certain things be borrowed from organic production—traditional approaches to farm husbandry that could be deployed in more conventional farms? Or is it your view that nothing works unless you go the whole way to be fully organic?

Gareth Morgan: No, I would not say that. That is why there is increasing use of the term “agroecology”, to suggest that there is a more inclusive approach to sustainable farming. Organic is a great codified way of doing that and guaranteeing to the farmer and the consumer that the farmer is following a particular practice, but agroecology is wider in the sense that it incorporates practices such as mixed farming, where there is a mixture, or ruminant livestock and arable so there is a natural fertility cycle. It incorporates a focus on reducing pesticides—it would be fantastic in the Agriculture Bill to have some target for the reduction of pesticides as an aspiration—and a focus on leguminous plants, to increase nitrogen naturally, to avoid the use of artificial nitrogen. We are going to have to wean ourselves off artificial nitrogen at some point if we are to meet our carbon targets, because we have not found an alternative way to make it. All those practices can be incorporated into conventional farming systems.

[Daniel Zeichner]

Q Since the earlier iteration of the Agriculture Bill, there has been wide acknowledgment that we face a climate crisis. As part of that, although clearly different in different parts of the country, there is a crisis around our soil, is there not? Could you say a little about how intense that is?

Gareth Morgan: There is a soils crisis, which is expressed in a number of different ways. It is probably slightly alarmist to talk about a certain number of years of soils left, which is quite graphic and gets people engaged in the topic, but that will be different in different places. Soil can regenerate, so we should not look at it as a one-way trajectory of decline; we know ways in which soil can be recovered. The decline in organic matter in soil is a key dimension of that crisis.

The other big element of soil health that has been neglected by the environmental side as much as by the farming side, is biodiversity in soil. I assume that is as simple as the fact that it is below the ground, and therefore you do not see it. I heard an interesting statistic the other day: in a typical sheep field, the weight of creatures underneath the field far exceeds that of the animals on the surface, whether as simple as worms or down to bacterial and fungi. The problem is that, because we do not see it, it is not that immediately obvious to us. It becomes obvious through things such as feeding birds in the winter—the number of lapwings on the fields. If there are no invertebrates in the fields, there will not be birds above them. Getting back to a sense of the biodiversity of soil will be a good way to re-engage with it.

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[Miss Dines]

Q That would be a huge piece of work, would it not—like a national survey of each individual farm. If you want to set targets as you suggest, are you saying that that is realistically what the Government have to look at? Can there be a more pragmatic approach?

Gareth Morgan: I think a soil organic matter target nationally is realistic. I think there is a fair consensus that increasing organic matter in soil ticks so many boxes that that is something that would be useful. That does not necessarily help the individual farmer to know what needs to be done on their farm. There is a good national soil survey, so there is good spatial information about soils that we could be using as part of this process, so it does not all have to be done from a base of no knowledge.

[George Eustice]

Q I just wanted to come in on this point about targets. I know they are the tool that people often reach for—they say we should just have some statutory target—but you said yourself at the beginning that it varies considerably from soil to soil, it is hard to measure these things, and an enormous amount of research is needed. I have sometimes been told it will probably take eight years to do that sort of research.

Given the complexity of the issue, is there not a danger that if you are waiting to try to identify the target, you end up effectively delaying action—the worst of all worlds? Does it perhaps matter less that there is some sort of prescribed target, and more that you encourage and incentivise good soil husbandry from year one as best you can with the knowledge that you have? You can measure trends. You can get a sense of whether the trends that matter are moving in the right direction from the interventions you are doing. Is not that perhaps a better way to approach these things than some kind of prescriptive target?

Gareth Morgan: I think you are right, in the sense that the best must not be the enemy of the good, and there is plenty that can be done on soils tomorrow. I do not think I agree that the absence of a target is something that we should be content with in the long term, particularly at the Government level. Targets have been useful in focusing the attention of policy makers on results. The farmland bird recovery target, although the bane of many people’s life, was useful in terms of focusing attention on what could be done to reverse the decline of farmland birds.

I think national targets around soils would be helpful in terms of focusing and attracting funding. Ultimately the Treasury is going to come and say, “I can see you are doing lots of interesting things on your farms; what, actually, are you benefiting, in terms of the natural capital account for the country?” Unless we can go back to the Treasury and say, “This investment of £2 billion or £3 billion has achieved the following things over this period,” I suspect the money will dry up pretty quickly.

[George Eustice]

Q There was another area of the Bill that I wanted to ask your view on. It is further on—there is the clause relating to organic, principally marketing, standards. That is, in essence, the primary powers that we would need to amend the organics regime that we have inherited from the EU and that itself is about to change.

Are you content with the revised organics regime that we are about to inherit from the EU, as it stands, or would you be interested in us using these powers to make specific changes that might make the future UK organics regime work better?

Gareth Morgan: That is a little bit off my area, so I will not speculate too much. The Soil Association is only one part of a very broad organic movement, so there are a number of players who, I think, will want to come back. I think the general feeling was that the provisions in the Bill provide the right enabling starting point for creating a domestic structure around organic regulation.

The one concern that I have heard expressed is that, given we have quite a collaborative model for developing organic standards and lots of players in this country, building that level of engagement with the various players and consultation into that process will be important. At the European level, the International Federation of Organic Agriculture Movements, or IFOAM, has been involved in the ongoing development of organic regulation. We will clearly need to have something similar at a domestic level to ensure that everyone, from the farmers to the certifiers to consumers, has a stake in the development of the regime.

[Daniel Zeichner]

Q Two questions: first, in some of your evidence you have suggested that there should be a public health aim within the Bill, and I wondered whether you could tell us a little more about how you think that might work. Secondly— you have touched on this a bit in some of your contribution—who do you think is best-placed and qualified to negotiate and administer the new environmental land management schemes? Are there any potential conflicts of interest in that set-up?

Gareth Morgan: Taking the first point, it does feel that there is still a gap in the policy and legislative architecture in agriculture. We have “Health and Harmony”, which sets out a good, new, broad trajectory for agriculture, and we have quite a technical, nitty-gritty enabling Bill here in terms of saying, “Here are the tools that can be deployed to achieve things.” At the moment there is not anything knitting all that together to say, “What are food and farming for? Do we have any sense of what the right model might be?” I suspect that is perhaps a bit of a legacy from having had the CAP, which was a prescriptive and sometimes flawed model of European farming. We have almost moved away from that to being afraid to say we have any preferences at all. We have a series of tools and a broad aspiration that farming should be good for the environment, and then the market does the rest.

The reason for putting down a marker on public health was to say that food and farming are not just about a commercial transaction; it is of huge national importance whether people have secure and healthy food supplies and access to the right sort of food and whether the farmer is able to get a just return from the market. Some of those things are touched on in the Bill, but it almost feels like there needs to be something right at the front of the Bill to say what all this is for, as opposed to, “What should we pay farmers for and how?” It feels a bit too fast. That does not necessarily have to come in the Bill, but it has to come somewhere, to our mind. Again, that is where we would say that a presumption in favour of a move to a more agroecological way of thinking about farming probably would sit. Equally, it is the place where the national food strategy would fit in to say that food is more than just a market transaction for consumers.

[Daniel Zeichner]

You do not have to answer if you do not want to, but the fact that you are treading warily tells us what we need to know. Thank you.

[George Eustice]

Q On that point, you made a reference earlier to the need for advisers. You will be aware that the concept behind the future policy is that there will be an individual agronomist—possibly from the private sector, possibly from groups, perhaps even from your group or the Wildlife Trusts—who would be accredited by the Government to help farmers put schemes together and to walk to the farm and sit down around the kitchen table to do that. I think I am right in saying that the Soil Association already accredits organic producers and growers, probably under a similar model. I wondered if you might explain how that process works. How many clients—for want of a better term—can an accredited Soil Association adviser look after in a typical year?

Gareth Morgan: I should first say that other certifiers are available—for example, our colleagues in Organic Farmers and Growers. It is a competitive market. I am not from the certification side of the organisation and so I will follow up with written evidence on that point, if that is acceptable.

[The Chair]

Thank you. If there are no further questions from the Committee, I thank you, on behalf of the Committee, for giving your evidence, Mr Morgan.

Ordered, That further consideration be now adjourned. —(James Morris.)