Rules for Direct Payments to Farmers (Amendment) Regulations 2020

Baroness McIntosh of Pickering Excerpts

Tuesday 3rd March 2020 Grand Committee

[Baroness Byford (Con)]

My Lords, I thank the Minister for introducing the regulations. I thank him, too, for the Government’s commitment to give £2.852 billion to ensure that the programme continues. I should declare a family interest in farming in Suffolk, where we are recipients of basic farm payments and stewardship funding.

The instruments speak for themselves. I have no queries with them; the legislation as it stands is fine. However, is the Minister confident that the payments will be made at the right time and in the full amount? I refer not just to the basic payments but to payments on the stewardship side, which has not had a good record in recent times. I understand from farming colleagues around the country that they are still waiting for some of those payments to be made. Perhaps the Minister can tell us how many are outstanding and when they will be paid. My worry is that the Government will find that fewer people enter those schemes because they fear that they will not be paid at the right time. That would be a great shame because we are trying to encourage a greater number of environmental projects within food production.

Given the flexibility within the instruments, might the Government rethink their stance on the three-year crop rule in the light of recent circumstances? I have in mind particularly the flooding that we have had. At the moment, we are supposed to rotate crops within a three-year period, but given the flooding—which remains a key issue in Lincolnshire, Yorkshire and other areas where crops are still standing in the fields, with little chance of farmers getting them out or being able to plant spring crops—is there flexibility within the system to make any allowances for that?

I have a direct question for the Minister on flooding. I know that emergency payments are allowed, and that some may have already been paid of which I am not aware. Within these rules, may some flooding assistance be given to the farmers who are in such dire straits at the moment?

I noticed in particular Regulation 7(10). I think the exchange rates are undecided at this time. Can the Minister tell us whether the exchange rates will be honoured in the same way between the four devolved Administrations? Clearly, it would surely be wrong to have one system in England and another in Wales and in Scotland. Will he comment on that?

On Regulation 7(6), I see that the Government of Wales have paid an amount to small farmers, and in Scotland beef and sheep farmers have been given assistance. Where will that balance take us? Are there plans to assist farmers in England, who are not represented in that way?

Lastly, I turn to payments. The Minister has a farming background and I am sure he realises that we need to ensure that payments given to farmers this year, let alone next year, are equal across the four devolved Administrations; otherwise, we will have unfair trading circumstances, which I know the Minister would not want to encourage.

Having made those few comments, I return to where I started: I welcome these regulations, and it is important that they are passed by the House. I have no difficulty with what is in them, but they raise other questions, which I have been able to ask this afternoon. I thank the Minister for introducing them.

[Baroness McIntosh of Pickering (Con)]

My Lords, I am grateful to the Minister for bringing forward these regulations; it would be a very brave man who stood between the farmer and his payments this year. I am also very grateful to my noble friend Lady Byford for setting out her concerns.

Anybody who has travelled from Scotland or the north of England down to London by train or car will have seen the amount of damage caused by the floods. Like my noble friend Lady Byford, I make a special plea for a sense of urgency on the three-crop rule. I hate to say this in mixed company, but I pay tribute to a previous Secretary of State, under a different Administration, Hilary Benn. He visited the Great Yorkshire Show and, on the same day, went back to London and lifted a similar provision that prevented farmers going on the land. The circumstances were similar, although it was a different time of year—July—and I forget which year it was.

My understanding is that the Government are actually discouraging anybody from applying for a specific force majeure provision. There is a very real concern that, eventually, the RPA will be inundated with potentially thousands of applications, given the scale of the problem this year.

I also understand that those who are seeking farming recovery fund financing are experiencing delays. I appreciate how hard my noble friend and his department are working at the moment—he was in the Chamber until very late yesterday, as indeed we all were—but anything that his department can do would be appreciated.

My noble friend will be aware that Flood Re had limited financial capacity, and that no businesses, particularly small businesses, were included. This means that no farm can make an application for financing or insurance cover under Flood Re. Can that be looked at in some shape or form?

I know that this issue might be raised by others, but another statutory instrument is coming down the tracks to implement the Chancellor’s funding statement of 30 December. I do not know whether my noble friend can put a date on that.