Direct Payments Ceilings Regulations 2020

Baroness Northover Excerpts

Wednesday 1st July 2020 Lords Chamber

[Baroness Northover (LD) [V]]

My Lords, the Minister may not be surprised that I regret these SIs. But he need not worry—I do not intend to vote against them. What I regret is that it is necessary to take this action as a consequence of leaving the EU. That has come at such a cost, in terms of time and money. We are already in the second half of 2020, and still have no idea what our relationship with the EU will be—even though it is our biggest market and the source of much agricultural labour—nor do we know the nature of any trade deals with other countries.

I am glad that the Government have finally set up the commission on farming, but I note that it is advisory only. As the Minister knows, farmers must plan long term. The arrangements here relate only to 2020, and direct payments will indeed be phased out. I am particularly concerned about small farmers, especially tenant and hill farmers. There is no real certainty going forward, although we will seek to flesh that out in the Agriculture Bill from next week.

I would like to put a few questions to the Minister. What is the impact of adopting the exchange rate from the end of 2019 as compared to now? What is the impact of not using the EU’s budgetary discipline? Is the Rural Payments Agency ready for its tasks? He will recall serious past problems. I look forward to his replies.