Asked by: Baroness Rock (Conservative - Life peer)
Question to the Department for Environment, Food and Rural Affairs:
To ask Her Majesty's Government what steps they will take to ensure that tenant farmers on short-term, restrictive Farm Business Tenancies will not be constrained from entering new Environmental Land Management Schemes by their landlords.
Answered by Lord Benyon - Minister of State (Foreign, Commonwealth and Development Office)
Our approach to environmental land management is the cornerstone of our new agricultural policy. Farming efficiently and improving the environment can go hand in hand.
The Government is working to ensure that the design of our future farming schemes is accessible to as many farmers as possible including tenant farmers. For example, we have designed the Sustainable Farming Incentive scheme rules for 2022 to have shorter agreements and more flexibility, to better suit tenant farmers, and we have removed the requirement to demonstrate landlord consent. We are exploring and testing how our new schemes might work in practice across different types of holdings and different types and lengths of tenancy agreements.
As part of the development of our new schemes, we have considered the needs of tenants and worked closely with a number of organisations including the Tenant Farmers Association, Country Land and Business Association and National Farmers' Union. We are looking into the problem raised, and will work with these organisations and other stakeholders, to understand whether there is anything we need to do to ensure tenants are not excluded from schemes.
We are also working with tenants through our pilot, test and trials and user research.
Asked by: Baroness Rock (Conservative - Life peer)
Question to the Department for Environment, Food and Rural Affairs:
To ask Her Majesty's Government what plans they have to schedule a meeting between the Chancellor of the Exchequer and representatives of the Tenant Farmers Association to discuss the proposals for amendments to the taxation framework.
Answered by Lord Benyon - Minister of State (Foreign, Commonwealth and Development Office)
The Tenant Farmers Association provides a constructive contribution to considerations on the letting of agricultural land. The Government recognises that the fiscal framework plays a role in landowners' decisions on whether to let land and on the length of tenancy terms offered. Other factors are important too such as the size, quality and location of the land, and personal motivations for owning land. The Government is committed to a fair and sustainable tax system and keeps all taxes under review as a matter of course. The impacts and potential unintended consequences of tax reform need careful analysis to ensure confidence in the let sector is maintained.
Officials from Defra and HM Treasury have regular discussions to share information and feedback views from farming stakeholders. A third of all farmland in England is tenanted and a vibrant tenanted sector is vital to the future of agriculture. The Government is working with the Tenants Farmers Association and others to ensure our future farming policy provides an enabling environment for tenant farmers, including ready access to the Sustainable Farming Incentive and other future schemes. Minister Prentis recently met with George Dunn of the Tenant Farmers Association where a wide range of issues relating to tenant farmers were discussed, including the importance that tenant farmers can join environmental schemes without consequences on their tenancy agreements.
Asked by: Baroness Rock (Conservative - Life peer)
Question to the Department for Environment, Food and Rural Affairs:
To ask Her Majesty's Government what assessment they have made of the proposals from the Tenant Farmers Association to amend the taxation framework within which landlords of farmland make decisions about letting land to encourage longer term farm business tenancies; and what plans they have, if any, to implement these changes.
Answered by Lord Benyon - Minister of State (Foreign, Commonwealth and Development Office)
The Tenant Farmers Association provides a constructive contribution to considerations on the letting of agricultural land. The Government recognises that the fiscal framework plays a role in landowners' decisions on whether to let land and on the length of tenancy terms offered. Other factors are important too such as the size, quality and location of the land, and personal motivations for owning land. The Government is committed to a fair and sustainable tax system and keeps all taxes under review as a matter of course. The impacts and potential unintended consequences of tax reform need careful analysis to ensure confidence in the let sector is maintained.
Officials from Defra and HM Treasury have regular discussions to share information and feedback views from farming stakeholders. A third of all farmland in England is tenanted and a vibrant tenanted sector is vital to the future of agriculture. The Government is working with the Tenants Farmers Association and others to ensure our future farming policy provides an enabling environment for tenant farmers, including ready access to the Sustainable Farming Incentive and other future schemes. Minister Prentis recently met with George Dunn of the Tenant Farmers Association where a wide range of issues relating to tenant farmers were discussed, including the importance that tenant farmers can join environmental schemes without consequences on their tenancy agreements.
Asked by: Baroness Rock (Conservative - Life peer)
Question to the Department for Environment, Food and Rural Affairs:
To ask Her Majesty's Government what plans they have to amend the Agricultural Tenancies Act 1995 to include similar provisions to those set out in section 19A of the Agricultural Holdings Act 1986.
Answered by Lord Benyon - Minister of State (Foreign, Commonwealth and Development Office)
Following consultation, the Government implemented new provisions to help resolve disputes relating to requests for variations to Agricultural Holdings Act tenancy agreements. This is because these agreements were negotiated over 30 years ago in a very different policy and commercial context than we have today, and they are more likely to need variation and modernisation. Consultation responses did not support the same changes to the Agricultural Tenancies Act 1995 because Farm Business Tenancies are modern agreements more recently negotiated and entered into by both parties.
The Agricultural Tenancies Act 1995 enables the tenant and landlord to agree at the start of a tenancy that diversified activity (such as environmental activities) can take place on the holding whilst still confirming they intend it to remain a Farm Business Tenancy throughout the length of the agreement. The Government encourages landlords and tenants of Farm Business Tenancies to work together to find solutions to agreed diversifications including using the land for environmental improvements which can often be delivered alongside agricultural production. To encourage this further, the Tenancy Reform Industry Group, which includes representatives of tenants and landlords, has recently produced a Code of Good Practice providing guidance to help tenants, landlords and their advisers take a positive approach to agreeing variations to tenancy agreements.
The Government is working to ensure that the design of our future farming schemes is accessible to as many land managers as possible, including tenant farmers. As part of this, we are considering questions around landlord consent and length of scheme agreement and we are exploring and testing how our new schemes might work in practice across different types of holdings and different types and lengths of tenancy agreements. The Government is grateful for the ongoing constructive contribution that industry representatives of agricultural tenants and landlords are making to this process as we move through the agricultural transition period.
Asked by: Baroness Rock (Conservative - Life peer)
Question to the Department for Environment, Food and Rural Affairs:
To ask Her Majesty's Government why questions about land occupation were not asked of farmers submitting an expression of interest to take part in the pilot Sustainable Farming Incentive scheme; and whether they will now consider asking those farmers to provide information about their land occupation status.
Answered by Lord Gardiner of Kimble
To keep the expressions of interest for the Sustainable Farming Incentive scheme pilot as simple as possible for farmers, we decided to ask only for information that was not already known to us. The Rural Payments Agency, our delivery body for this pilot, already holds the relevant information regarding land occupation (use and tenure) for those farmers who are eligible to take part. Any gaps in our information will be picked up and addressed through this pilot and any future piloting of this scheme.
Asked by: Baroness Rock (Conservative - Life peer)
Question to the Department for Environment, Food and Rural Affairs:
To ask Her Majesty's Government what consideration they are giving to grant schemes to support dairy and tenant farmers.
Answered by Lord Gardiner of Kimble
Defra is working very closely with the dairy and other agricultural sectors through this period of disruption to manage the impact of COVID-19 on the dairy supply chain.
We have eased some elements of competition law to make it easier for dairy processors to come together to maximise production, processing and storage efficiency and ensure as much product as possible can be processed into high quality dairy products.
Moreover, in recognition of the unprecedented challenges facing this sector we announced on 7 May a new fund to support those dairy farmers who have seen decreased demand due to the loss of the food service sector. Eligible dairy farmers in England who have lost more than 25% of their income over April and May due to coronavirus disruptions will be eligible for funding of up to £10,000 each, to cover 70% of their lost income during this qualifying period. This will enable these producers to continue to operate and sustain production capacity without impacts on animal welfare.
The Agriculture and Horticulture Development Board together with Dairy UK have launched a new £1 million campaign running over 12 weeks to drive an increase in the consumption of milk. Defra and the devolved administrations are jointly contributing towards the financing of this campaign.
Alongside the COVID-19 Business Interruption Loans Scheme, HMT has announced the new Bounce Back Loan scheme which will also apply to businesses operating in agriculture. This will ensure that the smallest businesses can access up to £50,000 loans. The Government will provide lenders with a 100% guarantee on each loan, to give lenders the confidence they need to support the smallest businesses in the country. We will also cover the first 12 months of interest payments and fees charged to the business by the lender.
A vibrant tenanted sector is vital to a successful future for agriculture, a third of agricultural land in England is tenanted. Tenant farmers can access the business support schemes the government has put in place to help in these unprecedented times.
In addition, Defra has worked closely with the Country Land and Business Association and the Tenant Farmers Association on a joint initiative to encourage all rural landlords and tenants to work together collaboratively and compassionately at this time in respect of all tenancy matters, but particularly regarding rent payments, notices to quit and finalising new tenancy agreements. Furthermore, from 27 March 2020, court possession proceedings have been suspended for a 90-day period. This is in line with public health advice to limit all nonessential movement and it provides agricultural tenants with additional assurance that they are protected from eviction proceedings during this difficult time.
As the situation evolves Defra will continue frequent engagement with farming (including tenant farming) and processor representatives to understand the urgent support needed to help ensure the continued viability of all parts of the sector.