Agriculture Bill

Debate between Baroness Rock and Baroness Bennett of Manor Castle

Committee stage & Committee: 5th sitting (Hansard) & Committee: 5th sitting (Hansard): House of Lords
Tuesday 21st July 2020 Lords Chamber

[Baroness Rock [V]]

My Lords, again I declare my interests as a director of a tenant farming enterprise. I support Amendment 237 in the name of the noble Baroness, Lady McIntosh. I was pleased to add my name to Amendments 238 and 243 to 246. I welcome the clear intention to ensure that tenants are not excluded from financial assistance schemes.

Amendment 238 seeks only to ensure that all potential circumstances that could arise for a tenant to need their landlord’s consent are covered. Some schemes, by their nature, require tenants to seek the consent of their landlords, regardless of legislation or their contracts of tenancy. Those individuals would not be able to use the provisions of this legislation to object to a landlord’s refusal, in those circumstances. This amendment merely extends the opportunity for reasonable objection to apply to any and all situations where the landlord’s consent is required. The amendment is not seeking to expand the remit of the legislation beyond what the Government intend, just to ensure that no one is left out of being able to use this provision.

I welcome the provisions of Schedule 3, in particular those allowing tenants to object to a landlord’s refusal to grant consent to enter a financial assistance scheme, but the exclusion of farm business tenants is a mistake. By their short-term nature, restrictive terms and high levels of rent, FBTs deserve the protection of this legislation. Over time, FBTs will become the major way in which non-landowners become farmers, and it is important that the legislative basis for their occupation is secure. As the Government rightly move towards a new mechanism to support farm productivity gains and public goods, it would be tragic if FBTs had no recourse against unreasonable landlords who refuse consent for them to be part of that new direction of travel.

I recognise that there is a balance between ensuring that we do not disincentivise landlords and ensuring that tenants have sufficient opportunities to take part in new schemes. However, given the restrictive terms of many FBTs and the lack of impetus to improve them in the marketplace, the balance should rightly ensure fair scheme access for all tenants.

While it is government policy to ensure long-term FBTs, it is disappointing that the Bill does not contain the provisions to assist with this that were proposed by the Tenancy Reform Industry Group—TRIG— which formed part of the Government’s consultation. Amendment 246 rectifies this. The marketplace does not currently deliver a sufficient number of long-term FBTs and the Government could do more to promote their use. These provisions should provide comfort to landlords who have to deal with tenants who breach the terms of the agreements or when land is required back for non-agricultural use, planning consent for change of use having been obtained. While these new provisions will have direct benefit for landlords, who are prepared to let for longer periods, they will provide indirect benefit to the tenanted sector as a whole, by providing scope for a greater degree of longer-term tenancies.

Finally, on Amendments 243 and 244, many successful businesses are family enterprises, no more so than in agriculture. Tenancy succession provisions ensure the longevity of farming businesses, and it is right that there should be eligibility criteria for who can succeed to a tenancy. Other bits of the Bill speak to that issue. One area that is limiting for many farm businesses with succession rights is the close relative test. Often it is nephews, nieces and grandchildren who are involved in the farm, rather than the children of the retiring or deceased tenant. It is important to recognise that these wider members of a family farm may be the most appropriate individuals to succeed. This issue was considered by TRIG and formed part of the Government’s consultation on agricultural tenancies.

The tenanted sector is responsible for farming at least one-third of the agricultural area of England and Wales. We must ensure that tenant farmers are able to participate fully in schemes to contribute to the future of farming.

[Baroness Bennett of Manor Castle [V]]

My Lords, it is a pleasure to follow the noble Baroness, Lady Rock, and to echo many of the sentiments she expressed on Amendment 246, to which my noble friend Lady Jones of Moulsecoomb has attached her name. I will speak briefly to Amendments 158 and 159. Amendment 158 is on county farms, which is something that we have heard discussed broadly, its importance stressed by many sides, so I will not detain the Committee on that.

I want particularly to address Amendment 159, in the name of the noble Earl, Lord Dundee. This in many ways addresses the question I put to the Minister after the previous group of amendments. Do we perceive our countryside as a place where we can see a growth of a different kind of business and economy—strong local economies, rich communities of small independent businesses producing food and providing services for those businesses? The vision set out by the noble Earl in this amendment reflects some very exciting work that is being done in Wales. We are seeing exciting experiments and developments in the devolved Administrations that could be transferred to England. That is the idea of One Planet Living: that it is possible to create developments that meet our environmental, social and economic goals and are different from what has gone before, which may not increase the concentration of land ownership, but may create opportunities for small independent landowners, businesses, tenants and people to operate different kinds of businesses, in different ways.

I do not need to tell your Lordships that land ownership in England is incredibly concentrated. We have a situation in which half of England is owned by less than 1% of its population. If we were to share the land of England around the whole population, everyone would get half an acre each. In the light of Covid-19, we may see that people wish to explore different ways of living, different kinds of businesses, different ways to work and support themselves, and different ways to work in communities. This amendment is an exciting possibility and way of doing that. I commend it to the Committee.

Agriculture Bill

Debate between Baroness Rock and Baroness Bennett of Manor Castle

Committee stage & Committee: 2nd sitting (Hansard) & Committee: 2nd sitting (Hansard): House of Lords
Thursday 9th July 2020 Lords Chamber

[Baroness Bennett of Manor Castle (GP) [V]]

My Lords, it is a great pleasure to follow the noble Lord, Lord Krebs. I very much endorse his committee’s report and urge noble Lords who have not read it yet to catch up with it. I also endorse his comments about Amendment 57, which is vital. We have seen so much focus on productivity measured purely as calories or tonnes per acre, which I will come back to in later groups.

I will speak primarily to Amendments 43 and 54, which are interlinked. The noble Lord, Lord Greaves, already introduced them so I will not repeat that, but I thank him, the noble Lord, Lord Judd, and the noble Baroness, Lady Boycott, for supporting them. I also thank the noble Baroness for setting out so clearly the huge importance of county farms in allowing opportunities for new farmers and young farmers to get into the industry. It is crucial that this network is protected and, indeed, significantly enhanced.

I also reflect what the noble Lord, Lord Greaves, said about local food and its importance in all communities, particularly those often labelled as “left behind”. Strong local food networks and strong local food-growing systems up and down the country mean that the economic benefits are distributed round the country. What we have in our economy in so many different ways is far too much concentration of economic benefits in London and the south-east. However, I have a word of warning about what the noble Lord said about cheap food. I always want to put scare quotes around “cheap food” in supermarkets. We always have to remember that cheap food is costing us the earth and our health.

I come to Amendments 43 and 54 and pay tribute to work of the Landworkers’ Alliance, Sustain and the Campaign to Protect Rural England, which all had input into them. They highlight how local food systems deliver benefits on a scale from the local to the global, but have suffered from decades of underinvestment. Many of the people involved in them—the producers, processors, retailers and caterers—are small and have limited management and financial capabilities for collaboration and sector development, although I note that other elements of the Bill seek to encourage that. It is something we want to see the Government support across the board.

The benefits of local food strategies and infrastructure are that they reduce our reliance on imported food. That means reducing exposure to volatile global markets and to the uncertainties of a world that now looks increasingly uncertain indeed. Local food systems have the capacity to meet up to 80% of the UK’s food demands through UK-based production, over 50% of which can be produced within 100 miles of where it is consumed. Think what a different system it would be if the majority of the food on your plate was local, with all the economic benefits circulating in the local economy.

This would also have the global impact of reducing “ghost acres”—the land in other countries which should be available to feed their own populations their own local food, but which is currently used for growing export crops. It would allow producers to gain a higher share of the retail pound through short supply chains, make farming enterprises more profitable and make a valuable contribution to those local economies. It should never be forgotten that farmers now get a lot less than 10% of the benefit of every pound spent on food.

On the broader economic benefits, there is evidence from Nourish Scotland that for every pound invested in local food, £6 to £8 is returned to local society and over 50% is retained in the local economy, while with non-local enterprises, such as supermarkets, only 15% to 30% of the money is returned. Local food means that public health priorities are catered to and local communities have fresher, more nutritious, more affordable food. There is also increased interaction with local vendors and the satisfaction, perhaps, of volunteering at local farms and of community-supported agriculture. It also means that we can have more diverse, sustainable, mixed farms that produce multiple products. That would enable more on-farm recycling, lower inputs, reduction of food waste and other environmental benefits.

A five-year mapping study from 2012, Mapping Local Food Webs, estimated that 103,000 jobs across England could already be attributed to the local food economy, with 61,000 flowing from local food sales. Spending in local food outlets supports an average of one job for every £46,000 of annual turnover, while in the three major national chains it is one job per £138,000 to £144,000. We are talking about a system that works for people and for the environment, so I commend Amendments 43 and 54 to your Lordships’ House.

I will also refer to Amendment 61 in the name of the noble Lord, Lord Holmes of Richmond, to which I attached my name. It refers to growing under glass. I not sure that “glass” is quite the right word, but I am sure everyone knows what we are talking about. It talks about using renewable energy and there are real possibilities, such as using waste heat, reducing carbon emissions and using energy and resources well. This is an area in which the UK has very much been left behind compared with countries such as the Netherlands. I express my concern here. I have already tabled a Written Question to the Government about the low-carbon heat consultation, which currently excludes the potential of large-scale heat pumps, which could be fed into this area.

I will also briefly refer to Amendments 12 and 13. My noble friend Lady Jones attached her name to Amendment 12 and has already referred to both of them. It is vital to understand where our food comes from. I refer noble Lords to a fascinating study from the British Nutrition Foundation that found that one-third of primary school pupils thought that cheese came from plants. We have a long way to go to ensure that we have a full understanding of where our food comes from, the importance of food security and how our entire economy is a subset of the natural world.

[Baroness Rock (Con) [V]]

My Lords, I declare my farming interests as set out in the register. I too add my support to Amendment 12 in the name of the noble Lord, Lord Curry of Kirkharle. I will speak to my Amendment 62, which would give the Secretary of State additional powers to enable the support of diversification activities on farms where the purpose of that activity is to support or maintain the agricultural, horticultural or forestry activity undertaken on that holding.

This is an agricultural Bill and, as such, it should be about ensuring the resilience of the agricultural sector and supporting public benefits from the farmed environment. There is a real danger that vital support could be lost to our farmers. Therefore, it is important to ensure that we support those individuals bearing the business risk and carrying out the day-to-day management tasks. The key for making the case for financial assistance for diversification projects under this Bill is to look at farm business income. Many farmers make a loss from core farming activities, so diversification becomes an important tool for sustaining a farmer’s income. Some 65% of farmers already have some diversified element on farm. In 2018-19 the total income from diversified activities was £740 million. Diversification is about creating income opportunities for a whole farming family and offers the chance for other family members to use other skills to support and maintain a family unit on farm or by staying in the local area. I think in particular about encouraging young people in rural areas, which can only benefit the local economy.

Given the current reliance on BPS, many farms will need to look for additional sources of income once direct payments are phased out. Enabling the Government to provide financial assistance for diversification activities could help to fill this gap and allow farming businesses to build their resilience and sustainability.