Agriculture Bill

Duke of Wellington Excerpts

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

[Baroness Jones of Moulsecoomb (GP) [V]]

My Lords, there are two strands of amendments in this group: those that probe the Government on the agricultural transition period, such as Amendment 143 in the name of the noble Baroness, Lady McIntosh; and others, such as my Amendments 147, 148 and 154, that would prevent secondary legislation that would undermine animal welfare.

As other noble Lords have said, the agricultural transition period needs probing to understand what the Government’s current position is. The Bill has been floating around for a long time, but there is still no real detail in it, which is very frustrating for us who have to comment on it. On the one hand, I am very swayed by the argument from the noble Lord, Lord Teverson. The transition period should probably be as short as possible, simply because we can then move rapidly to a new system of public money for public good. I also do not particularly want to give the Government a lot of time to delay the big, tough decisions they will have to make, but they of course have to give farmers and land managers the time to adapt and improve. Overall, we need the certainty that comes from the Government setting out their plans very clearly. I hope the Minister can set out a timetable for that happening.

The second strand of this group is my amendments which, like so many of my amendments, seek to protect animal welfare. Clauses 9 and 14 grant very broad power to the Secretary of State in what might be termed cost cutting and corner cutting. The clauses should be scrutinised on their own and the Government should make it clear what they plan to use them for to justify their existence. My amendments would prevent the Government cutting these corners for animal welfare so that the Secretary of State cannot simply say, “That’s rather expensive for animals. Let’s see if we can improve on that and cut the cost.” There are probably a dozen other issues that should be added to the list of things that these clauses should not be allowed to tamper with, but for me, animal welfare stands out as a priority.

I hope other noble Lords will join me in their concern about Clauses 9 and 14. We might work together in bringing amendments on Report to curtail these cost-cutting and corner-cutting powers.

[The Duke of Wellington (Non-Afl) [V]]

My Lords, as before, I declare my agricultural interests as detailed in the register. During the many days of this Committee a considerable number of thoughtful and constructive amendments have been tabled, but in most cases the Government have suggested that they are unnecessary since the matter is already covered in Clause 1 or can be provided for in the new environmental land management scheme. However, the ELMS will not begin until 2024. During the years between now and then, many farms that are currently barely profitable will suffer or disappear.

I will speak to my Amendment 149. I am grateful to the noble Lord, Lord Greaves, for signing it as well. As I said at Second Reading, my real concern is for the very survival of smaller hill farms during the intervening years from now until the new ELM payments begin in 2024. The Government announced in February that farmers in the lowest band of basic direct payments—up to £30,000 per annum—would have their payment cut by 5% in 2021, with further cuts in the following years. However, the Government’s own figures for 2018-19—the latest available—show that the average cattle and sheep farmer in a less-favoured area received a direct basic payment of £24,000 and still made a profit of only £15,500. Figures for 2019-20, when available, will probably show a slightly better position. Nevertheless, these smaller hill farms are only marginally profitable even with the basic payment and would be commercially totally unviable without taxpayer support.

We all accept that we are moving away from the basic payment system to the new environmental land management scheme payments. The purpose of my amendment is to ask the Government to think again about whether it is sensible or fair to reduce those in the lowest band even by 5% before ELMS payments kick in in 2024.

On Tuesday two weeks ago we debated Amendment 78 in the names of the noble Lords, Lord Bruce and Lord Greaves. Their amendment urged the Government to maintain support for hill farms and other marginal land. I support this general principle. My amendment is more specific and asks the Government simply to protect just the lowest band of recipients from the cuts until the new payment systems come into play.

Last Thursday, the noble Baroness, Lady Bloomfield, stated that since small abattoirs operate on a commercial basis they would not fit into the principle of the public good. My contention is that, unfortunately, small hill farms are not in any way commercial on their own, so I believe the public will consider it more than just for taxpayers’ money to be given for the public good of maintaining our small hill farms, which play such an important part in so many rural communities in this country. When the Minister responds to this group of amendments, I hope he will give the Committee an assurance that the Government will look again at the timing and percentage of the reductions in the basic payments for small farmers in the uplands.

[Baroness Rock (Con) [V]]

My Lords, I declare my interest as a director of a tenant farming enterprise as set out in the register. I shall speak to my Amendments 150 to 153. Although there is an understandable desire to demonstrate that we are moving away from the old regime of the CAP, we must do so in a way that is effective rather than just quick. The delay in our exit from the EU and the implications of Covid-19 point to a possible delay in the implementation of this new policy framework. These amendments would allow greater flexibility in pausing or even reversing the phasing out of direct payments should, and only should, circumstances require it. This would be particularly important in a scenario where payments to farmers had been reduced but where the funds freed up had not been spent on alternative programmes and remained unused.

Amendment 150 would allow Ministers to reverse reductions in direct payments if they were found to be having a detrimental impact on the nation’s ability to produce food. The Covid-19 crisis will have long-term implications for our country, so this amendment would allow for welcome flexibility. UK consumers, who have valued the domestic supply of food over recent times like never before, will not welcome any dip in that supply. In the event of a pause or a reversal for these reasons, the Government should be allowed to maintain independent financing for the development of alternative schemes, such as ELMS, so that they are not delayed or interrupted.

My Amendment 152 would enable those who have opted to take delinked payments to return to receiving direct payments if the direct payment scheme is extended. If a delinked payment is introduced, the powers to extend the transition period in accordance with Section 8(3) will be used. The status of the farmer would be uncertain. He may be locked out of the system for longer than envisaged. The status of such a person in this situation should be defined in the regulations to provide legal certainty. Given the current uncertainty about what future schemes will look like, this amendment would provide a safeguard against unintended consequences for farmers if the agricultural transition period is extended.