Direct Payments to Farmers (Legislative Continuity) Bill

Earl Cathcart Excerpts

3rd reading & 2nd reading & Committee negatived & 2nd reading (Hansard): House of Lords & 3rd reading (Hansard): House of Lords & Committee negatived (Hansard): House of Lords & 2nd reading (Hansard) & 3rd reading (Hansard) & Committee negatived (Hansard)
Wednesday 29th January 2020 Lords Chamber

[Earl Cathcart (Con)]

My Lords, before I start, I should say that I farm in Norfolk and that I am in receipt of these payments. As my noble friend Lord Gardiner has already so eloquently explained, when we leave the EU on Friday, the EU rules that allow these payments will no longer apply to Britain. Due to a peculiarity of EU basic payment funding, the 2020 payments are funded out of the EU’s 2021 budget year. As Britain will not be contributing to the EU’s 2021 budget, we must fund our 2020 basic payments ourselves, hence this Bill.

Obviously, I support this Bill. It maintains the status quo for British farmers and brings them some certainty, for one year anyway. I also congratulate the Government on accepting the Bew review, whereby the Government will maintain the payment allocations for 2020 to 2022 for farmers in England and Northern Ireland and give an uplift in funding for farmers in Scotland and Wales. I look forward to hearing the contribution of the noble Lord, Lord Bew, in a minute.

I am sure that noble Lords realise just how important these basic payments are to farmers. They account for about 60% of farm incomes, and more than 40% of farmers would make a loss without their basic payment, so this small Bill should be supported as it gives certainty to farmers, in the short term anyway, until such time as the rules change once the Agriculture Bill is enacted. There has been much criticism, including from farmers, that the EU basic payment scheme rewards farmers according to the size of their holding, rather than for the size of the benefit that farmers bring to the environment. The Agriculture Bill aims to address this.

With the best will in the world, farmers are naturally nervous about what the future will mean to them, as the details are very sketchy, but that debate is for another day.