Agriculture Bill

Earl of Devon Excerpts

Committee stage & Committee: 4th sitting (Hansard) & Committee: 4th sitting (Hansard): House of Lords
Thursday 16th July 2020 Lords Chamber

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

My Lords, it is a pleasure to follow the noble Earl, Lord Caithness, and an even greater pleasure to hear a Conservative Peer—a hereditary one at that—speaking so eloquently about climate change, because this is a problem that the UK is not facing up to in a coherent way, so the more that we can do with this Bill, the better. It is not really a surprise that the concept of zero carbon is not in the Bill, because most of it was written before we signed up to that. It was drafted three years ago, and I regret that more redrafting was not done before it came before your Lordships’ House. The Government have had over a year since they put a commitment to net-zero carbon emissions by 2050 into law. I will be very forgiving with the Minister and suggest that they have just not got around to updating this legislation yet.

The amendments in the group, including my Amendment 274, seek to bring the Bill up to date with our net-zero carbon commitment and ensure that agriculture and land management play their proper role in achieving net zero. Agriculture plays a huge role in our carbon footprint and it will grow proportionally as other sources of emissions are reduced. It is therefore essential that the Government should set out a clear trajectory for agricultural emissions and a credible strategy to achieve that. Of course, we have to think about other parts of the economy as well. If we insist on carrying on flying as we did in the past pre coronavirus, other bits of the economy will have to do more to bring our emissions down to zero carbon—so there is that thought as well.

There are some differences between Amendments 272 and 274. Amendment 274 would require net-zero agriculture emissions by 2050, whereas Amendment 272 does not contain this net-zero requirement. Instead, it would require the Secretary of State to have “due regard” to Section 1 of the Climate Change Act. This would mean that agriculture would make some contribution towards the wider goal of net-zero emissions across the economy, but I believe that net zero is possible, and indeed achievable and desirable, for agriculture, and I urge noble Lords to aim to include the amendment in the Bill on Report.

I turn now to the Minister. I have a few things to which I hope that he or she—I cannot see who it is—can give a response. Does the Minister think that net-zero carbon emissions in agriculture is actually achievable by 2050, and what about the important role that setting this out in law will play at stimulating innovation and investment in the right things? Will the Minister undertake to work with noble Lords from across the House to update the Bill by Report stage to reflect the big change in net-zero legislation that occurred last year after the Bill was first drafted? I look forward to the Minister’s response.

[The Earl of Devon (CB) [V]]

My Lords, we spent the first three days of this debate discussing the baubles that were to adorn the Christmas tree under Clause 1 on ELMS. We are now somewhat getting to the meat of the matter and considering, in my view, the Christmas tree itself. But I am concerned that if this Christmas tree Bill is allowed to pass into law in the manner in which it is currently drafted, it may well wither and die before any of those ELMS baubles can be appreciated. The reason for that—I raised this issue at Second Reading—is the transition gap, or perhaps more pertinently, the transition chasm across which many farms may not make it in the years between 2021 and 2028, when ELMS are due to come into effect.

The noble Baroness, Lady Young, spoke about the “cataclysmic changes” that will occur to farming as a result of this legislation, and I do not think that she is overstating the position. As a result of this legislation, we will see over the coming years a dramatic decrease in the basic payments that farmers receive. At some point, those payments will be replaced by a series of payments under ELMS, but, as we are well aware after three days of interesting but very varied and somewhat random debate, the details of the scheme are years away from completion, and farmers simply do not know what will replace the essential income that they currently receive. My real concern is that this will have a dramatic effect on the environmental impact and environmental outcomes of farming. This is based on personal experience as well as discussions with the NFU and others, and it stems from a number of different angles.

For a number of farmers, the loss of the BPS will be fatal to their businesses, and those businesses will go out of business. The result will be that land will either fall fallow and therefore deteriorate—the environmental impact of that is considerably negative—or it will be sold to a more commercial neighbouring farmer who will be able to increase productivity and thus increase environmental degradation. Other considerations are that those farmers who are able to survive the transition chasm will do so only by tightening their belts. From a personal perspective, I have been advised not to invest heavily in capital projects at this time; why invest in something now for which you might well be paid by ELMS later? The conversations that I have had with agricultural and environmental advisers along the same lines conclude exactly the same thing: they are advising all their clients to hold off making any major productivity and environmental investments at this time because we simply do not know what is going to happen and we may be paid for these things at some point in the future. The net result of that will be a catastrophic drop-off in environmental gains.

My amendment is a very simple one that I recommend to noble Lords as a somewhat shorter amendment than Amendments 272 and 274, although I believe that it is targeted at the same thing. It asks that the Secretary of State should confirm that the implementation of this legislation will not negatively impact our progress towards net zero by 2050. The amendment is worded in that way for a specific reason. It is not that it will stop us achieving net zero by 2050; it is that, during the time between 2021 and 2028, our progress towards those goals will not be negatively impacted; that is, we will not go backwards.

The next five, six or seven years are absolutely crucial if we are to have any hope of reaching the monumental target of net zero, but introducing a system that simply forces us to take backward steps is not, I believe, appropriate. My amendment was inspired by the decision of R v Secretary of State for Transport with respect to the Heathrow runway. It seems that Parliament should not be passing legislation that is contrary to those net-zero targets and we should not be passing legislation until we have satisfied ourselves that this will not have a negative environmental impact.

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[Baroness Bloomfield of Hinton Waldrist]

I agree with everything the noble Baroness has said about healthy land meaning healthy food. The Bill is designed to do all that we can to encourage farmers to produce healthy land. We do not have a sector-specific target for agriculture because the Committee on Climate Change advised that emissions reductions would be needed in all sectors. We know that to achieve net zero more is needed from this sector, and we are looking to reduce agricultural emissions controlled directly within the farm boundary with a broad range of cost-effective measures, primarily through improvements in on-farm efficiency and land use change.

[The Earl of Devon [V]]

My Lords, I am sorry to return to this point—I am being forced to become something of an environmental campaigner. I have a simple question which has not yet been answered. Are the Government satisfied that the agricultural transition will not slow or reverse our progress towards net zero in 2050?

[Baroness Bloomfield of Hinton Waldrist]

I can confirm that we are absolutely confident that we are doing everything in legislation and encouragement in order to achieve that end.

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[The Earl of Devon [V]]

My Lords, I echo the words of the noble Baroness, Lady Rock. I will speak to Amendments 131 and 133 in my name. I am grateful for the support of the noble Lord, Lord Cameron, on Amendment 131.

This turns again to the transition period—or transition chasm, as I described it earlier. Farmers are used to dealing with bad weather, but the thick fog that lies over the chasm is very foreboding. As I suggested earlier, the uncertainty is a major drag on investment and productivity in farming. Certainty and clarity are needed. My amendments seek merely to improve the clarity and certainty under the very welcome multiannual financial assistance plans.

Amendment 131 seeks more certainty by requiring plans to last seven years instead of five, permitting a greater length of commitment and avoiding the unfortunate coincidence with the election cycle. Agriculture and politics do not mix. To use a term popular in this Bill, we need to de-link them. I also note that seven years seems to be okay for the first multiannual financial assistance plan. Can the Minister state why it is not okay for the rest?

Amendment 133 merely seeks some clarity. At present a multiannual financial assistance plan is due to be laid before Parliament by 31 December of this year and will come into force the following day. That makes no sense—I do not wish to spend New Year’s Eve poring over a multiannual financial assistance plan. Parliament should have at least two months in which to review it. I suspect that farmers may want a bit more advance notice as well.

[Lord Lucas [V]]

My Lords, I will speak to Amendment 132 in my name. These plans are the fundamental basis for planning farming in this country. It is really not acceptable that the Government should be allowed to let a plan almost expire and then introduce a new one. How does that allow farmers to plan properly? I know that they will not get it under these circumstances, in the first iteration, but thereafter they deserve two years’ notice of changes that will be made between one plan and the next.

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[The Deputy Chairman of Committees]

My Lords, I have received requests to speak after the Minister from the noble Earl, Lord Devon, and the noble Lord, Lord Lucas. I remind noble Lords that these should be brief interventions.

[The Earl of Devon [V]]

My Lords, I am sorry for keeping us late. I note that I can hear the combine rolling outside my window—today is the first day of combining. The farmers are still working late, so I am sure that noble Lords will not mind working a little late too. I thank the Minister for confirming that the multiannual financial assistance plan will be published in early autumn this year. Does that mean that the Government agree to Amendment 133?