Direct Payments to Farmers (Reductions and Simplifications) (England) (Amendment) Regulations 2021

Earl of Devon Excerpts

Monday 22nd March 2021 Lords Chamber

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

My Lords, I note my interests as a Devon farmer. Given the weekend’s criticism of Members speaking in their own interest, I add that I am proud to speak for farmers from Devon. This House is well served by Members with hands-on experience, and I particularly appreciate that both the Minister in this House and the Secretary of State in the other place are themselves farmers and are sensitive to farming interests.

I am grateful for the hard work of Defra in implementing the Agriculture Act, but these regulations raise concerns. Like many farming families, I sat down last week, having established harvest 2021, to review budgets and understand the implications of the agricultural transition on farming operations. The many uncertainties are a challenge for farmers, the environment and the provision of the affordable, healthy and nutritious food that our nation so desperately needs right now. But of more immediate concern is the fact that these uncertainties risk severely limiting the adoption of ELMS, thereby frustrating the Government’s well-intentioned reforms.

As to the direct payments to farmers regulations, do the Government accept that decreased financial support will result in less money to invest in new equipment and technology and will require farmers to intensify their current farming practices in order to maintain their viability? This can only mean a decrease in relative productivity and an increase in environmental degradation. What steps are the Government taking to monitor these impacts during the transition period?

On direct funding, how much do the Government expect to save by these regulations, and where will that funding now be applied? Will 100% of the savings be redistributed to farmers? Can the Minister confirm that none of these funds will be diverted to the administrative expenses of the agricultural transition?

Finally on this regulation, what are the Government’s plans for future reductions beyond 2021? I agree with the noble Lord, Lord Rooker; farmers are already planning for 2022, and necessary investment will not be made if they do not have a clear idea of their future funding streams. Without a clear road map, productivity and the environment will suffer.

I welcome the launch of the sustainable farming incentive pilot. Is it correct that the SFI pilot is unavailable to any farmer already part of the Countryside Stewardship scheme, and thus is available only to those who have chosen not to enter such schemes or whose schemes have recently expired? If so, it seems unlikely to be an effective pilot, if those being asked to trial SFI are sceptics and non-adopters.

Turning to the Agriculture (Financial Assistance) Regulations, the mechanics of monitoring compliance are essential, but the extent to which inspection burdens farmers, and particularly farmers’ families, will directly impact their popularity. In this regard, there are a number of serious concerns. The regulations suggest that inspections may occur at a “reasonable hour”, but nowhere is that term defined. Given the working hours and seasonality of farm work, this may be particularly challenging. Inspection mid-harvest or mid-lambing could be an unreasonable hour, at any time of day.

Inspections may take place anywhere other than a private dwelling, and yet, as the Minister knows, a typical farmhouse kitchen is often the administrative heart of farming operation, and sometimes also a creche for newborn lambs. How will inspectors gain access to the records they need if they cannot access private dwellings? Equally, how will the privacy of farming families be preserved under such an inspection regime?

There are notice provisions before a virtual inspection by live video link, but there are no such notice provisions required before inspection by remote sensing, thus inspection by drone is permitted without notice at any reasonable hour of the day. This raises major concerns for privacy and security, particularly as drones are now popular with criminals scouting rural targets. For those living on isolated farms, the presence of a drone overhead can be very disconcerting. Furthermore, many farmers have diversified into tourism, particularly here in the south-west. As drafted, these regulations may permit drone inspections of campsites and holiday lets, irrespective of the privacy concerns for guests.

It is not apparent either who the “authorised person” will be, and who such “other persons” as the authorised persons think necessary are. These individuals have considerable powers of inspection and enforcement, including the ability to take documents, inspect computers, and take a photograph or a record in digital form of anything on or associated with the land or premises. This is a remarkably wide power. Indeed, it suggests that taking a digital copy of the family computer, if used in the farm office, would be permissible, and I see no safeguards around how these powers may be exercised.

Finally, the right of appeal under Regulation 31 is to a person or persons appointed by the Secretary of State, with no specificity on independence or qualification. Given that it is the Secretary of State’s own determination that is being appealed, it seems contrary to the interests of justice to permit him or her to appoint the appellate tribunal.

This is by no means an exhaustive list of concerns, but they are extensive. Unless they can be resolved, there must be major concerns about the attractiveness of the entire regime. I look forward to hearing the Minister’s reply.