Agriculture Bill

Earl of Dundee Excerpts

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

[Lord Northbrook (Con)]

My Lords, I declare my interest as an arable farmer and landowner in receipt of BPS. Before I come to the amendments, I want to defend the RPA after the swipe at it by my noble friend Lord Caithness. What he said might have been true some years ago, but I pay tribute to the Minister for its much improved status over recent years, although it will clearly have its work cut out with the new regime.

The Bill establishes a framework for phasing out direct payments over seven years. It is highly likely that payments under the ELM schemes will result in significant reductions in net income, especially for cattle and sheep farmers, whether in less favoured or lowland areas, and delays in its introduction until 2024 will have a serious effect. Hence, I support Amendment 149, in the names of the noble Duke, the Duke of Wellington, and the noble Lord, Lord Greaves, but would extend it to certain smaller lowland cattle and sheep farmers. I also strongly support Amendment 144, in the name of the noble Lord, Lord Carrington, believing that interim financial assistance measures need to be given to these sectors of farming in particular.

I do not support Amendment 130, in the name of the noble Lord, Lord Teverson, as he did not really mention the effect it would have on farmers, which could be serious—in fact, I do not think he mentioned farmers at all—but I do support Amendment 143, which proposes a delay in the start of the transition period, and appreciate my noble friend Lord Trenchard’s support, even though he is on the Brexiteer side. I also support the concern of the noble Lord, Lord Carrington, about the lack of detail on the progress of the BPS reduction after year one. I also ask, like my noble friend Lady McIntosh of Pickering, whether a new set of countryside stewardship schemes will be forthcoming in the autumn.

[The Earl of Dundee (Con) [V]]

My Lords, I declare my interests as detailed in the register. Along with others, I agree with Amendment 143 in the name of my noble friend Lady McIntosh: the transition period should begin in 2022 rather than 2021. Equally, the case for being more realistic about timescales, although in a different context, is addressed by my noble friend Lady Rock’s Amendments 151, 152 and 150 respectively. The first would ensure that those entitled to payments receive them within guaranteed periods to achieve certainty of cash flow. The second would, through regulations, offer legal certainty to farmers, otherwise possibly disadvantaged where delinked payments, if introduced, might lead to extended transition periods. The third, Amendment 150, would enable the Secretary of State to increase payments during the transition period, after phasing out had started, to use up any unspent money and, when necessary, to protect the industry from harm.

Corresponding to the pragmatism of the latter proposal is my noble friend Lord Carrington’s useful Amendment 144, ensuring that any cuts in direct payments do not undermine businesses before the new public goods programmes begin. Then, reflecting the purposes and principles of the Bill themselves, there is Amendment 148 in the name of the noble Baroness, Lady Jones of Moulsecoomb. This emphasises the preservation of animal welfare standards, irrespective of financial consequences, while my noble friend the Duke of Wellington’s Amendment 149 would ensure direct payments to smaller livestock farmers in less favoured areas. Since all these contributions would much improve the Bill, I hope the Minister will accept them.

[Lord Clark of Windermere (Lab) [V]]

My Lords, this has been a particularly thoughtful debate, as it should be, because underlying the whole series of amendments being advanced is the recognition that this is, first, a major change in how we approach support for our land and our farming. Coupled with that is concern about how we bring about the change, and concern that the period allowed to bring it about is not flexible enough and may not be of the right length. Various proposals have been argued very eloquently that perhaps it should be a bit shorter—five years instead of seven. I favour a seven-year period, because the challenge is so great that we will not be able to tackle it. There are so many changes, not only in our approach—public money for public goods, instead of just production costs—but against a changing background as it is. I do not think many of us fully appreciate the changes taking place in agriculture at the moment.

I have a particular interest in the uplands and hill farming, but one cannot look at hill farming without looking at the low-level farming that depends on, feeds on and feeds from the upland areas. One has only to drive in the national park, for example, and once one gets on to the low-level farming, there are no longer any cattle, mixed farming or dairy farming: all the sheep are down on the low level 12 months a year, and that is causing problems in itself. So there is the unstable nature of farming to start with, and we then wrestle with the problem of how we make sure that the various aspects of the new legislation are tied together. Is Defra capable of handling such a major change when it is also dealing with Brexit and will face the challenge of pressure from the Treasury, in spite of what the Government may say? Then, from my experience of running the Cabinet Office, I am concerned about the ability of the Government, or any public body, to run major computer programmes. We are not always able to employ the best people, we do not have the experience, yet we take so much for granted when we look at these proposals.

I must admit that when I look at the ideas, I think Amendment 146, in the name of my noble friend Lord Grantchester, has some suggestions of a way forward. It suggests a slightly later start date—2022—coupled with some flexibility if we find that even that is too early. It even goes so far as to say that if we find that the seven-year period is not correct, it can be changed by affirmative resolution. I am not sure that I entirely agree with that, but I could be persuaded in an emergency that it is the way forward.

We are right to spend so much time debating this. Unless we get it right, the whole thing will be a disaster and there will be tears of woe, not only from the farming community but from foresters, environmentalists and a whole range of people who love our countryside.

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[The Earl of Dundee [V]]

My Lords, Amendment 156, from the noble Lord, Lord Cameron of Dillington, provides flexibility as not yet sufficiently available for Defra to help farming households carry out the purposes of the Bill. In the names of the noble Earl, Lord Devon, and the noble Lord, Lord Addington, Amendment 155 is equally pertinent in anticipating delays following the introduction of the United Kingdom shared prosperity fund—hence its safeguards, financial provisions and continued socio-economic interventions under rural development programmes.

With regard to food supply chains, does the Minister consider that local, regional and domestic supply chains ought to be strongly encouraged, while backing for our producers is essential if we are to set them against cheap imports from America and subsidised food from Europe, and that rural development funding should therefore be provided for this purpose? Does he agree that government incentives for food supply chain infrastructure are not the same as subsidising food directly, and do not therefore conflict with the market, but instead—to the advantage of so many communities —would assist production viability, reduce food miles, improve animal welfare and create jobs?

The range of examples to be encouraged comprises outdoor markets; local food delivery hubs; enterprises that collect from farmers to sell to supermarkets, school canteens and hospitals; local farmers’ processing co-operatives; small factories making cheese, bacon, vegetable burgers, apple juice and other products processed from local farms; and, not least, small abattoirs, including mobile ones, in certain farming areas.

Does my noble friend also agree that local food supply chains already work very well with supermarkets, where the majority of United Kingdom consumers shop? This is evident in several countryside areas, such as Yeo Valley in Somerset. A processing co-operative there makes yoghurt, crème fraiche and butter, selling to large retailers, including Tesco. These are organic farmers using agro-ecological systems, yet they can sell their yoghurt at a very reasonable and affordable supermarket price. It is also now well illustrated in a number of other countries, including Germany, the Netherlands and Norway, how local food hubs and farmers’ processing co-operatives can easily supply supermarkets, school canteens and hospitals.

Currently, and through this Bill, we have to review the best ways of replacing and restructuring previous schemes for rural development. Can the Minister reassure the House that, within the new arrangements, proper government incentives will be given to local food supply chains?

[Lord Thomas of Gresford (LD) [V]]

My Lords, Clause 16 allows the Secretary of State, by a negative resolution, to modify existing rural development schemes agreed under the common agricultural policy as to both time and content, and to devise new schemes entirely outside the present parameters. I fail to see any requirement for consultation. Is there any and, if not, why not? Who will represent rural interests in Whitehall and inform funding decisions? The whole point of devolution in Wales and Scotland was democratically to bring the interests of all sectors closer to policymakers—and it has been highly successful.

England has very disparate rural and regional interests that have to look to Whitehall for compromises and single solutions. Perhaps a devolved Yorkshire assembly could occupy the hub that the Government propose to create in York, once the Westminster politicians have been there, done that and departed with the T-shirt. Clause 16, however, creates very significant powers, and their exercise should be open to full parliamentary scrutiny. Will the Government commit to amending the Bill on Report, to require the affirmative procedure? No consultation, and the negative procedure proposed in this Bill, make a very strong case, both in principle and practice, for the stand part opposition of the noble Baroness, Lady McIntosh of Pickering. She described it as a voyage into the unknown—and that is exactly what it is.

Funding for rural development has, over the period of our membership of the European Union, come from the rural development basic act and the common provisions basic act, and has accordingly been ring-fenced against the austerity cuts that have affected such areas as education and social services throughout this country. That ring-fencing of rural interests is about to be dismantled. I note the concern expressed by the noble Lord, Lord Cormack, about the absence of ring-fencing.

I have always feared, and have said so in this House on a number of occasions, that in the post-Brexit world, there will be overwhelming political pressure on the Government to switch money from rural communities to urban areas. Demands on public services, particularly health and social care, must be answered—there are votes at stake. This issue is even more acute since the last election, when the Government derived significant support from the crumbling “red wall” urban areas, whose interests they now have to consider. The further centralising of services and jobs in large conurbations may drive further depopulation from the countryside. It may even destroy the Conservative Party’s traditional rural base of support. Will the Government make a commitment now, in the post-pandemic world of massive government expenditure, that rural communities will receive the same level of support for rural development as they do at present under the CAP regime? This issue is addressed in Amendment 155.

We await the details of the shared prosperity fund, and I am particularly concerned as to Wales’s involvement in that. I share the doubts expressed by the noble Lords, Lord Cameron of Dillington, and Lord Curry, who pointed out how unclear it all is. It is important to build an infrastructure to support work in the rural communities—the noble Earl, Lord Dundee, referred to some agricultural-based industries. Part of that is addressed in Amendment 157, through the extension of broadband and mobile networks. All of us are learning the advantages of working from home and I have no doubt that, with proper investment, fresh employment opportunities in rural areas will arise from that, enabling people in rural areas to lead optimal lives with digital literacy, as the noble Lord, Lord Holmes, put it.

I have pleasure in supporting all the amendments in this group.

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[Lord Whitty (Lab) [V]]

My Lords, apropos of the discussion on the previous group of amendments, this is the first time I have contacted your Lordships from rural Dorset. The bandwidth and the stability of the internet connection appear to be somewhat suspect, so if I get cut off, your Lordships will understand.

This amendment is about introducing a new generation of farmers to our agricultural system. Much of the debate on the Bill has been about the outputs of farming: food, and the impact on the environment and the countryside. The key inputs into farming are of course the skill and enterprise of those who work the land, but we have heard very little about that in the debate. A subsequent amendment from my noble friend Lady Jones of Whitchurch deals with the general improvement of the supply, quality and skill of labour in agriculture, which I will strongly support. However, this amendment is about getting people in who will run their own farms and who need to be given that opportunity.

I well remember when I was first made an Agriculture Minister—over 20 years ago now—and I was told that the average age of English farmers was about 59; I was slightly younger at that point, but not a lot. I was slightly shocked at that, but then I was told that this was always the case, because you either inherited your land from your father or your uncle or you had to save up enough money to buy the land. Another way in was provided from the beginning of the last century by many rural counties, which established tenancies directly for young farmers who could not afford to enter in the normal way through inheritance or purchase. It was a successful scheme, and it continued and was reinforced after the Second World War. However, from the 1980s, there was a drastic fall in the number of tenancies and the acreage covered by such tenancies almost halved. We sped it up a bit around 2000 but in the last 10 years, as a recent report by the CPRE shows, there has been a further 10% decline in the areas covered by county tenancies.

This is a crucial way in, yet some of our proud rural counties have drastically reduced the acreage covered by county tenancies. These include counties such as Herefordshire, Somerset, North Yorkshire and Lincolnshire, and some counties, such as Northumberland, Northamptonshire and Lancashire, appear from the figures not to have any county tenancies nowadays. Even my own adopted county of Dorset—whose internet connection is not great—has also capped its tenancy by 10% over the last 10 years. This is pretty disastrous in terms of getting new blood into managing farms and running their own farms.

My amendment is quite modest, but it would require those counties with such smallholdings to review the situation and not to dispose of any such holdings except for the purposes similar to the objectives of the county farm tenancies. That would require each county to work out a new strategy, discuss it with Defra, continue to provide support for those tenancies that existed and, hopefully, resume providing further tenancies.

I was heartened at the end of the previous day of the Committee stage when the noble Baroness, Lady Bloomfield, indicated that there will be some support for county farms as a result of the new agricultural system. I have yet to see any details of that, but it would be important to improve availability for rural young farmers, or indeed urban people who wish to get into farming, if the county scheme could be revived or, at the very least, stopped from declining further. An objective assessment by the counties and Defra would reinstate tenancies and start increasing the amounts of such tenancies that are available, which should help to herald a new future in farming for those who desperately want to run their own farm and improve the environment at the same time. I beg to move.

[The Earl of Dundee [V]]

My Lords, within this grouping I support Amendment 158, in the names of the noble Lord, Lord Whitty, and others, which sets out to enable new entrants to county farms, to provide education in farming these holdings and to stimulate innovation within them.

I am also in favour of Amendment 246, in the names of my noble friend Lady McIntosh of Pickering and others, which suggests that landlords should contract longer farm business tenancies.

I also support my noble friend’s Amendment 237, which would enable tenants to object to a landlord’s possible refusal of consent to enter financial assistance schemes.

I come to Amendment 159 in my name. This proposed new clause would encourage agricultural smallholdings in areas close to towns and cities. In terms of the Bill, there are a number of advantages.

The first is consistency with the Government’s commitment to building houses where people want to live. Many would like to live in the countryside; however, very often this is not possible due to planning constraints and the high costs to applicants of gaining permission. The proposed new clause would allow for the development of affordable green homes arising from government incentives to local authorities for that purpose. Local authorities might then incentivise the private sector to invest in this type of endeavour. Along with other locations, green-belt sites could be used. Since we are considering agricultural smallholdings, these would not be subject to current urban restrictions applying to green belts.

Secondly, the developments would be combined smallholding, home and work spaces. Residents would have two occupations: farming some land; and working from home. An example might have 30 houses and 180 acres of farmland, thus 6 acres per unit. A typical occupant might farm vegetables in polytunnels while also working part-time as an IT consultant via high-speed internet. Post coronavirus, two interconnected trends have emerged: a greater demand for property in the countryside and a growing potential of being able to work from home. The proposals outlined thus fit in with those new demands in facilities.

Thirdly, the projects, as envisaged, would provide fresh, high-quality produce to local urban markets, thus strengthening the United Kingdom’s food security, while assisting government aims for the countryside by increasing opportunities for rural employment.

Fourthly, in connection with this Bill, the farming methods adopted by these smallholdings would qualify to benefit from this financial assistance for the purposes detailed in Clause 1. I hope that my noble friend the Minister can support this proposal.

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[The Earl of Dundee [V]]

My Lords, I agree with Amendment 170, in the name of the noble Lord, Lord Hain, which calls for United Kingdom food security reports properly to reflect the necessary link between food provision, diet and the environment. Amendment 169, in the name of the noble Baroness, Lady Parminter, and others, points out that such reports ought to assess not just food supply but how much of it is wasted—a point made by my noble friend Lord Trenchard. Clearly, these reports must also be closely connected to targets and actions, as additionally emphasised by my noble friend Lady McIntosh of Pickering and others. Along with the noble Lord, Lord Cameron of Dillington, I am also in favour of her Amendment 62, which would require the Government to produce their report on food security annually, rather than every five years, as in the Bill.

[The Earl of Lindsay (Con) [V]]

My Lords, I welcome the amendments in this group that propose that the required reporting cycle should be more frequent than at least every five years. A more frequent reporting cycle will give the Government and others a quicker and clearer understanding of the issues and emerging trends, a point well made by the noble Lord, Lord Curry of Kirkharle. At Second Reading, I also said that a more comprehensive understanding of the realities would be gained from reporting if it included reference to emissions, climate change impact and supply chain sustainability. I therefore welcome the spirit of Amendments 163 and 172, in the name of my noble friend Lord Hodgson of Astley Abbotts. Their exact detail may differ from what I was proposing, but they would broaden the scope and context of the reporting in a not dissimilar direction, as well as encouraging the Government to detail any proposed changes to policy.

Finally, while declaring my interests as a Scottish farmer, I note that certain amendments in the group, notably Amendment 164, seek to ensure liaison, co-ordination or collaboration with the devolved Administrations. This should be seen as an important objective, both in Clause 17 and elsewhere in the Bill.