Agriculture (Financial Assistance) (Amendment) Regulations 2023

Lord Duncan of Springbank Excerpts

Tuesday 14th March 2023 Grand Committee

[Lord Benyon (Con)]

I will seek to address those points as I go through my remarks. We want to make sure that the £2.4 billion is spent more fairly. That means a greater incentive for smaller farmers to receive more of the pie because they have been hard done by under the common agricultural policy. I will come on to talk about this as I address other points.

The noble Lord, Lord Grantchester, raised some important points. I make no apologies for the fact that we have amended the schemes. He quite rightly asked about consultation. The schemes are indicative. We want to make sure that, as we work through not only our tests and trials but the implementation of these schemes, we are listening to farmers. This has probably been the largest consultative process that I have experienced in my time in Defra. The food, farming and countryside team has attended agricultural shows, done webinars, visited clusters of farmers, attended the vast majority of farmers’ social gatherings that can possibly be imagined and responded to concerns raised. We will continue to do that through our standard routine engagement with organisations such as the NFU, the TFA, the CLA and others and also directly with farmers. I have been able to put farmers who have raised particular points with me straight through to the director concerned and she has been able to answer their questions, so the answer to the noble Lord’s question about continued consultation is absolutely yes.

Agreement holders will have to be notified. On the noble Lord’s point about changes in farm tenure and ownership, these will be considerably simpler under the schemes. There should be no deterrent effect to being able to transfer the schemes if, for example, a partner in a farming partnership arrangement changes and there should be no bureaucratic barrier more than a notification, if required, in those schemes. There are issues relating to the time left of a farm business tenancy, for example. If it is less than three years, I think, it can be rolled over but it needs to be notified.

We are measuring the impact on the environment of the uptake of these schemes. We will also be measuring the impact on the environment of farmers and land managers accessing private sector green finance, and making sure that we are working to strategies through our Countryside Stewardship, which now has more than 30,000 farmers in the scheme. We have raised the payments by 40% and have increased the amount of support for farmers to go into those schemes. We want to make sure that local nature recovery strategies are doing what Professor Sir John Lawton did in his ground-breaking paper, Making Space for Nature: seeking to connect environments where possible.

The noble Baroness, Lady Bakewell, talked about the exemptions. It is important that we get this right. Whether it is a perception or not, perceptions are reality in this case. If there is a perception about making public the fact that you are taking part in an animal health and welfare grant scheme or you might have tree diseases on your land, and that will be a barrier to farmers taking part in the schemes, then I think we are right to seek that exemption.

As the noble Baroness points out, there have been cases where certain animal rights organisations have targeted farmers. On the question of African swine fever, it is a notifiable disease, so somebody not notifying the Government would be breaking the law, but that is an absolute nightmare prospect. In all our border security measures, biosecurity and everything that we seek to do, the risk of that sort of disease coming into our farming community is at the forefront of our minds. We are tracking what happens and where it is spreading across Europe and making sure that, with people coming to this country, in this globalised world in which we live, we seek to minimise the chance of that disease happening here.

The noble Baroness, Lady Anderson, raised the issue of food shortages. The principal cause of the headline-grabbing shortages was strange climatic conditions in southern Spain and Morocco, from where we receive most of our tomatoes at this time of year. It is a warning to us, but also to retailers, that we can expect strange climatic conditions. Our supply chains, which are resilient and were proved to be so during the pandemic, need to be prepared for such risks so that we can continue to see the food that we want to see on our shelves.

The noble Baroness’s question on resources is a good one. We in Defra are putting enormous resources into this; I can assure her that other issues we are seeking to deal with at the same time will not have an impact on the importance of rolling out these schemes, explaining them to farmers, getting as many as possible to sign up to them and making sure that we are supporting our farmers to produce food. We want them to produce food sustainably but we also have hungry mouths to feed. Food security remains an absolute priority for my department and the Government.

I will tackle other points as they have arisen and hope that I will cover all the questions. One point raised was on how we are helping farmers who will become unprofitable as a result of direct payment reductions. There are a number of ways in which farmers can be profitable without direct payments, including farm efficiency improvements, diversification and receiving money under new schemes. The actions taken will depend on the particular farm. The future farming resilience fund provides farmers with free advice from an independent provider to help them work out what to do for their business, including how best to improve business practices.

The impact on farmers of the phasing out of direct payments is obviously at the forefront of our minds. There is evidence showing that the scope—

[The Deputy Chairman of Committees (Lord Duncan of Springbank) (Con)]

My Lords, I fear the bells ring for us. We shall adjourn for 10 minutes then reconvene and return to the Minister’s remarks.