Agriculture and Horticulture Development Board (Amendment) Order 2020

Baroness Bakewell of Hardington Mandeville Excerpts

Monday 7th December 2020 Grand Committee

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, I thank the Minister for his introduction to these three statutory instruments and apologise for missing the briefing which he so kindly provided. The Agriculture and Horticulture Development Board (Amendment) Order 2020 is very short and concise. It moves the functions of identification, movement and health of animals and allocating identification codes from the AHDB to a new livestock information service, the LIS.

It is essential that animals should be able to move around and be accurately tracked. The LIS will make it much easier to track animals as they will all be on one database, instead of three separate databases under the current AHDB. However, if there are 165,000 keepers of farmed livestock and nearly 60,000 keep more than one species, that is a lot of livestock being combined from three databases into one. Has this database been fully tested? In other words: does it work? While it is extremely advantageous for farmers to visit only one database to look at their cattle, pigs and sheep instead of one for each species, it will be necessary that the computer systems work. Is Livestock Information Ltd a private company, or does it operate under the auspices of Defra? Track and trace for animals is vital to prevent disease outbreaks and controlling disease once outbreaks have occurred. Like so many things in life, if the computer system fails then chaos results. I would be grateful for the Minister’s reassurance on this point.

The Direct Payments to Farmers (England) (Amendment) Regulations 2020 ensure that farmers will receive their direct payments from January 2021 and set out financial ceilings used to calculate farmers’ direct payments. However, I could find no information on what these ceilings were in the actual instrument. As with a lot of statutory instruments, unless you have the original legislation in front of you it is very difficult to interpret what is proposed. The devolved Administrations have their own legislation which deals with these issues, so this SI relates solely to England. Can the Minister say whether after January 2021 all four Administrations, including England, will pay their farmers at the same rate for the same activities? If not, I foresee difficulties with cross-border trade.

The direct payment covers basic payments, greening payments and young farmer payments. It is my understanding that the direct payments are on a sliding scale and reduce over the period of the transition from CAP to ELMS, but there is no mention of this in the instrument, which states that the seven-year transition information is not covered in this SI. Where will this sliding scale of support under the withdrawal from direct payments be covered?

The Government have committed to maintain the same financial support for farmers as they previously enjoyed, at £1.8 billion annually. I am pleased to note that in future payments will not be made in euros, so farmers will not be subject to the vagaries of exchange rates. However, in paragraph 7.7 of the Explanatory Memorandum, the text states that the SI

“removes the need for recipients of Direct Payments to meet ‘active farmer’ requirements”.

What is meant by “active farmer”? Does this mean that an inactive farmer—one who no longer manages land or livestock—will receive a direct payment?

The World Trade Organisation Agreement on Agriculture (Domestic Support) Regulations 2020 ensure that the UK continues to comply with its obligations under the WTO Agreement on Agriculture, the AoA. This ensures reductions in its aggregate measurement of support, a key measure used by the WTO to assess domestic support for agricultural commodities. This SI also deals with UK obligations on “amber box” payments with trade-distorting effects, to which the Minister has referred. Defra says that this instrument specifies the amounts of amber box payments that may be given in each country of the UK; they are limited under the AoA, and the aim is to reduce them over time. The Secondary Legislation and Scrutiny Committee has published a paragraph on this instrument, which allows for each UK Administration to design and implement their own agricultural support schemes within an amber box spending envelope set by this instrument.

I would like to ask the Minister about the limits of support at Paragraph 4 of the instrument, which refers to how the total sum is calculated but does not give any indication of what the total will be. However, it states that England will get 49.2%, Northern Ireland 7.49%, Scotland 12.6%, and Wales 6.83%. This does not include the reserve. Are these percentages permanent or will they change each year? I assume these percentages are for the year 2021, but can the Minister please confirm?

The instrument also indicated that spending from the reserve may be used on amber box domestic support in a Crown dependency. Does this include all Crown dependencies or only some? I look forward to the Minister’s response to my questions and those of other noble Lords taking part in this debate.

[The Deputy Chairman of Committees (Baroness Barker) (LD)]

My Lords, after the noble Baroness, Lady Jones of Whitchurch, I shall call the noble Lord, Lord Bhatia, to speak.