Direct Payments to Farmers (Legislative Continuity) Bill

Baroness Bakewell of Hardington Mandeville Excerpts

3rd reading & 2nd reading & Committee negatived & 2nd reading (Hansard): House of Lords & 3rd reading (Hansard): House of Lords & Committee negatived (Hansard): House of Lords & 2nd reading (Hansard) & 3rd reading (Hansard) & Committee negatived (Hansard)
Wednesday 29th January 2020 Lords Chamber

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, I thank the Minister for his introduction, and for his time and that of his officials in providing a briefing. I feel certain that the fact this is a money Bill will not prevent your Lordships commenting very fully on it.

While it is important that direct payments legislation for 2020 is entered into the statute book, what will happen in future years? I am grateful for the Minister’s assurance that funding is guaranteed at the same level for the length of this Parliament, but this is somewhat at odds with the funding remaining the same for the first four years and then tapering off as farmers change to the new system of payments. Will this mean a multiannual framework for farming support, or will the decision be made annually? The latter would be very unsettling for farmers, who need to plan ahead.

In agreeing specific sums for payments, what arrangements have the Government made to calculate the rate of exchange of the pound against the euro? Fluctuations in currency can have a damaging effect on farmers. I understand that previous payments have been calculated on the average value of the euro in September. Can the Minister say whether September will continue to be the touchstone for exchange rates?

While the Government are providing £2.852 billion of support for 2020, there is no mention of what support there will be in the following years. Can the Minister provide some assurances that support will not drop off dramatically?

In her speech last Tuesday in the other place, the Secretary of State said in answer to a Question on multiannualised funding:

“We will be providing further information on how the transition to environmental land management will work in due course.”—[Official Report, Commons, 21/1/20; col. 173]


Will the Minister say whether this information has been calculated or whether it is the case that it is not ready to be released as it is still under review?

There has been criticism from across the board of the Rural Payments Agency, which the Government have strongly defended as having improved its performance. However, continuity is everything for farmers. A consistent service is needed from the RPA. Some moorland farmers have waited three years for payments under Pillar 2. This is simply unacceptable.

It is not right for farmers who have looked after their land diligently to be worse off as we move towards the environmental land management scheme. The prospect of losing 80% of their income, with no real certainty about what the replacement income will be, will not incentivise all farmers. It is likely that many small farmers might decide that now is the time for them to leave the land. Farming is not an easy option as a career choice. In my community, we have seen three deaths of farmers in recent years. These have been men who were not at the end of their life expectancy—far from it. We are too painfully aware of the increased rate of suicide among farmers. We must tread carefully to ensure we do not discourage farmers from their vital husbandry role of the land.

There has been mention of the Bew report and of reinstating money to Scottish farmers that they have lost in the past. I look forward to the speech of the noble Lord, Lord Bew. Can the Minister give the House reassurance that this reinstatement will not be at the expense of English farmers? Will this be new money in addition to the money that has already been mentioned? Can the Minister also say what measures will be in place beyond 2021 for the Scottish farmers? Are they to get only two years’ reinstatement? Will this money be added to their base budgets, as we say in local government circles?

Given that the Government have made a commitment that there will be no payment changes for the first four years of the seven-year transition period, this means that in the final three years, as the ELMS begins to come into effect, there will be massive change. All of us—especially the Minister, who has first-hand knowledge—know that farming is not a short-term function. It requires planning a long way in advance in order for farmers to get the best from their land, livestock and crops. I am extremely concerned that farmers will be somewhat in the dark as to exactly what their income is likely to be beyond 2024. I would be grateful for the Minister’s comments.

While Brexit is now inevitable and is welcomed by large numbers of people, including within this Chamber, it brings a degree of uncertainty. For me, some of that uncertainty is about food security, as we have already heard. Currently, around 50% of the food we eat is imported. This has risen from 35% nearly 20 years ago. It is important that, in changing the system of payment from acreage owned or managed to ELMS, we at worst preserve our food production at its current level; at best, we should strive to increase this above 50% and aim much higher.

I am sure I am not alone in wanting to buy and consume produce that has been grown or nurtured in the UK. One area where I have concern is protection for hill farmers and those who rear rare breeds. As we know from frequent questions in this Chamber, many of your Lordships are concerned about the fate of hill farmers. Could the Minister give a reassurance that hill farmers will not disappear from our countryside as a result of the change to environmental land management payment regimes in farming generally?

While there are hill farmers on Exmoor, Somerset is famous for its levels. Farming there is extremely challenging during winter months, as it can be almost guaranteed that the land will be under several inches, if not feet, of water. While this looks beautiful, with swans and other waterfowl gliding on the rhynes and water, it means that the land is not available for either grazing or crop planting. The point is that, even in one county, there will be many different forms of farming. I am sure that the Minister recognises this and will encourage the Government to ensure that their payment schemes for farmers reflect the many different types of farms, that the contribution each makes to agriculture as a whole will be recognised and that each gets a sufficient income from the land which they manage in order to live and bring up their families.

I cannot say that I am looking forward to a number of SIs, but they will not doubt come along in due course.

Agriculture Bill: Food Production

Baroness Bakewell of Hardington Mandeville Excerpts

Monday 27th January 2020 Lords Chamber

[Lord Gardiner of Kimble]

I hope I can answer that by saying that there are already differences between the earlier Agriculture Bill and the one that has been introduced. That is because of scrutiny in the other place and stakeholder concerns. There have already been considerable improvements on food security, soil quality, animal traceability and regulation of fertiliser and organics. I will of course listen to noble Lords and look forward to working with them on the Bill—if it is deemed that I should—at a later date.

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, the Agriculture Bill is important in the process of Brexit and it is encouraging that it now mentions food security. While the Bill provides for a seven-year transition for agriculture towards this new payment system, does the Minister agree that ending uncertainty for farmers long before 2027 is essential, for their businesses and their mental health?

[Lord Gardiner of Kimble]

We take this very seriously. I know from my own experience the stresses and strains of the agricultural sector and, indeed, the dangers. I absolutely understand that and that is why we are having a transition, over seven years, from direct payments to a new system. We will bring in tests and trials of the environmental land management scheme and by the end of 2024 we will be ready to launch a national environmental land management scheme in 2025. This is precisely to ensure that there is a sensible transition so that all farmers are clear about what they can do to use the new system to the advantage of the environment and of food production.

Farming

Baroness Bakewell of Hardington Mandeville Excerpts

Wednesday 8th January 2020 Lords Chamber

[Lord Gardiner of Kimble]

My Lords, I have to say that I have not studied that particular element. I think our tenancy reforms will ensure flexibility and that, as with all these things, there is a reasonable return for the landowner. As I have said, a lot of land is farmed by a mixture of part-rented and part-owned. I see our tenancy reforms as giving more flexibility and options for tenants to have successful and productive businesses.

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, while the £2.85 billion announced on 30 December is welcome and provides a degree of reassurance for all farmers, the majority of this money will be allocated at the end of 2020, with only £143 million for 2021. There is no certainty for the remaining period to 2023. On CAP Pillar 2, the Government press release states that:

“Remaining EU funding … will continue until the current EU funding is used up or 2023, whichever is earliest.”


If the price of feed and other costs increase as we leave the EU, this money will run out sooner rather than later. Does the Minister accept that natural inflation does not play a part in the Government’s plan for farmers or agriculture?

[Lord Gardiner of Kimble]

My Lords, as I said before, we have guaranteed in our manifesto the current annual budget for farmers in every year of this Parliament. Clearly, as we all know, farming costs go up and down. For example, in some years straw is up or down, or corn is up or down, and therefore you get different consequences in different parts of the farming industry. In our manifesto and throughout, we have set out that we support farming and that we want farmers to play a part in enhancing the environment. I emphasise that we recognise the importance of food production and food security, and this will be in our updated agriculture Bill to be introduced shortly.