Agriculture Bill Debate
Full Debate: Read Full DebateBaroness Bloomfield of Hinton Waldrist
Main Page: Baroness Bloomfield of Hinton Waldrist (Conservative - Life peer)Department Debates - View all Baroness Bloomfield of Hinton Waldrist's debates with the Department for Environment, Food and Rural Affairs
(4 years, 4 months ago)
Lords ChamberI thank my noble friend Lord Caithness for Amendment 73, with which I will take Amendment 144A from the noble Earl, Lord Devon, Amendment 272 from the noble Baroness, Lady Jones of Whitchurch, and Amendment 274 from the noble Baroness, Lady Jones of Moulsecoomb. I thank all noble Lords who contributed to the debate.
From listening to many of the contributions, one would hardly think that, last June, the UK became the first major economy in the world to set a legally binding target to achieve net-zero greenhouse gas emissions from across the UK economy by 2050. The UK already has a very strong foundation of action and leadership to build from, having cut our emissions by 42% since 1990, while growing the economy by 72%.
Climate change is a global challenge, requiring action across the whole economy. Unlike the noble Baroness, Lady Young of Old Scone, I believe that urgency is felt across government. Defra has worked with the industry to reduce emissions through improved productivity. Since 1990, we are producing a litre of milk with 20% less greenhouse gas emissions, and a kilogram of pork with 37% less. Efficiency gains in dairy farming mean that we now produce 9% more milk than we did in 2000 with 23% fewer cows and 9% less greenhouse gas emissions.
Targets are set under the Climate Change Act, but we do not have sector-specific targets under that Act. Indeed, we are following the whole-economy approach advocated so eloquently by the noble Baroness, Lady Worthington. This is to ensure that we meet our climate change commitments at the lowest possible net cost to UK taxpayers, consumers and businesses, while maximising the social and economic benefits to the UK of the transition. To take up the points made by the noble Baroness, we think that the whole purpose of Clause 1 is clear, as expressed in subsection (4). In framing financial assistance schemes, we will have regard to the need to encourage environmentally sustainable food production, which will align the agriculture and food sectors.
However, I note with interest that the Committee on Climate Change’s Net Zero report from 2019 says:
“It is difficult to reduce agriculture emissions to near-zero given the inherent biological processes and chemical reactions arising from crops, soils and livestock.”
Therefore, I cannot reassure the noble Baroness, Lady Jones of Moulsecoomb, that net zero will be achieved by 2050, but we are doing everything we can to let it happen.
In its June 2020 report to Parliament on reducing emissions, the Committee on Climate Change provided recommendations for government departments, including Defra, on policy priorities to address net-zero climate mitigation and adaptation. We will consider this advice and provide a response before 15 October. I believe that the Bill addresses these targets in a very coherent way.
The Government recognise the contribution to greenhouse gas emissions made by the livestock and dairy sectors, while valuing the importance of our farmers in feeding the nation and managing our rural environment. Agricultural greenhouse gas emissions have reduced by 16% since 1990, as I said, with many farms using more efficient agricultural practices. Land use, land use change and forestry continue to provide benefits in carbon sequestration.
The Government recognise the importance of reducing emissions further in these sectors. The clean growth strategy and the 25-year environment plan should reassure the noble Lord, Lord Foulkes, since they set out a range of specific commitments further to reduce emissions from agriculture, including through environmental land management, by strengthening biosecurity and control of endemic diseases in livestock, and by encouraging the use of low-emission fertilisers. The Government welcome the National Farmers Union’s ambition on this—indeed, its target is to reduce emissions by 2040—and the fact that the industry is taking this strong lead. Climate change represents a significant challenge, but also opportunities. We work closely on this issue with the NFU and other leading stakeholders, including the greenhouse gas action plan partners.
Clause 1(1)(d) enables the Secretary of State to give financial assistance for the purpose of
“managing land, water or livestock in a way that mitigates or adapts to climate change”,
which provides coverage for the reduction and sequestration of carbon emissions. I believe that that statement is very clear. With particular reference to my noble friend Lord Caithness’s Amendment 73, I note that all agricultural or horticultural activities that contribute towards this purpose would already be in scope of funding support under Clause 1(1)(d). For example, financial assistance could be used to incentivise farmers to manage their livestock in a way that reduces their greenhouse gas emissions by adjusting animal feed practices, or to incentivise crop rotation. This provides a foundation for continued improvements, which the Government will drive forward through giving productivity grants alongside introducing the new environmental land management scheme. ELM will ensure that farmers and other land managers are rewarded for delivering environmental outcomes that benefit us all. This new scheme will aim to deliver a range of environmental benefits, including the mitigation of, and adaption to, climate change. Land management activities that could be funded under ELM to reduce greenhouse gas emissions and sequester carbon include tree planting and peatland restoration.
At present, UK forests capture about 4% of our greenhouse gas emissions. We need those trees and forests to grow to capture more carbon. Defra is taking necessary steps to deliver a step change from current planting rates. I hope that reassures the noble Baroness, Lady Jones. Having announced the Nature4Climate fund, the Government are now consulting on a new England tree strategy. We invite input to shape our proposals to plant more trees, protect those we have and support the economy. I will certainly take on board the comments of the noble Lord, Lord Clark of Windermere, which the noble Lord, Lord Foulkes, endorsed, regarding licences for the destruction of trees.
On Amendment 144A from the noble Earl, Lord Devon, the sooner the Government introduce these new schemes, the better for the environment. Reducing direct payments from 2021, as planned, will allow us to do so. Direct payments are untargeted and poor value for money, and deliver little for the environment. All ELMS will come into effect in 2024. Reductions to direct payments will free up money so that the Government can introduce pilots of the ELMS. It can also work to increase the number of farmers who are in new countryside stewardship scheme agreements.
The noble Lords, Lord Foulkes and Lord McConnell, and the noble Baroness, Lady Jones of Whitchurch, also mentioned financial assistance for the devolved authorities. While agriculture is, as they all know, a devolved matter, I would like to reassure them that we are working very closely with officials in all the devolved authorities to establish common frameworks on agriculture. With these explanations, I ask my noble friend Lord Caithness to withdraw his amendment.
My Lords, I congratulate the Minister on her speech. which covered most of the points I wished to make. However, I want to emphasise the importance of Amendment 75. The Minister drew attention to the improvements that have already been made. The detailed categories are set out in this amendment, but I believe they would benefit all. Public health outcomes must be borne in mind all the time. Our present virus situation has made us all much more aware of the need for this protection of the public. Allying that with improvements in the agricultural world is good. I do not wish to take up more time because this has been a very interesting and complete debate, but I support Amendment 75.
I note my noble friend’s comments. I think she probably meant to refer to Amendment 73, which is in this group. I thank her for her comments.
I now call the noble Baroness, Lady Bennett of Manor Castle. The noble Lord, Lord Lilley, will speak after the noble Earl, Lord Devon.
I acknowledge the support from all sides of the House for all that we can do to encourage climate change mitigation, but I believe that that intention is already fully provided in Bill.
My Lords, I add my support for Amendment 272. I shall make a few points, while being mindful of what the Minister just said.
Healthy land is also healthy food. At the moment so much of our acreage is given over to growing grains that end up in very cheap, white, processed bread and the like. These fields are covered in chemicals. Any move that we can make in the right direction not only improves our biodiversity—agriculture is to blame for the 80% loss that has been suffered across the world—but is a win-win situation. I do not understand why the Government appear to be afraid of setting a target. We cannot make this target without agriculture being part of it; it is too big a part of our system.
Henry Dimbleby is producing a report for the Government, and I am very proud to say that I am an adviser on it. I say to the noble Lord, Lord Adonis, that an interim report is coming soon. If the Agriculture Bill does not set up sufficient pillars and legislation to change the way we farm, which can then change the way we eat, Henry Dimbleby’s terrific report will not have the impact that it needs.
I agree with everything the noble Baroness has said about healthy land meaning healthy food. The Bill is designed to do all that we can to encourage farmers to produce healthy land. We do not have a sector-specific target for agriculture because the Committee on Climate Change advised that emissions reductions would be needed in all sectors. We know that to achieve net zero more is needed from this sector, and we are looking to reduce agricultural emissions controlled directly within the farm boundary with a broad range of cost-effective measures, primarily through improvements in on-farm efficiency and land use change.
My Lords, I am sorry to return to this point—I am being forced to become something of an environmental campaigner. I have a simple question which has not yet been answered. Are the Government satisfied that the agricultural transition will not slow or reverse our progress towards net zero in 2050?
I can confirm that we are absolutely confident that we are doing everything in legislation and encouragement in order to achieve that end.
After the noble Lord, Lord Lilley, I will call the noble Baroness, Lady Worthington, who has requested to speak.
I congratulate my noble friend on being the only person in this debate who has raised the question of whether the net-zero target for agriculture is feasible. Does she agree that probably the most realistic assessment of realistic steps to achieve net zero is the report Absolute Zero by the Universities of Cambridge, Oxford, Bath, Nottingham and Strathclyde, and Imperial College, which said that even a massive expansion of forestry will have only a small effect? It therefore concludes that to achieve zero emissions from agriculture would require,
“beef and lamb phased out by 2050 and replaced by greatly expanded demand for vegetarian food.”
I hope she will make it clear to the House that if we accept these amendments we are mandating the end of lamb and cattle farming in this country.
We are not accepting these amendments. I take my noble friend’s point. We should always have absolute zero as our goal because it will enable us to move as far towards that goal as possible.
I am grateful to be able to speak a second time. I echo the comments of the noble Earl, Lord Devon, and ask the Minister how she can be confident that we will not see backsliding and an increase in emissions, given that we will lose cross-compliance and we have no sectoral targets for this very important sector. If they were set, it would drive investment into the sector, since it is the sector that can help to offset emissions in other parts of the economy. I simply ask the Minister to reconsider. This would be a beneficial addition to this framework legislation, to prevent backsliding and drive investment.
As I have said already, from next year we will bring forward grants and new countryside stewardship and productivity schemes that will prevent the backsliding that we all want to prevent.
My Lords, I am extremely grateful to all noble Lords who have participated in the debate and for the very helpful comments that have been made all around the Chamber. It was interesting to hear my noble friend Lord Marlesford’s statistics. I would only say to him that the whole pattern of rainfall is changing. Last winter, the rainfall in Caithness was significantly below average, whereas in parts of Hampshire it was about 170% or more above average—so the year’s average might equate, but the time and quantity of rain and drought that one is now getting have changed.
The noble Baroness, Lady Worthington, was absolutely right to say that the amendments are of prime importance and something should be included in the Bill. Therefore, I was a little disappointed by what my noble friend said in her reply. I will read with care what she said, but I think that she missed two crucial points that I sought to make in justification of my amendment. Her examples were all of mitigation. I am not worried about mitigation: mitigation is to make less severe or alleviate, which is but one aspect of what we are talking about. Adaptation is to adjust or modify. That is another aspect. What the Bill does not cover satisfactorily, according to the legal advice that I have had, is the word “sequester”, which is a hugely important addition that needs to be made to the Bill at the next stage.
The other point that I sought to make in justification of my amendment was that it should be a condition of financial assistance that sequestration of climate change emissions is included in whatever ELM one is talking about. We desperately need to take more carbon out of the atmosphere, not just mitigate it. I hope that, between now and the next stage, the Minister will meet me to discuss this because, as the Bill stands, it does not meet the point that I have been trying to make. Meanwhile, I am reluctantly content to withdraw my amendment.
I thank the noble Lord, Lord Trees, for his amendment, which highlights the many activities associated with the production of food along the supply chain. In doing so, I acknowledge the fine work of the APPG for Animal Welfare, which he chairs so ably. The Government are committed to addressing the issues raised by its recent report on small abattoirs.
Given his detailed work as chair of that group, I am sure that the noble Lord will agree that the issues faced by small abattoirs are complex and unlikely to be resolved through intervention alone. I know at first hand the advantages of small local abattoirs from the days when I used to deliver my Black Welsh Mountain sheep to the Witney abattoir on the school run—actually, it was on the return from the school run, as I was a little squeamish for the children.
I am delighted to say that we have had it confirmed that the definition of ancillary activities in Clause 1(5) covers slaughtering under either “preparing” or “processing”.
Noble Lords asked a number of questions, which I would like to address. The noble Baroness, Lady Mallalieu, asked why micro-abattoirs are not listed as a public good. They are an important part of the agricultural supply chain, but they operate on a commercial basis and therefore do not directly meet the principles of public good. Public goods that may be derived from small abattoirs, such as improved animal welfare or environmental impact, are obviously already covered by Clause 1.
The noble Baroness, Lady Hodgson of Abinger, ably asked many questions about religious slaughter. The Government encourage the highest standards of animal welfare. Although our policy is to prefer that animals are stunned prior to slaughter, we accept the rights of Jewish and Muslim communities to eat meat killed in accordance with their religious beliefs. No regulations require the labelling of halal or kosher meat, but where any information of this nature is provided voluntarily, it must be accurate and must not be misleading to the consumer. The Government expect the industry, whether food producer or outlet, to provide consumers with all the information they need to make informed choices. The Government have committed to a serious and rapid examination of the role of labelling in promoting high standards and high welfare across the UK market and will consult on this at the end of the transition period. I should also say that farm assurance schemes apply standards of production that include slaughter requirements; for example, Red Tractor and RSPCA-assured schemes require stunned slaughter.
I hope that I have given noble Lords sufficient assurance that this issue has already been dealt with. With that, I ask the noble Lord, Lord Trees, to withdraw his amendment.
I thank everybody who has spoken so eloquently in support of this amendment. I am very grateful. I thank the Minister for her response. She said something significant: that slaughtering is covered by “processing”. I would appreciate it if we could have that confirmed in writing or in a subsequent meeting; I am sure that the other noble Lords who put their names to this amendment would also appreciate that. We need to be assured that that is the case; otherwise, we would want to bring the amendment back on Report. Meanwhile, I am happy to withdraw the amendment.
I thank the noble Lord, Lord Grantchester, for tabling Amendment 105, with which I will also address Amendments 107 and 104, tabled by the noble Lord, Lord Addington, and Amendment 127, tabled by my noble friend Lady McIntosh. The Government’s 2019 manifesto guarantees the current annual budget in every year of the new Parliament, which gives significant certainty on funding for the coming years. We demonstrated our commitment to this further when, in December 2019, the Chancellor announced £2.852 billion of funding for direct payments in the UK for 2020.
The noble Lord, Lord Grantchester, mentioned the cut in financial support. The maximum reduction of £150 million will immediately be ploughed back into the new countryside stewardship scheme and the productivity grant, which will be brought in next year. I hope that this also reassures the noble Baronesses, Lady Bennett of Manor Castle, Lady Ritchie of Downpatrick and Lady Northover.
The Government have reflected carefully on the scrutiny by the other place during the passage of the previous Agriculture Bill, and we introduced Clause 4 to address the concerns raised about funding. The clause requires the Government to publish a multi-annual financial assistance plan before the start of the agricultural transition. This will set out the strategic priorities for the transition and describe the financial assistance schemes expected to be in operation during the transition. As part of our commitment under Clause 4, and to ensure that we keep stakeholders aware of the latest developments, I can confirm that the Government intend to set out our plans for financial assistance during the first years of the transition in the early autumn.
Clause 4(2)(b) already places a duty on the Secretary of State to have regard to the strategic priorities established when making any decisions regarding what financial assistance schemes are to be supported under Clause 1. The noble Lord, Lord Addington, asked about the Government’s requirements to report. This is covered in detail in Clause 6. In addition, Clause 5 commits the Government to publish annual reports on the total amount spent on financial assistance, as well as the total spent on each financial assistance scheme. Clause 6 requires periodic reports on the impact and effectiveness of spending on financial assistance schemes.
There are existing processes for determining funding arrangements. These will apply to domestic spending when we leave the EU. Parliament has the opportunity to vote on Defra’s budget each year through the estimates process, and of course the EFRA Committee takes a close interest in scrutinising Defra’s accounts.
The noble Baroness, Lady Scott, also asked about the link between public access and the Government’s strategic priorities. I believe that Clause 1(1)(b) embodies this link. Clause 1(1) also covers access. The multiannual financial assistance plan will require the Government to publish information about their strategic priorities and how the financial assistance powers in Clause 1 will be used in future years. The Government make decisions through a structured and comprehensive process, which allows us to assess spending in the round.
On Amendment 123, in the name of the noble Lord, Lord Grantchester, the running costs for Defra and the Defra group are considered separately from the payments being made to beneficiaries. As the Government continue to develop their future schemes, they may find that they need to include some administration costs for third parties, such as those potentially incurred to run farm clusters or other groups that bring multiple farmers and land managers together to work in partnership. There may be very valid reasons why administration or consultancy costs may be higher than 5%. For example, investing in the early years of a scheme, when development and testing are critical, could lead to greater efficiencies and refinements later.
On Amendment 112, in the name of the noble Lord, Lord Grantchester, and Amendment 128, in the name of my noble friend Lady Rock, the Government are determined that farming in the UK should not see a reduction in government support at this very important time. That is why they have pledged to guarantee the current annual budget in every year of the new Parliament. The Government recognise that even with the best financial planning, underspends can happen. The concept the amendments raise would, in principle, be beneficial. However, legislation is not the best route to pursue this. Instead, it is more appropriate that the Government first discuss such an arrangement as part of the spending review process, when they will look at spending priorities across government. We should not legislate now for such flexibility without going through the proper process to ensure that spending can be considered in the round.
I will address Amendments 131 and 133, in the name of the noble Earl, Lord Devon, alongside Amendment 132, in the name of my noble friend Lord Lucas. Clause 4 replicates existing multiyear funding cycles, but provides for some flexibility as necessary around the length of individual plans. As the clause stands, it states that future plans must be for at least five years. The Secretary of State has discretion to design a longer plan, which I hope will reassure the noble Lords, Lord Cameron and Lord Wigley. The first plan was designed to cover the whole seven-year transition, to provide certainty to farmers while they adapt to the significant changes that the transition will bring. Although plans must run for at least five years, the Secretary of State has discretion to design a longer plan. The first plan will span the length of the agricultural transition and run for the seven years. This is an example of the Government’s commitment to designing plans appropriately with regard to farmers’ needs.
I was asked by the noble Earl, Lord Devon, why we could not confirm the budget for the length of the agricultural transition. Future funding allocations will be determined through future fiscal events, as is right and proper, to ensure that government spending is considered in the round. The regular cycle of spending reviews, single departmental plans and supply estimates at departmental level is well established. Parliament can vote on Defra’s budget each year through the estimates process.
The clause also states that the first plan period will run for the seven years. It will expire at the end of 2027 and the next plan must be in place by 1 January 2028. Therefore, it is likely that the renewal of plans will happen at a different time from elections, although of course that cannot be guaranteed. I assure noble Lords that there will always be a multiannual financial assistance plan in place, with no gaps.
The agriculture transition will be a key time for the development of government policy. Schemes will be tested and piloted, and the findings from those experiences will inform the development of future schemes and strategic objectives. Accelerating the production of future plans during the agriculture transition period would be counterproductive to our aim of assessing schemes and taking a considered view of what works and what does not.
Clause 4 requires that a multiannual plan be updated and put before Parliament as soon as it is practicable to do so. This requirement will ensure that the plan is a live document that can respond to any necessary changes to financial assistance schemes or strategic objectives.
On Amendment 126, tabled by my noble friend Lord Northbrook, Clause 4 already places a requirement on the Secretary of State to consider in as much detail as considered appropriate each financial assistance scheme that is in or will be in operation during the plan period. If deemed appropriate, this could include how the scheme is to give regard to the production of food in an environmentally sustainable way.
Amendment 138 concerns reports on financial assistance and is in the name of the noble Lord, Lord Addington. Clause 5 as drafted already commits to providing an appropriate level of detail and clarity on the delivery of public goods through each scheme. Furthermore, it is important to note that many of the schemes that the Government are developing, and the individual actions within those schemes, cover multiple purposes. For instance, under ELM we might pay for hedge planting to protect or improve the environment while also restoring cultural or natural heritage and at the same time protecting from or reducing environmental hazards. It would not always be possible to unpick these relationships.
I turn now to Amendment 139 on monitoring the impacts of financial assistance in the name of the noble Lord, Lord Krebs. Clause 6 already requires the Secretary of State to monitor the impact of each financial assistance scheme and make one or more reports on the impact and effectiveness of the scheme, having had regard to the monitoring effects that have taken place.
On Amendment 129 in the name of my noble friend Lady Rock and Amendments 134 and 137 tabled by my noble friend Lady McIntosh of Pickering, the Government are committed to achieving their aim of leaving the environment in a better state than they found it. That is why they seek to legislate for environment improvement plans in the Environment Bill. Environment improvement plans will have the objective of delivering significant improvement to the natural environment. Plans must set out the specific steps that the Government intend to take to improve the natural environment.
My noble friend Lady McIntosh and the noble Baroness, Lady Bakewell, also asked about the Office for Environmental Protection. Under the Environment Bill, the OEP is required to monitor progress on improving the natural environment. It must produce an annual report on its findings and could, for example, recommend that additional funding be provided to deliver the purposes set out in Clause 1 of this Bill. Where issues are identified, the OEP may engage in constructive dialogue with the Government and advise on necessary remedial measures. The OEP can also investigate alleged serious breaches of environmental law by public authorities and take legal action where necessary. The reports of the OEP must be published and laid before Parliament and the Government are specifically required to address any recommendations made. Therefore, when the Secretary of State determines the funding for the strategic priorities set out in the Government’s multiannual financial assistance plans, they will be able to consider any advice provided by the OEP under its duties as set out in the Environment Bill. The Secretary of State will also have had to respond to any advice. Both the OEP’s reports and the Secretary of State’s responses will be published and laid before Parliament.
The Government are actively engaging with many public bodies about the proposed future financial assistance schemes, for example, 17 environmental land management schemes and tests and trials projects are working with public bodies including national park authorities, Historic England, Natural England, the Environment Agency, the Forestry Commission and the National Association for Areas of Outstanding Natural Beauty to provide expert insight and input into the development of policy.
I turn now to Amendment 232 in the name of the noble Baroness, Lady Bennett of Manor Castle. The Government already produce reports that cover a number of these points. For example, Defra publishes a set of England biodiversity indicators to assist in the evaluation of progress on the outcomes and commitments of Biodiversity 2020, our strategy for England’s wildlife and ecosystems. In addition, the Government produce the Agriculture in the UK report annually, which contains a range of data including farm incomes, land use, livestock numbers, prices, the production of key commodities, overseas trade, organic farming and the environment. A new requirement to report on the state of agricultural land would replicate what is already available.
The noble Lord, Lord Greaves, asked a number of rather gloomy questions, which I will endeavour to address. There are a lot of different schemes, and a lot of advice will be provided. The environmental land management scheme is running live tests and trials to test how elements of the scheme will work ahead of the national pilot. Advice and guidance is one of the priority areas, and 34 tests and trials are feeding into that theme. Evidence shows that for advice to be effective, it must be trusted, consistent, credible and cost effective. The Government are considering how these principles can be embedded into advice for all schemes and are working with farmers and other land managers to do so.
I am afraid that I cannot give the noble Earl that assurance at this juncture.
My Lords, I apologise to the Minister if I did not hear her answer correctly, but I did not detect an answer to my Amendment 132. Surely it is not acceptable for the Government to publish a new five-year plan on the last day of the old one. That would cause enormous disruption to agriculture. People would be unable to plan until the new plan was there and then it would then take them a year or so to put their new plans into place. We would get a year when nothing was happening. Surely there must be a decent overlap.
As I think I said in my speech, we have built flexibility in to the planning stage, although it does not need to be five years, and in all cases there will be no gap between one plan and another.
I thank all contributors to this debate for speaking to the various amendments. Even the negative comments were interesting.
If the Government commit to having multiannual plans, as stated in the Bill, it would seem conceivable that they would honour a package that financed the plan ahead in its entirety from the start through to the finish. The amendments scrutinise the Government’s plans around financial assistance in delivering outcomes that are sufficiently robust in their application—with the necessary oversight, as stressed by the noble Lord, Lord Blencathra.
I thank especially the noble Baroness, Lady Rock, for her amendment in sympathy with mine and the noble Baroness, Lady Neville-Rolfe, for her emphasis on a robust implementation plan being adopted by Defra. I am also grateful to the noble Lord, Lord Cormack, for adding his support.
As with so much in every group of amendments, the Minister has been exhaustive and considerate in responding to the many points raised. Along with other noble Lords, I will consider her reply carefully, but at this stage I beg leave to withdraw my amendment.