Sustainable Farming Incentive: Species Management and ELMS

Baroness Hayman of Ullock Excerpts

Thursday 25th January 2024 Lords Chamber

[Baroness Hayman of Ullock (Lab)]

My Lords, I thank the noble Earl, Lord Caithness, for introducing this debate and for his clear and thorough introduction. As he did, I pay tribute to our many farmers, who have been going through a very difficult time in recent years. I also declare my interest, as laid out in the register, as president of the Rare Breeds Survival Trust.

We know that farming has a major impact on biodiversity and the natural world—the right reverend Prelate laid that out extremely clearly—so it is really important that farmers are properly supported to change how they farm so that they can remain resilient in this time of nature and climate crisis. Noble Lords discussed a number of concerns, some of which were raised by the Office for Environmental Protection earlier this month on progress in the implementation of ELMS. Although some progress has been made, it is clear that noble Lords and farmers feel that its rollout needs to be accelerated. The House of Commons Environmental Audit Committee also found that there was uncertainty about exactly how the scheme would operate. As noble Lords have also mentioned, this has particular challenges for tenant farmers and commoners.

But we broadly welcome the fact that we have an updated transition plan, which is what we needed. This has been welcomed by other organisations. For example, the Agricultural Industries Confederation has welcomed the changes, in particular the streamlining of the process for applications, and the NFU has welcomed the increase of some payments and support for a greater number of actions. However, it has also argued that the Government should provide further details about exactly how the objectives would be delivered. The noble Earl mentioned that in his introduction.

As has also come across very clearly in this debate, the Government need to ensure a successful rollout to properly harness the opportunities for farm businesses, nature and our climate. The CLA, among others, has criticised the Government for not opening applications for the updated scheme until this summer. A number of noble Lords mentioned this. For example, when does summer start and end?

Farm businesses need action and financial support urgently. Nature Friendly Farming sent a very helpful brief, in which it mentioned its concerns that this delay could bring real cash flow problems for farmers. It has asked Defra to explore ways to alleviate this. It suggests introducing a one-off lump sum payment as an alternative to annual delinked payments. Can the Minister say whether Defra has looked at ways to alleviate the bumpy ride that farmers have during this process?

Although we are pleased to see that the changes are largely positive for nature, including the expanded set of actions, the average 10% uplift in payments, increased payment frequency and a commitment to double the number of agreements for more complex and targeted environmental land management, still more needs to be done. The changes will expand the contribution that farmed landscapes make to achieving our nature recovery targets in the Environment Act. However, as the right reverend Prelate the Bishop of Norwich and the noble Baroness, Lady Bennett, asked, how are we going to use this to dramatically increase our soil health? That is critical if we are to make real progress.

I should say that I thought it wonderful that the right reverend Prelate hands out trees at confirmations. That is fabulous. I shall talk to our church about doing the same.

It remains to be seen whether the incentives we now have will result in the right level of action at the required scale. Can incentives alone achieve this? If they cannot, there is a real risk that Defra could miss what are pretty ambitious goals.

Although there has been commendable progress on the development of farm payments, this could be undermined by a lack of regulation and enforcement—again, something mentioned by noble Lords during this debate. The noble Baroness, Lady Bennett of Manor Castle, talked in particular about the lack of evidence to show how ELMS will deliver against the Environment Act targets. Of course, there is no publicly available data to demonstrate how the payment rates have been calculated, how Defra evaluates progress and how value for money is secured. How will these robust rules be established and how will the gaps following the loss of cross compliance be closed? Will the Government publish their analysis of the actions needed under ELMS to deliver the Environment Act targets, as well as any gaps that have been identified? Has Defra considered publishing its scheme payment methodologies, as well as providing a clear payment strategy and the outcomes that are expected from farmers taking the grants?

The 2020 agricultural transition plan included actions to create and maintain habitats but did not include species management specifically. Instead, it is listed as an example of the type of action that would be supported through what was then the local nature recovery scheme. The Government have confirmed that ELMS would support minimising harm caused by invasive species and promote the recovery of threatened native species. I have a particular interest in this, living in Cumbria: we see red squirrels out of our window and there is a real threat from the grey squirrel population in the areas where we are still fortunate enough to have red squirrels.

The case for supporting species management as part of the ELM scheme, brought forward in the Motion today, is advocated by the Game & Wildlife Conservation Trust, which argues that not enough focus has been given to species management; I thank it for its briefing on this matter. However, the Countryside Stewardship scheme already includes the control and management of some invasive non-native species; I am sure that the Minister will say the same. We question whether species management should be funded through ELMS, particularly the management of wild species that prey on farmland birds. As we have heard, last year’s State of Nature report concluded that the decline in farmland birds is mainly due to an increase in intensive farming practices, not natural predation. The RSPB has further studied these impacts and found that predator control interventions carried out at the farm level—it is important to have that distinction—are not sufficient to make a difference.

I am aware that there have been challenges to this during the debate but we believe that ELMS should be focused on nature-friendly farming to help meet our nature and climate targets, rather than funding interventions that are already accessible through the Countryside Stewardship scheme. Perhaps extending that needs to be looked at.

Finally, I come to the important point made by the right reverend Prelate the Bishop of Norwich about farmers needing improved support and advice services. The transition from BPS to ELMS is significant and farmers need to be fully supported through this transition. The current advice service, the Farming Resilience Fund, is due to end next year. Can the Minister explain what will replace it?