Direct Payments to Farmers (Legislative Continuity) Bill

Ben Everitt Excerpts

2nd reading & 2nd reading: House of Commons
Tuesday 21st January 2020 Commons Chamber

[Richard Drax]

I absolutely agree with my hon. Friend and neighbour. The point of the CAP, with all its faults, was to provide cheap food and to provide it consistently. One could argue that the system was flawed—in many ways it was—but that was the honourable aim of it.

I want to touch on one or two points connected to the Bill. We hear time and again about the need to reduce flooding. I hear the word “rewilding” being used more and more. Before long, I am sure there will be wolves back in Scotland. There is now talk of putting beavers back in Dorset. A beaver creates a dam. A beaver has younger beavers and they go off and create more dams. The rivers in Dorset are tiny, and if they are dammed and protected—as surely they would be by the environmental lobby—there will be flooding on an epic scale. Can we please look at evidence-based beaver rewilding, rather than just banging beavers back into Dorset or anywhere else without any thought for the consequences? While welcoming wildlife, which we all do, can we please have some common sense in its reintroduction?

Points have been made about the multi-annual budget. Farmers desperately need consistency and certainty of income because, as we have heard, they are reliant on the weather. The weather is not always particularly kind to farmers, but it is vital that they have incomes to survive.

We have all had experiences of the RPA. I sat on the Environment, Food and Rural Affairs Committee with my hon. Friend the Member for Tiverton and Honiton (Neil Parish). The RPA attended on many occasions, and each time it had fallen short. It has to make sure that the money gets to the farmers.

[Ben Everitt (Milton Keynes North) (Con)]

Certainty is absolutely paramount. When the single farm payment was introduced, I asked my dad, who was the manager of a farm, “Have you got your single farm payment?” He replied, “Some of it.” We really need to sort out the RPA payment issues.

On a wider point, as my hon. Friend the Member for Tiverton and Honiton (Neil Parish) has said, if we value something, we should pay for it. My hon. Friend the Member for South Dorset (Richard Drax) has mentioned wheat prices and the true price of wheat. There is a cost to husbanding the countryside and we should recognise farmers’ traditional role as custodians of our countryside, nature and biodiversity. If we value that, we should find a way of paying for it and of communicating that to society, so that the role played by farmers in their communities and society can be recognised.

[Richard Drax]

I absolutely agree with every word my hon. Friend has just said. I have huge respect for the Minister, who is himself a farmer. On valuing farmers, they have to have access to grants to meet all the environmental rules. It takes more than a few hundred pounds to dig a slurry pit, for example; we are talking about tens or even hundreds of thousands of pounds to make sure it meets all the various criteria. Small farmers just do not have access to such vast sums of money. They either go bust or ask a bank if they can borrow money, and in most cases the answer will be no. Farmers, particularly small farmers, need access to grants to help them to farm efficiently and to address all the environmental concerns.

I have two final points to make. I absolutely concur with the shadow Minister on food security. Food in this country will be affected by scares all around the world and, in the worst-case scenario, war. We have been there before with world war two. I am not saying that we are going to go to war again, but all sorts of dramas and strategies around the world could lead to some sort of food shortage. Therefore, food security—looking after food production in our country—is absolutely crucial.

Finally, I agree with the NFU that there is no point in meeting all the extraordinary standards set in this country, with which I entirely concur, only to be undermined by imports from other countries, particularly third-world countries, where the standards are nowhere near as high as ours and they can reduce the price of their food. Of course, people purchasing food, particularly the large supermarkets, will be tempted to go down the cheaper route, so may I urge the Government to keep an eye on that?

Direct Payments to Farmers (Legislative Continuity) Bill

Ben Everitt Excerpts

Committee stage & 3rd reading: House of Commons & Committee: 1st sitting: House of Commons & 3rd reading & Committee: 1st sitting
Tuesday 28th January 2020 Commons Chamber

[George Eustice]

It is important to recognise that a significant proportion of sheep farmers in particular do not receive the basic payment scheme area payment, because they are on contract farm agreements and the landlord receives that money. Nevertheless, the hon. Gentleman makes an important point. I think the principle of investing in public goods has support across the House, but we need to strike this new course sensitively and ensure that agriculture remains profitable. We want a vibrant and profitable agriculture industry, which is why the Agriculture Bill also makes provision for payments to improve productivity, and sets a quite long transition period of seven years, so that we can gradually phase out the old legacy scheme. He will be reassured to hear that the Bill before us makes no changes at all for the coming year. Farmers in his constituency can rest assured that once this Bill is passed, the direct payment scheme will operate this year in exactly the same way as it has in previous years.

[Ben Everitt (Milton Keynes North) (Con)]

Does the Minister agree that there is a balance to be struck between incentivising productivity and rewarding farmers for their role in looking after our countryside—the hedges, copses and spinneys that make England, and indeed Scotland, Northern Ireland and Wales, so unique in their character, and so different from some intensive agricultural operations in European and beyond? If we are to remain competitive and our land is to remain productive and profitable, we need to find a system that balances those priorities, protecting what we love about our countryside, while recognising the wonderful contribution our farmers make to our agricultural economy.

[George Eustice]

My hon. Friend makes a very important point. It is all about striking the right balance. The premise behind the direction of agriculture policy is this: rather than trying to put on a sticking-plaster, and masking poor profitability in agriculture, we ought to have a coherent policy that rewards farmers properly for their work to improve the environment, create new habitats and so on, and that makes them able to become more profitable by investing in new equipment, adding value to their product and improving transparency in the supply chain. That is our approach—tackling the causes of poor profitability, not masking them with an arbitrary area-based subsidy.

--- Later in debate ---

[George Eustice]

My hon. Friend has made an important point. Let me say two things. First, clause 3, which I was going to come on to—I understood that you wanted me to address all the clauses simultaneously, Madam Deputy Speaker—deals with that issue in respect of the claim year 2020, in that it gives us powers akin to those that were in the European Union (Withdrawal) Act 2018 to make particular modifications and changes, simply to make this body of law operable. For instance, it enables us to replace the words “European Commission” with the words “UK Minister”, or, indeed, “devolved Administration Minister”, and it gives us the power to introduce subsequent statutory instruments to make the legislation operable.

Secondly and more broadly, for the purpose of future policy, the Agriculture Bill includes a power to modify policy. This Bill does not modify policy, but it gives us the power to make operable changes akin to those in the European Union (Withdrawal) Act.

[Ben Everitt]

I think it important to learn the lessons of our involvement in the common agricultural policy over the years, and to consider some of the things that have gone wrong with it. In the context of implementing future changes in regulation, we should recognise that, for example, the set-aside rule—which those of us who were in farming in those days know and love—would sometimes represent the difference between profit and loss for a farm. To put it bluntly, the difference between the farm being viable and not viable was what the EU paid farmers not to grow anything. How can we incorporate that balance between productivity in our land and a viable economic agricultural and rural sector in our future legislation? I am heartened to hear that we are keeping that option in this Bill.

[George Eustice]

I agree that we must learn the lessons of the common agricultural policy. Having dealt with it for some seven years in total, I know that it is something of a bureaucratic quagmire. It is very difficult to navigate, and we tend to find that the more rules we invent, the more rules we need in order to make sense of the ones that we already have. That is why we end up with all sorts of complexity, as set out in the 127-page document containing guidance and rules for farmers.

The real lesson to be learnt is that whatever we do in future should be less rules-based and more based on delivering outcomes, and should also be tailored to the needs of an individual farm. When farms have poor profitability, we should try to tackle the causes of that poor profitability by helping farmers to invest and improve fairness in the supply chain, rather than by means of an arbitrary area-based payment. That is the direction of travel that we have set out.