Agricultural Tenancies

Daniel Zeichner Excerpts

Wednesday 24th May 2023 Commons Chamber

[Daniel Zeichner (Cambridge) (Lab)]

I thank the Minister for advance sight of his statement. I also thank Baroness Rock and all those involved in the tenancy working group, because theirs is an excellent report. The Government have clearly spent a long time—eight months—considering it. Although we are pleased to see the response at last, we are slightly disappointed that it takes a rather piecemeal approach. Perhaps the Minister could start by telling us how many of the 74 recommendations the Government have chosen to adopt.

This is a complex subject, and we probably need more time to debate it properly. However, let me start by restating why it matters: with half of England’s farmland tenanted, we are not going to achieve the transition to a more sustainable form of food production and restore nature without getting this right. There is a problem—long acknowledged—that farm business tenancies now average just 3.2 years. Although constant renewals and negotiations might be good for land agents, that is too short-term, and it is often too difficult for tenants to get involved in the schemes the Government are bringing forward.

Although we welcome the fact that entry to the sustainable farming incentive has been made possible through three-year agreements, I note that the Minister said in his statement that we must “remove any remaining barriers to accessing our farming schemes.” Of course, those schemes are much more than just the SFI. Will he therefore tell us why he has not accepted the proposals from the Rock review to make it easier for tenants to enter the tier 2 and tier 3 versions, since that is where the majority of these schemes, such as those for countryside stewardship and landscape recovery, are likely to lie? That really matters. With so much now being pushed out through the countryside stewardship scheme—a debate for another day, perhaps—it could be a problem.

The Minister may be able in passing to update us on the current uptake of the SFI, which I fear—I suspect he shares this view—is still disappointingly low. What assessment has he made of the number of tenants who are likely to enrol, particularly in the countryside stewardship scheme and in landscape recovery level 2? I am told that 70% of tenants routinely do not get consent from their landlords, and I wonder what his estimate is. The danger is that, for all the fine words, too many tenants will still not be able to access environmental land management schemes.

I welcome the comments from the Minister and in the Rock review about the potential benefits for new entrants. We are, of course, still waiting for more details on the new entrants scheme—interestingly, the Government produced the exit scheme a while ago. Will the Minister tell us where he has got to on the new entrants scheme?

The Minister may recall that, during the passage of the Agriculture Act 2020, a previous Secretary of State assured us that moving away from basic payments under the common agricultural policy would see rents fall. Will the Minister tell us what has happened so far, as we approach the halfway point in the agricultural transition?

In general, does the Minister agree that we need a structural change to move to long-term agreements? That was one of the key conclusions from the Rock review. I heard nothing in his statement to that effect, even though this was a fundamental point.

The review found that the constant renegotiation of tenancies is problematic in itself. As Baroness Rock told the Oxford farming conference—the Minister and I were both there:

“Too often we found an overly short term, commercial and acerbic approach to the management of tenanted estates.”

I wonder whether the Minister agrees with that comment. I also wonder whether anything in his statement this morning will remedy the increasingly common situation where tenanted land is lost as landlords seek to put land into woodland or other uses, thus reducing the scope for food production.

We welcome the establishment of the farm tenancy forum, but will the Minister clarify what its role will be? The danger is it will just be a rolled-over version of the long-running tenancy reform industry group. What will its task be? Who will serve on it? What will its terms of reference be?

We welcome further consideration of a tenant farming commissioner, but does the Minister not understand that the problems facing tenants are real and present now? What further information does he expect from yet another consultation? Is that in fact just an attempt to long-grass this recommendation? Is the Minister taking forward the recommendation that the Law Commission investigate this complicated area?

There are many detailed questions that should and will be asked—more than can be accommodated today—but let me conclude on a positive note by welcoming the involvement of the Royal Institution of Chartered Surveyors in developing a code of practice. This is a complicated and important area, and it is vital to everyone’s interests that collaborative ways forward are established.

[Mark Spencer]

I am grateful to the hon. Gentleman for that one little nugget of positivity. We have already adopted most of the recommendations in the Rock review. He characterised that action as piecemeal, perhaps because throughout this process we have been liaising with Baroness Rock and the tenancy working group, listening to their recommendations and ensuring that we take them into consideration as we design the new ELM schemes. We will naturally consider further items as we proceed, and the farm tenancy forum is being established so that we can continue to receive that good advice.

Of course we want tenants to be involved in the SFI. The hon. Gentleman knows that we ran pilot schemes which have been quite successful. He knows that we have listened to farmers who have engaged with those pilot schemes, and, in response, have adapted, changed and tweaked them. We will launch six more standards under the SFI this summer, and we will be saying to farmers, “Now is your moment to get involved, to take a look at these new schemes”. We want them to think about how they embark on the journey of our transition away from bureaucratic EU systems such as the single farm payment and towards a new system that will enable us to support farmers’ food production and to benefit the environment and increase biodiversity at the same time.

There are, of course, good landlords and good tenants, and some poor landlords and some poor tenants. We want to allow flexibility for good landlords and good tenants, and to hold to account those who are not adopting the right course of action. I noted that the hon. Gentleman’s question contained no recommendations or policy from Labour. There is a gaping void in Labour’s rural policy: it is an urban-based party that does not understand rural communities and does not understand the farming sector. The Conservative party is the party of rural communities, and we will always stand up for those communities and for farmers.