Agricultural Transition Plan
Debate between David Mundell and George Eustice(3 years, 11 months ago)
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George Eustice
It is the case that England is a long way ahead of Scotland in terms of developing future policy. We want to take the opportunities that come from leaving the European Union to chart a different course and put in place a policy that makes more sense. Our view is that arbitrary area-based subsidies for people based only on the amount of land that they own or rent makes no sense in this day and age, and we should be directing those funds in a different way.
The hon. Lady mentions funds for Scotland. In line with our manifesto commitment, Scotland will have £595 million for its agriculture budget. She should note that we chose an exchange rate fixed in 2019 that is far more favourable for farmers right across the UK than the average exchange rate across the last perspective. She should also note that the European Union has just slashed its agriculture spending by 10%, while the UK Government have maintained it, and changes to the exchange rate mean that the rate of payment is some 20% higher than it would have been had we not voted to leave the European Union.
On the hon. Lady’s final point about divergence, Scotland and other devolved Administrations will have more freedom than ever before to design a policy that they judge to be right for them. We will set up a joint group across the UK to do market surveillance, to ensure that there is not disturbance to the internal market and to share ideas on what works.
David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)
As it is St Andrew’s day, it would be remiss not to highlight the excellence of Scotch beef, lamb and other agricultural products. The Secretary of State said that the measures he has announced will not apply in Scotland. Does he agree that the Scottish Government should now get on with devising a bespoke support scheme for Scotland to take into account our unique geography and climate—for example, continuing with an enhanced less favoured area support scheme—rather than pursuing an independence agenda, which would disrupt Scottish farmers’ biggest single market: the rest of the UK?
George Eustice
My right hon. Friend makes an incredibly important point. When the current incarnation of the common agricultural policy was put in place, NFU Scotland was very clear that area-based payments could not be made to work properly in Scotland. It is difficult therefore to see the justification for maintaining a policy built solely on area-based payments, given the large variance in land types. I agree with him that the Scottish Government should, in line with all other parts of the UK, take this opportunity to do things differently and to do them better.
Oral Answers to Questions
Debate between David Mundell and George Eustice(3 years, 11 months ago)
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David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)
The Secretary of State for Environment, Food and Rural Affairs (George Eustice)
Lamb producers have enjoyed a very good year in 2020. A significant increase in lamb imports by China, combined with tighter supply globally, has contributed to high prices and confidence in the sector, with prevailing market prices typically 10% to 15% higher than last year. However, we recognise that historically the lamb sector has been more reliant on the EU market than most other farming sectors, so we stand ready to help it identify new markets in future.
David Mundell
I hope you did not find me very strange, Mr Speaker. Upland sheep farming is hugely important to my constituency, which is why, I, like those farmers, very much welcomed the Secretary of State’s comments yesterday at the Scottish Parliament’s Rural Economy and Connectivity Committee that he does have well-developed plans in place to support upland sheep farming in the event that a deal is not possible with the EU. Perhaps he could set out some further reassurance to those farmers today, because many of them have to take decisions right now about their forward planning and what would be in place if there is no deal with the EU.
George Eustice
I can say that 18 months ago, in preparation for the first potential no-deal, the Government, working with the Rural Payments Agency, had developed detailed plans to be able to support the sector in the short term. Those plans are still there and still ready to be activated, but in the medium term, in the event of there being no further negotiated outcome, we will be helping the sector identify new markets.