Agriculture Bill (First sitting)

Deidre Brock Excerpts

Committee stage & Committee Debate: 1st sitting: House of Commons
Tuesday 11th February 2020 Public Bill Committees

[Mr Robert Goodwill (Scarborough and Whitby) (Con)]

Q I declare an interest: I am a farmer in North Yorkshire, where we have been since 1850, and a member of the National Farmers Union and the Country Land and Business Association. The question I want to ask is whether you think the Bill will do enough to enable us to get the balance right and reward people for what they are doing already—I am thinking particularly of some of the upland farmers on the North Yorkshire moors and in the very marginal parts of our country. Most people probably take the view that they should keep doing exactly what they are doing, because that is exactly what we want. The flip side of that is incentivising other farmers, perhaps in the east of the country, on some of our more intensively farmed areas, to do more green things. Do you feel that there is enough in the Bill to reassure those who are in those upland areas who are concerned because the subsidies are basically what are keeping them on the land, and the others—the Beeswax Dyson Farmings of this world—who can dance to the tune that the Minister is playing? I think Caroline might be the best person to start.

Caroline Drummond: I am not too sure. It is interesting that there is a lot about livestock production in here, but a lot of that level of detail will have to come through the policy support, because upland farmers are under a huge amount of pressure. There are discussions around the meat challenges of Veganuary and climate change mitigation, but we should look at what they offer in terms of tourism and capability to manage. For those very sensitive land areas, right through to some of the high-value peat areas, I think there will be the need to get some really good ELM projects to better understand how we can support those farmers. Exeter University is doing a lot of work in this area at the moment to find out how those farmers, as Jack just said, can actually make a profit at the end of the day. There are a lot of social services, public goods, environmental goods, tourism and additionalities that these farmers offer on incredibly tight margins.

Martin Lines: I think there will be movement with payments. As an arable farmer in Cambridgeshire on a large field system, the productivity of my landscape is really good. Most years it is quite a good, profitable system. If you are in the marginal areas—the uplands, in the west country where there is a smaller field-scale system—the public goods should be rewarding you more. I will probably receive less public goods money, but that will be moved, hopefully, across to the uplands and those cherished areas that cannot deliver more productivity, but need to be supported to deliver the public goods and with the landscape delivery stuff. It should be swings and roundabouts, but it should be fair. The detail is not in there and we need to see that transition. It is going to be about the journey if we move from one to the other and give farmers confidence about the future.

ffinlo Costain: I understand your point, Mr Goodwill. There is one farmer we work with in Northumberland with 1,000-odd acres on a sheep farm. When we have run the metrics of looking at his carbon footprint with GWP*—global warming potential “star”—the new accurate way of accounting for methane, which is very different from the way methane was accounted for 18 months ago and was recognised in the Committee on Climate Change land report just a couple of weeks ago, his farm impact is less than the average household of four, which is astonishing. We want to make sure that farm continues to get the funding as well.

We have proposed in the past that an acreage basis for that continuing maintenance of excellence could be a way to go because we need to make sure—exactly as I think you are saying—that we do not just restore biodiversity, we do not just mitigate climate change, but we hold and maintain that excellence afterwards. I hope that, within public goods applications, farmers will be able to make the case that they are continuing to deliver excellence. All farms can be better managed. We never achieve sustainability; it is a journey. However, if farmers can make the case that they are delivering public goods and continuing to deliver that—I would like to hear from Ministers on that—I hope they will continue to be eligible.

Jack Ward: From the fresh produce industry, in terms of sector, I think there is a lot of interest in what the ELMS might offer. Just coming back to the earlier question: until we see the detail it is difficult to make a judgment.

[Deidre Brock (Edinburgh North and Leith) (SNP)]

Q It is very encouraging to hear your enthusiasm for improving the standards of the producers you represent. How concerned are those folks about cheaper imports undercutting produce through trade deals that might be negotiated in the future? Would you like to see something preventing that in the Bill? Certainly, the farmers I speak to are increasingly concerned about that.

Martin Lines: If we do not have the rug taken from under our feet: we are told to produce to a standard, but if different standards are allowed to be imported, how can we compete? Our costs are different. If the standard is positive across the platform, we can compete. It may be a different price model, but we can compete with that standard. We should export our environmental footprint. We can bring in produce from around the world to the same standard, so other people’s standards can increase. There is huge risk because if we are told to produce goods to a standard, then yes, there needs to be something in the Bill or an assessment of the amount of stuff allowed in that is below our standards. We already allow in a lot of products below our standards. We are not allowed to use neonicotinoid treatments or genetically modified processes in the UK, but we import huge quantities. So there needs to be that sort of balance. I would struggle to say none, but there needs to be balance and fairness for the whole farming industry.

Caroline Drummond: It would be fair to say they are extremely concerned, and I think the majority of farmers are very concerned about not undercutting the capability and the investment that they have made. We are very fortunate. We work with a lot of can-do farmers who have made a huge investment in making sure they reach the level of trying to be more sustainable; trying to ensure that welfare standards are meeting and going beyond the regulation; and driving for new innovation and ways of improving and doing things. As Martin has said, offshoring the environmental and animal welfare delivery and the learnings we have made from those practices that are just not acceptable—not only to our farmers but to our customers—is not good news. There is a double whammy because although many countries say they do not support their farmers, they do in many different ways. That will be through investments and free advice. You just have to go on to the United States Department of Agriculture website to see the substantial amount of money that is going to support marketing, drainage schemes, flood alleviation, irrigation and so on. We need to be very careful. There is that second hit of not only importing produce that potentially does not meet the standards or requirements of our farmers, but in addition to that is also being supported through different ways.

Jack Ward: In the fresh produce industry, we already import from about 90 countries, so there is a fair degree of free trade within fresh produce. I think the areas that would concern our growers are particularly around production systems that would be unlawful in the UK. That is particularly around crop protection and labour welfare standards. Those are two very key areas for the sector.

ffinlo Costain: I think it is terribly important, exactly as everybody else has said, but there are two sides to this particular coin. I understand, hear and welcome what Ministers have said repeatedly, that standards will not be lowered and that trade deals will not allow that to happen but, in terms of farmer and public confidence, it needs to be written in the Bill. I think it is really important that it is there.

I think that partly because of the impact that it could have on food, but also because of the impact it has on the industry that grows up around excellence: the marketing, the branding, the new technology, which Britain can become excellent and fantastic in. Associated with that—the other side of it—is what does brand GB look like? What are we exporting?

The opportunity here is to get something right in Britain, to do something excellent in terms of food production and the environment, and to export that knowledge and those brands and that technology around the world. When I look at Ireland, with Origin Green, it is the only example that exists of a national scheme of metrics. In Ireland, it is only around carbon; it does not yet incorporate GWP*, so it is flawed. It does not include biodiversity.

There is an opportunity for Britain when we get the metrics right, when we are collecting these at a national level, which also, by the way, means that we can better inform policy making in future, that this can underpin the British brand. If we allow food in that is undercutting our standards, it undermines our brand. It not only undermines our farmers, but the industry as a whole.

Caroline Drummond: We operate a global standard with LEAF marque; 40% of UK fruit and veg is LEAF marque certified. The fresh produce and the farmers that we work with on a global scale are meeting the same requirements demanded of our farmers in this country.

[The Chair]

We are now halfway through the evidence session. I have lots of colleagues who want to ask questions and I want to ensure that they are all called.

--- Later in debate ---

[Fay Jones]

Q The Bill amends the red meat levy system, in that it irons out an imbalance that has often penalised Welsh and Scottish farmers. Do you think that is sufficient, or should the Bill contain further reforms around the red meat levy?

John Cross: I had quite a lengthy history in the levy sector. The complexity around this issue is really quite deep, because it depends on where the benefit of the levy investment is secured, where the products derived from the industry are consumed and where the supported supply chains sit. As for the desire to capture and formalise a more even-handed distribution back to the devolved regions: from what I have seen of it, it does do enough. We live in a very complex domestic market; 50% of Scottish beef production is consumed within the M25. That illustrates how complex the mix is. The red meat levy is designed—yes, funded by farmers and processors—to make the best of a supply chain and to deliver business enhancement throughout for the good of consumers and producers. It is quite a complex issue and it is not just as simple as three separate lots of industry all wanting to do their own thing in isolation, because they are all interdependent.

[Deidre Brock]

Q This question is specifically for Mr Hall and Mr Cross, just about your organisations. Can you tell us, please, how you reformed; what your role is; what your governance rules are, and what jurisdiction you have in regard to Scotland and the devolved nations?

John Cross: I will leave some of the technical detail to Simon, but in principle, this is how we arrived where we are now. Yes, we have established traceability systems in this country and they work but, as we speak, they still tend to be a blend of paper and digital—sometimes both at the same time. They work but they are high-maintenance. They are sub-optimal and they take a lot of resource to keep them going. They were, of course, designed to hoard data on behalf of statutory obligations, as opposed to share data, so the design principle needed to be completely different.

I think it is fair to say that Government was faced with the reality of having to achieve an IT refresh at some stage, with some fairly urgent timescales. For a long time, industry has wanted to have the benefit of the use of its own data. Data was being collected about the industry, but the industry could not use it to enhance itself.

We came to a moment after the referendum where the industry and Government were faced with a series of scenarios that required them to think differently and start to think together—this is where the principle of co-creation came in—right across DEFRA and all its dependencies, the Food Standards Agency, the Rural Payments Agency and the others, and right across the industry to form a think-tank as to how you design, hopefully, the optimum traceability and information system that enables Government to fulfil its statutory obligations, but better and faster, while allowing industry to start adding value to itself with information.

If it is a matter of exploring global markets, you can evidence a brand vastly better. In the global marketplace, traceability is king. In that area, you have huge opportunity. Similarly, from the viewpoint of the industry looking to eradicate non-notifiable endemic production diseases, again, to tackle disease risk you need information—you need data. As soon as you have got a unique identification of any one animal, the information you can attach to that provides almost endless opportunity.

[Deidre Brock]

Q But your focus is on England; is that right?

John Cross: This is an English system; yes.

Simon Hall: But it is in the context of a UK story. This is quite complex. In the current situation, traceability services are delivered through a bit of a mixed economy in the UK. Northern Ireland has a multi-species service operating there for cattle, sheep and pigs. Scotland has a traceability service for sheep and pigs. Wales has a traceability service for sheep. England operates a GB service for cattle, and we operate a pig service for England and Wales, and a sheep service in England.

So, it’s quite complicated. Then, within that, there is a mix of services and databases that come together to provide a UK view of that traceability data, so that colleagues at the Animal and Plant Health Agency, for example, can use that data to respond to an animal disease outbreak or a food safety concern, or whatever.

We have an ambition in England to create a single multi-species traceability service, or a single service capability, including help desk and so on, a single IT system, underpinned by the ambition to exploit data, not only for the benefit of Government and statutory disease control, but to deliver a range of outcomes externally. In that context, the Scottish Government and Welsh Government have decided to bring the cattle services into their own Administrations, and in the case of Wales, to bring the pig service in-house as well.

We are all moving at the same time to a position that respects devolution, where every Administration will have its own multi-species traceability service. Particularly in the context of cattle, that creates a new requirement to ensure that we have a really good UK view of cattle, recognising that we are disaggregating services that are currently delivered through one service, so we need to ensure that that comes together.

DEFRA has asked Livestock Information Ltd, as part of the process of designing and implementing the traceability service in England, also to ensure that there is a way—a mechanism, a service—to ensure that we have good visibility of that UK data. That approach is supported by UK CVOs and so on.

We are, though, at a very early stage of designing exactly how that would work. So, we do not have a technology strategy yet for exactly how that would work and whether that means that Livestock Information Ltd would have a copy of all the UK traceability data, or whether it is just providing a window into each of the services and each of the Administrations for the Animal and Plant Health Agency to look at, for example.

We have really good relationships with colleagues in each of the UK Administrations and we are having regular dialogue around how this would work and whether there would need to be some specific governance arrangements around the UK view, and so on.

[Deidre Brock]

Q So there is no suggestion of imposing a UK-wide scheme on devolved nations that already have their own.

Simon Hall: Quite the reverse.

[Deidre Brock]

As you have elaborated, they already have quite developed traceability schemes

Simon Hall: This is seeing a move to devolve traceability services that comes together seamlessly at a UK level, recognising that disease and food contamination does not respect borders.

[Deidre Brock]

Q What are your governance rules, and how confident are you that the traceability set-up will be ready in time for the end of the year when we leave the EU?

Simon Hall: There are two questions there. The first is easy: our governance arrangements are that Livestock Information Ltd is a subsidiary of the Agriculture and Horticulture Development Board, which is the levy body in England. AHDB is a non-departmental public body of DEFRA, so it is accountable to DEFRA but funded by the levy payer, and therefore responsible to the farmer, grower and processor in England.

For us, the attraction of using AHDB as the parent body for this company is the way in which we can embed the traceability service as close to industry as possible, while retaining the sufficient control needed by Government. That model has already been adopted in Scotland, Wales and further afield, in Australia. Livestock Information Ltd is a company limited by a guarantee; it is a subsidiary of AHDB; it has a 49% ownership stake from DEFRA directly—DEFRA is important, but if it wants to exert control it does so through the levy body.

[Deidre Brock]

Q And your readiness for the end of the year?

Simon Hall: The business case has been approved; we have funding in place; we have procured IT systems; we have a team of around 50 people delivering; we are working very closely with devolved Administrations, and we are aiming for implementation from the autumn. There is lots to do. There is lots of complexity. The No. 1 thing we must not do when we effect this change is compromise our quality of traceability. If we are not ready, we will delay, but there is no indication that we will need to at the moment. We are planning for implementation from the autumn, starting with cattle, sheep next year and pigs later next year.

John Cross: A parting message: the important thing for us is to be smart and collaborative with the devolved regions, because disease pathogens—whether notifiable or not—and disease outbreaks do not recognise any political boundaries. We have to be smart and have a UK view on disease. If you look around the globe, on the international trade stage we are seen as the UK. It is a UK story if a product goes out, so from the point of view of access, wherever you go internationally, the UK is the recognised body. It is important that we have a smart, collegiate view on this.

Simon Hall: This Agriculture Bill does support the delivery of the programme in the way we set out. In part 4, clause 32 talks about granting additional functions to AHDB that will allow it to deliver that English traceability service through the subsidiary body. It currently has the function to deliver the programme and to design and implement the future service, but not to run it. The Bill provides the functions to do that, and the flexibility to provide any UK functions required, or that are sensible. For example, one might imagine that allocating a unique identity for an individual animal might be something that we choose to do once only in the UK, and we may choose to do it from here or from somewhere else.

The Bill provides the functions that we need to deliver this programme in the way that we want in the future service; it also provides some flexibility, should we work together and decide that we want to carry out some UK responsibilities.

[Danny Kruger]

Q May I quickly return to the trade deals? Mr Cross, you said earlier that we must not export our conscience to other countries to import cheap, low-quality food from abroad. Quite right—we need to export our high standards, and I think we agree that the Bill is the opportunity to set a world-class benchmark model for regulating agriculture and sustainable farming.

My question is on behalf of our producers. The paradox is that everybody complains about the complexity of CAP, and farmers have a tough time filling in the forms. Of course, the principle of CAP is very simple: you just pay for the amount of land that you have. We are proposing to introduce a system with a lot more complex objectives—quite rightly—for all the different public goods. I share Ms Whittome’s point about the opportunity for community-based markets and more locally based producers—more local sourcing. Do we think that those community groups and small farmers will be able to navigate what sounds to an outsider like a very complex set of objectives, and therefore potentially some complex subsidy systems?

John Cross: I can make a comment as a farmer rather than chair of Livestock Information. You make a very good point: we are entering a very different scenario. Some farmers will need considerable help in changing that mindset and getting used to a new environment, because it will require a lot more proactivity from the point of view of seeking rewards for those public goods. It will be a more complex—