Agricultural Transition Plan

Deidre Brock Excerpts

Monday 30th November 2020 Commons Chamber

[George Eustice]

My right hon. Friend makes an important point, and we are considering that in the design of our schemes. We are working with county farms across the country to improve the offer that county farms have, to create opportunities for new entrants and to encourage them into partnership with other landowners so that there can be more opportunities for those new entrants and to create an incubator model for these new entrants.

In terms of the viability of farms as we progressively reduce the basic payment scheme, it is important to recognise that this is an evolution, not a revolution. It is the case that from 2022 we will open the sustainable farming incentive to all farmers.

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

I see the headlines of stories that the Government have planted today promising that Brexit will transform our fields and farms. One would have to agree, although that transformation will not only be in ways that many in agricultural areas will necessarily welcome. The speed and scale of the reductions proposed worry many others, including, it seems, the Minister’s own colleagues, with the head of the National Farmers Union describing the Government’s approach as

“high risk and a very big ask”.

Lack of clarity on the detail of the replacement environmental land schemes remains a big concern for agricultural and environmental representatives alike. It seems to me that what qualifying criteria we have been made aware of could lend themselves equally well to shooting estates as to hill farmers, for example. I would be grateful if the Secretary of State could enlighten us further on that point.

I find it astonishing that the Government have had since 2016 to construct replacement schemes, and yet here we are, just days away from either a no-deal or a low-deal Brexit, amid fears of lower imported standards and enduring the uncertainties of a global pandemic, with so many details still to be outlined. Scottish farmers and crofters do not face the same difficulties, because in Scotland the Government have committed to continuing payments at their current level. However, our Ministers were told just days ago in the spending review that, despite the Government’s manifesto commitment to match EU support, rural Scotland will be £170 million short of what was promised by 2025. The chair of NFU Scotland has said that this shortfall will undermine environmental and biodiversity targets for Scottish farmers and crofters. How does the Secretary of State answer that?

Finally, I would like to hear from the Secretary of State what the United Kingdom Internal Market Bill and control over state aid being in the hands of Westminster means for the Scottish Government’s ability to maintain a divergent path to England on farming support. Can he provide assurances that the Bill will have absolutely no impact on Scotland’s ability to set support in Scotland independent of the system chosen for England?

[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.