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Direct Payments to Farmers (Legislative Continuity) Bill Debate
Full Debate: Read Full DebateDesmond Swayne
Main Page: Desmond Swayne (Conservative - New Forest West)Department Debates - View all Desmond Swayne's debates with the Department for Environment, Food and Rural Affairs
(4 years, 7 months ago)
Commons ChamberClause 1 provides the legal basis for the Government and devolved Administrations to make payments to farmers under the direct payment scheme for 2020. The clause is needed because article 37 of the withdrawal agreement means that the EU legislation governing the 2020 common agricultural policy schemes will no longer apply in the UK on exit day. This was fully intended; it is part of extracting the United Kingdom from the European Union’s next multi-annual budget cycle, which starts in 2021, and it allows us to take back control of agriculture policy and domestic agricultural funding.
The Bill is needed because of a quirk in the way that the EU common agricultural policy is funded. Pillar one payments—the so-called basic payment scheme payments —are funded from the following year’s budget, unlike pillar two payments for things such as countryside stewardship, which are funded from the budget year in which they apply.
Does clause 1(3) include the higher level stewardship regime, or is that part of a separate settlement?
It includes the basic payment scheme. Only direct payments are in the Bill’s scope, and that includes the annual area payments that most farmers would receive.
As we are not contributing to the next multi-annual financial framework, we have decided that we should fund this year ourselves to provide farmers with continuity. The withdrawal agreement therefore disapplied the direct payment scheme to the UK. The European Union (Withdrawal Agreement) Act 2020 applies that agreement, and disapplies the direct payment scheme, so to pay farmers for this year, we have to provide this regulation.