Direct Payments to Farmers (Legislative Continuity) Bill

Earl of Devon Excerpts

3rd reading & 2nd reading & Committee negatived & 2nd reading (Hansard): House of Lords & 3rd reading (Hansard): House of Lords & Committee negatived (Hansard): House of Lords & 2nd reading (Hansard) & 3rd reading (Hansard) & Committee negatived (Hansard)
Wednesday 29th January 2020 Lords Chamber

[Earl of Devon (CB)]

My Lords, it is an honour to follow the noble Baroness, Lady Bakewell. I will echo many of her fine words. I declare an interest as a Devon farmer and a recipient of BPS payments administered by the Rural Payments Agency. I therefore have a direct interest in this Bill and in the Agriculture Bill that will soon follow.

I note that this Bill was introduced as recently as 9 January. It made expedited progress through the other place and is due to complete all Lords stages today, with a view to becoming law by the time we cast adrift from Europe later this week. This appears to be a hurried timetable. Can the Minister explain why such haste was necessary? The Government have been considering the implications for UK agriculture of leaving the EU for at least four years, yet we have little to no time for scrutiny of this Bill. Can the Minister state when Defra first became aware that the EU direct payments legislation will not apply in the UK for 2020, and when he became aware of the need for this Bill? I hope that he can allay the obvious concern that policy is being made up on the hoof.

I note that Clause 1(6) of the Bill purports to have retroactive effect, treating the incorporated EU legislation as having formed part of UK domestic law from 1 January 2020. Yet, confusingly, the guidance notes state:

“In relation to the 2020 claim year, farmers will be governed by EU law for January 2020 and by domestic law thereafter.”


Does that mean that, once this Bill is passed, farmers will be subject to both EU and domestic law at the same time and for the exact same purpose during this month of January 2020? That seems odd and potentially unprecedented.

In announcing this legislation and the confirmation of agricultural funding for 2020, the Government have repeatedly trumpeted the “certainty” that this will provide to farmers,

“allowing them to plan for the future, sow their crops and care for their livestock with confidence.”

With due respect, certainty is the last thing that the Government’s agriculture policy is affording farmers right now. While the common agriculture policy had many weaknesses and imperfections, farmers at least knew what they were dealing with. Since I took over our family farm five years ago, the industry has been wracked by uncertainty as to its future, wholly unclear as to its purpose, its funding and the competition that it will face. That uncertainty seems destined to continue, with this Bill providing only 11 months of clarity, with the Government then proposing an ill-defined transition period between 2021 and 2028. In an industry that runs on an annual cycle and requires long-term strategic investment, these timelines are inadequate.

I expect that the Minister will point to the forthcoming Agriculture Bill as a purveyor of clear skies ahead. However, as he is only too well aware, the devil is in the detail, and we have no detail. The principles of environmental land management and the provision of public funds for public good have been long discussed, but the scheme remains skeletal and little meat has been put upon the bones. While I am pleased that the provision of food has been introduced as a public good, the real detail of how our land is to be managed remains as obscure as the view of Cornwall from the top of Dartmoor on a wet January morning. I would appreciate the Minister providing insight into the progress of the various ELMS pilot schemes being run around the country and when we can expect an update on their progress and their learning. Such detail will be essential when we are debating the Agriculture Bill.

Farmers and our rural economy are nothing if not resilient, but with the ever-increasing impacts of climate change and extreme weather patterns, the last thing that farmers need is further years of legislative uncertainty. Given the glacial progress of the previous Agriculture Bill, can we really expect to have a settled agriculture policy and replacement payment system in place by the end of 2020? Why do not the Government give themselves and our farmers some breathing space by making this BPS extension two or even three years instead of a mere 11 months?

As the Minister is well aware, farming productivity in the UK has been in relative decline for many years, and continued uncertainty, which will continue until 2028 at the earliest, will only hinder further investment. The average age of farmers is increasing, as new entrants to the business decrease. At the same time, we are entering a period when our farming industry will be thrown open to unprecedented global competition. Just as we are shaken by increasingly violent transatlantic weather, so we are bracing ourselves to be inundated by transatlantic farming imports without the ability to compete fairly or the confidence to invest for the challenges ahead.

Illustrative of that uncertainty is last week’s Committee on Climate Change report on land use. The headline recommendation of that report was the reduction by 20% in consumption of meat and dairy products, suggesting an equivalent decrease in livestock farming. This decrease would impact mostly the ecologically fragile pasture-rich farmlands of the western counties. This assault upon our farting ruminants is therefore a direct threat to an ancient, world-leading and highly sustainable farming practice.

Furthermore, to mix land use metaphors, it fails to see the wood for the trees. As the Minister is well aware, the huge growth in middle-class affluence, particularly in Asia, is resulting in a massive shift in diet, particularly the increased consumption of dairy and meat products. Many noble Lords will have seen the Royal Family’s valiant, yet much criticised, efforts to promote the sale of Jersey milk to the Chinese this week. Ministers will be aware of the 2016 Defra report that confirmed that a pint of milk produced on British pasture requires approximately 40% of the carbon of an average pint of milk globally. In other words, our dairy farmers are world leaders in the production of low-carbon dairy products. We also have global dairy brands—think of Devon cream—that are unsurpassed. Rather than seeking to restrict and limit our dairy and meat production, we should surely be looking for all opportunities to expand upon it and dominate the global market for ecologically sustainable, low-carbon meat and dairy.

A final word goes to the hard-working staff of the Rural Payments Agency. Delays in the delivery of rural payments can be debilitating to many farmers who are hugely dependent upon this income, and I recognise the improvements in recent years in the promptness of payments despite the considerable cuts to the RPA budget. Given the appalling conditions facing arable farmers in particular this year, with an almost complete wash-out of the sowing season in many northern and eastern counties, the prompt payment of BPS in winter 2020 will be an essential lifeline. This legislation will obviously introduce administrative changes to the manner in which payments are managed. What certainty can the Government provide that payments will be administered efficiently and made promptly? In particular, what insight can the Minister provide about funding and staffing levels at the RPA? Will civil servants be redeployed from their preparations for a no-deal Brexit to assist in the smooth deployment of rural payments?