Agriculture Bill

Earl of Devon Excerpts

Committee stage & Committee: 5th sitting (Hansard) & Committee: 5th sitting (Hansard): House of Lords
Tuesday 21st July 2020 Lords Chamber

[The Earl of Caithness (Con) [V]]

My Lords, the Committee has already heard some powerful speeches. The more the Bill is discussed, the more respect I have for farmers who, in a time of uncertainty, have a future that is even more uncertain than the present. We do not know where ELMS is going; we have not discussed the Environment Bill. We are threatened with ELMS being run by the RPA, whose record we cannot respect hugely. Farmers are, therefore, in a difficult position. As the noble Earl, Lord Devon, said last week, the advice he has received is to stop all investment. That is a terrible situation to be in at this time. Our farmers should be investing but, in the uncertain world we are faced with, the right thing for them to do is sit on their hands. That is going to cause huge problems. I agree with noble Lords who have said that small farmers, particularly hill farmers, face the most problems and are most likely to fall by the wayside as the current situation continues.

I have put my name to Amendment 143, which would delay the process of implementing ELMS for another year. Given what has been said, there is nothing for me to add, except that I support the principle of all the amendments that have been spoken to. I hope that the Government will show some flexibility on these, because the current situation is untenable for quite a number of farmers.

[The Earl of Devon (CB) [V]]

My Lords, I will speak to Amendment 143, to which I have put my name. I too have very real concerns that Defra will simply not be ready for the transition period to begin in 2021 and that farming will suffer as a result. To provide the Government and farmers with sufficient time to prepare for transition, we should start it in 2022, rather than 2021. This way, we can ameliorate the transition chasm that I have discussed before. The House has spent four long days in Committee, debating many variations of ELMS, and has made its way through Clauses 1 and 2 of the 54-clause Bill. We hope to rush through the bulk of this legislation in another two days, under huge time pressure. Scrutiny cannot be sufficient in these circumstances and major aspects of this crucial legislation will be barely considered.

The Government have suggested that time is of the essence and that this Bill simply has to be passed so that the transition period can begin on 1 January 2021. They say that farmers will not be able to be paid if it does not. This is simply not true. It was easy for Parliament to extend direct payments to farmers for 2020; we can simply repeat that process. Given that the Government have confirmed that they will maintain the level of agricultural funding until the end of this Parliament, this will have no negative impact on the Treasury or on budgets. What it will do is permit Defra to prepare for ELMS in an orderly manner.

Despite the best efforts of its overstretched and underfunded staff, Defra is transparently far behind where it needs to be. The EFRA Committee took evidence on 16 June 2020 from Defra’s two leads: Tamara Finkelstein, its Permanent Secretary, and David Kennedy, the director-general of food, farming and biosecurity. I recommend the transcript of their evidence to all noble Lords, as it provides a valuable insight into its much-delayed progress. They admit to considerable delays in the tests and trials programme caused first by Brexit, which took many staff for emergency no-deal planning, and then by coronavirus, which meant that many key tests and trial programmes have not begun.

Defra is triaging. For example, it has confirmed that it has abandoned plans to build a new computer system to administer ELMS. Instead, it will be delivered using the current SITI Agri system, which is used by the RPA to administer BPS. Reading between the lines, it appears that tier 1 of ELMS is effectively going to be little more than BPS plus greening obligations by a new name, administered by the same team, using the exact same technology. I would appreciate the Minister’s confirmation of this.

On Thursday, the Minister helpfully confirmed that Defra would publish a multiannual financial assistance plan this autumn. Given the incredible delays disclosed by Defra, what details is it really able to provide? Will the Minister confirm whether, but for Brexit meaning Brexit, Defra would prefer to agree to this amendment and give itself longer to prepare for the transition?

I warmly support the amendments proposed by the noble Lord, Lord Carrington, which also relate to the transition chasm. However, I cannot support the amendment in the name of the noble Lord, Lord Teverson. ELMS is optional—the quicker the transition, the less uptake there will be and the worse the outcome for our environment.

[Lord Curry of Kirkharle (CB) [V]]

My Lords, my interests are as recorded in the register. I fully support Amendment 144, in the name of my noble friend Lord Carrington, to which I was happy to attach my name. I am very concerned about the gap in support as the current basic payment scheme is unwound and access to the new ELM scheme becomes available, as planned, in 2024. As I said at Second Reading, this is fraught with risk. The delays caused by indecision on Brexit and then the impact of coronavirus mean that the ELMS pilots are just under way. Meaningful conclusions will take a couple of years or more to interpret. The design of the schemes, and the value of public goods that we hope will be delivered by this brave new model for supporting the management of the countryside, must be promoted to farmers and land managers with confidence. We need the evidence from the pilots and there is no slack in the timetable to experiment or for systems to fail and be rerun, which is why many of us are deeply concerned about the Government’s reluctance to change the current seven-year transition plan. At Second Reading, I suggested that the Government should be willing to extend the period to eight years.

Under the current plans, there will only be three years by the time the Bill becomes law to draw conclusions from the pilots and then launch the ELM scheme to the entire farming sector. Tens of thousands of family farmers are not prepared for the scale of the change that the Bill will introduce. It is the most fundamental change in support, and the greatest cultural change, that any farmer in Britain today has ever faced. At present, there is no way farmers can prepare for this change because, for obvious reasons, there is no information available on the basis of which they can begin to consider their future plans and make decisions.

This change in policy is a unique opportunity to facilitate restructuring of the sector, but this cannot be rushed. Every farmer needs to consider the impact of the change on their individual business. As a result of the scale of this challenge, it is inevitable that there will be a capacity problem. The quantum of qualified consultants who are trusted and able to provide 30,000 or 40,000 farmers with informed advice in good time to make considered decisions will be an enormous challenge. To ensure that the potential benefits which the ELM scheme can deliver, and which will hopefully be realised, will require careful consideration by each farmer and land manager.



If ELMS is launched in 2024 as planned, there will be a deluge of applications and the capacity of the RPA and Natural England to cope with the volume will be stretched to the limit. The possibility of every farmer who wishes to participate in the ELM scheme being able to do so in 2024 is unrealistic. For all these reasons, the Government need to think very carefully about the timetable. This amendment is designed to help smooth the impact. Limiting the dismantling of support from the BPS to a total reduction of 25% until the ELM scheme is available is a sensible approach.

I restate what I said at Second Reading: I reassure the Minister that I am enthusiastic about this bold change in policy and genuinely believe that we can lead the world in delivering a wide range of crucial outcomes from the management of the countryside, provided that the policy is well designed and land managers are appropriately incentivised. It would be a disaster if such an important change in policy was rushed through and we failed to engage appropriately. I hope that the Minister will be able to reassure the House that the department will adopt the timetable proposed in this amendment. It would be very much appreciated by farmers and land managers and would ensure a greater chance of achieving the desired outcomes.

Very briefly, I have considerable sympathy with the purpose of Amendment 149 tabled by the noble Duke, the Duke of Wellington. Smaller livestock family farms, both in LFAs and in the lowlands, are the most vulnerable to these changes. They manage some of the most precious landscapes in Britain and are a crucial part of rural communities. The choice of taking a hard-nosed commercial approach, resulting in many being forced out of business, or a more sympathetic view that would require some special care and support to help those farming businesses adjust to change is a no-brainer, otherwise the impact could be disastrous. The Minister is aware that I chair the Prince’s Countryside Fund. We have supported over 1,000 such farmers through the Prince’s Farm Resilience Programme, with considerable success. It is essential that these crucial farming families are given appropriate support to ensure that they can adapt their businesses, not just to survive but to prosper in this brave new world.

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[Lord Gardiner of Kimble]

I cannot give my noble friend the precise date. I know noble Lords would like that announcement to be as soon as possible—I will take that away—but I am afraid I cannot give your Lordships a precise date. In fact, I do not know the precise date, but it will be in autumn. I am fully seized of the importance of that.

As to whether the delivery body is the RPA in the long term, I believe it is well placed. I cannot give a direct answer as to whether the RPA will in fact do all the ELM. I suspect it may, but that is obviously a matter we will consider.

[The Earl of Devon [V]]

My Lords, the noble Earl, Lord Caithness, beat me to it. I was going to ask for the date of the Autumn Statement and request that it occur before Report. I reiterate that there really is no point in us coming back to all these issues if the Government are about to issue a Statement that will add considerable clarity and amount to a multiannual financial assistance plan. Anything the Minister can do to get that Statement before Report would be appreciated.

[Lord Gardiner of Kimble]

I can say to the noble Earl and other noble Lords that I have the matter strongly in my mind.

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Moved by

[The Earl of Devon]

155: Clause 16, page 12, line 44, at end insert—
“( ) making provision for future contributions to existing rural socio-economic schemes;”Member’s explanatory statement
This amendment would safeguard the availability of financial provisions to continue the socio-economic programmes under Rural Development Programmes in the event of delays in the introduction of the UK Shared Prosperity Fund.

[The Earl of Devon [V]]

My Lords, I congratulate the Committee—we have made a lot of progress in the last few minutes. It is good to see that we are now up to Clause 16, focusing on support for rural development.

It is an honour to move Amendment 155. This is a simple amendment, supported by the CLA, which seeks to ensure that there is no gap in the support for rural socioeconomic schemes such as the Growth Programme and LEADER scheme, which are currently administered by the RDPE. They do so much to support the development of rural business through grants, training and the provision of advice. I have already noted my farming interests but, specific to this amendment, I should note that our rural heritage tourism business has applied for, and been granted, an RDPE grant—although, as far as I am aware, it will not be impacted by this amendment.

The work of the RDPE in assisting and administering rural development using European funds is key to maintaining the productivity and employment currently enjoyed by many otherwise struggling rural businesses. These are the businesses that, by current estimates, will suffer most from the economic catastrophe that is Covid-19 and the subsequent brutality of Brexit.

The role of the RDPE is due to be taken over by the UK shared prosperity fund, but we currently have no idea when that will take place. This amendment seeks simply to ensure that there is no gap between the winding up of the RDPE and access to the European funds and the establishment of the UK shared prosperity fund.

In a series of questions in this House on 21 May 2020, the noble Lord, Lord Greenhalgh, on behalf of the Ministry of Housing, Communities and Local Government, made it clear that, while the Government could give assurances about the UK shared prosperity fund, they could give no assurances whatever as to its timing—and so, we remain in the dark. Perhaps the Minister can shed some more light on when the UK shared prosperity fund will take effect.

Without this amendment, these key socioeconomic schemes may find themselves falling into that transition chasm, lost in the valley of the shadow of death. I beg to move.

[Lord Cameron of Dillington [V]]

My Lords, I want to speak to my Amendment 156. It tries to ensure that as many as possible farming families, who, to me, are the backbone of rural England, will be able to survive on their land through the various agricultural crises that will inevitably come their way over future decades. The first crisis is the dramatic changes introduced by this Bill.

Anyone who talks to farmers, tenants or owner-occupiers who are farming land that could probably not be described as prime agricultural land will know that, without the single farm payment, they currently have little chance of survival. They cannot survive solely on their agricultural production to produce the family income. All too often, the single farm payment provides more than 100% of their agricultural returns. As we all know, this will soon not be there anymore. Some farmers and their families branch out into other enterprises on their farm, involving tourism, leisure or local services such as contracting or some form of engineering. But mostly, these farming families—wives, sons, daughters and often even the farmer himself—depend on cash wages from local businesses, which allow the farming household to survive on the land. The whole survival of the farm and the family, or families, on it depends on the vitality of the wider rural economy around them.

It is important to remember that, throughout England as a whole, agriculture represents less than 5% of the rural economy. This dependency on outside jobs is particularly obvious on those farms, both lowland and upland, involved in livestock—mostly up and down the western side of England and, of course, in Wales and Northern Ireland. The further you get from urban centres, the more this applies.

What I am saying should not surprise anyone as this feature of rural living was one of the founding principles of the CAP with its two pillars: Pillar 1 supporting agriculture per se and Pillar 2 supporting rural development. The EU decision-makers knew that, to keep farmers on the land and prevent them leaving to join the urban unemployed, a variety of rural jobs would need to be available to both men and women near their farms. Returning to this country, and going back even further in history, it should be noted that, when Lloyd George started the Rural Development Commission before the First World War, he had exactly the same targets in mind. The RDC eventually became the Countryside Agency until it all got swept into Defra and then, of course, disappeared.

I am trying to give back to Defra a very small arrow in its quiver to continue the good work started so many years ago. It is not a new game but a tried-and-tested tool to help farming families stay on their land. I am also trying to give Defra a small reason to justify keeping “rural affairs” in its title.

I know that the Government will say that all this is going to be taken care of by the shared prosperity fund —as my noble friend Lord Devon has just said—but how and when will we know? Rural proofing is a concept that has lost its way recently, so what makes us think that the shared prosperity fund is going to break that mould? Can the Minister guarantee today that there will be a well-financed ring-fenced rural fund that will be an essential part of the shared prosperity fund?

If he can, that is all well and good but, even so, would it not be a good idea for Defra to have this rural development arrow in its quiver? Would it not be a good idea to hold on to the tried and tested way of helping farmers stay on the land, particularly as Defra already knows that a good percentage of farmers are going to struggle to survive under the new regime this Bill is putting in place?

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[Lord Gardiner of Kimble]

As I say, the purpose of trying to start with an outside-in approach is precisely to ensure that rural areas and farms are connected—very often the village is connected but the outlying farms are not. That is where we want to ensure, in working with this £5 billion and the £200 million rural gigabit connectivity programme, that these are absolutely geared to ensure that rural areas are not left behind. I am most grateful to my noble friend for raising the matter.

[The Earl of Devon [V]]

My Lords, I thank the Minister for his, as ever, courteous concluding remarks, and in particular his extensive comments on rural connectivity, which were enlightening. I am disappointed that we still lack detail on the UK shared prosperity fund and the Minister was unable to provide any enlightenment greater than what was given back in May. It has been a helpful debate and I am grateful to all noble Lords for their contribution on this key issue of rural development. I particularly acknowledge the tireless work of the noble Lord, Lord Cameron, on the subject of rural prosperity and the survival of farming households.

All noble Lords are well aware of the tremendous fragility of our rural economy and the many small rural businesses that are key local employers in areas of often desperate poverty and huge social deprivation. The noble Lords, Lord Holmes and Lord Clement-Jones, have done well to highlight the issues of rural connectivity as key issues that have been so graphically shown during the lockdown. Might the Government consider following the lead of Northern Ireland, which I understand has sought to implement rural connectivity by connecting the furthest and hardest-to-reach properties first and not last? I hope that we can revisit these issues on Report but until then, I beg leave to withdraw my amendment.

Amendment 155 withdrawn.

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[The Earl of Devon [V]]

My Lords, I am generally supportive of the amendments in the names of the noble Lord, Lord Whitty, and the noble Earl, Lord Dundee, and their desire to get younger farmers on to the land. This is crucial to improving diversity and productivity and is generally crucial to the health of the farming industry.

However, I oppose Clause 34 and the entirety of Schedule 3 standing part of the Bill. This is not because I think that agricultural tenancy reform is not much needed; rather, it is far too important an issue to be addressed in a simple schedule to this complex Bill. It must not be treated as an afterthought. In these constipated proceedings, we simply do not have time to do justice to agricultural tenancy reform. I have barely had the capacity to consider the provisions in Schedule 3; perhaps this proposal is aimed at sparing me and your Lordships the time of doing so.

I was horrified to learn that the average length of modern agricultural tenancy is just three years. This is the worst possible thing for the environment. For all our days of effort to define and incorporate a variety of public goods and worthy causes under Clause 1, probably the best thing we can do for the environment is simply adjust the term of agricultural tenancies from three years upwards towards 10. There is simply no way a farmer can commit the resources to maintain his or her natural capital, such as soils, hedges and trees, when he or she has only a three-year term and the bank that is financing the business needs to see a commercial return within that short timeframe.

I also keep in mind the excellent work of the Tenancy Reform Industry Group—TRIG—whose final report to Defra made wide-ranging and sweeping recommendations for agricultural tenancy reform. Schedule 3 is a wholly inadequate response to that. Many will say that we should take what we can by way of primary legislation in this area, as the chance does not come along too often. However, I would resist that and reiterate that this far too important an issue to be resolved by Schedule 3 alone.

[Baroness Young of Old Scone (Lab) [V]]

My Lords, I will speak on Amendment 222 in my name; I thank the noble Lord, Lord Randall, for putting his name to it.

The community infrastructure levy, known as the CIL, was introduced in 2010—[Inaudible.]

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Although our Amendment 173 was drafted before the Lords report was published, I believe we are saying the same thing. It picks up on the themes of the Lords report and the Dimbleby report and sets out a series of steps that the Government must take to deliver the national food plan. I hope noble Lords will consider this proposal seriously and recognise the importance of linking agriculture and food production with our wider health and food security goals. I beg to move.

[The Earl of Devon [V]]

My Lords, I shall speak to Amendment 161 in my name. It is supported, I understand, by the noble Lord, Lord Cormack, to whom I am very grateful. This is a simpler version of Amendment 160, with which I find myself largely in agreement—I might have put my name to that had there been any space. The amendment seeks, as does Amendment 160, to ensure that the report to Parliament on food security occurs every three years, not every five years. As with multiannual financial assistance plans, I think it is important to delink the cycle from the political cycle; however, whereas I thought multiannual financial assistance plans should take place every seven years, I think the opposite should apply to the food security reports, and they should be provided to Parliament at least every three years. As we have seen recently, food security circumstances change very fast, and doubtless they will change faster in the future.

At Second Reading, I quoted the words of Dieter Helm, who was obviously a prophet in the area of the ELMS, but may have got things wrong with respect to food security. He suggested that

“food security is largely an empty slogan of lobbyists … It should not be taken seriously.”

Coronavirus has clearly shown those words to be incorrect.

From January 2021 onwards, we will lose the relative support of the common market for food and will become subject to the vagaries of the global markets. Couple this with the impacts of global warming, droughts, floods and harvest failures, and the likelihood of food insecurity growing over the coming years will only increase. We should therefore not underestimate the importance of food security and the need to monitor it regularly.