Environmental Land Management Scheme: Food Production

Geraint Davies Excerpts

Tuesday 1st February 2022 Westminster Hall

[Geraint Davies (in the Chair)]

Before we begin, I remind hon. Members to observe social distancing and to wear masks. I call Sir Geoffrey Clifton-Brown to move the motion.

[Sir Geoffrey Clifton-Brown (The Cotswolds) (Con)]

I beg to move,

That this House has considered food production and the Environmental Land Management Scheme.

I begin by drawing attention to my entry in the Register of Members’ Financial Interests: I am an arable farmer. It is a pleasure to serve under your chairmanship, Mr Davies. I am delighted to have been able to secure this debate today on food production and the environmental land management scheme. I thank the Secretary of State for Environment, Food and Rural Affairs; the Minister for Farming, Fisheries and Food, my hon. Friend the Member for Banbury (Victoria Prentis), who is here today; and the Under-Secretary of State for Environment, Food and Rural Affairs, my hon. Friend the Member for Taunton Deane (Rebecca Pow), for addressing us at the highly successful launch of the UK agriculture partnership at the Royal Agricultural University in the heart of my constituency last Thursday.

As more and more land is taken out of food production for environmental schemes, we face the dangerous consequences of becoming reliant on importing larger and larger amounts of food. In short, this debate is all about putting the “F” back into DEFRA. Food should be at the heart of ELMS policy and should be classed as a public good with public money under the scheme. I am aware of the 2021 UK food security report, but it is largely full of dry facts and we are looking for some policy to underpin it.

This is a timely debate because the Public Accounts Committee, of which I am deputy Chair, carried out a detailed inquiry into ELMS and published a report on its findings at the beginning of the year. Now that we have left the European Union, we have a once-in-a-lifetime chance to completely replace our agricultural support system with an ambitious post-Brexit agricultural policy that supports the Government’s ambitious 25-year environmental plan.

Our environmental policy should be joined up with agricultural policy that encourages sustainable food production here at home. Alongside sustainability, we need to help the agricultural sector’s competitiveness and resilience in the macroeconomic, trade and regulatory context. At the heart of ELMS are the changes to the mechanism for distributing funding—that was previously done via direct common agricultural policy payments—to a system that will launch fully in 2024, where farmers will be encouraged towards environmental and productivity improvements.

The Government have stated that all the objectives of ELMS will be delivered for just £2 billion. During our hearing last October, the Public Accounts Committee pointed out that that was a highly ambitious target. As we all know, there are three key elements to the project: the sustainable farming initiative for all farmers to be paid to manage their land in even more environmentally friendly ways; local nature recovery, for more complex and collaborative projects; and landscape recovery, for large-scale projects such as afforestation, rewilding and re-wetted peat.

However, there are clear structural and timetabling issues in ELMS implementation, because details are still not as comprehensive as we would expect by this stage in the scheme. It is not apparent what the aims, objectives or metrics are for supporting more than £2 billion of public funding, whether the schemes will provide good value for money, or how they will help in achieving the Government’s 25-year environmental plan and net zero by 2050. Some farmers are concerned about the practicality of implementing schemes on time. Because of the natural cycle of animals and plants, such schemes can take two years or more to implement, and that is why timely information from DEFRA is so vital.

The Government trialled the first phase of the ELMS programmes with the SFI pilot last year, from which they will draw information before they begin the scheme properly this year. In December, the Government produced a policy paper on how they will expand the scheme over the next few years, but that information is too late for farmers to change their plans. What is clear is that the scheme will require a huge amount of land. For example, the Committee on Climate Change has a target for 30,000 to 50,000 hectares of forestry to be planted every year between 2024 and 2050—an enormous amount of land.

--- Later in debate ---

[Sir Geoffrey Clifton-Brown]

I am delighted to have the support of the hon. Lady. Given the number of times that we have debated in Bristol and been at odds, to have her support is somewhat amazing. I was on a programme the other day agreeing with the right hon. Member for Hackney North and Stoke Newington (Ms Abbott) as well, and I have never agreed with her before, either. The Whips must be getting worried that I might defect soon.

Even for a global trading nation—this goes to the heart of the point made by the hon. Member for Bristol East (Kerry McCarthy)—shocks can expose real fragilities in any reliance on imports. The current severe spike in energy price is a result of an increasing reliance on imports; we became vulnerable to the global squeeze on energy and gas supplies last year, and going into this year. With technical and geopolitical issues impacting on supply across Europe, we have been hit hard for a number of reasons, including our storage capacity, which is one of the lowest in Europe, and our demand, which is among the highest.

Imports will always play a critical role in our food system, but I say to the Minister that the Government must take our own self-sufficiency more seriously. It is stagnating, and the public will not thank us if there is ever a world food shortage, prices rocket and supermarket shelves are emptied of certain commodities. Although the nation is encouraged to be healthier and eat more fruit and veg, our domestic production of those products falls below our potential. We are only 18% self-sufficient in fruit, 55% in vegetables and 71% in potatoes. The figures for veg and potatoes have fallen by 16% in the past 20 years, despite the sector demonstrating sustained investment. The entire economy is aiming to build back better and greener from the covid-19 pandemic. British farming can be central to that green recovery. We have a golden opportunity to place food security fairly at the centre of our food system and become a global leader in sustainable, high-quality food production.

The Government have a crucial role to play. Food security should be at the heart of Government policy, and there needs to be an annual system of reporting to Parliament to ensure that we do not allow our domestic food production to diminish. UK farmers are best placed to implement many of these environmental schemes, while at the same time maintaining the countryside to the high standard that the public have come to accept. I do not think the public are going to welcome the look of countryside that is going to waste growing brambles and shrubs. It feels highly counterintuitive to have such high environmental standards here that food production becomes unprofitable enough that we need to import more.

Not only does physically importing food produce greenhouse gases, but by relying on farmers from the rest of the world to produce food for us in the UK, we are simply exporting our environmental problems and responsibility to other countries with lower plant and animal standards. The public place real value on high standards of animal welfare, environmental protection and the climate ambition of British farmers. We cannot guarantee or enforce those high standards on farmers from other countries around the world. It would be morally unjustifiable for a UK farmer to be put at a competitive disadvantage by imported food with lower standards—a point made by the hon. Member for Bristol East.

The innovation I have seen from UK farmers throughout my lifetime, working towards ambitious environmental goals, has been incredible. The NFU has been working with its stakeholders to outline the policy mechanism for agriculture to reach net zero by 2040, which is a critical goal. I believe that the best way to reach our environmental targets is by supporting British farmers, not by making food production an unsustainable economic model.

The second of the key issues in the report from the National Audit Office—a highly respected institution—on which the Public Accounts Committee inquiry majored is that, without subsidies, most farms in England make an average profit of just £22,800 a year, after labour costs and investment, and a third of all farms would not make any profit at all. That makes the sector pretty financially vulnerable. For small and tenanted farms operating on wafer-thin margins, there is a real fear that many will go out of business. The consequence would simply be that the average size of farms would increase and the environmental benefits they provide would be lost. ELMS should provide advice and funding to help those small farmers diversify.

The future farming programme for England, which will replace the direct payments with a new scheme based on public money for public goods, will see small farms have their direct payments reduced from December 2021, and 50% will be lost by 2025. There is a real concern that some of the ELMS options will be completely unprofitable, given the amounts available, and too complicated; and that many farmers will simply not take them up, especially if they do not have the administrative capacity to negotiate the complicated bureaucracy. That could mean that only large institutional landowners, such as the National Trust or the Royal Society for the Protection of Birds, benefit from these Government schemes. It would be quite wrong if such landowners received a bigger and bigger share of the agricultural subsidy cake when they provide less and less food each year. ELMS should have a part to play in protecting small, tenanted farms and upland farmers—I class small farms as less than 100 acres—alongside their significant environmental aims.

The final problem I would like to take up with the Minister is the average age of farmers, which is currently 59. My own farming situation has been discussed here; my farm is in north Norfolk, in the constituency of my hon. Friend the Member for North Norfolk (Duncan Baker). I am delighted to see him here today and I have issued an invitation to him to come and visit my farm. I know from my own farming situation that my son, who is in his thirties, is much more adaptable than I am to new technology, which would have two key effects of increasing productivity and innovation. ELMS should have a structural element to help young people who wish to enter agriculture, particularly those who are leaving education, because agriculture tends to be a highly risky, capital-intensive business, combined with very low returns.

DEFRA is providing money to councils, landowners and county farm estates via the new entrant support scheme, to support young people joining the sector with access to land, infrastructure and support for successful and innovative businesses. My own farming business, to which I have referred, provides an opportunity for three different businesses to get on to the farming ladder. Chris is my long-term farming contractor; Ben runs a successful outdoor pig-breeding business; and we are currently discussing an arrangement with a lady who has a rotating ewe flock of sheep, to graze our increasingly over-wintered green cover crops. Existing farmers could do more to help young people into agricultural employment and business.

All in all, if farmers are to survive, they must produce better returns, either from increased productivity, Government subsidies or increased prices from the market. Otherwise, many will simply not survive. The consequence will be that the average farm size increases, employment in agriculture falls and social cohesion in rural areas is lost. The Government are formulating a new policy on ELMS, and we need to see much more detail before it is launched in 2024. I appreciate that a lot more was published at the beginning of the year, but I still do not get the full sense of where the Government’s aims for ELMS really are.

As I have said, we cannot become over-reliant on other countries to fulfil our food needs. We have the means to produce food here in more sustainable and smarter ways, but to do that we must support farmers across the country, and not make the industry so unprofitable that only the largest farms survive. The Government should be much more ambitious with their aim of producing food in the UK. Well over 60% of the food we eat should be produced by UK farmers. That would well and truly put the “F” back in DEFRA.

[Geraint Davies (in the Chair)]

I call the Member behind the green mask.

--- Later in debate ---

[Luke Pollard]

I thank the hon. Member for his point. Whether it is a farmer in North West Durham, in Gedling or in the south-west, this matters. The Government are making a strategic error in their trade policy. I realise the Minister is not responsible for trade policy, and is merely the recipient of all the silage coming from the Department for International Trade in this matter, but the lack of a joined-up Government policy on food is part of the problem. We need to make sure that future trade deals match our agricultural policies, environmental policies and policies on rural employment.

All that speaks to what type of country we want to be. I think Britain should be a force for good. We should maintain high standards, support people entering those sectors, decarbonise and support nature recovery. We cannot do all those things if we do not have the information about what an ELM scheme will look like, if we rely imports produced at lower standards and if we lock ourselves into the risk of a supply chain spanning the world at a time of greater international instability. This is a really important debate; I congratulate the hon. Member for The Cotswolds on bringing it to the Chamber and I hope the Minister listens carefully to the speeches.

[Geraint Davies (in the Chair)]

To get everyone in, each speaker will need to keep to about six minutes. That is an advisory limit. I call Neil Parish, the Chair of the Environment, Food and Rural Affairs Committee.

--- Later in debate ---

[Derek Thomas (St Ives) (Con)]

It is good to see you in the Chair, Mr Davies. You were far too lenient on the EFRA Committee Chair, my hon. Friend the Member for Tiverton and Honiton (Neil Parish), so well done; that shows great character and integrity.

I thank my hon. Friend the Member for The Cotswolds (Sir Geoffrey Clifton-Brown) for securing this critical debate. How wonderful it is to talk about the countryside, our farms and our farming and food production! We are up in London, in the midst of all sorts of nonsense, but for those who are privileged, as I am, to live in one of the most beautiful—mine is the most beautiful—part of the United Kingdom, it is great, when we get back to the constituency, to get out in the morning and have all that disappear while we appreciate God’s great gift of the countryside. It is fantastic to be able to talk about it today.

The three core areas of ELMS are: supporting sustainable farming; the recovery of nature; and collaboration between landowners to deliver, as hon. Members have said, public money for public goods. West Cornwall and the Isles of Scilly are great examples of where much of that has already been done. There is an irony, in that farmers who have been delivering public goods for a long time may not benefit in the way that ELMS intends, as they have less far to go to get our countryside to where it needs to be.

It is a great privilege for me to visit farms across west Cornwall and the Isles of Scilly and see the good care and concern of farmers for the natural environment. They know it is the hand that feeds them. Many farms in Cornwall have developed the ability to produce food and energy. There was a time when Cornwall was the county that produced the most renewable energy on land in the UK. It also grows trees. I committed to planting 20,000 trees in 2020, and it was landowners and farmers who found pastures that were not productive for food, and who gave up that land so that the Woodland Trust, I and my volunteers could plant over 21,000 trees on it. I appreciate how long it takes for them to bear fruit, as it were, but planting trees is certainly an important part of managing our countryside; it has benefits for run-off and flood management, and is a good thing to do on balance.

We need to strike a balance between farming, food production and biodiversity. I hear comments—not necessarily from DEFRA, although comments can be misinterpreted—about the need to produce much less meat around the UK. That is most definitely true around the world, but there are examples on my farms where grazing and producing meat supports and enhances biodiversity. We need to be careful, in all messages from Government and DEFRA, to get the balance right. For promoting biodiversity and looking after many parts of our countryside around the UK, meat production is a positive and helpful thing, if done properly.

We heard about public money for public goods. I was delighted when the Secretary of State at that time came up with that expression. It reassured me that we were going to get the policy right and turn our backs on the common agricultural policy. There is an enthusiasm across farming for public money for public goods, but there is a frustration that it has taken so long to get the detail, and I worry that we might not be delivering what we set out to. Everything that has been said today pretty much agrees with what I am hearing farmers say.

On ELMS, as has been said, we need to ensure food is being produced. The first debate I ever had in Westminster Hall was on food security. At that time, we were producing around 54% of the food that we could produce in the UK. We have to increase that. We need to enthuse our farmers and, rather than bogging them down with red tape, give them a renewed passion and enthusiasm, and let them know that DEFRA and the Government are on their side when it comes to producing good, healthy food for our constituents to eat.

We learned in the pandemic that it was the local food producers that helped to address the food chain supply problems. Let us not lose the lessons we learned just two years ago. We must do whatever we can to cut through red tape and give farmers the enthusiasm to produce the food we need, and we must protect and value their knowledge. We have heard already about the knowledge of farmers. It is no accident that they produce food from the land they own or look after. It is an incredible art and a gift. It is years and years, or generations, of experience. If we do not get this right, we will lose them and that experience will not be passed on, which takes me to my next point. DEFRA and the Department for Education must get together and use ELMS, if possible, to promote careers in agriculture and food production in our schools and colleges, harnessing that experience and knowledge and giving young people the opportunity to have a job on the land.

We are concerned about mental health and, as my hon. Friend the Member for Tiverton and Honiton said, particularly about mental health in farming. However, the countryside has an awful lot to contribute towards supporting people’s wellbeing and good health. We must look after soil security. The Climate Change Committee has talked about that. We allow our soil to wash into rivers and seas, where it is lost forever. We must be cleverer and use ELMS to stop that.

Although ELMS may encourage some farms to get things right, there is a danger that it will discourage others from engaging, and that they will work the land and the soil will be wrecked—it takes an enormous amount of time to recover soil. ELMS must deliver good soil health across the country.

Finally, we need to protect small farms. We have heard about landowners buying up parcels of land, and we are really seeing that in Cornwall. Small farms that are no longer viable are being snapped up by hobby farmers. They are maintaining a piece of countryside, but it is not as productive as it could be, and it is not supporting the opportunity to bring fresh blood into the industry. We must do everything that we can to support small farmers and to preserve small farms. We have to get on with that and not give in to those voices telling us to delay ELMS. Seize the day, get it right, and help our farms produce the food that we need.

[Geraint Davies (in the Chair)]

I call Richard Drax. If you could keep it down to five minutes, that would be helpful.

[Richard Drax (South Dorset) (Con)]

It is a pleasure to serve under your chairmanship, Mr Davies, and to follow my hon. Friend the Member for St Ives (Derek Thomas) and all colleagues who have spoken so clearly. I thank my hon. Friend the Member for The Cotswolds (Sir Geoffrey Clifton-Brown) for securing this important and timely debate.

In the short time that I have, I want to ring the alarm bell on behalf of hundreds of thousands of farmers across the land. What I am about to say is felt unanimously by farmers, including those in Dorset who I meet quarterly, and farming organisations, such as the NFU under the determined leadership of Minette Batters. I am most grateful to the Minister, who came down to Dorset at my behest and met our farmers. She has heard what I am about to say from the lion’s mouth, so nothing here will surprise her. Those farmers say, “None of us can see the logic behind much of the Government’s thinking—and this is a Conservative Government. It and its Ministers seem in thrall to the environmental and wildlife lobbies, which have a role to play, but are behind the push for this greener agenda, at the cost of food production.”

The Government have got themselves into a pickle. They are replacing the basic payment scheme, which is paid to ensure food resilience and affordability, with a system that offers taxpayers’ money to take land out of production, in part to improve

“environmental and animal welfare outcomes.”

The local nature recovery scheme and the landscape recovery scheme will see £800 million spent on replacing productive land for both crops and livestock with wildlife habitats such as peat bogs and wetlands, and nature reserves and tree planting.

We all love trees—I plant trees—but during the last election I think the Labour party promised to plant so many millions of trees that it worked out at about 100 trees a second. Common sense is what farmers are desperately calling for. The green mantra does not make sense. This narrow agenda implies that nature and farming cannot co-exist, but they have done so for generations. The words “food production” were not even in the first Agriculture Bill, so the mad path we are heading down is hardly a surprise. As my hon. Friend the Member for The Cotswolds said, our food self-sufficiency has dropped from 78% in the mid-1980s to 64% now. Where on earth are the policies that we need to grow more of what we are good at and produce to the highest standards in the world? We are an island nation and in the face of any serious adversity we might not be able to rely on imports. Our island’s history should have taught us that basic fact many times.

What annoys farmers even more than the misguided green agenda is that the BPS, on which they have relied for so long, is to be removed before its replacement has been fully tried and tested. There are genuine fears that some farms, particularly in the grazing livestock sector—both lowland and upland—will simply not survive. The NFU predicts that 80% of them will become unprofitable. Those policies are a threat not just to the farmer but to the consumer. As the Public Accounts Committee stated in January, DEFRA has also

“not explained how the Scheme’s changes in land use will not simply result in more food being imported, with the environmental impacts of food production being ‘exported’ to countries with lower environmental standards.”

I join the NFU in calling for an urgent review of DEFRA’s future farming programme for England, including of the temporary postponement of direct payment reductions in 2022-23. I agree with the hon. Member for Westmorland and Lonsdale (Tim Farron), who spoke with such common sense and who has repeatedly made that point. Those new schemes must be piloted because we cannot afford to see them fail. Farmers are crying out for secure, fit-for-purpose measures that will sustain food production while, of course, continuing to protect our countryside and all that lives in it. Reckless rewilding, pushed by those with the best of intentions but with little grip of reality, is a classic example of nonsense. Placing beavers in small Dorset rivers, for example, while no doubt pleasurable to see, will create havoc to river flows and banks and lead to flooding as dams are built and then, no doubt, protected by law.

The argument to subsidise farmers in some form or other—or not—is a live one. If the Government want to see farmers, especially the smaller ones, go to the wall, food prices and imports increase and our rural economy die, then end all support. There is a balance to be drawn, but farmers and food production must be given the priority they deserve.

[Geraint Davies (in the Chair)]

I hope to call the Front Benchers at 10.40, so I am sorry, Duncan, but you have four minutes. Over to you.

--- Later in debate ---

[Richard Drax]

On a point of order, Mr Davies. I completely forgot to refer to my entry in the Register of Members’ Financial Interests. I am a landowner and farmer. I apologise.

[Geraint Davies (in the Chair)]

That is very kind of you. That is on the record.