Direct Payments to Farmers (Legislative Continuity) Bill

Jim Shannon Excerpts

2nd reading & 2nd reading: House of Commons
Tuesday 21st January 2020 Commons Chamber

[Tim Farron (Westmorland and Lonsdale) (LD)]

It is a privilege to follow the hon. Member for Eddisbury (Edward Timpson). I recall the Crewe and Nantwich by-election in 2008—the weather was quite nice, and I congratulate him on his first victory. I spent some time in Eddisbury in, I think, ’99 for the by-election, when Stephen O’Brien, his predecessor but one, was first elected, so I know where it is—there is a good chippy in Winsford, if I remember correctly. I genuinely mean it when I say that the hon. Gentleman was an excellent children’s Minister. This will massively hamper any rise he may subsequently make, but if the Prime Minister should be thinking of a reshuffle, he could look no further than him. I also thank him for paying tribute to his excellent and very principled predecessor, Antoinette Sandbach, my former hon. Friend.

Let me make a little confession. Some years ago, before Brexit was even a thing—back in the day when the Prime Minister thought it was madness to even countenance leaving the European Union—I said that I could see one advantage in the United Kingdom departing the EU: I could see how we could spend the common agricultural policy money better than it is often spent through the current system. That does not mean that I predicted that a future Government would spend it better, but I could see how they could—that is an important caveat.

The Bill is necessary and provides a modicum of certainty for farmers as we leave the European Union in just a few days’ time. It permits a small island of temporary predictability in a sea of uncertainty. It kicks the can a few yards down the lane, but it will do nothing to disguise the chasm that is opening up for farmers as we leave the EU. The Government believe that they have a mandate to “get Brexit done”, but nowhere is the nonsense behind that statement laid bare more than in the case of our farming industry.

I will tell the House what Brexit has done: according to the Secretary of State last week at the Oxford farming conference, it has done for the basic payments scheme—which constitutes 85% of the income of the average livestock farmer—starting in less than 12 months. It has done for free access for British farmers to their most important export market—90% of Cumbria’s farm exports are to the European single market. If the Chancellor of the Exchequer is to be believed, it has also done for our alignment with the single market and will therefore usher in a new era of red tape, costs on farm businesses and non-tariff barriers to trade.

The idea that a 12-month stay of execution for farmers equates to certainty is, frankly, laughable. Even if the Government were to make a commitment for the whole Parliament, anyone who thinks that even five years constitutes the long term in farming cannot be taken seriously.

The Government’s stated position—reiterated again at the Oxford farming conference—is that the BPS will be phased out over a seven-year period from next January. I am privileged to chair the all-party group on hill farming and I was very pleased to hear the shadow Secretary of State, the hon. Member for Plymouth, Sutton and Devonport (Luke Pollard), refer to the importance of hill farming to our country as a whole. In our view, it is a dangerous thing to start phasing out the basic payment when we have yet to clarify what will replace it: the ELMS—the environmental land management scheme—which will be available for some farmers in 2024, we are told, but not all farmers until 2028.

With all due respect, farmers lack confidence in Governments of all colours and their ability to deliver an as yet undefined new payment on time because they have consistently failed to deliver existing payments over the last two decades. Being told for certain that you will lose 85% of your income while being offered the dubious possibility that you might have something else in future is unlikely to get Britain’s farmers dancing in the street.

The Bill is a necessary one-year fulfilment of the obligations of the withdrawal agreement. It is not a real commitment to farmers. Even if the Government were to bodge together extensions of one year at a time for the inevitable slippage on the roll-out of ELMS, what does that do for the ability of farmers to plan for the medium term, let alone the long term?

Why does this matter? It matters because over the transition period of seven years, the Government’s plan will reduce Britain’s capacity to feed itself in the future. We think far too little about food security. Some 50% of the food that we consume is imported. Twenty years ago, the figure was more like 35%. It is an extremely worrying trend. If the ability of farmers in the UK to make a living and compete is further undermined, this situation will only get worse. That will be bad for the environment, for British farmers and for the security of our country, as we cut ourselves off from our most important trading partner.

We need to think of the bigger picture and the long-term impact. You can tick the boxes with legislation such as this and “get Brexit done”, but that is a slogan with a heavy price tag—a price tag that in the case of our farmers could be fatal. The production of food must be considered a public good, but it is certain that the loss of BPS with an as yet undefined replacement will see people leave the industry. Some will flee before it gets too bad, others will be forced out when they cannot make ends meet. To put it bluntly, if we are to deliver public goods through farming, we need to make sure there are some farmers left to deliver those public goods by 2028. Without those farmers, who will deliver biodiversity programmes? Who will deliver natural flood management schemes? Who will deliver growth and maintain the woodlands and peatland necessary to absorb CO₂? In Cumbria, including the lakes and the Yorkshire dales, who will maintain our footpaths and our rare historic breeds? Who will beautifully keep and present the landscapes that inspired Wordsworth and inspire 16 million people to visit us every single year?

[Jim Shannon (Strangford) (DUP)]

This morning, the National Trust held an event downstairs. It was keen to show what it was doing on the environment. It has plans across its 500 properties to plant more trees and thereby be the lungs of the United Kingdom. There are many groups and landowners doing lots of things to help to tackle climate change.

[Tim Farron]

The hon. Gentleman makes an important point. Farmers are at the forefront of tackling climate change—they see the climate changing before their eyes, they are the eyewitnesses to our changing planet and the damage being done. In the uplands, in Cumbria and elsewhere, it is they who have the ability to help to protect the towns and villages from flooding by planting more trees, managing the land and more generally ensuring the carbon sink that will help to protect our planet. Without them, who will maintain the backdrop to the tourism economy in Cumbria, which is worth £3 billion a year and employs 60,000 people? Indeed, 80% of the working-age population of the Lake district currently earn their living there.

How can farmers be expected to invest in the long term if they can only look ahead one year at a time? Like most farmers, I accept that in the long term BPS needs to be replaced by public payment for public goods— no argument there—but “public good” needs to be defined widely enough for farmers to make a living, especially farmers in the uplands of Cumbria. I am not saying, therefore, that we should scrap ELMS and keep BPS forever, but I am saying that the Government should not delude themselves into thinking they can make radical change as seamlessly as they appear to think.

The Bill is necessary and we will support it—not just not oppose it—but it does not answer the need to pave the way for a new system. The Government cannot be permitted to do the bare minimum to fulfil the obligations of the withdrawal agreement, with no thought to the impact in real terms. The Government must protect British farming and therefore the environment—and therefore food security, rare breeds, heritage, landscape, our tourism economy—so will the Government now commit to transition arrangements that allow farmers to survive that transition? In short, I say to the Government: do not remove a penny of BPS from anyone until ELMS is available for everyone.

[Scott Mann (North Cornwall) (Con)]

I welcome the new shadow Secretary of State to his place. It is nice to have a fellow west country MP there and I look forward to working with him on the Agriculture Bill and the fisheries Bill and, importantly, on putting provisions on angling into the latter.

I am pleased to have been called to speak on Second Reading of this very necessary Bill. The Government’s manifesto commitment to invest £3 billion in our farmers and farming communities over the lifetime of this Parliament is to be welcomed. Continuity is so important to our farmers now, with all the uncertainty in the marketplace, and the Government have proved again that they are committed to our farmers and our farming communities. We are moving from a rather ridiculous system where people are paid for land rather than public goods. Farmers in the UK receive £3.5 billion annually in farming support under the common agricultural policy. More than 80% of the support is paid directly to farmers, based broadly on land and land management. A lot of that is taken up by hedge funds and other financial organisations, which receive an annualised income. We have to move away from that system to something that supports our farmers and farming industry.

The previous CAP had nothing in place for soil erosion. We lose 2 billion tonnes of top soil into our rivers every year. We need a replacement to ensure that that does not happen. There is very little in there about habitats, save for the rather dysfunctional element of pillar 2 of the CAP funding; very little about production, other than silly things about people having to grow three crops; and nothing about catchment farming. I hope we are moving away from a system where our farmers have to map their land. I have dealt with countless constituents who have brought cases to me where their topographical land management has been done from an aerial viewpoint and where the numbers the RPA says they have they do not actually have. Moreover, many of my moorland farmers have been waiting three years for payments under pillar 2—the higher stewardship element. That is unacceptable. We need to move away from the historic system to a better system.

What do we want from a new agricultural scheme? I am no expert, but I tend to listen to people who are. I have regular meetings with farmers in my constituency of North Cornwall. They are the custodians of the countryside and understand what they want from a future agricultural system.

[Jim Shannon]

The National Farmers Union has a clear idea of what it wants from the changes, and its sister organisation back home, the Ulster Farmers Union, of which I am a member, has the same ideas on going forward. The hon. Gentleman has mentioned the importance of touching base with our farmers and whose who own the land. How important is it that the Government listen to the NFU and the UFU?