Agriculture Bill

Lord Cameron of Dillington Excerpts

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

[Viscount Trenchard (Con)]

My Lords, I declare my interests as stated in the register. The noble Lord, Lord Teverson, suggests in Amendment 130 that the period of the first plan should be five years rather than seven years. In Amendment 142, he seeks to reduce the seven-year transition period, during which the direct payments scheme will be phased out, to five years. Farmers are already anxious about how their business models will have to change, and would not welcome the shortening of the transition period. Particularly because they do not have enough information on the new scheme, the noble Lord’s amendment is unwarranted and would be damaging.

However, there is considerable merit in Amendment 143 in the name of my noble friend Lady McIntosh of Pickering, in that the seven-year transition period should start 18 months from now, rather than six, which would give more time for the Government to work out the details of the scheme, and would be neutral in terms of costs to the Exchequer.

The noble Lord, Lord Carrington, in Amendment 144, is right to seek to ensure that payments under the new schemes compensate for the reduction in and ultimate removal of payments under the direct payments scheme. But I think his intention to limit the reduction in total support to 25% is rather modest. I believe direct payments for larger farms are set to be reduced by 25% in 2021, and the noble Lord’s amendment would still permit this to happen, even if such a farm receives zero under the countryside stewardship scheme and other current schemes. As I said previously, the larger farming businesses employ the majority of agricultural workers.

I would not support Amendment 146 in the name of the noble Lord, Lord Grantchester, except in so far as it equates to Amendment 143 to delay the changes by one year. The seven-year transition period is not too long, given the extent of the changes farmers will need to carry out.

The noble Baroness, Lady Jones of Moulsecoomb, seeks to use this Bill to advance her concerns regarding animal welfare, but I cannot agree with her Amendment 147, which assumes that animal welfare standards are higher or lower, whereas different standards may produce different outcomes, and it is a fine balance. I regret that I do not see the justification for supporting her Amendments 147, 148 or 154.

My noble friend Lady Rock has eloquently explained the reasons behind her Amendments 150 and 151. I can see that where moneys are unspent, the amount provided in a subsequent year might increase if the Government accept carryover procedures. As for her Amendments 152 and 153 on delinked payments, they seem to provide an improvement to the Bill.

[Lord Cameron of Dillington (CB) [V]]

My Lords, I have christened this group of amendments, “Mind the gap”. We need some sort of rethink from the Government on a safer way forward.

I support Amendment 143. When I first read the Bill in its earliest form, nearly two years ago now, I thought, “That’s good—the seven-year transition from one system to the next. All will be well; farmers can plan ahead with no problems, and while the single farm payment goes down, they can enter into ELM schemes, with profits, under the new regime.” Defra had three years to get ELM schemes in place, then several years to roll them out to farmers on the ground, which, as others have said, is going to be an almost impossible task. I thought, back then, that it could happen at a manageable place, and all would be well. Farmers would be involved in tremendous changes, but they could survive the transition because the way forward would be clear to them.

But now, two years on, the way forward is still as clear as mud. ELMS have only just entered the pilot stage, farmers have no framework by which to plan and they are saying, “What will ELMS look like for me in my area? I have no idea. What training do I need? I have no idea. Do I need to plan for new equipment or facilities? I have no idea.” No one in the farming community has any clear idea of the future. The details of ELMS will not really emerge from the mist until nearly 2025.

In spite of the delays, we still seem to be stuck with a 2021 start to the transition period. This cannot be right. With the rug of the old world being slowly pulled out from under them, and the new rug unlikely to arrive for some time, I worry farmers will fall down the gap. As others have said, the delay is not really Defra’s fault; we had all the shenanigans around Brexit, and so with this Agriculture Bill doing the hokey-cokey—in, out, in, out—then Covid-19 causing genuine paralysis this year, it is not surprising the timetable has slipped. So, the Government have every reason to take this back and think again before we get to Report. I do not care how they do it, but we need something to close the horrible gap that is looming.

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[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?

[Baroness McIntosh of Pickering]

My Lords, I oppose Clause 16 standing part of the Bill. This follows on neatly from the comments of the noble Earl, Lord Devon, and the noble Lord, Lord Cameron, with whom I have the pleasure to serve on the EU Environment Sub-Committee.

The original purposes of the rural development fund have made a great change to the countryside, improving the quality of life and economic well-being especially of those living in rural areas that are particularly isolated and sparsely populated, such as where I grew up—Teesdale in County Durham—and also the areas that I had the pleasure and privilege to represent in the other place: deeply rural parts of North Yorkshire.

The policy statement that was published in February this year says of the Rural Development Programme for England for 2014 to 2020:

“This £3.5 billion programme will continue to include support for rural businesses to expand and create new jobs and for farmers and growers to buy innovative new equipment.”


This is under the “Preserving our rural resilience” heading, and it goes to the heart of what is perhaps another gap.

I ask my noble friend the Minister, in summing up, to show that this gap will be closed in the current aims of the Rural Development Programme—which have so well served rural communities—and to show how this voyage into the unknown of the UK shared prosperity fund will actually work in the interests of rural areas. Therefore, my question to the Minister is: how will Clause 16 build on this and how will necessarily limited funds continue to be used for these socioeconomic purposes that have served rural communities so well?

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[Lord Gardiner of Kimble]

My Lords, the vision is for a prosperous rural economy, which obviously includes food production and agriculture. However, a whole range of communities form the rural economy. We want to ensure that all rural dwellers have the same opportunities. I have to say that very few industries have been promised that they will retain the same annual contribution from the taxpayer for the whole of this Parliament; sometimes noble Lords forget that in some of their commentary. That is most exceptional, and it shows that the Government support farmers and rural communities. That is of course why there is a very significant investment in the broadband structure. Therefore, there is a considerable vision for a prosperous, skilled and innovative agricultural sector within a broader rural economy.

[Lord Cameron of Dillington [V]]

My Lords, I thank the Minister very much for his extensive response to this debate. When will he be able to tell us whether there will be a well-financed, ring-fenced rural fund as part of the shared prosperity fund? When will we know about that?

[Lord Gardiner of Kimble]

I am afraid that I cannot give a precise date other than what I said in my remarks, that the quantum and design of the fund will take place following the spending review; I cannot give any further detail. However, I can say that the efforts and the work of Defra with MHCLG are to ensure that there is a very strong rural component so that rural businesses are an intrinsic part of this fund.

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[Lord Taylor of Holbeach (Con) [V]]

My Lords, as I have not spoken since a week last Thursday, perhaps I should my declare interest as a member of a family farming business in which I worked for over 45 years before coming to the House. The business celebrated its centenary last year but perhaps noble Lords do not know that my interest in this group of amendments stems from the fact that the business was founded by my grandfather, a Londoner returning from World War I, on a Crown colony—a 10-acre smallholding in Holbeach Marsh. We now own and farm 200 times this acreage and, I hope, provide evidence of the important steps on the ladder and the key provision of smallholdings.

This Bill does not pretend to be a wholesale review of the law relating to land ownership and tenancy but, as my noble friend the Minister has said, it makes some pragmatic and uncontroversial changes with which I believe the House will agree. In the meantime, the principle purpose of the Bill and the reason why we need it in good time, is the payment of financial assistance following Brexit through the environmental land management scheme. The thrust of the Bill is the building of a progressive and productive agriculture and horticulture system fit for the post-Covid 19 age. It also seeks to provide the nation with a countryside that is naturally and environmentally sensitive—objectives that are not incompatible or contradictory.

However, there will be changes, and we need to encourage the occupation of land by farmers and growers who can implement them. Making a success of ELM depends very much on the details of the scheme and the uptake by the industry—making sure that the scheme’s incentives work is wrapped up in the ownership and occupation of the land. Can my noble friend say what discussions there have been with interested parties on this matter and what the timetable is for any conclusion?

Perhaps I can be forgiven for also asking about cropping licences, which are very important in areas such as mine. Crop specialisation is part of a local scene and provides much of the impulse of industry locally. Not only do the licences make sense, they provide steps on the ladder for the farmers of tomorrow and enable established companies to work with neighbours for effective rotation. It is not a tenancy but a short-term licence. At the moment, by agreement, the financial assistance is paid to the long-term occupier of the land. This is as it should be. Can my noble friend assure me that the intention under the Bill is that this will continue?

[Lord Cameron of Dillington [V]]

My Lords, when I first saw the amendment from the noble Lord, Lord Whitty, I was very supportive of the concept of providing a bottom rung for aspiring farmers. After all, who would not want to help young men and women into one of the most noble of professions? Then, I started thinking about it and gradually became more sceptical about its premise and, worried about my scepticism—which is not a normal frame of mind for me—I spoke to various members of the farming community from around the country, including the noble Lord, Lord Curry. I am afraid to say that even after these conversations—or mostly because of them—and in spite of the enthusiasm of the noble Lord, Lord Curry, my scepticism was not entirely removed.

In my experience, and that of others, the smallholder estates have lost their way from their original successful purposes. Their heyday, as the noble Lord, Lord Taylor, just mentioned, was after the First World War when they grew enormously and provided rural sanctuary and livelihoods for soldiers returning from the front. In Somerset, where I used to live, a whole estate near us was given to the nation for this purpose. Since then the farms have continued to provide sanctuary and livelihoods for many aspiring farmers.

More recently, over the past 30 years or so, I have been conscious that the occupants of these farms have been getting older and older. They can almost be described as being trapped on their smallholdings. The old form of tenancy that lasts for ever has resulted in these once-young families turning into grandparents on holdings that are now too small to provide a decent living. Some have survived because the children have been enterprising and converted buildings into workshops, farm shops and even playschools; but most survive by family members going out and getting wages in the wider rural economy, so that the family and the old man who is the tenant can survive on the land. Rarely these days is the tenant a young, aspiring farmer on the first rung of the farming ladder. One of the problems, as other noble Lords have mentioned, is that the next rung on the ladder is almost impossible to find or afford, so the old tenants have simply remained on that bottom rung.

You have to ask yourself, if you were a county council with farming assets of some £40 million, £50 million or more, would you use them just to keep 20 or 30 farmers on the land, often for the rest of their lives, or would you sell that land and invest the money to help a far greater number of your wider constituents? That would be a very unimaginative approach.

I turn to Amendment 159, from the noble Earl, Lord Dundee. Why not use these estates as a model example of what can be done with land and landed assets to make them really work for the people of your county? As his amendment hints, why not create small businesses on them? Create affordable housing or sheltered accommodation. Create allotments. Create environmental havens and biodiversity in a way that the locals can see and appreciate. Create innovative products using food, timber or textiles. Hold competitions for suggestions for new ways to use the land. Yes, also have some farm tenancies—strictly time-limited to, say, 10 to 12 years—that provide that essential bottom rung of the farming ladder for young families.

Having, as noble Lords will see, overcome my scepticism—thank goodness—I am now certain that these county council estates should be kept and survive, but they need a new purpose in life, new blood and new ideas, with more imagination as to how they can truly serve their electorate. I am very supportive of Amendment 159 in the name of the noble Earl.

[Baroness Neville-Rolfe (Con) [V]]

My Lords, I take great pleasure in following the noble Lord, Lord Cameron, and his words of wisdom. I apologise for the discourtesy of pulling out of the last group because of a meeting of the EU Committee, but I agree with my noble friend the Minister about the invaluable contribution of rural communities and the vital importance of the various strands of work to accelerate digital connectivity on farms and in rural areas.

I wish briefly to express my concern with Amendments 223 and 237 to 246 on landlord-tenant issues. Some are more worrying than others. We need to be clear about how the landlords’ and tenants’ interests will be handled under ELMS and other schemes, but we need to be very careful. Those of us old enough to remember the introduction of hereditary tenancies by the Labour Government in the 1970s—without consultation, I may add—remember the devastating effect on the supply of tenanted land. The apparent attempt in Amendments 243 and 244 to widen this principle to less-close relatives is misguided. It is like trying to keep rents low by fixing them, then being surprised when the supply of housing dries up. I find it amazing that these amendments try to extend the hereditary principle in new areas. I thought the trend was to reduce it in modern Britain. In any case, the associated interference in the laws of property would be unjustified.

Moreover, I am highly dubious about trying to cover the detail in this already gargantuan Bill. Tenancy reform beyond the proposals already in the Bill should be the subject of separate legislation and preferably of parliamentary scrutiny in draft.

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[Viscount Trenchard]

My Lords, I was most grateful to my noble friend Lord Northbrook for his kind words of thanks for my support for his amendment in an earlier group. However, I fear I must disappoint him this time with his Amendment 165.

I worry that the inclusion in the Bill of onerous food security obligations on the Secretary of State might be counterproductive, because it is not clear whether the Government favour food sourced from domestic production or are even-handed between imported and domestic food. To report in detail more often than once every five years would be unnecessary. I therefore oppose most of the amendments in this group, especially Amendment 166 in the name of the noble Baroness, Lady Boycott, Amendment 167 in the name of the noble Lord, Lord Hain, and Amendments 168 and 173.

A requirement for food security targets, as envisaged by Amendment 171 in the name of my noble friend Lady McIntosh, might arouse suspicion among our trading partners just as we seek to strike comprehensive free trade agreements with several of them. I suggest that improved diet and increased diversity of foods, including those imported from overseas, has contributed greatly to food security and household food security in the years since the Second World War and has much reduced the percentage of the household budget that the less well-off spend on food.

Rather than national food plans and national food strategies, the Government should ensure that, in future, our food markets will be free of the distortions that exist today as a result of our membership of the common agricultural policy. Amendment 173 provides for public procurement to promote the purchase of domestically produced food, which many might think a laudable objective. However, as noble Lords are no doubt aware, campaigns to buy British are usually at arm’s length from government because they fall foul of WTO rules. This amendment could leave the Government exposed to challenge, as I am sure the Minister is well aware.

If we are to have regular reporting on food security every five years, as envisaged by the Bill, I have some sympathy with Amendment 169, in the name of the noble Baroness, Lady Parminter, which should assist in the reduction of food waste from the current unacceptable levels, and with part of Amendment 172 in the name of my noble friend Lord Hodgson of Astley Abbotts, except for that part suggesting that the Government could control the amount of food imported compared with domestic production.

[Lord Cameron of Dillington [V]]

My Lords, I would like to speak briefly to Amendment 162 in the name of the noble Baroness, Lady McIntosh. I totally support the words of the noble Lord, Lord Curry, and I too congratulate the Government for introducing Clause 17 into the Bill.

The excellent thing about Clause 17 is its comprehensive approach. Looking at subsection (2), the relevant factors in these reports—as noted by others—would have to cover a wide range of areas. To name but a few, they would have to report on: our population, its distribution and its nutritional needs; changing tastes and markets; the success or otherwise of a food waste strategy; the percentage of our food that comes from our own diminishing farmland; and port facilities, logistics infrastructure and the cost of transport.

Externally, they would also have to report on: the world political map with regard to food production and consumption; world political stability, for all sorts of reasons, including transport; and now, of course, the world health outlook. There will be other matters to be examined, but that gives you a taste of the breadth of the subject.

As the noble Lord, Lord Curry, said, this will inevitably involve a small team of people at Defra permanently trawling for the relevant up-to-date information across this wide landscape, and this small team cannot just be convened every now and again. We have seen this year how quickly a situation can arise. The department needs to have its finger on the pulse, so if this team is permanently doing the work, and hopefully informing Ministers on a regular basis, why not have done with it and produce a report on an annual, or at the very least biennial, basis? Whether this report needs to be laid formally before Parliament is another matter. Personally, I would support an annual basis, as in Amendment 162.