Food Prices: Agricultural Policy

Lord Carrington Excerpts

Thursday 18th March 2021 Lords Chamber

Asked by

[Lord Carrington]

To ask Her Majesty’s Government what assessment they have made of the impact on food prices of the changes to agricultural policy set out in The Path to Sustainable Farming: An Agricultural Transition Plan 2021 to 2024, published on 30 November 2020; and what plans they have to mitigate any such impact on lower socio-economic groups.

[Lord Carrington (CB) [V]]

My Lords, I beg leave to ask the Question standing in my name on the Order Paper and take the opportunity to declare my farming interests.

[The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Gardiner of Kimble) (Con) [V]]

My Lords, I declare my farming interests as set out in the register. Our assessment is that consumer food prices are not likely to be significantly affected by farming reforms. The main drivers of food prices include import costs, exchange rates and domestic production and manufacturing costs. We regularly monitor prices, and the food security report will inform any appropriate policy responses. The Government are committed to supporting the most vulnerable in society.

[Lord Carrington (CB) [V]]

My Lords, I thank the Minister for his valuable response. With action necessary to address climate change, biodiversity, food waste, diet, trade issues and much more, it all points to higher food prices, which have a disproportionate effect on the poorest, largest and elderly households. Ensuring a safety net is essential. Who in the Government will be accountable for co-ordinating the actions of departments to achieve the desired but sometimes conflicting outcomes around food, health, farming, land use and trade?

[Lord Gardiner of Kimble (Con) [V]]

My Lords, that is one reason why, since the Covid outbreak, the Department for Work and Pensions has established a working group on the cost of living, where food vulnerability is discussed alongside other issues by all Ministers whose departments have a role in ensuring food security. I accept that farming will have to do many things, one of which is to produce very healthy food. There has been £280 billion of support since March 2020 to families and children, which I think is a good record from the Government.

Brexit: Farmers

Lord Carrington Excerpts

Tuesday 2nd February 2021 Lords Chamber

[Lord Gardiner of Kimble (Con) [V]]

What we said was that that would be the end of the direct payments system. We are now concentrating on a system of agri-environment and other support mechanisms, which we think are value for money. They will reward farmers for the provision of public goods.

[Lord Carrington (CB) [V]]

My Lords, I draw attention to my interests as set out in the register. I am comforted by the Minister’s response but, sadly, the world does not stand still as we await details. Bearing in mind the topical issue of flooding, I am concerned that, without specific government support, farming profitability will be insufficient to finance the renewal of field drains that are reaching the end of their life. These are so important to flood prevention and farm productivity. Please can the Minister confirm that this necessary expenditure will be covered by ELMS?

[Lord Gardiner of Kimble (Con) [V]]

My Lords, on flooding, particularly of agricultural land, a lot of work is going on and I will look into that matter.

Rural Landlords and Land Letting: Reform

Lord Carrington Excerpts

Thursday 21st January 2021 Grand Committee

[Lord Carrington (CB) [V]]

My Lords, I declare my interests, as set out in the register. This debate enables the airing of some important considerations in relation to tenancies and taxation. However, with the huge number of uncertainties facing farming now that the Agriculture Act has been passed, the timing is not right for further legislation. The Government have succeeded in abolishing the old agricultural system but have not announced in any depth what is the replacement.

[The Deputy Chairman of Committees (Lord Faulkner of Worcester) (Lab)]

We have to stop for five minutes while a Division takes place in the House.

[The Deputy Chairman of Committees (Lord Faulkner of Worcester) (Lab)]

I apologise to noble Lords—can the noble Lord resume, please?

[Lord Carrington (CB) [V]]

I was saying that the Government have not announced in any detail what happens next, so farmers are unable to plan. This could involve both tenancy and tax matters. For example, let us suppose that they want to enter a tree-planting scheme under the ELMS, and their tenancy excludes silviculture, or the ELM scheme that they enter has a 25-year life, whereas their tenancy is a 10-year FBT, and so on. Details of ELMS may be unavailable until 2024. Those are the real issues that must be resolved by the TRIG.

The introduction of ELMS may have adverse tax consequences, as current tax rules operate as a disincentive to diversification in how they treat investment and trading activities differently. Leaving aside that information gap, I congratulate the Government on the reform measures in the Act, which were agreed by the whole industry, rather than spending time on divisive old chestnuts such as reform of AHA succession provisions. These restrictive tenancies, designed for issues of a different age, do not satisfy either landowners or succeeding tenants, who want the flexibility of an FBT where consensual terms are agreed. Other mooted changes such as introducing reasonableness tests and minimum tenure FBTs are unlikely to secure widespread industry support. I urge all reform to be on a consensual basis.

[Baroness Bloomfield of Hinton Waldrist (Con)]

Please could the noble Lord draw his comments to a close, as there is a Division in the House?

Farming: New Entrants

Lord Carrington Excerpts

Monday 23rd November 2020 Lords Chamber

[Lord Gardiner of Kimble (Con)]

My Lords, my noble friend has picked up on something very important. Going beyond our new entrants scheme and councils with rural estates, we also want to work with landowners and other organisations that want to invest in creating new opportunities for talented new entrants. We think that there are strong reasons for county local authorities to work with private landowners so that we can create a continuing momentum of availability of land. We want to have innovative and new agriculture entrepreneurs.

[Lord Carrington (CB) [V]]

My Lords, I declare my interests as a farmer and landowner as set out in the register. Opportunities are principally linked to the availability of land, availability of finance and likely profitability. Without resolving these points, the entrant is limited to apprenticeship or employment on an existing farm. Given the enormous amount of capital required to enter farming, can the Minister assure us that thought is being given to either the Government providing guarantees directly to a new entrant or to the banks, the landowner, the machinery manufacturer or other meaningful supplier to encourage their working with the new entrant?

[Lord Gardiner of Kimble (Con)]

My Lords, my noble friend has raised a key point. Not only do we need access to land and skills, we want to ensure this through the productivity grants, which are part of the Agriculture Act and the work we want to undertake in this area. This important part of the Act addresses not only access but also equipment, technology and so forth, whether it is for entrants or indeed established farmers. That is part of our continuing work.

Agriculture Bill

Lord Carrington Excerpts

Consideration of Commons amendments & Ping Pong (Hansard) & Ping Pong (Hansard): House of Lords
Tuesday 20th October 2020 Lords Chamber

[The Earl of Caithness (Con)]

My Lords, In the other place, my honourable friend the Minister, Victoria Prentis, criticised some of our amendments because they were badly drafted. That shows a huge weakness in the Government’s argument. Our amendments are not necessarily badly drafted; we produce them, they are agreed by the House and, if the Government accept the principle of them, they get redrafted properly. That is the function of this House; it is not our function to be lawyers. However, the Government are being unnecessarily obstructive and intransigent on this Bill, and that is a huge sadness because they are alienating a lot of farmers and those who live in the country who see them as unnecessarily reluctant to accept any improvements to the Bill.

The Minister thanked us for our work, but our work has counted for nothing—despite the many hours we spent on this Bill, there has been just one small movement by the Minister. It seems to me that our work is not appreciated, or, if it is appreciated, it is certainly not acted upon.

My noble friend waxed lyrical about our scientists and their control of pesticides. How we miss the Countess of Mar. Many times, I listened to an Agriculture Minister on the Front Bench in this House, telling her that the scientists had said that sheep dip was safe, when clearly it was not. The Countess finally won her battle on this. So, I say to my noble friend, it is not surprising if one is a little sceptical of what the Defra scientists are saying.

As rightly mentioned by the noble Lord, Lord Whitty, and the noble Baroness, Lady Jones of Whitchurch, some pesticides, fungicides and insecticides, applied wrongly by farmers, are a hazard to health. The briefing that I have received says that the Government do not wish to accept the amendment because they have an integrated pest-management policy which will be a critical part of a future farming policy, giving farmers new tools to protect their crops. There is absolutely nothing in there about the health of human beings. I have talked to a lot of farmers who spray fields; they are not all in the same category as those on the farm of my noble friend Lord Taylor of Holbeach. He made excellent points at an earlier stage, but there are those who spray in the wrong conditions, who are rushing to get a job done and not carrying out the work as they should. The noble Lord, Lord Whitty, is absolutely right. If the Government have these powers, why have they not been used? That is a critical question, which my noble friend has to answer.

I support the amendment of the noble Baroness, Lady Jones of Whitchurch, on climate change. It is not blaming the farmers. Farmers have a hugely important role to play. In fact, the Scottish Government entered into consultation today with Scottish farmers and crofters to tackle this precise issue of climate change. There are huge opportunities in the way that one can feed stock, for instance, that would reduce methane emissions. This is not having a go at farmers but wanting to work closely with them. I rather like what the noble Baroness said, asking the Government to “turn good intentions into policy”. That is all this amendment is asking; I hope it succeeds.

[Lord Carrington (CB)]

My Lords, I declare my agricultural interests as set out in the register, together with my membership of the National Farmers’ Union. I want to speak against Amendment 11B on pesticides, in the name of the noble Lord, Lord Whitty. This is a very broad and vaguely drafted amendment. It would be extraordinarily damaging to agriculture in this country and would add nothing of value to the existing regulatory regime; I urge its rejection.

As we have already heard, and according to some 100 experts at the HSE and the Expert Committee on Pesticides, the UK operates one of the strictest regulatory regimes in the world and pesticides are licensed only after extensive research. There is already a strict code of practice and incidents of harm and non-compliance are investigated. If there is a complaint, it is investigated. Operators must have the appropriate qualifications, and equipment is regularly tested under various protocols and assurance schemes.

Banning or limiting the use of pesticides would have devastating implications for food and crop plants, massively reducing the volume and quality of UK food, making large parts of farming economically unviable and thereby encouraging imports of food grown by overseas producers using the same pesticides that we are trying to ban or limit.

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[The Earl of Caithness (Con)]

My Lords, like the noble Lord, Lord Empey, I would very much like my noble friend Lord Gardiner to be the Secretary of State, but I have to disagree with him that it would make any difference. I think the die is cast; the Department for International Trade is against these amendments, as is No. 10. They do not get farming in this country, and it would not matter if my noble friend was Secretary of State. I think we are batting our heads against a brick wall. But let us continue to bat our heads against the brick wall, and we might finally get a crack in the brick wall.

Amendments 16B and 18B seek to increase the resilience and sustainability of UK food and farming, and that is to be welcomed. On the sustainability of UK farming, I would like to go on a quick tangent, because, as my noble friend the Minister knows, I am concerned about the sustainability of farming, and I think a lot of English farms, as a result of this legislation, will be turned into theme parks. My fear of that was heightened when I listened to “Farming Today” last week. I do not know whether my noble friend listens to “Farming Today”, but it was an interview about what was going to happen as a result of ELMS coming in. It took place with a Defra representative in Cumbria, and she said a farmer could take his sheep to a show, and he would be able to get a grant for that because that is engagement; it is under the heading of “heritage, beauty and engagement”. This is not farming; this is taking it to the extreme. So I ask my noble friend: if a farmer is going to be able to get an ELM grant for taking his sheep to the show—and good luck to my noble friend Lord Inglewood—would the farmer be able to claim the same engagement by taking his produce to the harvest festival service? There, in the church, everybody would be able to see his grain, his potatoes, his leeks; that is engagement of the highest kind, so surely the theme park managers will be able to benefit from that.

Let me return to the amendment. Again, in the committee I sat on, chaired by the noble Lord, Lord Krebs, it was quite clear that the hospitality industry is keen to buy the cheapest food at the cheapest price and sell it at the cheapest price, regardless of where it comes from and what the quality is, let alone the animal welfare standards. The noble Lord, Lord Grantchester—and I am happy to support him once again on his amendment—told us how much of the food we consume in this country comes from the hospitality side. That is a major concern. I have already described how difficult it was to get evidence from some of these people, but what evidence we did get did not fill me with any confidence for the future of farming and animal welfare standards in this country.

My noble friend the Minister, when opening, said that these amendments were disproportionate. If they are disproportionate, it means that the current system is adequate, and the current system is clearly not adequate, because we have heard of the bolt-ons that are going to be necessary and which are taking place. Surely, much the cleanest and best thing to do is to persuade the Department for International Trade and No. 10 that Amendments 16B and 18B should be included in the Bill.

It is absolutely right that there should be independent oversight of these trade deals, and that that body should report to Parliament through the Secretary of State. I have been in the Minister’s position and, after a cross-party defeat—and, so far, the Minister has no supporters, and the noble Lords, Lord Grantchester and Lord Curry, have six each—I went to see Viscount Whitelaw, who was Leader of the House, and apologised for getting heavily defeated by a cross-party amendment. He looked at me and said, “Malcolm, perhaps they were right.” I wonder whether my noble friend could take that back to his Secretary of State.

[Lord Carrington (CB)]

My Lords, I declare once again my farming interests, as set out in the register. I am extremely pleased to be able to support Amendment 18B, proposed by the noble Lord, Lord Curry. As we all know, the amendment has widespread support in this House and nationally, and, as it has returned in a slightly different format, it can be discussed accordingly.

I will make two very short points. I understand why the Government do not want to see their hands tied by a specific standards clause, as it would be wrong for trade deals to fail if one sector alone, accounting for a small proportion of GDP, has an implied veto. This amendment is a very sensible compromise, in that it enables a committee of experts to report to Parliament before a deal is signed, and then the pros and cons can be decided.

Secondly, other countries, notably the United States of America, have independent trade commissions that report to their assemblies, so no precedent is being set.

[Lord Lansley (Con)]

My Lords, first, I apologise for intervening on our consideration of the Agriculture Bill at this stage, having played no part whatever in any previous consideration of it. But I intervene today because I have played a part in the consideration at every stage of the Trade Bill—and, indeed, the previous Trade Bill, in the last Session. So I come as an emissary from the Trade Bill discussions.

Before I come to Amendment 16B, I will just say to my noble friend the Duke of Wellington that I have sat in a Reasons Committee in the House of Commons, and when such a committee is presented with a Lords amendment that breaches financial privilege, custom and the Standing Orders effectively require that it presents just that one reason. So he should attach no weight to the fact that no other reasons were presented. That is the form of how it is done.

On Amendment 16B, I start from the same place as my noble friend. We have a manifesto that commits us to the highest standards of environmental protection, animal welfare and food standards. However, I do not agree with her that we require Amendment 16B in order for this to happen.

I am a member of the EU International Agreements Sub-Committee of your Lordships’ House. We are looking at the trade agreements as they come through. At the moment we have only the Japan agreement to look at as a new, as opposed to a rollover, agreement. Of course, these issues have not arisen with the rollover agreements. The Japan agreement would be covered by this amendment, because it relates to agriculture and food—there are provisions relating to tariff changes and so on. Are we really suggesting, as a consequence of this amendment, that the British Government will now not enter into a trade deal with Japan on the grounds that the Japanese Government will not—I am sure that they will not—accept that UK standards should be applied in Japan? Their view may well be that their standards are equivalent, but they will not sign an agreement that says that they are committed to that.

Agriculture Bill

Lord Carrington Excerpts

Report stage & Report: 2nd sitting (Hansard) & Report: 2nd sitting (Hansard): House of Lords
Thursday 17th September 2020 Lords Chamber

Moved by

[Lord Carrington]

59: Clause 18, page 15, line 1, leave out paragraph (a) and insert—
“(a) there is an acute or chronic disturbance in agricultural markets or a serious threat of an acute or chronic disturbance,”Member’s explanatory statement
This amendment will ensure that financial assistance can be provided to the farming industry in England at times of crisis caused by natural phenomena that lead to chronic problems in addition to the acute economic problems already covered by the Bill.

[Lord Carrington (CB)]

I declare my interests as a farmer and landowner, as set out in the register.

I welcome the provisions in the Bill that will allow the Government to provide financial assistance where there is a disturbance to markets for agricultural commodities causing producers to face reductions in income. However, I am concerned that the Bill unnecessarily constrains the Government from acting in all relevant circumstances. The Bill as presented to us will not provide the Government with sufficient ability to intervene in markets where disruption has been caused by environmental factors such as weather—for example, drought or flood, both of which we have had examples of in recent years.

I have taken on board the comments of the noble Baroness, Lady Bloomfield, when similar amendments were debated in Committee and, while I agree that farm businesses need to take responsibility for resilience and sustainability as far as they can, we are looking here at events which are, generally, one-off events which occur outside the control of the farmers affected. For instance, in the case of floods, the farmer has no input into the maintenance of sea walls and other major flood defences.

I am aware of past suggestions that farmers should look to use some form of insurance facility to cover those eventualities but, in reality, such insurance is either unavailable or accessible only at disproportionate cost. In other countries, Governments have offered such insurance, but this has proved extremely costly to the taxpayer and has encouraged moral hazard.

There are also farming disasters which continue on a chronic rather than an acute basis, such as animal disease—for example, bovine TB. The Bill provides only for acute circumstances. In highlighting the issue of chronic or long-running issues, the amendment does not require the Government to intervene in those widened circumstances but provides a mechanism for the Government to do so if it believes it necessary. This seems an entirely sensible approach within an enabling Bill, which contains so much about providing the Government with powers to act when necessary. I emphasise that this amendment provides a power, not a duty.

Although the Minister indicated that the objective of the Bill’s provisions is to deal with acute rather than chronic issues, I believe it would be a major missed opportunity not to include power to deal with chronic issues within the legislation. Without the power to intervene in markets where environmental or chronic issues prevail, the Government could be rendered impotent in responding without bringing forward further primary legislation. Surely it must be better to ensure that the powers are available in the Bill on a forward-thinking basis rather than belatedly having to take them when an issue needs to be addressed. I beg to move.

[Baroness McIntosh of Pickering (Con)]

I congratulate the noble Lord, Lord Carrington, on tabling these two amendments, both of which I support; I am delighted to have co-signed Amendment 108.

I have just one question. I spoke at some length in Committee, and my noble friend the Minister was generous in her closing remarks in that debate, stating that there is current legislation that would pre-empt these provisions. The noble Lord, Lord Carrington, referred to the specific example of flooding; obviously, one could refer to others, such as the current pandemic. In this instance, I am delighted to say that farmers managed to get the food into the shops and on to the supermarket shelves, and worked all hours to do so. There could, however, be shocks and other glitches to the supply chain. These two amendments provide for such circumstances and it would be neat, in my view, to include them in the Bill.

My question to my noble friend when she sums up is very specific. I think she referred to the new farming recovery scheme as a case in point where there is current primary legislation on which farmers could depend if such assistance was required. But to my certain knowledge, when farmers in North Yorkshire, in the constituency of our right honourable friend the Chancellor of the Exchequer, applied for the scheme, they were given the proverbial raspberry. We saw the devastation caused to the farms and to tourism in the area. They are still reeling from that result. That was in January—it seems an awfully long time ago, but it was only January this year—and they were still not back on their feet when they had to deal with the total lockdown from March onwards.

I should like my noble friend to revisit that legislation and, if she does not have time to do so today, leave a note in the Library on why she is convinced that that legislation covers the scenario set out in these two amendments, because in my experience it certainly did not in the case of North Yorkshire and our right honourable friend.

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[Baroness Bloomfield of Hinton Waldrist (Con)]

I assure the noble Lord that this Bill will cover those situations.

[Lord Carrington (CB)]

My Lords, I thank all noble Lords who have participated in this short debate and, of course, the Minister.

I say to the noble Baroness, Lady Scott of Needham Market, that, in moving this amendment, I have the support of the CLA, the NFU and the TFA, so it is a matter of general concern to all farming organisations.

We have heard several examples of problems that have required assistance, whether in Richmond, Sri Lanka or elsewhere. The contribution made by the noble Lord, Lord Inglewood, was extremely interesting. His emphasis on farmers’ reliance on income from farming is certainly something that we should bear heavily in mind, because that is what the whole industry is about; it is not about ELMs. As I understood it, the noble Lord’s concern was very much to do with making quite sure that the Government understand the cash-flow implications of these issues and the need to work fast to resolve them.

As has become clear from all the questions we have heard, my real point on this issue is that there is a lack of understanding of what is covered by this clause. The last question very much indicated that that is the case. However, we have received assurances from the Minister. I do not believe that it is worth my taking this any further, so I beg leave to withdraw the amendment.

Amendment 59 withdrawn.

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[Lord Carrington (CB)]

My Lords, I declare my interests as set out in the register, together with my membership of the National Farmers Union and the CLA.

I sympathise with, but do not support, the noble Earl, Lord Devon, in his amendments which would remove both Clause 34 and Schedule 3 from the Bill. Although, in an ideal world, the legislation on the reform of tenancies would be in a separate Bill, the clauses cover several matters that have been agreed by the industry through TRIG. So, if necessary, I would reluctantly accept Clause 34 and the schedule. However, what I certainly would not support—and I am afraid I do not support either the noble Baroness, Lady Rock, or the noble Baroness, Lady McIntosh of Pickering—are Amendments 85 and 86 regarding succession on the death of an Agricultural Holdings Act 1986 tenant.

The suggestion that the rights of succession should be given to nephews, nieces, and grandchildren as well as partners and their children is several steps too far and begs the question, “Why stop there?” It would unnecessarily prolong the life of the AHA 1986 tenancies when we have moved on to the Agricultural Tenancies Act 1995, along with a more modern and flexible regime for letting agricultural land, with the hope of bringing new entrants into the industry.

All these amendments would achieve is benefiting a small group of successors, some of whom might succeed anyway in view of their existing competence and relationship with the landowner, and others who might see it as an easy way to inherit an otherwise unaffordable house and a deceptively attractive way of life. It would also have the serious effect of depriving landlords again of their property rights and access to their own land for another generation.

Land could and should be freed up for a wider pool of occupiers under arrangements and agreements that are more flexible and more market-oriented and might help deliver productivity advantages. New tenancy agreements or share farming, as well as joint ventures, which are more collaborative, work well for new entrants and young farmers.

I am also opposed to Amendment 88 with its proposed changes to the Agricultural Tenancies Act 1995. All stakeholders in the industry have expressed their agreement that the 1995 Act provides a suitable framework for tenancies in the modern era, with flexibility for the parties to agree the terms that suit their arrangement. This legislation has generated very little need for litigation or dispute resolution, and on previous occasions, all parties were agreed that the Act did not need revision or reform.

The amendment would create a situation where a recently agreed tenancy agreement can be amended in a way not foreseen or agreed to by the parties. If the parties are not able to agree on amending terms—an option that is, of course, open to them—to do this by recourse to an expensive alternative dispute-resolution process will have a very negative impact on that relationship and more widely on the landlord/tenant sector. It will undermine cross industry efforts to encourage parties into longer term agreements and possibly undermine the lettings market altogether. It is a different context to that under the Agricultural Holdings Act 1986 framework and will be counterproductive to the industry. It is also proposed in the amendment that the detail of how such a dispute would be resolved by secondary legislation be determined at some later point. This is very unsatisfactory.

Issues and factors like these certainly need to be further discussed and considered by TRIG before being legislated upon. The National Farmers’ Union has welcomed the reforms in the Bill but also urges that other reforms, such as landlords’ consent to variation of terms under tenancy Acts, are taken forward through TRIG. Please could the Minister consider separate legislation to cover tenancy reform issues that are not currently in this Bill on the back of the TRIG recommendations?

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

My Lords, it is a pleasure to follow the noble Lord, Lord Carrington, and to participate in the debate on this group of amendments. Noble Lords will know of my interest in my family business, which is on the register.

I speak as someone privileged with “boys’ land”—they say this of the silts around the Wash. This land is ideal for arable farming, and we grow a diverse range of crops, from bulbs, in which we are prominent, to cauliflowers and potatoes. My neighbours are engaged in a great variety of different cropping, and this diversity —together with the marketing and distribution facilities —has encouraged field-scale horticulture similar to that in the Netherlands. It has also led to large-scale investment in protected cropping indoors and not exclusively under glass. I admit that this experience colours my thinking as to how we can raise productivity and harness modern techniques of scientific agriculture. It also colours my thinking about the role that the occupation and use of land plays in allowing a lively and prosperous industry.

I spoke in Committee on amendments covering tenancy issues and, in particular, about the value of cropping licences. I explained the background to my conviction that a dynamic farming and growing industry depends on having a lively market for land occupation to make this land readily available to up-and-coming farmers and growers. Schedule 3 is the product of the dialogue between the Government and the Tenancy Reform Industry Group, where different parties to this issue are seeking to find consensus on landholding issues.

Consensus must be the right way to seek to change something as complex as this. I might add that it seems to me that this whole Bill is about establishing a consensus on a path for agriculture into the future. It is with this in mind that I cannot support the wish of the noble Earl, Lord Devon, to remove Clause 34—and, with it, Schedule 3—of this Bill. I believe that Schedule 3, which his amendments seek to remove, delivers on the Government’s consultations in England and Wales and, indeed, on many of the recommendations from TRIG.

The Bill is not a root-and-branch reform of tenancy legislation. It is not intended to be. Listening to this debate, I am very much aware that many noble Lords are impatient for more changes. However, these modest key and agreed changes, which form Schedule 3, will help to modernise agricultural tenancy legislation and, more importantly, play a part in giving this key industry the flexibility to adapt to change, and this is why they should remain in this Bill.

Having said that, I hope there can be consensus on further issues that the UK and Welsh Governments will wish to discuss with TRIG to see what other actions will lead to a thriving tenancy sector. In turn, this will require further consideration by Parliament and legislation. However, as it is, Schedule 3 makes considerable changes now, and they should be supported.

Agriculture Bill

Lord Carrington Excerpts

Report stage & Report stage (Hansard): House of Lords & Report: 1st sitting & Report: 1st sitting: House of Lords
Tuesday 15th September 2020 Lords Chamber

[Lord Naseby (Con)]

I too thank the Minister for the timeliness and succinctness of the brief we have received. As we will be on this subject for a while, I had better declare an interest, in that I own woodland, which is managed by a professional and with the agreement of the Forestry Commission. And if anything comes up about horticulture, Bedfordshire is part of the heart of the horticultural world, so I will be interested in that.

We should pay tribute to the noble Earl, Lord Devon. I too worried about “enjoyment” for a while and wrestled with it but could not think of anything better at the time. Then I found that he had produced something very helpful, which gives precision. In law, precision is very important, so I hope the Minister will consider it.

I say that particularly because I happen to have some footpaths close to where I live and, as my noble friend will be aware, there is a new hobby of flying drones, which is not necessarily for the enjoyment of anybody other than the person flying the drone. Certainly, if people are walking along a footpath and find somebody else in the middle of the path flying a drone—which is allegedly, but not actually, flying within sight—that is not to the enjoyment of anyone at all.

On Amendment 4, which is the other one that caught my eye, there is no doubt that “accessibility” is vital. There cannot be a Member of your Lordships’ House who has not taken a walk along a footpath and found either a stile broken, something overgrown or another hazard that has appeared, so it is vital. I am slightly worried, though, in that some years ago I experienced that a section of the “rambling community” had gone back to the original maps showing where the closed footpaths were. Those had been closed whenever it was, legally et cetera, but there was then a move to open them up again. There may be a case for opening some of them, but it seems to me that that campaign does not fit with what we require today. However, I come back to the point that accessibility is vital. New public access is much more difficult in today’s world, and I think one has to tread very carefully in that area.

[Lord Carrington (CB)]

I declare my interests as a farmer and landowner as set out in the register. Briefly, I support Amendment 5, in the names of the noble Earls, Lord Caithness and Lord Dundee, and the noble Lord, Lord Randall, if the intention is to make public access a precondition of eligibility to obtain financial assistance for the purposes set out in Clause 1. Many farmers welcome public access and understand that, in many instances, it is most helpful to their businesses, leaving aside any altruistic intent. However, there will always be circumstances in which, for one reason or another, it is inappropriate. Reasons may range from it being environmentally detrimental to safety concerns and privacy reasons. While encouraging public access, surely it should be granted voluntarily by a willing and perhaps enthusiastic farmer, rather than being imposed. Public access may well devalue the farmer’s property and might lead to a reluctance by the farmer or landowner, as the noble Lord, Lord Randall, has said, to make an application to the relevant ELMS.

[Baroness McIntosh of Pickering (Con)]

My Lords, it is a great pleasure to be back discussing the Bill on Report. I declare my interests in the register, particularly that I sit on the rural affairs group of the Church of England and that I am an associate fellow, I think, of the British Veterinary Association. I have one comment and a question for the Minister. I do not think that these amendments are necessary, as we discussed in Committee. It would be most helpful if the Minister in summing up could refer to the figures on current public access and rights of way, both in numbers and in miles, that are currently available but not being used and may lapse as a result, before we go on to create any new ones.

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[Baroness Boycott (CB) [V]]

My Lords, I am happy to be part of the debate on this group. I agree with almost all the sentiments that have been expressed, especially by the noble Lord, Lord Teverson, the noble Earl, Lord Caithness, and the noble Baroness, Lady McIntosh of Pickering, as well as by the Green Party.

I am speaking today particularly to support the noble Earl, Lord Dundee. One thing that has not been talked about enough is the role of farmers. If the Bill is to do what I think everyone sitting in the Chamber and who is part of this debate at the moment wants to do, which is to ensure that healthy, affordable food is grown on our land and that our land becomes environmentally sustainable and healthy again, then we need a new generation of farmers, but the facts are pointing in a different direction.

The noble Earl, Lord Dundee, mentioned briefly that in 2017 one-third of all UK farmers were over 65. Almost more worrying than that is that, since 2005, those in the 35 to 44 age group have decreased. However, evidence from surveys points to people wanting to farm and to be involved in growing at a local level, on a big level and on a small level. But how are they going to do it? Land is too expensive and they struggle to scale finance and cover the high start-up costs. Responses to the Landworkers’ Alliance survey indicated that 61% of people responding to surveys wanted to access land, 46% needed finance and 54% struggled to access training. All believed that an average grant of around £20,000, which is not a fortune, would really set them on the road.

Another route for the young farmer is also being closed because of poor funding to local councils. Recent investigations have shown that county farms in England have halved in the last 40 years. This is a crisis. If we do not have farmers, particularly young farmers, then everything that we are talking about is not going to happen. When Michael Gove was Secretary of State for the Environment, he talked lavishly about equipping a new generation of farmers, but I am afraid the facts are now pointing in the other direction. You cannot be a farmer if you have nowhere to farm. If we value our farmers then we have to make some changes. With the right kind of investment and the right help, a lot of people could join our cause.

The other big issue is food security and local food. I mention briefly that for 10 years I ran the London Food Board. We instigated a scheme called Capital Growth, which enabled up to 100,000 people to have access to community gardens. In the process, we turned over 200 acres of London into small community farms where people could join in. We are now looking to take that scheme countrywide, but we need grants for that and land needs to be made available.

My final point is covered by the amendment in the name of the noble Earl, Lord Dundee, and concerns training. In my years in London, I spent a lot of time in schools. It strikes me that, unless you are at a public school and the idea of a farm, as something possible, is somehow in your blood, you do not even think about it. I spent seven days, as many of us did, watching the debates on the first stages of the Agriculture Bill. I am absolutely guilty of this myself, but it was quite noticeable that the people who feel invested in the Agriculture Bill tend to be white and middle-aged, and an awful lot of us own land and are quite well off. It seems to me that we are missing a great trick in terms of diversity.

This Agriculture Bill belongs to all of us. It is about our land, our food, our health and our environment. Unless we take some steps to try to change the lack of diversity, we will head towards a greater separation between town and countryside. People have talked about litter being dropped, and there will be more of that because people do not feel that the countryside is theirs and that it belongs to all of us. Schemes that enable people in inner cities to grow vegetables on rooftops, under pylons and in sneaky little corners can really start to change attitudes. It is fantastically cost-effective, and I urge the Minister to look at this as the Government move forward.

In the meantime, I am very pleased to be part of this debate and to see agroecology and food security registering so high up among people’s concerns.

[Lord Carrington (CB)]

My Lords, once again, I declare my interests, as set out in the register, as a farmer and landowner. I am very pleased to follow my noble friend Lady Boycott, as many of the points that I will make are complementary to hers.

My support for Amendment 11, tabled by the noble Earl, Lord Dundee, is wholehearted. It involves the whole essence of the Bill, the aim of which is to take an important and profitable industry into a new era of post-CAP farming in this country on a sustainable and environmentally friendly basis.

The encouragement and support for commercial farming through productivity grants and the funding of ancillary activities are clearly stated, alongside the development of attractive environmental land management schemes—although I fear that the details are still unavailable, so we must put our trust in the Government delivering this. However, what is largely missing is support for new entrants into the industry, other than through encouraging some perhaps more elderly farmers to retire by offering them the balance of their basic payments. Although this will free up some land for new entrants, it is in itself not wholly positive, in that the land so freed up will go to the next farmer with no basic payment to cover the transition period. I fear that the most likely home for this land will be with neighbouring farmers or investors who enter farm contracting arrangements with large farm operations. The small farmer and the new entrant is likely to be squeezed, particularly as he is unlikely to have the financial backing that is available to established farmers and the outside investor.

That is why this amendment is so important. It enables the Bill to provide finance for young farmers and new entrants, who are very important to the industry if it is to grow and develop. These people will, unless extraordinarily fortunate, not have easy access to finance, as they will not have the assets and other security to offer banks and other lenders. Buildings, machinery, equipment and livestock are all expensive. As the land may well be held through a tenancy or other time-limited arrangement, obtaining a loan on acceptable terms will be difficult—hence the need to make it attractive for landowners to let land to such new entrants.

In addition, access to training is key if we are to encourage and help develop new entrants into the industry. The addition of this small paragraph in the purposes for providing financial assistance will help the industry to offer an attractive farming business proposition to those aspiring to a career in it, independent of established farm businesses that might not be able to offer them the same prospects. It also has substantial application to the tech-savvy who see a future in small, capital-intensive farming but who lack land and buildings.

I also support Amendment 12, in the name of the noble Lord, Lord Northbrook, as it clearly sets out the very purpose and essence of the Bill.

Finally, I support Amendment 20, in the name of the noble Earl, Lord Dundee, as it recognises that with changing circumstances, such as limits on movement caused by disease and of course new technology, peri-urban land becomes increasingly relevant to agriculture, horticulture and sometimes trees.

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[Lord Carrington (CB)]

My Lords, I declare my interests as set out in the register.

In connection with Amendment 18, tabled by the noble Baroness, Lady Neville-Rolfe, I admit that I do not understand much about impact assessments. However, I would hate impact assessments to further delay this whole process. As the details of ELM schemes may not come out for another couple of years, I find that quite worrying.

However, my main purpose in speaking is to support Amendment 33, in the name of the noble Earl, Lord Devon, for all the reasons that he has given—although I cannot honestly claim that I have had time to study what either the Bible or the Koran say about the seven-year period. I would, however, add to the list of pests that he mentioned something that is now rather important: the prevalence of the grey squirrel and the muntjac, which are steadily gnawing through our trees. If they are not taken in hand, they will make a new forestry policy extremely difficult—but that is another matter.

From a business planning point of view, it is essential that the agricultural sector be given as much clarity as possible when making any important investment decisions. The sector does not have the luxury of either deep pockets or the same access to banks and capital markets as big business. The costs of farm machinery and other capital items continue to rise, as do running costs. The sector needs the security of being able to plan forward with a considerable degree of certainty if it is to thrive in terms of profits and employment.

There is also the issue of aligning ourselves with our competitors, in particular those in Europe, with its seven-year period. That is why I also support Amendments 47 and 106, in the name of the noble Lord, Lord Wigley, which relate to another aspect of business planning. We need to watch and learn from others, so that we can compete sensibly on this much-hyped level playing field. I fear that, as an industry that is unlikely ever to become entirely independent of taxpayer support, we will always be brought into the political arena. But this new Bill gives us a chance to rewrite the rules. Let us grasp the opportunity and instil as much sensible business practice into the industry as we can.

[The Earl of Caithness (Con)]

My Lords, we are in a mess on this group of amendments. I would like some clarification. I think that we were misled by the Deputy Speaker when she said that Amendment 18 was not moved. As I understood the situation, if an amendment is tabled, anyone can move it. As my noble friend Lady Neville-Rolfe was not here, the next speaker, the noble Earl, Lord Lindsay, who was a signatory to that amendment, should have been invited to move it. We are now in a situation where we are told the amendment was not moved, but Members have been speaking to it. As I understand the rules, we are not allowed to speak to an amendment that has not been moved. What is happening? Could this be clarified? If I want to speak to Amendment 18, am I in order? If all the rules have been broken, I hope that my noble friend the Minister will at least reply to my noble friend Lady Neville-Rolfe and support her by getting this amendment tabled for Third Reading. I think that the House has broken lots of rules and I would like clarification before I continue.

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[Baroness Bennett of Manor Castle (GP) [V]]

My Lords, during the dinner break, I went for a brief walk and reflected then on what feels like ancient history: my honours thesis in 1983, which was on abomasal bloat in goat kids. Your Lordships can be reassured that I am aware it is dinner time, so I will not venture further into that subject. However, one thing that emerged during that year, as I was completing that honours thesis, was that the work had received some modest support from a milk manufacturer. It had donated the supplies for the goat kids, and in return got an awful lot of free student labour and the imprimatur of a university using its product. Soon, however, we found that there was a conflict between the commercial interest of the manufacturer and that of the science. It was private profit versus public good.

My noble friend Lady Jones of Moulsecoomb and I have been reflecting on that again and again today. Relying on the market rather than public service’s guidance and rules has led us to the society and countryside we have today. The market will, and by law our commercial companies have to, maximise private profit. All too often, that is at the cost of public good.

A seed company, fertiliser or pesticide manufacturer, or tractor company will want to sell more of their products, but moving in the direction we are talking about—agroecology, agroforestry, looking after the land—often means reducing, and using fewer, inputs: for example, using a local tree nursery for hedges and fruits rather than a multinational seed company. Yet, so much of the advice and information that farmers have been forced to rely on over recent decades has come from those commercial sources, which do not want to head in the direction provided by this Bill. So, we have to provide an alternative source of advice.

If we look at the history of this—to where we went backwards and went wrong—we go back to 1996 and the debate in your Lordships’ House on the privatisation of ADAS. Lord Mackie of Benshie said then that charging for its services had led to less advice being requested, a shift towards commercial suppliers’ advice and a concern about how public opinion of farmers had declined. In Committee on this Bill, I put forward a modest little amendment, 234, suggesting that a service be established by means of which farmers could associate, lead research and work with the experts we have now.

I ask the Minister at some point to look back to that discussion. One interesting, original contribution came from the noble Lord, Lord Adonis, who developed this proposal into something like a NICE for farming. Where otherwise is the advice and support in this clause to come from? It is clear that we need a duty to provide that advice, as so many other noble Lords have said in this debate. Farmers cannot be left on their own in this fast-changing, uncertain situation. This is not just about the Agriculture Bill; so many other aspects of the world are changing—the climate emergency, for example, and different markets and economic situations. We need to develop the expertise; we need the Government to do this. I would argue that this amendment is a crucial step in that direction, and I commend it to your Lordships’ House.

[Lord Carrington (CB)]

My Lords, I declare my interests as set out in the register. I supported the noble Lord, Lord Grantchester, on the same amendment in Committee and I continue to support him. I will not repeat my previous remarks but emphasise that, without access to funding for advice, the take-up of the proposed environmental land management schemes will be more limited. I certainly agree with the interesting hypothecation idea of the noble Lord, Lord Inglewood.

Farmers will be considering new ventures of which they may have no experience, so they need funding for advice. The average farmer is not a rich man; his success is likely to have come from concentrating on what he knows best. Our capricious climate has clearly demonstrated that sticking to what you do best is a sensible policy in farming. The farmer is therefore unlikely to rush into a new scheme without considerable thought and encouragement. As mentioned by the noble Lord, Lord Grantchester, he is also aware that under previous schemes, including BPS, the sanction regime has been tough. So, once again, he is unlikely to move swiftly into ELMS without a great deal of thought and advice.

I raised in Committee the issue of the digital divide, which was identified by the University of Sheffield and the Institute for Sustainable Food. For many in rural areas, access to good broadband may be limited. This, together with lack of time and, perhaps, age and social isolation, has made it difficult to follow developments on the ELM schemes. All this means that it is so important to provide financial advice to farmers for training and guidance so that they can be encouraged into ELMS on the basis of knowledge and confidence.

[Baroness McIntosh of Pickering (Con)]

My Lords, I congratulate the noble Lord, Lord Grantchester, and his co-signatories on bringing this amendment forward. It is absolutely essential that farmers have the best advice available before they make a decision. I notice that the explanatory statement for the amendment given by the noble Lord, Lord Grantchester, refers to

“training, guidance and advice to be made available to persons receiving financial assistance.”

I make a plea to the Minister that this advice should be given before they even apply for financial assistance to enable them to decide how best to seek that financial assistance and to put it to good use.

I urge the Minister, when she sums up this debate, to agree to the sentiments behind the amendment and to consider who would best give such advice. Agriculture societies, such as the Yorkshire Agricultural Society, and many farming charities are very well placed to do so, in addition to many government bodies such as Natural England and others that the Minister might have in mind. I commend the amendment to the House.

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[Baroness McIntosh of Pickering (Con)]

My Lords, it gives me great pleasure to move and speak to Amendment 36. This group of amendments covers a range of activities relating to the transition period. I am grateful to the noble Baroness, Lady Ritchie of Downpatrick, the right reverend Prelate the Bishop of St Albans, and the noble Earl, Lord Devon, for their support in co-signing the amendment. The attraction of Amendment 36 is its clarity and straightforwardness: it calls for a simple deferral of commencement, moving the start of the seven-year transition period away from direct payments from 2021 to 2022.

Why is this necessary, given that the House has just agreed to government Amendment 35? I listened carefully to what the Minister said. He was clear that he could not give a precise date when the Environment Bill will reach this House—that is obviously not within his control, so I am grateful to him for that—and the department is keen to make progress. However, we owe farmers and other land managers a degree of certainty as they prepare for the biggest change in nigh on 50 years in farm support and agricultural policy.

I was disappointed that the Minister was unable to give a specific date, much as he would wish to, for the business plan setting out spending for the initial five-year period. We heard only that it will be published in the autumn. The autumn finishes on 30 November but potentially could run until 21 December. That could be after both Houses have risen—if we do rise—for the Christmas recess. That is very disappointing, although I know the Minister couched his remarks by saying he would like to see the spending and financial plan in place as soon as possible.

The difficulty I—and, I think, other signatories to this amendment—have is that I do not see any logic at all in why, for subsequent plans, a period of at least 12 months before the beginning of the plan period should take effect. My humble submission to the House this evening is that it is even more important for the Government to set out in their initial spending plan what the consequences for farmers will be. We are asking farmers, land managers, growers and others—I know my noble friend Lord Naseby takes great interest in horticulture—to take decisions for the forthcoming year without any of us knowing in any great detail what the terms of this financial assistance plan under Clause 4 will be. My noble friend helpfully points out in the explanatory statement to government Amendment 35 that

“the first multiannual financial assistance plan under Clause 4 must be published as soon as practicable before the beginning of the applicable plan period”,

but, as I have said, only subsequent plans would need 12 months’ notice.

I humbly submit that it is incumbent on the Government to bring forward this first plan, which—if my understanding is correct—will last for the whole transition period. I am not asking for the transition period to be reduced, as others have done. That would be quite wrong. We owe it to farmers, growers and others to have seven years to prepare, but for the life of me I simply cannot understand why we are not having a 12-month period and a delay. I therefore urge the House to look favourably on this simple delay of one year so that we all benefit from the results of the pilot schemes and the ELMS projects. I see newspaper reports that the Chancellor of the Exchequer, for example, has been to visit local farms in his constituency in North Yorkshire, but other than the farmers themselves—and Defra, presumably—none of us has any detail whatever.

I shall listen carefully to what support there is for this amendment in the course of the debate on this group. I seek greater clarification from my noble friend the Minister. I would like to know why there is not a 12-month lead-in to this crucial first business plan and why we are not seeing the results of the trials. I express my concern at how little knowledge there is at grass-roots level about how any plan will affect decisions that, frankly, are being made as we speak. I beg to move.

[Lord Carrington (CB)]

My Lords, I declare my interests as set out in the register as farmer, landowner and a recipient of BPS payments and their predecessors for many years. I will speak to Amendment 37, to which the noble Lord, Lord Curry of Kirkharle, has kindly attached his name, and Amendment 40, to address the problem of the likely payment gap that will affect farmers as the direct payments are reduced in 2021, while the revenues from joining any new environmental land management scheme will not arrive until 2024.

I covered this in some detail in Committee and will not repeat that speech. However, the subsequent response from the Minister, the noble Lord, Lord Gardiner, and his office, together with the progress made on issues I identified at that time, has not made me rest any easier—indeed, the reverse, which is the reason this amendment has been tabled on Report.

First, we have no information on the cuts to BPS after 2021. Although promised for the autumn—which has arrived, of course—it might well be delayed until after the Bill comes into effect.

Secondly, we still have no real details on ELMS that would enable even elementary planning. Instead, during July Defra organised webinars for farmers to introduce ELMS. These were excellent and slick presentations of the concept but, when it came to the Q&A session with farmers afterwards, there were no answers to be had.

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Moved by

[Lord Carrington]

37: Clause 8, page 7, line 40, at end insert—
“(1A) Where any business is in receipt of direct payments under the basic payment scheme, any financial assistance from the Secretary of State may not be reduced by more than 25% of the specified amount in subsection (1B) prior to a scheme providing financial assistance under section 1(1) being introduced.(1B) The specified amount is an amount to be determined by the Secretary of State by regulations, and may be based on—(a) the amount a business received under the basic payment scheme for a specified year, or(b) the average amount a business received under the basic payment scheme over specified years before 2021 determined by the Secretary of State.(1C) Regulations under subsection (1B) must provide for a right of appeal if a business believes that any financial assistance they receive will be reduced by more than 25% of the specified amount prior to a scheme providing financial assistance under section 1(1) being introduced.”Member’s explanatory statement
This will ensure that cuts in direct payments for 2021, together with the currently unknown cuts in the following years, do not inadvertently damage the viability of farming businesses before they can adapt their business plans to benefit from the productivity grant schemes due to uncertainties regarding trade agreements and the proposed agri-environment schemes.

[Lord Carrington (CB)]

My Lords, I listened very carefully to what was said by the noble Lord, Lord Gardiner. Frankly, none of the responses added any further light, other than the very last response, which was achieved by questions from the noble Baroness, Lady McIntosh, and the noble Lord, Lord Grantchester, on the sustainable farming initiative. That appears to be the only new news we have had all evening. I talked about the inadequacy of the old countryside stewardship schemes and productivity grants. So I must say that I am extremely disappointed.

Having said that, I cannot find great consensus around the House to combine on one of the three proposed amendments that broadly cover this issue. I certainly would not want to divide the House without seeing that sort of consensus so, with great reluctance, I move and withdraw my amendment.

Amendment 37 withdrawn.

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

My Lords, I will speak to Amendment 44, which is the last of the day in my name. It is complementary to Amendment 43 from the noble Lord, Lord Cameron, and I adopt everything that he has just said on rural development. It permits provision for future contributions to existing socio-economic schemes, which provide essential capital investment and support for rural businesses and have been warmly adopted in the south-west. I declare my direct interest as the recipient of a RDPE grant, albeit that the project in question has been delayed—as has so much—by coronavirus.

As the noble Lord, Lord Cameron, explained, the need for this amendment arises from the ongoing uncertainty around the scope and timing of the UK’s Shared Prosperity Fund. This may or may not come into effect in 2022. If the last few years have shown us anything, it is that the best-laid plans often go awry. This amendment aims to provide some confidence to recipients of existing RDPE schemes that they will be supported going forwards, whatever lies ahead.

[Lord Carrington (CB)]

My Lords, I declare my interests as set out in the register. I support both amendments. In the case of Amendment 43, in the name of the noble Lord, Lord Cameron of Dillington, I believe that, with our existing knowledge of the precarious existence of farmers—particularly in upland areas—and their importance to the physical and social landscape of their localities, it is important to be able to support them through non-production-related schemes, as many of the existing and proposed schemes may not work for them. I hate to bang on about this, but it is particularly relevant in the light of the proposed cuts to BPS—even if it is only 5% in the first year, although some of us argue about how important 5% is. There is a lack of detail about what will follow in subsequent years, and also a lack of detail on ELMS.

I see no reason why Amendment 44, in the name of the noble Earl, Lord Devon, cannot be adopted, as it should cost the Government nothing since contributions to the RDP should already have been budgeted and, as I understand it, are expected to be rolled into the new proposed UK Shared Prosperity Fund. It is therefore just a timing issue, and correctly gives the necessary reassurances to the current RDPs.

[Baroness Bennett of Manor Castle (GP) [V]]

My Lords, I am in favour of both these amendments. I was just reflecting on a visit I made to a small town in south Shropshire called Clun, which was then home to what was said to be the food bank in the smallest community anywhere in the UK. I am glad that both noble Lords introducing these amendments have focused not just on the individual situations, as pressing as they often are, but on the need for communities to be assured that money is coming in. On that basis, we want a Britain where there is no need for any food banks; we should not rest until the last food bank closes due to lack of demand. In the meantime, we have to find other ways to make sure that money is going into communities that sometimes are, and have for some time been, really struggling.

Agriculture Bill

Lord Carrington Excerpts

Committee stage & Committee: 7th sitting (Hansard) & Committee: 7th sitting (Hansard): House of Lords
Tuesday 28th July 2020 Lords Chamber

Moved by

[Lord Carrington]

295: Clause 47, page 40, line 28, leave out “primary legislation,”
Member’s explanatory statement
This amendment seeks to remove the power for statutory instruments to be used to amend primary legislation

[Lord Carrington (CB) [V]]

My Lords, I declare my interest as a farmer and landowner as set out in the register. I have tabled Amendment 295 with the kind support of the noble Lords, Lord Greaves and Lord Addington, and the noble Baroness, Lady Jones of Moulsecoomb, and Amendment 298 with the support of the noble Lord, Lord Greaves, and the noble Baroness, Lady Jones of Moulsecoomb, after discussion, of course, with the National Farmers Union. Both amendments relate to general and financial provisions in the Bill.

The purpose of these probing amendments is to understand from the Government how they intend to use the power of modifying primary legislation. Such an action highlights the relative lack of parliamentary scrutiny involved with statutory instruments. Many of us have a general discomfort with statutory instruments being used to amend primary legislation for non-specific purposes. I would be most grateful if the Minister could indicate how this power would be used in a fully accountable manner.

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[Lord Carrington [V]]

My Lords, I am most grateful and thank the noble Baroness, Lady Jones of Moulsecoomb, the noble Lords, Lord Thomas of Gresford, Lord Marlesford and Lord Campbell of Pittenweem for their invaluable participation in this most concerning penultimate debate on the Agriculture Bill.

At the end of the seventh day—which should, in biblical terms, be the day of rest but certainly was not—my noble friend the Minister overwhelmingly deserves a well-earned rest after this marathon Committee stage, during which he has demonstrated his complete mastery of the subject. We may not always agree with him or be satisfied by his responses, but his patience, courtesy and knowledge have shone brightly, and I think we all thank and admire him.

In respect of my two amendments, I have listened with care to the explanation and reasoning of the noble Lord, Lord Thomas, and the Minister. I will study these further but, in the meantime, I beg leave to withdraw the amendment.

Amendment 295 withdrawn.

Agriculture Bill

Lord Carrington Excerpts

Committee stage & Committee: 6th sitting (Hansard) & Committee: 6th sitting (Hansard): House of Lords
Thursday 23rd July 2020 Lords Chamber

[Lord Judd (Lab) [V]]

My Lords, I thank my noble friend for the very warm reception that she given to my amendment. I strongly support what she is putting before the Committee. It seems to me vital and very sensible.

The word “crisis” is overused these days, but we really do have a crisis in rural areas. What used to be thriving communities based on agriculture have become very dependent on people from other parts of the country who, like me—I plead guilty—have settled in those areas. We have now reached the stage where communities in rural areas have real difficulty in getting even the basic services that they need, such as social workers, health workers and the rest, because they simply cannot afford to live in the area. That goes for farmers, people who want to farm and those who have come from generations of farmers and want to continue that tradition.

On Tuesday, we debated the measures to help people who want to farm to prepare to do so, and my noble friend Lord Whitty put forward a very important amendment in that context. However, we must recognise that, if that intention is to be fulfilled, it is essential that they have the facilities and support that they need to establish themselves. My noble friend’s Amendment 218 talks about ensuring that

“agricultural workers have sufficient access to … financial advice … mental health support, and … any other support the Secretary of State deems appropriate”.

That is right, but I feel that no single provision is more important than ensuring that they have the housing they need to be able to maintain family life and do not to have to travel great distances so they can to play a full part in the community, as well as performing in agriculture.

As I have said, I am grateful to my noble friend for being so friendly towards my amendment. I just hope that her amendment, and my amendment to it, will commend themselves to the Committee. I beg to move.

[Lord Carrington (CB) [V]]

My Lords, I declare my interest as a farmer and landowner, as set out in the register. I have added my name to this important amendment—Amendment 218—tabled by the noble Baroness, Lady Jones of Whitchurch, because I believe that without a duty to sustain the UK agricultural industry workforce, the aims of the Bill, and in particular the continuation and development of sustainable farming, cannot happen.

Currently, farming is characterised by one-third of farmers being over 65 and only 3% being under 35 and by a very unattractive career image in terms of earnings. With this Bill and its aim of encouraging the retirement of older farmers and intention of bringing younger people into the industry, it is vital that education and training are raised up the agenda, and that means improving formal qualifications.

At the same time as encouraging our own young into the industry, we need to make sure that, as envisaged in subsection (1)(a) of the proposed new clause, where necessary we can supply seasonal workers, even if that means bringing them in from abroad. A vegetable or fruit grower in Lincolnshire, or wherever, will soon give up his labour-intensive operation if he cannot get the pickers. The result will be that production moves overseas, with the associated negative consequences for the environment and food security.

After a 185% growth in UK soft fruit production over the past 20 years, this is a very dangerous situation. The National Farmers’ Union estimates that we require around 70,000 seasonal workers, with the bulk being required between April and September. The ONS estimates that 99% come from the EU. Up until March—the slow season—the shortage was estimated at around 5%. The Pick for Britain campaign has been very welcome but the results have been somewhat patchy, and, as the economy recovers, furloughed workers will return to their jobs, which will exacerbate the problem. The Government’s seasonal workers pilot scheme, although expanded from 2,500 to 10,000 overseas workers, is woefully inadequate and is scheduled to end this year. Can the Minister tell us what is likely to replace this scheme?

In his letter of 29 June, the Minister, the noble Lord, Lord Gardiner, drew attention to government activity in the area of training and skills—in particular, the apprenticeship programme and technical education—together with the increasing funding that is available, all of which is most encouraging. This is the purpose of proposed new subsection (1)(b). We should all welcome the development of a new farming qualification to attract teenagers into the business by increasing the support of T-level courses. The Government’s Institute for Apprenticeships and Technical Education is currently looking at the content of courses. Currently listed are crop production, forestry, habitat management, land-based engineering, livestock production, ornamental and environmental horticulture, and trees and woodland management and maintenance. All that is ongoing. I believe it is of such overall importance that it needs to be specifically contained in the Bill and thereby protected from future attempts to pare back this crucial element of both agriculture and the wider skills of the environmental land management scheme.

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[The Deputy Chairman of Committees (Lord Alderdice) (LD)]

I think the noble Baroness has frozen. I call the noble Lord, Lord Carrington.

[Lord Carrington [V]]

I tabled Amendment 247, which relates to marketing standards, after discussion with the National Farmers’ Union. It is important and appropriate to be clear about why we should have marketing standards for agricultural products. This is something that the European Union has undertaken, with our full support. It therefore follows that, on leaving the European Union, we too should ensure that the provisions for establishing marketing standards in the UK are clearly set out in the Bill.

The precise wording of the amendment is taken from the purposes in the common market organisation EU regulation 1308/2013. If the purpose of marketing standards is clearly defined then subsequent regulations could be brought in only for legitimate purposes, as defined in Clause 35. I would therefore be grateful if the Minister could give his reasons for departing from this previously agreed and acceptable wording, as set out in the CMO.

[Baroness Jones of Moulsecoomb [V]]

My Lords, I will speak to Amendments 248, 250, 251, 252, 254 and 266 in my name, some of which are supported by my noble friend Lord Holmes. I will speak also to Amendment 256 in the name of the noble Baroness, Lady McIntosh of Pickering.

Agricultural products, especially animal products, should all be raised to and maintained at the highest possible standards. While the Government prefer to leave so much to consumer choice, good and informative product labelling on foods is absolutely essential. People deserve to have reliable information about the food they are eating that is rigorously tested and independently verified, and there should also be appropriate fines for misleading labelling.

Too much greenwashing and misleading information is put out by big companies and trade bodies, which trick consumers into thinking that things are healthier, happier or fairer than they actually are. This needs to be sorted out so that truly great producers thrive without false competition.

Agriculture Bill

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

[Baroness McIntosh of Pickering (Con)]

My Lords, I am delighted to follow the noble Lord, Lord Teverson, who is the illustrious chairman of our EU sub-committee. For the record, however, I would like the transition period to remain as it is.

I want to speak to Amendment 143, and I thank the noble Baroness, Lady Jones of Moulsecoomb, my noble friend Lord Caithness and the noble Earl, Lord Devon, for lending their support. It is a simple amendment, which would delay the start of the seven-year transition period away from direct payments coming into effect from 2021 to 2022. I should like to pause here to explain why this is necessary.

In seeking to delay the start of the transition period to the new policy framework to 2022, I accept that there is wide support across the House for the government objectives in the Bill to move towards a new framework of support for agriculture that focuses on public payments for public goods and increasing productivity. Much of the detail will be set out in supporting regulations and in the Environment Bill, of which we in this House have not yet had sight. However, the changes being envisaged will be the biggest in a generation and look set to be in place for many years to come.

I accept that we are leaving the European Union but note with regret that, in the four years since the vote in June 2016 signalled the beginning of a process of change, particularly in leaving the CAP, we have made very little progress in developing the necessary mechanisms, policies and schemes that would be worthy of the major changes that we are expecting in this Bill. I accept that much of this is down to the political impasse leading up to the last general election and, more recently, to the pressing issues around controlling Covid-19, which I am sure have affected Defra as they have many other departments.

It is essential that we take the time to introduce new schemes and measures that will stand the test of time, rather than simply bringing them in quickly for the sake of it. I fear that there is an overarching desire through the Bill to show that things have changed as a result of our departure from the European Union, rather than to ensure that we put in place good, made-for-purpose, fit-for-purpose, resilient schemes. Let us face it: our track record in delivering new schemes and new IT to support them is not that great.

Following the environmental land management scheme tests and trials, which themselves have been impacted by the issues surrounding Covid-19 and are ultimately delayed, the Government intend to conduct a pilot in England of a new ELM scheme in 2021, with a view to it being fully operational by 2024. However, if it is true that the Rural Payments Agency will be in charge of running these pilots—I hope that my noble friend can put my mind at rest on that—we have to question its capacity to run such a pilot when it is already struggling to deliver business as usual. Once again this year, the RPA has had to ask the Treasury for funding to bridge payments to environmental stewardship and countryside stewardship applicants before being penalised for failing to meet the required payment targets by 30 June this year. What reassurance can the Government provide that there is adequate capacity within the RPA to deliver the pilot, or does my noble friend think that another body would be more appropriate?

I also place a question mark on the extent to which the Government would be able to spend any money saved through the reductions in direct payments starting in 2021. I understand that Defra has identified this as a potential problem and is therefore looking to make an announcement in September about enhanced options for countryside stewardship and productivity schemes. However, we have none of the detail available to us today. In my view, the sensible thing is to delay the start of the transition period until 2022. That is not kicking the can down the road but giving the Government and Defra the time and space to deliver the good schemes that we know they are capable of, rather than producing half-baked schemes.

The reasons for this delay are these: we are being asked to take a lot on trust; we have not had sight of the Dimbleby food strategy, which I understand will not reach us before Report; we have not had the results of the trials of the ELM schemes; the OEP has yet to be set up; and we do not know what its relationship to the Environment Agency, Natural England and the RPA will be. We owe it to Defra to give it time, because of the Covid pandemic, to reach a proper conclusion to these schemes. I therefore ask the House to commit to supporting Amendment 143.

[Lord Carrington (CB)]

My Lords, it is a pleasure to follow the noble Baroness, Lady McIntosh of Pickering, whose analysis I almost completely agree with, although my conclusion is a little different. I declare my interests as a farmer and landowner, as set out in the register, and that I have been a recipient of the basic payment over several years.

I tabled Amendment 144, to which my noble friend Lord Curry of Kirkharle has kindly attached his name, and Amendment 145 in order to address the problem of the likely gap that will affect farmers as direct payments are reduced in 2021, while the revenue from the joining of any new environmental land management schemes will not arrive until 2024—although this will be mitigated for some farmers who have existing countryside stewardship schemes. This is no small issue. As we have heard in the debates on the Bill, the BPS accounts for some 58% of farm business income, varying from sector to sector, and around 25% of farms are unprofitable without it.

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[The Deputy Chairman of Committees]

The noble Lord, Lord Inglewood, has withdrawn, so I call the noble Lord, Lord Carrington.

[Lord Carrington]

My Lords, I declare my interests as a farmer and landowner as set out in the register. I support the proposal in the name of the noble Earl, Lord Devon, to remove Clause 34 and Schedule 3 covering agricultural tenancy provisions. I agree wholeheartedly with everything said by the noble Baroness, Lady Neville-Rolfe.

As drafted, the clause is neither fish nor fowl nor good red herring, in that—despite the important work of the Tenancy Reform Industry Group—the prospective legislative reform is not balanced and reflective of both parties’ interests, and runs the risk of damaging relationships and increasing anxiety and uncertainty. Although I welcome some of the proposals of Schedule 3—such as the removal of the minimum retirement age of 65 from AHA tenants, the widening of the pool of arbitrators and the paragraph to protect both tenant and landlord in new investment—others are more contentious.

In particular, I welcome the introduction of a strengthened condition of suitability for those succeeding to a tenancy, but the detail has not been agreed by the industry and should not be left unclear. Until the regulations are drafted, landowners cannot be certain whether the “improvement” suggested will diminish the effect of the loss of the commercial unit test. Neither is it clear how landowners’ interests are protected in the assessment of reasonableness.

The NFU has welcomed the reforms but also urges that other reforms under discussion at TRIG, such as landlords’ consent on variation of terms under the tenancy Act, are taken forward. Please could the Minister consider separate legislation on tenancy reform, rather than rushing it through as part of the Agriculture Bill? The issues are different, and it is clear from this Bill that what is proposed is only a first step and lacks detail. TRIG has been united on supporting landlord-tenant relationships, and this should be built on.

[Baroness Bakewell of Hardington Mandeville [V]]

My Lords, this large group of amendments—and, indeed, large group of speakers—concentrates on new entrants into farming. I have added my name to Amendments 237 and 245. My noble friend Lady Northover has added her name to Amendments 241 and 244 but, due to unforeseen circumstances, is not able to be present this evening.

At Second Reading, many of your Lordships spoke in favour of ensuring that the passage of new entrants is facilitated. The move from direct payments under the CAP to ELMS is likely to see some of our more seasoned farmers deciding to leave the land to retire or to move on to other, less strenuous occupations. The noble Baroness, Lady Young of Old Scone, and others have spoken against the community infrastructure levy being applied to new farm buildings, and I support her amendment.

It will be vital to encourage younger, more energetic men and women to enter the profession. Some will be the sons and daughters of existing farmers and able to take on the family farms. Others will be graduates from agricultural colleges who have always had an interest in the land and farming. All will need help, support and encouragement. The supply of those not inheriting farms will be an essential element of success. Without land, you cannot farm.

Given the very short timeframes of the average farm tenancy, as relayed to us by the noble Earl, Lord Devon, do the Government see larger landowners making some of their land available for new entrants?

Many county councils have been forced to sell some of their farms to raise money for other capital projects, and local authority funding is, as ever, problematic. I know from my own county experience that these farms come in a variety of sizes, from very small starter farms to large move-on holdings, but they are rarely very large holdings. For some, the starter units give a flavour of what is involved, but they are not always large enough for them to make a living. The role of the county farm estate is to give a helping hand to those starting out. Some tenants will stay until they need to retire; others will wish to move on to larger farms in other areas. Whatever their wish, the Bill needs to facilitate this.

On Thursday, we heard of the valuable contribution that prosperous landowners with huge holdings are making to the debates in this House. However, I believe that it is the smaller farmers—especially those on the edge, such as hill farmers and those on less productive soil—who need our special consideration. I agree with the noble Earl, Lord Devon, that a three-year tenancy is completely inadequate. Farming is a long-term business, and the noble Lord, Lord Curry of Kirkharle, made a powerful case for tenancies to be set at 10 years to allow a continuity of supply of starter farms.

Tenant farmers are potentially at the mercy of landlords. It is therefore important for them to be able to access funds and not to be dependent on what the landlord says. For example, there are cases where a landlord hopes to get planning permission and does not want the commitment of a grant attached to the land, especially if it lasts for a particular length of time. Sadly, on some occasions, although not all, they would rather their tenant went under than have a constraint preventing them obtaining planning permission. I support the comments of the noble Baroness, Lady McIntosh, on this amendment. I note that the noble Lord, Lord Marlesford, believes that the conversion of redundant farm buildings to homes is good, but we must be sure that the buildings are indeed redundant and that the farmer is not looking to make more money by converting them into dwellings.

It is important that tenants are protected from a landlord’s refusal to consent to enter into financial assistance schemes. It is for the tenant farmer to decide what he or she wishes for their farm. Can the Minister confirm that landlords will be prevented from blocking their tenants’ aspirations? The noble Lord, Lord Taylor of Holbeach, gave an example of the farming ladder. The ELM schemes need to work. Cropping licences are an important part of the local economy. This is a short-term licence, and I look forward to the Minister’s response.

The terms of inheriting farms are very different from those of other enterprises. Children grow up on farms and it is in their blood. They have developed skills throughout the years. They might not be the sons or daughters of the farmer; they might be the nephews, nieces or grandchildren. Should the farmer die suddenly, as has been the case with three of the farms in the village where I live, members will want to take over the farmer’s tenancy. I note the opposition of the noble Baroness, Lady Neville-Rolfe, to this amendment. Often landlords will be keen for this to happen, with continuity being provided. Immediate family might not be in a position to take on the tenancy, and nor might they wish to do so, but other family members of tenant farmers might absolutely want to carry on the farming tradition, having already invested a large part of their lives in the tenant farm. The noble Lord, Lord Judd, and the noble Earl, Lord Caithness, spoke of the selling off of hill farms to those living away from the land, with it not being farmed in the way intended but often being used as pony paddocks.

As has been said, the average age of a farmer is now over 60, and this is very concerning. We have to make sure that young farmers are able to get started. Given that it is almost impossible for someone without independent means to buy land or to borrow enough from a bank, as predicted profits are so limited, unpredictable and long-term, a tenancy is the only way to provide for young farmers. The noble Lord, Lord Cameron, gave a very powerful example of how elderly farmers are trapped on county farms that are no longer capable of providing a living. Diversification and new ideas are important so that these farms can be taken forward. Therefore, the amendment on widening the inheritance of tenancies seems very important. Can the Minister give an assurance that members of a farmer’s extended family will be able to inherit the farm? This is an important aspect of the Bill and I look forward to the Minister’s reassurance on these issues.

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[Lord Hain [V]]

My Lords, it is always a pleasure to speak after the noble Baroness, Lady McIntosh, who speaks with such authority and passion on these agricultural questions.

I wish to speak to my Amendment 175; I am grateful for the support of the noble Lord, Lord Cormack. The agricultural sector has always been subject to the whims of nature and climate. However, recent years have seen an increase in disruptive weather patterns, such as prolonged, unseasonal periods of flooding, extreme cold and heat, and drought—often with different challenges at the same time in different areas of the country. We have also experienced the impact that invasive diseases, such as bird influenza, blue tongue and ash dieback, can have on plants and animals.

These unexpected, often catastrophic, events can deliver significant damage to our agriculture businesses, both individuals and whole sectors. A year’s worth of income can be decimated by one bad storm or a few rain-free months during a growing season. In Wales, the 2013 heavy spring snow is a good example; by the way, England was even worse hit then. Another example in Wales is the long summer droughts of 2018 and 2019 that caused even secure water sources to dry up and arable yields to drop significantly as water for irrigation was unavailable. These farming “natural disasters” are at such a scale that there is a case for state sector intervention of the kind that this amendment proposes—especially with the growing impact of climate change, which is undoubtedly a cause of them.

These uncontrollable factors uniquely affect the products that we grow from our land. Increasingly, it is not just the market conditions of the globalised agricultural commodity markets that affect our core industry of food and farming; it is the untameable elements of nature that are getting increasingly erratic and wild. This new reality, already acknowledged and understood when we look at actions around climate change adaptation, needs to be extended into the thinking on how we support farming businesses affected by these situations. The drivers of exceptional circumstances have changed, and we must change with them. I hope that the Government take heed of that.

Indeed, that imperative is underlined by official Defra statistics showing that our food sector is heavily reliant on imports. We export £2.1 billion of meat but import £6.6 billion, and we export £1.3 billion of fruit and veg but import a massive £11.5 billion. We are so vulnerable as a nation over our food supplies; that is made worse by the ravaging effects of climate change.

The policy objective of this Bill is admirable. It is to encourage and incentivise our farmers, the custodians of our countryside and the managers of our land, to deliver more environmental benefits from their land use and use new trade opportunities and markets to increase economic sustainability. This ambition must be balanced with a fresh look at how, when and why the Government are willing to provide additional support to a key economic sector in crisis. That means looking beyond the traditional and narrow definition of what drives economic failures. It also means acknowledging and providing emergency support tools to deal with the reality that our climate, our weather and our environment are changing and that businesses operating in the natural environment will be detrimentally impacted by factors completely beyond their control—indeed, beyond our control—including the Covid-19 pandemic, an unexpected crisis that has shaken the world economy beyond anybody’s imagination. We should be using this opportunity to make sure that we have the tools and powers in place to allow us to support those businesses if and when a natural crisis occurs, which is what Amendment 175 seeks to do. I hope that it finds favour with the Minister, who has played such a constructive role in his sympathetic handling of this Bill.

[Lord Carrington]

My Lords, I declare my interests as a farmer and landowner, as set out in the register. I had great pleasure in putting my name to the important Amendment 174, and to Amendment 285, proposed by the noble Baronesses, Lady McIntosh of Pickering, Lady Jones of Moulsecoomb and Lady Ritchie of Downpatrick. This amendment has the support of the Tenant Farmers Association, the National Farmers’ Union and the CLA, together with a high proportion of farmers. They have the invaluable experience of farming the land and are well aware of the many unpredictable factors that can quickly turn a crop from profit to loss or livestock from asset to liability.

Amendment 174 widens the definition of “exceptional market conditions” to make sure that as many circumstances as possible are covered. It moves beyond global market changes to other triggers, such as severe weather and disease. The intention is not to provide an easy escape route for farmers to claim that circumstances have conspired against them. The definition remains tighter than many would wish. It is particularly important that we get this right, in view of the removal of the overall safety net of the basic payment scheme, which has protected farmers from so much volatility, often caused by exceptional market conditions, for over 40 years.

The importance of the amendment is shown by the events earlier this year when rain caused devastating flooding. Happily, the Government stepped in and support was given to flooded farms. However, the effects of this—hopefully exceptional—weather event were felt much more broadly, and the result can be seen across the country: land left fallow, patchy crops and much more. Most farmers have relied on the BPS to cover their fall in income. This sorry situation was compounded by the length of time it took the Government to repeal the three-crop rule. Desperate farmers drilled crops in unsuitable conditions to adhere to the rule, and this has caused environmental damage to soil structure and more.

It is also vital that a process exists to ensure that there are no delays in triggering intervention. The impact of Covid-19 on the dairy industry is a good case in point. Although a support scheme was implemented, it took an inordinate amount of lobbying by the industry to achieve a positive result.

Finally, I am not a lawyer, but I ask the Minister to clarify exactly what is meant by “prices achievable” in subsection (2)(b). It is surely a matter not just of price but of income too. Can the Minister confirm that it covers the situation where a farmer or grower cannot achieve the price because he does not have the product to sell, due to drought, flood, disease or other exceptional conditions?

[Baroness Ritchie of Downpatrick [V]]

My Lords, I support Amendment 174, in the name of the noble Baroness, Lady McIntosh of Pickering. This amendment reflects and acknowledges the situation, while also being probing. The nature of our climate is changing and, as the noble Lord, Lord Hain, said, we are now facing disruptive weather conditions. In many ways, those conditions have changed our climate, in geographical terms, from a temperate one to an extreme continental pattern. I hope the Minister will consider that we now have chronic weather patterns and that financial considerations in the Bill should therefore reflect those in some way. The amendment strengthens this clause and brings it up to date in the light not only of Covid but of extreme climatic conditions, and I am content to support it.