Agriculture Bill

Lord Curry of Kirkharle Excerpts

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

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

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

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

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

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

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

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

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

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

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

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



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

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

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

[Lord Randall of Uxbridge (Con) [V]]

My Lords, I will not detain you long. I have every sympathy with the impatience of the noble Lord, Lord Teverson, to get on with improving our biodiversity. However, I do not think it is feasible to bring this forward from seven to five years, so I am afraid that I cannot support that, however much I am keen for the things that we all hope for to take place.

I agree very much with my noble friend Lord Caithness. The more I have listened to our proceedings, the more respect I have for farmers—I had a great deal of respect for them before—and I can imagine what it is like facing these changes with all the uncertainty that we have just been talking about. Having been not in farming but in retail for most of my working life, I can imagine the concerns about the future. I would also say, however, that we always work to deadlines. If we extended things, we would be in a similar position, so I cannot support any extension as discussed—very eloquently—by many noble Lords.

I have put my name to Amendment 147 in the name of the noble Baroness, Lady Jones of Moulsecoomb, principally to emphasise my concerns over any reduction in animal welfare. I have no doubt at all that British farming has the highest standards of animal welfare in the world and I do not think for one minute that that will be negated by anything in the Bill, but I wanted to underline my concerns on that.

Again, I give my support in as far as upland farms, and to some extent some livestock in the lowlands, are some of our most precious guardians of the countryside and are really threatened by some of these measures. I urge the Government to look at this; I am sure that they will.

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Continuity, flexibility and a joined-up approach to these new funds—as driven by the content of Amendments 155 and 156—would be highly relevant in these difficult times. I hope that the Minister will take on board all three amendments in his summation of the debate.

[Lord Curry of Kirkharle [V]]

My Lords, I will speak briefly in support of my noble friend Lord Devon on Amendment 155, and of my noble friend Lord Cameron on Amendment 156.

As I said in an earlier debate, the changes in policy embraced by this Bill are a huge opportunity but a massive challenge. One challenge is the lack of clarity on rural development. I am concerned that the Government’s response to the Rural Economy Committee’s report—I was a member of the committee—rejected a recommendation that there should be a dedicated element of the shared prosperity fund for the rural economy. Furthermore, as my noble friend Lord Cameron, has said, there is confusion about where support will come from for farming families, whose survival will depend on diversified activity. It is very unclear where the boundaries are within the potential sources of funding. The scope of the ELM scheme is unclear; the future of the RDPE is unclear; and the long-awaited terms of the shared prosperity fund are unclear. All this is on top of the fact that we await the details of the Environment Bill.

The level of uncertainty is unparalleled; there are so many overlapping unresolved issues. Twice this afternoon Psalm 23 has been quoted, likening the potential risk that we face to

“the valley of the shadow of death”.

The psalm continues with the phrase

“I will fear no evil”,


so I am sure that the Minister will provide clarity on this important issue.

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[Lord Curry of Kirkharle [V]]

My Lords, I am very pleased to attach my name to Amendment 158, in the name of the noble Lord, Lord Whitty. The tenant farming sector is hugely important in the United Kingdom. Some 30% of all agricultural land is tenanted. I have long been concerned about the future of the county farms estate. As the noble Lord, Lord Whitty, said, many have been disposed of, including in my own county of Northumberland. Indeed, in conjunction with the Tenant Farmers Association, I wrote a report in, I think, 2007 on this topic.

Many of the farms that remain under the ownership of local authorities are no longer smallholdings. Of course, it is important that farms of different sizes are available to let to tenants. I speak as someone who started farming in 1971 as a tenant on a relatively small mixed farm in Northumberland. We had then what we called a farming ladder: it was possible to start small and, through hard work and sound business skills, gradually move on to larger farms. The model worked really well and provided an entry into farming for those from outside established farming businesses. New blood is crucial for any industry sector, and certainly for farming. Many of today’s successful farming families started small and have built impressive rural businesses as a consequence.

County farms are clearly owned by local authorities, but, as I said in the aforementioned report, they are a national asset and should be retained. Too often, local authorities have taken short-term decisions to dispose of their landholdings to plug an annual funding gap without, in my view, considering seriously the strategic importance of these assets. There are innovative ways in which these estates, in partnership and in conjunction with their tenants, could provide a wide range of key services such as local food markets, educational access and other public services—including, potentially, energy generation—to try to ensure they are financially viable, as indicated in this amendment.

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[Lord Addington]

I am not sure I can be quite that brief, my Lords, but I will give it a go. I have added my name to the amendment of the noble Baroness, Lady Parminter, about food waste. To deal with that first, identifying and removing waste is the easiest way to improve any supply chain. I hope that the Government give serious consideration to this.

I hope they also start to address the marketing chain. The just-in-time delivery system, which produces something that we are perceived to want at the right point, without any capacity for things going wrong, has been exposed for not taking many bumps to be put off course. The fuel crisis did it, as did a pandemic. As pandemics go, this is not as frightening as some that we have been threatened with before—the bird flu crisis and others. Covid-19 is a very unpleasant disease that kills people; it is not the Black Death. The scientists tell us that worse is out there. How good would any supply chain be when put under even greater pressure? Other noble Lords have talked about war and political decisions. A few natural disasters and a breakdown in the food chain is a good way to start a war or political crisis.

Can we have greater frequency of checking? Three years is about right. Can we also take a good long look at waste in the chain? If we can manage to identify the waste, we will suddenly have spare capacity and our supply will look a little more secure.

[Lord Curry of Kirkharle [V]]

My Lords, this has been a fascinating debate, with some memorable contributions, including that from my noble friend Lord Krebs.

I fully support Amendment 162, as moved by the noble Baroness, Lady McIntosh, and supported by other noble Lords, which says that food security reporting should take place every year. Clause 17 is an important inclusion, and I am delighted that the Government added it. I cannot understand why, once the data capture systems have been identified and established, an analysis cannot be carried out and published each year. It is hugely important to be able to identify trends quickly and to react accordingly. There is a fundamental risk in waiting five or even three years, as proposed in Amendments 160 and 161, in that a major global event or some macroeconomic activity could distort the analysis within a single year. A major weather event can result in crop failure and disproportionately impact on commodity markets.

I agree with almost all the impressive comments made in the contribution of the noble Lord, Lord Hodgson, and I support his Amendment 172 other than on the frequency of the analysis. I believe that an annual report would reduce the risk of distortion by a global event and clearly identify trends. That was highlighted by the contribution from the noble Baroness, Lady Humphreys. Harold Wilson said that a week is a long time in politics, and five years is a long time to wait to calculate the impact of climate change on global food production. As has been stated a number of times this evening, the proportion of home-produced food continues to decline—depending on which metric is used, it is around 60%. With a projected population increase in the UK to 70 million or more within the next decade, unless we actively encourage home-produced food, that proportion will decline even further.

I hesitate to contradict the noble Earl, Lord Caithness, but there are opportunities to increase food production. We already import a significant proportion of our fresh produce from water-scarce areas of the world, particularly Africa, where very often people do not have enough food to alleviate hunger within their own countries and communities. We not only have to find better ways to provide economic support for developing countries but should put in place strategic plans to wean ourselves off our dependence on fragile sources of imported food.

I agree with other Peers who have spoken in these debates that it is very unfortunate that we do not have the report from Henry Dimbleby to inform these debates—I hope we will have an indication of his recommendations later this month and before Report. We had an excellent debate last week on whether food security is a public good. It clearly is a public good, and I would be surprised if Henry Dimbleby does not endorse the importance of that fact. So the process of analysis must inform the response.

I therefore regard a five-year analysis of the data suggested in Clause 17 to be inadequate, and even a three year period, as proposed in Amendment 160 and 161. It is really important to inform both government policy and provide industry with information and data on which to develop strategic plans. We need annual reports. I hope that the Minister will accept this amendment.