Sustainable Farming Incentive: Species Management and ELMS

Lord Douglas-Miller Excerpts

Thursday 25th January 2024 Lords Chamber

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

My Lords, I declare my interests in farming, fishing and land management, as set out in the register. I congratulate my noble friend Lord Caithness on securing this important and timely debate.

I welcome this opportunity to speak about the changes to our environmental land management schemes and the case for including species management within the Countryside Stewardship section. Species management plays an important role in meeting our biodiversity targets. I am grateful for the many thoughtful and knowledgeable contributions that noble Lords have made today; I will return to this point in just a moment.

Given the relevance of this debate, it is worth highlighting how we are seizing the opportunities of moving away from the EU’s inflexible common agricultural policy and implementing our own bespoke environmental land management scheme, as this move constitutes the main element of the agricultural transition plan, as the noble Baroness, Lady Hayman of Ullock, explained so well just now.

First, and contrary to what was said by the noble Baronesses, Lady Bakewell and Lady Bennett, we are maintaining the £2.4 billion budget for the sector across this Parliament by using money released from the winding down of the basic payment scheme to fund our new set of ELMS modules aimed at improving the environment, productivity and the health and welfare of animals.

As many noble Lords will know, our ELMS modules fall into three main parts. The sustainable farming incentive pays for standard actions that are needed across the farmed landscape to deliver our environmental objectives. Since its launch, we have seen growing uptake for the SFI. As of yesterday, we have received more than 9,300 applications, which is approximately 15% of all farmers. Importantly, feedback from pilot participants has helped to shape the scheme to ensure that it is flexible and works for all farmers across England. As of this month, for those actions already agreed with the Rural Payments Agency, farmers have taken up actions which mean that circa 123,000 hectares of arable land is being managed without insecticides and circa 53,000 hectares of low-input grassland is focused on improving sustainability.

The second part of ELMS, Countryside Stewardship, pays for locally targeted actions relating to the creation of specific habitats and the management of some species. I reassure the right reverend Prelate the Bishop of Norwich: Countryside Stewardship schemes have helped to maintain and restore more than 10,000 kilometres of existing hedgerows and to plant an additional 4,000 kilometres across the country.

The third part, landscape recovery, is aimed at farmers and land managers who want to take a more long-term and large-scale approach to producing environmental goods on their land alongside food production. The first round of landscape recovery in 2023 focused on species recovery and river restoration. There were 22 successful projects. Among other things, they target the conservation of more than 260 flagship species. The second round of landscape recovery focuses on net zero, protected sites and wildlife-rich habitats. There are 34 shortlisted projects that will deliver a wide range of environmental benefits, including restoring more than 35,000 hectares of peatland and creating more than 7,000 hectares of new woodland.

At the Oxford Farming Conference earlier this month, the Secretary of State announced an update to the agricultural transition plan. This represents the biggest upgrade to farming schemes since the start of the agricultural transition in 2021. The key message from the Secretary of State, which I reiterate today, is that we are delivering more money, more choice and more trust. On money, we have updated the payment rates for existing SFI and Countryside Stewardship actions, increasing rates by an average of 10% across the board. Farmers will also be paid a premium for certain actions which deliver higher value outcomes.

On choice, we want to ensure that there is something available for every farmer regardless of whether they own or rent their land. We are adding around 50 new actions to our schemes and amending many more after taking feedback from farmers, researchers and stakeholders to improve and expand existing actions, creating the most flexible and comprehensive offer yet. For example, we have added five new actions and amended four existing ones to support the management of rivers and their catchments. These focus on slowing the flow of water through the landscape, thereby helping to reduce the impact of extreme weather events such as those that we have experienced recently.

Importantly, to build trust, we have listened to farmers and want to enable every farmer to access our schemes quickly and simply. We will be streamlining the application process by bringing together SFI and Countryside Stewardship mid-tier applications and exploring how we can simplify the Countryside Stewardship higher-tier application process as well. This and other changes will make it easier for our schemes to slot seamlessly into farm businesses. That will help to ensure that we get the scale and ambition we need to achieve our targets, including having 70% of farmers signed up by 2028.

I know from personal experience that no one cares more deeply about the land, the nature around them or the health of their farm than the farmer or land manager who lives and works there every day. The Government are keen that the relationship between farmers and regulatory bodies moves towards one of working together and building trust, and the guidance from the Government to regulatory bodies will reflect that farmers and land managers are the solution, not the problem, as my noble friend Lord Sewell of Sanderstead suggested. I should add that the Government support a range of innovations, but I shall take away my noble friend’s thoughts on innovation and consider them further.

My noble friend Lord Caithness and other noble Lords asked about the balance between environmental benefits and food production. The Nature Friendly Farming Network is particularly interested in this point too. I know that my right honourable friend in the other place, the Farming Minister, met the Nature Friendly Farming Network on Monday this week. I was delighted to hear that they had a productive discussion on this topic and are working constructively together on potential routes forward.

I turn to species management, which my noble friend and other noble Lords spoke on with such knowledge today. As my noble friend explained, the evidence clearly points to three key functions that support biodiversity: suitable habitat, food source, and predator management. All three will be required if we are to hit our biodiversity targets. The lack of suitable habitat in good condition, and food scarcity, particularly over winter, are two of the primary reasons for species decline. We have many actions within ELM schemes that pay for habitat creation and management, and more are being added later this year. We also have specific actions to provide overwinter food for farmland bird species to boost their recovery.

Alongside those two critical components, we need predator management to support the recovery of certain species and priority habitats. Through Countryside Stewardship we already pay for actions to manage deer and grey squirrels to protect our woodlands, a subject raised by many noble Lords today, as well as the control of invasive non-native plant species such as Japanese knotweed and Himalayan balsam. This year we are expanding these offers to fund management across the landscape, beyond woodlands, and we are increasing payment rates to better reflect the complexity of the management actions that are required.

From this year, for the first time, we will also pay for the management control of edible dormice and American mink. The edible dormouse—a somewhat curious name, which I understand stems from the Romans acquiring a taste for this rodent—were first introduced to the UK from Europe in 1907. They cause damage to trees by bark stripping and ring barking, and they are known to eat fruit crops and compete with hole-nesting birds for nest boxes, and to predate on their eggs.

My noble friend Lord Robathan spoke with great emotion about the American mink, which is a widespread non-native invasive species with a broad diet that includes small mammals. The American mink has heavily preyed on our native water vole population, which is now endangered, as my noble friend mentioned. The key point, raised by the noble Baroness, Lady Hayman, and others, is that management of other generalist predators such as foxes, crows, stoats and weasels can and should be undertaken by farmers and land managers in accordance with the general licensing rules, which I appreciate have been a challenging area in the last year or so.

My noble friend Lord Robathan and others asked an important question concerning how we have taken species which are already included under general licences, such as GL38 for stoats, into account. I note that the evidence requirements for permitting the control of a species differ from the evidence requirements to incentivise the management of that same species through our schemes. The latter requires—

[Lord Robathan (Con)]

My question really is: why do we need general licences and so on? We know that crows are very destructive, for instance. We have mentioned squirrels, mink and magpies. Why do we need a licence at all, general or otherwise? Is it to keep civil servants working?

[Lord Douglas-Miller (Con)]

My noble friend raises a good point. It is the current law of the land. Perhaps I could take that point away and have a further discussion with him at a later stage.

Turning to future plans, I hope to reassure my noble friend and others in the House that, as part of the rolling review process, we will continue to explore whether to include additional species management actions within our schemes. This will involve working closely with stakeholders and farmers to understand specific issues as they emerge. It will keep our offers, including payments, up to date and allow us to respond to farmer feedback and changing scientific evidence to maintain progress towards achieving our biodiversity goals.

The noble Baroness, Lady Hayman, the right reverend Prelate the Bishop of Norwich and the noble Baroness, Lady Bennett, raised questions about soil. I emphasise that healthy soil, abundant pollinators and clean water are the foundations of our food security; I am sure that they would agree with me on that. The SFI pays farmers to improve and conserve their soils and provide flower-rich habitats for pollinators and other beneficial invertebrates. These actions support the delivery of our environmental objectives; they also benefit food production, by reducing farmers’ reliance on costly artificial inputs.

The noble Baroness, Lady Bakewell, raised the issue of the land use framework, which I know is due to be published shortly. I am afraid I do not have an exact date for the noble Baroness, but perhaps I can get back to her on it at a later date.

In conclusion, our agricultural transition plan represents the most significant upgrade to farming support schemes since we gained the freedom to design and implement options that support the unique nature of our countryside. The Government will ensure that we maintain progress towards our outcomes by keeping our schemes under review, while ensuring that our offers reflect the latest scientific evidence and represent good value to both farmers and taxpayers. If I have missed any specific points from noble Lords or noble Baronesses, I will write to them in due course. I thank my noble friend for the opportunity to have this important debate.