Direct Payments to Farmers (Crop Diversification Derogation) (England) Regulations 2020

Lord Grantchester Excerpts

Tuesday 2nd June 2020 Lords Chamber

[Lord Grantchester (Lab)]

I thank the Minister for his introduction to the instrument. I declare my interest as a farmer in receipt of BPS payments. He gave an excellent explanation of the legislative framework behind the instrument and the effects of the wet weather over the 2019 winter and this year’s spring on good husbandry practices, making it uneconomic at best, if not impossible, to comply with crop diversification requirements.

The instrument has led to a wide-ranging debate. I am grateful to all the speakers who have contributed with many questions for the Minister to answer. I approve of the instrument and I thank him for initiating a meeting with his department’s officials last week. I understand the exhaustive legislative requirements involved in the delay to introducing the instrument. As the Explanatory Memorandum says, this derogation is applicable to only this one year, 2020.

The three-crop rule was introduced to widespread dismay in the agricultural industry as bureaucratic, market-distorting, and reducing production efficiencies, without enhancing positive advantages of crop rotations that would happen anyway as part of good agricultural practice without encouraging monoculture. At the time of its introduction, the Government claimed that they were also against this requirement but had to comply as a member state of the EU. These payments to farmers will be replaced in the Agriculture Bill, which is due its Second Reading in the House next week. Bearing in mind that the transition phase involved is to 2028, could this derogation be made multiannual through an amendment to the Direct Payments to Farmers (Legislative Continuity) Act 2020 to dispense with the requirement to be contingent on specific problems in an emergency, and could more positive arrangements be brought forward? Would it be possible for the Government to amend the rolled-over EU regulations 1305, 1306 and 1307? Will they commit to dropping the three-crop rule in all eventualities?

While I have not been specifically affected by flooding, nevertheless it was extensive and the Severn catchment area was only 30 miles away. All soil structures were at risk in cultivations, as there was no continual five-day dry period between September and March. The farming industry is grateful to the Government for introducing the farming recovery fund, the application of which was broadened to all affected areas. With the continuing unpredictability of extreme weather patterns from climate change, will the Minister examine further investments in better geographically focused metrological forecasting, as well as flood defences?

I return to the iteration of policy in the remaining years of the continuity payments. Have the Government given any consideration to the request to delay the introduction of the transition provisions necessary for payment reductions due to begin in 2021? Bearing in mind the disruption from the weather, followed by the disruption to the food chain and labour supply issues in the coronavirus crisis, and the fact that cropping decisions and farm budgets will largely be set in autumn 2020, have the Government robust reasons why they must cut farming payments immediately for 2021? Given their commitment to a £3 billion annual payment to agriculture in the Direct Payments to Farmers (Legislative Continuity) Act 2020, what will the Government transfer the savings towards? No payments under the new environment land management schemes will be accessible. Once the ELMS are operating, the phasing out of continuity payments is understandable. What will happen in the meantime to the money saved? The Government must have regard to maintaining sustainable food production.

The instrument is applicable to England only. While I am sure that there have been extensive discussions with the devolved Administrations, as the Minister said in his introduction, can he update the House on this derogation in the other areas of the UK? Will the policy derogation be operable equally throughout the UK by 15 June 2020—the delayed date for submission of applications this year?

This measure has widespread support throughout the agricultural industry and its representatives. While there are many other questions to be asked, these could be more pertinent to the forthcoming debate on the Agriculture Bill next week. Nevertheless, I would be grateful if the Minister would reply as fully as possible to all the queries raised in the debate.