Agriculture Bill

Lord Grantchester Excerpts

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

[Baroness Bakewell of Hardington Mandeville (LD) [V]]

My Lords, it is a great pleasure to follow the noble Lord, Lord Rooker. This is an extremely important group of amendments. The House spent a long time debating financial assistance in Committee and there was a thorough airing of all the issues, some of which have come back in this group.

The noble Baroness, Lady McIntosh, has raised the issue of food security, a subject which concerns us all. Access to healthy, affordable food is the right of every child and promotes good health and well-being. The right reverend Prelate the Bishop of St Albans raised the issue of food poverty, which is also extremely important. The noble Baroness, Lady McIntosh, raised biodiversity and the role that pasture-fed grazing stock can play in promoting it. It was clear from watching David Attenborough’s programme “Extinction” on Sunday that biodiversity has come into sharp prominence —a point also raised by the noble Baroness, Lady Jones of Moulsecoomb. I shall be listening to the Minister’s response on this amendment.

My noble friend Lord Teverson raised whole-farm agroecology and agroforestry systems—a subject he is, quite rightly, passionate about. Trees are the green lungs of any country and we destroy them at our peril. It is therefore vital that we encourage agroforestry and tree planting, and that the financial rewards match the level of investment and management required. My noble friends Lord Addington and Lord Greaves are pressing the case for joint health and well-being strategies to be included in the financial assistance provision. Given the current health situation of the nation, I would hope that they are pushing at an open door.

Domestic production of food and agricultural products to ensure sufficient food security is a key element of the Bill. Nearly every sitting day we have a question about the impact of Covid-19 on the population, both elderly and young. The longer the pandemic goes on, the more the scientists learn about its impact, how to treat it and who are the most vulnerable of our residents. We know that exercise and a healthy weight and diet, while not a total fail-safe protection against infection, make a tremendous difference to our ability to survive and make a full recovery. As we enter a possible second peak, it is therefore paramount that the Secretary of State should have available to them sufficient information to ensure that food supply is stable and sufficient, and that food is produced in an environmentally friendly way. The whole thrust of ELMS is to move agriculture on to a more environmental footing. However, ELMS is not exactly just around the corner, and it is necessary to act now to protect both food supply and the environment. Can the Minister give the noble Lord, Lord Northbrook, and the Chamber the reassurance that we are seeking?

I have added my name to Amendment 11 from the noble Earl, Lord Dundee, on new entrants. Many of our long-standing farmers are considering whether now is the time for them to retire—as the noble Earl said, a third of our farmers are over 65 years of age. As we move from CAP to ELMS, it is vital that everything possible is done to encourage new entrants and young farmers to take up the reins. Entering farming is a very expensive venture; buying land is likely to be well beyond the reach of many young entrants, even if there is land available. Encouraging existing landowners to make land available will be vital to allow new entrants. Start-up capital will be needed to make a success of the new venture, alongside training and qualifications. Just talking of the list is intimidating and could put off some would-be hopefuls. The noble Lord, Lord Carrington, set out the case eloquently and was well supported by the noble Baroness, Lady Boycott. Like the noble Earl, Lord Dundee, I am looking for answers from the Minister as to how the Government intend to deliver on this vital element of continuing successful land management on behalf of the rest of the country.

The Minister made it clear in Committee that he was keen to limit the list of activities attracting financial assistance, and he is supported in this by the noble Baroness, Lady Young of Old Scone. However, I fully support the noble Earl, Lord Caithness, in his quest to gain support for nature-friendly farming. The activities listed in his amendment are all vital and inextricably linked. We cannot have biodiversity if we do not have good soil health and good water and air quality. We cannot protect species if we do not have sufficient flood-protection measures and climate change mitigation. If the Minister is not minded to accept this amendment, can he tell us just how the Government intend the activities in the list to be achieved and protected?

Similarly, I support the noble Earl, Lord Devon, in including wetlands as well as uplands. The different types of species that can be raised on the various types of farmlands all add to the rich cultural and natural heritage of our countryside. Not all farmers will be blessed with grade 1 agricultural land, but all types add to the variety of produce and the rich diversity of our land. I thank the noble Earl for raising the issue of the wetlands in Somerset.

Lastly, my noble friend Lord Greaves has made a thorough case for the inclusion of common land, supported by the noble Lord, Lord Inglewood. I look forward to the Minister’s comments on this important element of land management, as well as on the rest of the amendments.

[Lord Grantchester (Lab)]

My Lords, at the start of my remarks on Report on amendments to the Agriculture Bill, I declare my interests as recorded on the register, including as being in receipt of funds from the CAP under the present system. As with the first group of amendments, I thank noble Lords for tabling their further thoughts after Committee with these amendments today. Once again, they highlight the very broad nature of agriculture, which, in many ways, interacts with economic activity from many sectors and interests in the rural economy. This in turn has a bearing on many government departments.

Several of the amendments focus on matters related to food security and, indeed, insecurity. We agree that these are important matters that we will come to later in the Bill. In relation to the Minister’s concessions—which are very much welcomed—and to Amendment 58 on the national food strategy commissioned by the Government, I can add that I too was very impressed with the initial report recently published by Henry Dimbleby.

We consider that the Government have a very clear focus on the issue without requiring the specific Amendment 12 so eloquently spoken to by the noble Lord, Lord Northbrook, which we are unable to support from the Labour Benches. However, we have regard to Amendment 11 in the name of the noble Earl, Lord Dundee, and others, which overlaps with Amendment 70 in the name of my colleague and noble friend Lady Jones of Whitchurch on the Front Bench. Ensuring opportunities for young farmers and new entrants is incredibly important and underlines the future prosperity of the sector.

In outlining the purposes for which financial assistance can be given, we consider that Clause 1 gives a fair balance and appreciation of the many options that may be developed over time. It provides a good way forward, rewarding the production of food while protecting the environment. I am sure that the Minister will be able to provide the extra information and assurances that we are all looking for, and that he has taken due note of all the important points raised for sustainable agriculture into the future.

[Lord Gardiner of Kimble (Con)]

My Lords, I thank all noble Lords for contributing to what I think has been an extensive and very interesting debate. I turn to Amendment 6, which I shall address along with Amendments 9, 10, 12, 17,13 and 20. I will say—particularly to my noble friend Lord Northbrook and as a fellow member of the NFU, but to all noble Lords—that the Government agree absolutely that the production of food is of critical importance and that this will not be overlooked in the designing of our future schemes. Indeed, this is precisely why the Bill includes a duty for the Secretary of State to have regard to the need to encourage food production and for food to be produced in an environmentally sustainable way. So I say, in particular to my noble friends Lady McIntosh of Pickering and Lord Northbrook, that Clause 1(4) as drafted recognises the strong interdependence of farming and the environment.

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Moved by

[Lord Grantchester]

29: After Clause 3, insert the following new Clause—
“Financial assistance: duty to provide advice
(1) The Secretary of State must make regulations to secure the provision of training, guidance and advice to persons receiving financial assistance under this Act, for the purpose of enabling those persons to deliver the purpose or purposes for which the financial assistance is given.(2) Regulations under subsection (1) may include provision for advice on matters which include but are not limited to—(a) the impact of any practice upon the environment,(b) business management, including the development of business plans,(c) the health and welfare of livestock,(d) the safety and health of workers in any agricultural sector,(e) innovation, including alternative methods of pest, disease and weed control,(f) food safety, insofar as it relates to the production of food or any activity in, or in close connection with, an agri-food supply chain,(g) the operation of any mechanism for applying for, or receiving, financial assistance under this Act, and(h) marketing of any product falling within an agricultural sector under Schedule 1.(3) Regulations under this section are subject to affirmative resolution procedure.”Member’s explanatory statement
This new Clause would require the Secretary of State to make provision for training, guidance and advice to be made available to persons receiving financial assistance.

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[Lord Grantchester (Lab)]

My Lords, I have retabled Amendment 29 from Committee, as it could be said to reflect very well on the wide-ranging debate we had on the many challenges and opportunities faced by the rural economy as the focus changes towards providing support for production to be recognised for its environmental and welfare impacts. I am grateful to the noble Lord, Lord Lucas, and the noble Earl, Lord Caithness, for adding their names to the amendment after tabling their amendments in Committee, and to my noble friend Lord Whitty, who has widespread experience of the sector from his excellent service as an Agriculture Minister in a previous Labour Government.

All sides of the House and all shades of opinion acknowledge that, as we move to new funding schemes, there will be a lot of new information, terminology and conditionality that farmers and land managers will need to become familiar with, all accompanied by complex administrative processes that will need to be complied with. Of course, it will be understood that there will be pilots and guidance available to participants but, given the relative speed of the transition proposed, it does not seem unreasonable to expect Defra to recognise the responsibilities it should perhaps take towards those wishing to take part in the schemes by playing a more active role in educating, clarifying, guiding, encouraging and assisting the sector.

Many pitfalls could be encountered. In Committee, discussion also covered the sometimes disproportionate punitive actions that can be taken against farmers when they act in good faith but fall short in some small regard. I was particularly struck by the words of the noble Lord, Lord Lucas, who spoke of

“the importance of allowing failure”.—[Official Report, 14/7/20; col. 1654.]

The Government are well placed to step in, whatever the circumstances, should it be necessary. They can pick up on bad experiences and eliminate misconceptions that could quickly deter applicants through social media.

Of course, it is understood that participation in schemes is voluntary. However, we would wish to see the full participation of the agricultural community to enhance our environment and to benefit businesses.

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[Baroness Bloomfield of Hinton Waldrist (Con)]

My Lords, I am grateful to noble Lords for their almost universal acknowledgement tonight of the importance of advice in a time of significant change to the industry. The rules of engagement have, indeed, changed fundamentally.

I reiterate the Government’s view that expert advice and guidance is critical to the successful delivery of future schemes. As currently drafted, the Bill already gives the Secretary of State the necessary powers to fund the provision of advice, guidance and other means of support to recipients of financial assistance under Clause 1. The Government certainly intend to use this ability; advice and guidance is one of the priority areas in the 40 live tests and trials that are feeding into this theme.

I will give some examples of how this could be done. For future tree health schemes, we are looking to refresh and improve our offer of plant health advice to ensure that land managers have the information they need to manage and respond to tree health issues. For animal welfare grants, these one-off payments could cover investment in equipment, infrastructure, technology and training. For animal health schemes, we are also looking at ways to increase advice given to farmers, both from vets and other agricultural advisors, to help them improve animal health. We also want to increase peer learning between farmers through, for example, facilitated farmer groups. The Government have also stated their intention to offer advice to those applying for productivity grants to help them decide which investments would achieve the greatest improvements in business performance.

In Committee, reference was made to the ongoing ELM scheme tests and trials. We are using these to identify the most effective means of providing advice and guidance to farmers and land managers, which will enable them to deliver on their funding agreements with confidence. Since then, the number of ELM tests and trials looking at the provision of advice and guidance has increased to 40, demonstrating the Government’s commitment to designing a scheme that works for farmers and land managers. Evidence shows that, for advice to be effective, it must be trusted, consistent, credible and cost effective. The Government are considering how these principles can be embedded into advice for all schemes and working with farmers and other land managers to do so.

The noble Lord, Lord Cameron of Dillington, asked specifically about the availability of training schemes. The ELM trials are exploring ways in which skills and qualifications for environmental land management can be improved.

The noble Lord, Lord Grantchester, also asked how agricultural colleges could be drawn upon to provide advice and dispense information. The Government are supporting the work of the skills leadership group in exploring ways to address the fragmented nature of the existing skills, education and advice landscape. Representatives of the agricultural colleges have been involved in these conversations.

Defra is currently running a £1 million grant funding project to explore how it could provide resilience support to farmers and land managers in England to help them prepare for reductions in direct payments in the transition period. The project, which is targeting some 1,700 farmers and land managers, aims to identify how, where and when they may need to adapt their business models and resilience as a result. Evidence coming from this project will help inform the design of a national scheme, which is currently in development for launch in early 2022.

I was asked about the availability of broadband in some areas. We are connecting some of the hardest-to reach places in the country, including through the SFB programme and the £200 million rural gigabit connectivity programme. We have also announced £5 billion of funding to close the digital divide.

I hope that I have managed to give some reassurance that advice and guidance are already considered in the scheme design, that the Government are committed to their provision and that we have the powers we need to deliver in this area. I hope the noble Lord, Lord Grantchester, will feel able to withdraw his amendment.

[Lord Grantchester (Lab)]

I thank all noble Lords who have spoken on this amendment, especially the noble Lord, Lord Lucas, and the noble Earl, Lord Caithness, for their additional reasons for supporting this amendment. As everyone has expressed, this is a fundamental change to the rural landscape and agricultural industries support.

The possible lack of an impact assessment, mentioned by the noble Baroness, Lady Neville-Rolfe, could be identified as a challenge of detail for what may be required for the successful launch and promotion of this scheme not being fully appreciated. We would want the scheme to be a success.

The amendment is not prescriptive on how the Government may go ahead and deliver that advice. The Minister’s confidence need not be at the expense of caution. My noble friend Lord Whitty drew attention to the withdrawal of advice that, as I was reminded, has reduced the level of the UK’s agricultural productivity in comparison to other EU countries.

The noble Lord, Lord Cameron, emphasised the importance of training to achieve farmers’ engagement. The noble Baroness, Lady Bennett, reflected on the quality of advice that could come from more commercial sources, which could be a further challenge. The noble Lord, Lord Carrington, mentioned the digital divide. The noble Baroness, Lady McIntosh, emphasised, if I am interpreting correctly, that advice must be part of participating in schemes. My noble friends Lady Young and Lord Judd also spoke of the importance of advice in expressing their support.

With all this support, I could be tempted to press this amendment. The Minister assures us that the Government have the power, under Clause 1, to provide advice. This intention should perhaps be promoted more clearly to the agricultural sector. I thank her for her remarks and wider explanations. However, in agreeing to withdraw this amendment, I call on the Government to keep it in mind as the Bill is returned to the other place for further consideration.

Amendment 29 withdrawn.

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We really must do better for our farmers, who are ensuring that the land is looked after and healthy food is produced. Given the extreme importance of this group of amendments, I hope that the Minister will have some encouragement for us.

[Lord Grantchester (Lab)]

My Lords, the lead amendment in this group, Amendment 36, in the name of the noble Baroness, Lady McIntosh, and others was subject to much debate in Committee. There were many alternative proposals for the transition period between the present system and the full implementation of ELMS being separated from landholdings. This amendment would delay its start for one year. I thank her for her amendment, as she has foreshadowed many of my remarks.

I will speak to my Amendment 41 in this group. However, before I do so I thank the noble Lords, Lord Carrington and Lord Curry of Kirkharle, for their Amendment 37. Further amendments to it have been tabled, in Amendments 38 and 39 by the noble Duke, the Duke of Wellington, and Amendment 40 by the noble Lord, Lord Carrington.

I understand the approach of the noble Lord, Lord Carrington, and his anxieties concerning cuts in direct payments. I appreciate the emphasis given by the noble Duke, the Duke of Wellington, to the organic sector by doubling conversion payments, and to the hill-farming sector in the less favoured areas by freezing their reductions below £30,000 per hill farm.

Amendment 40 specifies that the regulations in this amended clause are subject to the affirmative procedure. However, we could not consider supporting these amendments without extensive further information being available to apprise us of their merits.

I would also like to thank the noble Baroness, Lady Rock, for her amendment concerning the importance of cash flow and grants to the viability of farming businesses in today’s increasingly volatile business circumstances.

However, I propose an alternative approach to these amendments. Amendment 41 disapplies Clause 8. In Committee, amendments around a transition period and the multiannual plans were spread between groupings. This has been reflected today with the consideration of Amendment 32 from the noble Lord, Lord Teverson, and Amendment 33 from the noble Earl, Lord Devon, being in a previous group. This has meant that the debate has been at cross-purposes with Amendment 41, as these other amendments concern the length of multiannual plans only. However, I recognise that multiannual plans were subject to extensive consultation in the 2018 Bill and set for seven years in conclusion then. This has possibly overshadowed the merits of my Amendment 41. I thank the noble Lord, Lord Addington, for adding his name to this amendment and for his recent remarks. I also thank my noble friend Lord Judd for his remarks in support.

How the changes to the ELM system and the nature of each seven-year period between plans and a transition period interact can indeed be very confusing. This is why I have tabled my Committee amendment with a few changes. Having reflected on the debate, as well as on evidence both formal and anecdotal from recent trials and pilot schemes, we have revised our approach in a fair, common-sense way that is also flexible to circumstances. This is because so much is unknown and the results of any trials have yet to be considered. This appears to be recognised to some extent by the Government’s own Amendment 35.

Amendment 41 removes from the Bill the previous start date of the transition period and gives the Government a degree of flexibility by having a start date set in regulations. There is no need for the Government to define a start date in primary legislation which they could later regret, and which would set the legislation off into a period of uncertainty should ELMS not be adequately ready for implementation—as their Amendment 35 partially recognises. The amendment states that the start date would be set once the Government have confirmed that any scheme to operate in the first year of the transition was fully operable.

Everyone can agree that it is important to get started on the transition phase, but so much preparatory work is yet to be done. There is anxiety already that countryside stewardship schemes starting in 2021 can be withdrawn, yet schemes started this year, in 2020, cannot be withdrawn without penalty. There are also very considerable concerns being highlighted and heightened in relation to Covid-19 and the potential onset of any phase 2 consequences this winter.

I highlight that Defra’s plans are themselves being reconsidered in relation to the transition period. I understand that the department is now planning a new interim or stepping-stone scheme to bridge the gap that may appear between the BPS and the ELM scheme. The sustainable farming incentive, or SFI, will bring in limited elements of ELM tier 1, while avoiding the funding gap that will arise from the Government’s ill-considered cutbacks before full schemes are available. This is some- thing we drew attention to as early as Second Reading.

I understand that claimants are expected by Defra to have lost half of their payments by 2024, when full pilot schemes are expected to be rolled out. Can the Minister be transparent on this new scheme and the amount of cutbacks being envisaged? It is important to the credibility of the Government’s plans, so forcibly expressed by the Minister.

Is this SFI scheme under serious consideration, and where will the funding come from if funding cuts to BPS are to finance ELMS, as repeatedly expressed? Will the Countryside Stewardship entrants be excluded once again, as already mentioned? Surely Amendment 41 is preferable to the uncertainty, complexity and confusion that will arise if these reports are confirmed. I understand that the announcement is held up with the Treasury’s comprehensive spending review. It would be more than unfortunate if the Minister could not be forthcoming tonight when the House is considering this Bill.

[Lord Gardiner of Kimble (Con)]

My Lords, I thank all noble Lords who have contributed to this debate. I will be the first to say, coming from a farming background and being a farmer myself, that I know that change can present these great concerns, and that is why the Government are clear that they want to work with farmers to ensure we get the schemes right. I think we are doing that properly, and I would like to explain why.

On Amendment 36, with which I will also address Amendments 37, 39, 40 and 41, the Government are committed to introducing new schemes that will reward farmers for producing goods that are valued by the public. Our planned reductions for 2021 are intended to send a clear signal of reform. It is important that farmers have certainty about when the agricultural transition will begin. There may be some in this House who do not agree with this. But many people, including those in the farming community, will feel that direct payments are poorly targeted and offer poor value for money. This is something that I have been very seized of, as have many of us farmers who seek to farm well and look after our land. This is a conclusion we all have to draw from the current regime. Therefore, applying appropriate progressive reductions to these payments will free up money that can be used to support farmers better—I repeat, “to support farmers better”—and deliver public goods.

We believe it is important that this process is not delayed. The Government are on track to introduce new schemes from 2021 while continuing to fund new and existing Countryside Stewardship agreements which farmers can apply for until 2023. Signing a Countryside Stewardship agreement gives a viable, long-term source of income for providing environmental benefits. I assure the noble Lord, Lord Grantchester, and other noble Lords that no one in a Countryside Stewardship agreement will be unfairly disadvantaged when they move to new arrangements under ELM. I should also say to the noble Duke, the Duke of Wellington, that the Countryside Stewardship scheme includes a specific uplands wildlife offer.

We will also provide productivity grants to farmers for investments in equipment, technology and infrastructure, which will help their businesses to prosper while improving their productivity and enhancing the environment. These grants will be available from 2021. In addition, the national pilot of the future ELM scheme will also begin in 2021 and will be funded from the reductions in direct payments. The national pilot will be informed by the engagement with farmers, land managers and other stakeholders which is already well under way, including tests and trials.

I have to say again that I think we may sometimes be attending different webinars or whatever, because the impression I have been given is that many farmers have found it stimulating, particularly the younger ones, who have found talking about such matters, and the innovation of the new way forward, refreshing. As I have said before, they will be able to look the taxpayer in the eye and show that we are producing better for the public and better for farmers.

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[The Deputy Speaker (Baroness Finlay of Llandaff) (CB)]

I understand that the noble Lord, Lord Grantchester, wishes to ask a short question for elucidation.

[Lord Grantchester (Lab)]

My Lords, I apologise to the House for asking the Minister a follow-up question. I listened carefully to his remarks but, by the time the communication channels had reached the Deputy Speaker, she had already intimated to the noble Baroness, Lady McIntosh, that she could have her consideration of the amendments. I had not heard any reference in the Minister’s remarks to the sustainable farming incentive, but the noble Baroness, Lady McIntosh, repeated that question to him. I understand now and am very grateful to him for the fullness of the reply that he can give tonight.

[Lord Gardiner of Kimble (Con)]

My Lords, I have been very clear that the Government are bringing forward schemes of a countryside and environmental aspect, which will be funded through reductions in the direct payments. This is what we want: to start sustainable environmental and countryside stewardship schemes. This is all about what we want to do with farmers, as part of a major plank of this legislation. I am beginning to wonder whether it is me or whether noble Lords do not want to press the receive button for what I am seeking to say.