Agriculture Bill

Neil Parish Excerpts

Wednesday 10th October 2018 Commons Chamber

[Neil Parish (Tiverton and Honiton) (Con)]

This is an historic moment, as we last had an agriculture Bill in this House in 1947, since when there have been 15 Prime Ministers and many Governments. We therefore really need to get this Bill right.

The Bill is about agriculture and the environment not just today, but in the future, so I welcome our Secretary of State’s commitment on food security. During the Bill’s passage, I will look for us to adopt for England provisions similar to those in schedule 3 for Wales to ensure that we can support high-quality food production and high animal welfare standards in England and across the United Kingdom. Food security—the ability to have plenty of food, and good food, for our constituents—is very much a public good, and we will debate that further.

While I very much welcome the Bill, I am disappointed that my Select Committee was not offered the opportunity to subject it to prelegislative scrutiny. However, the Secretary of State and Ministers should not worry, because we will do our utmost to ensure that we scrutinise the Bill carefully, clause by clause. While the Bill is very good, I am sure that a little tweak here and there will not do it any harm.

I welcome the long transitional period because it gives farmers certainty over that time. We also need to ensure that as we build stewardship schemes, land management schemes and environmental schemes, we also enter into contracts with farmers of at least five to 10 years. Ministers and the Secretary of State might say that we cannot bind successive Governments, but we must ensure that we have a contract in place so that land management and farming can go hand in hand. We talk as though the environment, food production and farming are all separate, but they are not—they are very much combined. I believe that farmers are the original friends of the earth, and we will ensure that we deliver better soil, a better environment and great food while having as much food security as possible in this country.

I also welcome the Bill’s attempt to tackle unfairness in the supply chain.

[Sir Oliver Letwin (West Dorset) (Con)]

Before my hon. Friend moves on, I share his ambition in those respects, but does he agree that as the general framework for subsidy support or payment for ecosystem services lies in this Bill, and the general framework for the environment will lie in the environment Bill, it is appropriate that issues such as the contracting he describes should be covered in secondary legislation?

[Neil Parish]

I welcome my right hon. Friend’s intervention. He is right that that can be dealt with in secondary legislation, but I am, shall I say, a little bit naturally suspicious, so I am trying to ensure that we get everything covered as soon as possible. I like the Bill’s direction of travel towards the environment, but I am convinced that having good, healthy, affordable food is absolutely essential, and that is one of the issues towards which I will maintain my driving forces.

[Sir Oliver Letwin]

I am grateful to my hon. Friend for giving way again. The question of how the Select Committee will proceed under his chairmanship seems an important one to resolve. I think that many of us would welcome his driving on that issue, as long as it is done in a way that recognises that we are not trying to build it into the two pieces of primary legislation, which would confuse the issue.

[Neil Parish]

I will take on board my right hon. Friend’s wisdom, and we will look at that as we go through the Select Committee process to ensure that do not do that. I thank him for his intervention.

The Bill very much attempts to tackle unfairness in the supply chain. That is essential. We need to ensure that the groceries code covers all aspects of trade—from the big retailers through to the processors and right down to the big suppliers—so that we can have true fairness in the supply chain. Often, when a consumer buys a product, enough money is paid to the retailer to ensure that there is enough money for the producer, and it is a question of ensuring that that money then gets back to the producer. There is an uneven relationship, with producers often being the weaker partner and not having enough strength in the market.

I welcome the proposals to request data, which will improve transparency in the supply chain, but the way in which that increased transparency will improve fairness in the supply chain remains unclear. Furthermore, there are proposals to streamline support payments and reduce bureaucracy, which I believe we all welcome. I look forward to the Secretary of State and the farming Minister coming before our Select Committee to explain exactly how that can be done. Whether people love or hate the common agricultural policy, there is no doubt that we can have an agricultural policy that suits the four nations of the United Kingdom and that we can devise a better system than the one designed for the 28 countries of the European Union. I have direct knowledge of that, having previously chaired the European Parliament’s Agriculture Committee, so I know that we can do better and I look forward to that.

We welcome this once-in-a-lifetime opportunity to shape British farming and the environment. We can improve policies such as our stewardship scheme, for example by ensuring that it runs for a minimum of 10 years and involves forestry. We can also ensure that we do not have to work out when a tree is a sapling and when a sapling is a tree. If we want to include water management, our schemes can include planting trees on banks to hold back water and so on. We can do so much better, and I look forward to hearing about that from Ministers.

[John Grogan (Keighley) (Lab)]

Does the hon. Gentleman, who chairs the Committee on which I serve, agree that there is a real danger that it will be the big landowners and farmers who will be best able to apply for environmental grants? We have to guard against that by reducing bureaucracy, as he has indicated.

[Neil Parish]

The hon. Gentleman makes a good point. We have to ensure that applying for grants is simple enough for all farmers, not just the big landowners who can employ offices full of people to do that, and I believe that we can. With some of the ideas coming forward about how we make payments, we can also ensure that, as we transition, family farms and smaller applicants can have less taken from them in the first instance. There are ways we can make this much more palatable.

Upland farming, which the Secretary of State mentioned, is very important, especially because of lamb and beef production. It is coupled with that great environment on the hillside, and we will not be able to pay public money just to keep sheep and cattle on the hillside; we have to ensure that they are profitable. Profit is what will drive this because—this point has already been made—if you are in the black, you can go more green. That is absolutely essential.

We produce great food. We also have a very effective poultry industry, although sometimes that is not mentioned. That is why we can produce good-quality chickens for under £5. Let us look at how we deal with our food industry and our production.

[Sir Hugo Swire]

Does my hon. Friend agree that post Brexit there will be a real opportunity to buy “British first” through the procurement of British-sourced food?

[Neil Parish]

My right hon. Friend and constituency neighbour makes a really good point. We must redouble our efforts to encourage our armed forces, our schools and our health service to procure our high-quality British food. Let us ensure that we can feed our nation with our food, because that is absolutely essential.

I also think that healthy food, as a public good, can be recognised naturally across the piece. This is an agricultural Bill, but if we think about the NHS, we could save nearly £2 billion when we consider the type of healthy food that we can produce. Buying from local producers will allow us to reduce our carbon footprint and improve the environment, so we also need joined-up thinking about future-proofing the Bill. If we weaken our farming sector to the extent that we have to import more food from abroad, there will be many consequences. When we import food from other countries, we also import their water and their means of production, and some countries can little afford that. We have to ensure that we continue to produce good, high-quality food and that, if possible, we produce more of it in future.

--- Later in debate ---

[Peter Heaton-Jones (North Devon) (Con)]

Let us move from north of the border to North Devon, where, I can assure you, Madam Deputy Speaker, my constituents are watching the progress of the Bill very carefully indeed. Farming is an incredibly important part of our local economy. More than 11% of workers are employed directly in the industry and, of course, that figure increases markedly when we look at all the small businesses and sole traders whose livelihoods rely directly on farming.

Let me be clear that, for us in North Devon, this is about more than just economics. Nearly three quarters of the entire land area of North Devon is farmed. To put it simply, the landscape looks as beautiful as it does because it is managed so expertly by our farmers. They are the stewards of our environment, particularly in an area such as mine with its diverse landscape, as the Secretary of State, who is not in his place, will know because he visited Exmoor over the summer to see the fantastic work being done by the Exmoor Hill Farming Network, which, under challenging circumstances, not only farms productively but looks after that national park environment.

Farming is incredibly important in North Devon, and to underline that I met more than a dozen farmers last Thursday. We had very useful and wide-ranging discussion about the Bill, and I want to thank the NFU in the south-west for arranging it. In that meeting, a series of reasoned and reasonable suggestions was put to me on how the Bill might be improved. I want to run through some of them now, but in doing so I want to make it clear that I will support the Government on Second Reading. I will not be supporting the Opposition’s amendment because, frankly, to decline to give this Bill a Second Reading would be entirely counterproductive and far more about politics than helping our farmers.

One of the main arguments made to me by the farming industry in North Devon is that the Bill needs to focus more on the fundamental purpose of farming, which is the production of food. This is an Agriculture Bill and its greatest impact will be on the industry that feeds our nation, so we must make clear that financial assistance is explicitly linked to agricultural activity. The Bill rewards farmers for public goods to deliver a cleaner and healthier environment, which is to be applauded, but the point made to me is that insufficient significance is placed on the greatest public good, which has to be the production of food in a safe way.

The reality is that financial support is absolutely critical to the survival of many of our farms. Without it, more than four in 10 of all British farms would probably make a financial loss or become economically unviable. Subsidies are crucial, and of course, historically, they have come from the EU under the common agricultural policy.

[Neil Parish]

My hon. Friend is my constituency neighbour, and the interesting thing about many parts of Devon, and North Devon in particular, is that it is mainly permanent pasture and grassland, so farming in the sheep trade and beef trade will keep that environment and the good tourist attraction in the area. Those things are all linked.

[Peter Heaton-Jones]

That is absolutely the case and that pasture is vital. I think that 51% of the farmed area of Devon is livestock grazing. It makes the county look how it does, and without financial subsidies, the farmers would not be able to undertake their important stewardship of that landscape.

The system of financial support that will replace the common agricultural policy will shape our rural economy for, frankly, generations to come, so it must be introduced cautiously, which is why I welcome the seven-year transition period and the powers in the Bill to extend it if necessary. I also welcome the fact that the Government have guaranteed the overall current level of subsidy spending until 2022—some £46 billion—but let us get the administration of the system right. There is a great deal of frustration among by farmers about the Rural Payments Agency, Natural England and the others who manage the system of payments. The system is not quite working as it should at the moment, and that is an understatement, so, please, in the new system under this Bill, let us get that right for farmers.

Public good is an integral part of the Bill and how payments will be managed. Domestic food production is in itself a public good. Importing food from other countries is environmentally damaging, because of the distances involved. British farmers have—it says here “some of the highest”, but I am going to change that—the highest welfare and quality standards in the world. I am in favour of the move to a system of payments based on the production of public goods, the productivity of our farms and the resilience of our agricultural sector.

I have a great deal of faith in my right hon. Friend the Secretary of State, in the Minister and in the ministerial team, and I want them to give themselves more powers than the Bill provides. I want my right hon. Friend to have the same powers as the Bill gives to the Welsh Farming Minister in schedule 3, which has been talked about a great deal, and I ask that that be reviewed at a later stage.

We are leaving the EU—that decision has been made—so there is uncertainty ahead for our farmers. It is incumbent on us to end that uncertainty, and this Bill is an historic opportunity to do so. We must get the transition right. The Bill makes a good start, but I say in a supportive and helpful way that there is room for improvement. I will oppose the amendment and support the Bill on Second Reading to ensure that as proceedings on it continue, we make it the best Bill possible for North Devon farmers.