Sustainable Farming Initiative

Richard Foord Excerpts

Tuesday 19th December 2023 Westminster Hall

[Tim Farron]

On the point that SFI can add value, the reality is that, with the exception of moorland options, there is no reason for anybody in a stewardship scheme to add to what they currently lose. My colleague from Appleby, who said he can only replace 7% of what he loses from BPS, is typical of many people. There are exceptions, of course, and I could name people who have done well out of it. Yet when we have taken out the best part of half a billion and put in £155 million to replace it, it stands to reason that the average farmer in North Devon and everywhere else is worse off.

I try to give the Government some credit by saying that this is incompetence and not malice. They did not mean to break their promise; they have just botched the transition and broken it by accident. However, if the Minister will not address the flaw that prevents farmers in stewardship schemes from meaningfully accessing SFI, we can only conclude that the betrayal of England’s farmers is not accidental after all, but deliberate. Will he look at the matter urgently, so that we do not lose farmers pushed to the brink due to the Government’s obvious failure?

Another flaw in the Government’s approach to the new scheme is that they keep chopping and changing. The Rural Payments Agency cannot keep up with the constant flux, as the Government reinvent SFI every few months. The platform for delivery is struggling to keep pace. For example, the Government’s latest edict is that everyone who began an SFI application in September must have completed it by 31 December. If they have not completed and submitted it by then, all their details will be wiped and they will have to go back to square one and start again. To add to that, the Government’s insistence on drip-feeding SFI options to farmers means that many have not applied because they are worried that if they do, a better new option may be revealed soon after.

[Richard Foord (Tiverton and Honiton) (LD)]

My hon. Friend talks about SFI options. One thing I have picked up from the farmers in mid and east Devon I represent is that they are concerned about how the options are profligate. At the beginning of this year, more than 100 options for both schemes were new or were being reviewed. I am hearing from farmers in my corner of Devon that they want greater simplicity in the SFI.

[Tim Farron]

My hon. Friend makes a good point, which I hear across Westmorland and beyond. All that puts people off applying for new schemes because under DEFRA’s rules, farmers can only change or upgrade options once a year, on the anniversary of their entry into the scheme. As a result, hundreds of farms in Westmorland are hanging on. They are unwilling to apply for the latest option because they cannot be sure that it will not be superseded a month later, leaving them locked into an inferior scheme.

I mentioned earlier the concerns expressed to me by farmers in Westmorland about capital schemes. That is a typical concern in landscapes with sites of special scientific interest, especially in the lakes and the dales. SFI moorland payments are higher than others, which is welcome, but farmers cannot get into that option without significant capital spending. For instance, farmers —or more likely a group of farmers—who farm on a common might typically need to spend a quarter of a million pounds on peatland restoration, sorting out leaky dams and slowing the flow of rivers and becks before they can qualify. Yet farmers—many of whose incomes in reality amount to less than half the national minimum wage—do not have a quarter of a million pounds sitting in the bank to pay up front for that work.

The Minister will say that those farmers could get the money back through the grant schemes, but if they do not have the money up front to defray the costs, they are effectively barred from entering. What are the answers here? We could start with the Government revising their payment rates. If we value these public goods—biodiversity, access, carbon sequestration, flood prevention, and so on—we should pay for them accordingly. That is why the Liberal Democrats have committed an extra £1 billion in UK agricultural payments to protect our environment and support farmers. Increasing the payment rates for SFI would draw more people in, and increasing payment rates for stewardship schemes would help too. The payment rates for HLS and UELS are £60 per hectare for commons and £50 per hectare for non-commons. Those rates have not been changed since 2010, so will the Minister address that?

The Government could then get rid of the barriers in the application process, such as counterproductive cut-off points that prevent farmers in stewardship schemes from replacing lost BPS income with SFI options. Next, the Government could do a really radical thing and actually decide on a policy and then stick to it. The Government constantly changing their mind is damaging the ability of the RPA and Natural England to deliver these schemes. The Minister might also consider whether three-year SFI agreements are long enough. Should there in addition be 10-year options, to at least give farmers the choice of a longer, more stable scheme? That would give them the security and stability they need.

On capital grants, the Government could ensure that the lack of cash flow—exacerbated by the withdrawal of BPS—does not prevent farmers from securing capital funding. The transition is a stressful and complicated business for farmers, as well as a costly one. Will the Minister invest more in face-to-face, on-farm, trusted advice to support people as they make these significant business changes? Will he ensure that Natural England does not habitually block access to new schemes to those in SSSIs by throwing hurdles in their way—as we saw on Dartmoor—and instead offers a helping hand to lead farmers into those schemes?

I restate that public money for public goods is the right principle to support farming, but the transition to the new scheme is causing hardship across Cumbria and across rural England as a whole. We need to remember that farmers are food producers first and foremost. If we do not understand that, we run the risk of damaging our food security even further. Already, the UK is only 55% self-sufficient in food. The Government’s approach will mean fewer farmers and less food production. Not only does that further undermine our ability to feed ourselves, it also displaces the environmental damage overseas. It racks up food miles and makes us reliant on food sourced from commodity markets, which will impact on and increase food prices for some of the poorest people in the world. There is a clear moral imperative for Britain to back its farmers so that Britain can feed itself.

Farmers are also our best hope in securing environmental gain. Of England’s land, 70% is agricultural. If we push farmers to the brink, who will deliver our environmental policies? Let us be dead clear: pushing farmers into bankruptcy is bad for the environment. The greenest thing the Government can do is to keep farmers farming, yet by botching the transition they are doing the opposite. [Interruption.] I will draw my remarks to a close soon— I apologise.

I can think of farmers who are essentially staring into the abyss. For example, people in their 60s who are tenants or else owners of a family farm. They are the fifth or sixth generation to run that farm. It is a beautiful place, but at times it is bleak, and it is always isolated. Life can be lonely.