(1 week, 3 days ago)
General CommitteesI thank all those who have contributed to this short but perfectly formed debate.
The draft regulations were announced last June as part of a process that commenced under the previous Government following Brexit, when they announced a seven-year programme to transition away from the common agricultural policy, which makes delinked payments, to a much more focused environmental policy. The previous Government created that policy and the then Labour Opposition supported it, because we both accepted that farming has to be done on a more sustainable basis. We must see nature recovery, we must invest in healthy soils and in recreating healthy pollinator populations, and we must ensure reasonable food production rather than degrading our natural assets and resources to maximise food production at any cost. We are shifting to a much more sustainable model, and although the Opposition indicated that they will vote against the draft regulations, I hope that everybody can support that shift in principle.
The hon. Member for Keighley and Ilkley said that we are going too fast, but the farming transition was a seven-year transition. All the ELM schemes and support for farmers will be involved in protecting nature and increasing sustainability, rather than going towards delinked payments. He seems to object not to the end point, but to the speed of the transition over the next two years. I understand what he is saying, but I think that he is dancing on the head of a pin.
If the Minister were speaking to a farmer, would she say that this is dancing on the head of a pin? We are talking about reducing an annual delinked payment to a farming business from a potential £30,000 to about £600. Given all the additional overheads placed on farming businesses that produce food, the Opposition believe that that is too quick a drop, and it comes without sufficient notification.
Sufficient notification has been given, since the transition began seven years ago—everybody has been expecting it. It is important that we get the transition done. I can assure the hon. Gentleman that the money being taken away from delinked payments is going straight back into the system and will be available for the transition.
The Government remain convinced that delinked payments are not an effective way of supporting our farmers, protecting food security or restoring nature. Former Secretary of State Lord Gove certainly agreed with that when he began the transition after Brexit. We continue to invest in our environmental land management schemes and our range of grants and other support for farmers to deliver public goods, reward sustainable farming and boost productivity. Without the reductions contained in the draft regulations, spend on delinked payments in each of the years 2026-27 and 2027-28 would increase to £1.8 billion, leaving a shortfall in the remaining farming budget for each of those years that then could not be spent on financing the transition. Those who believe in the principle of the transition need also to believe in the means.
My hon. Friend the Member for South West Norfolk spoke extremely well about his farmers, and I welcome his support. I understand that the transition can be difficult and worrisome, but it is crucial for the future of our farming profitability and resilience that we manage to get this done. The Government are determined to assist farmers all we possibly can in achieving the transition. The vast majority of them know that it has to happen, and we will see what we can do to ensure that it does.
The money released by reducing delinked payments is not being lost to the sector; it is being reinvested through our other schemes for farmers and managers. We are being transparent about how the money is used. Each year, we publish a farming and countryside partnership annual report, which shows how the farming budget has been spent. The report for the financial year 2024-25 was published last September. We will publish our next report later this year. That will be transparent about where the money has gone and how it has been spent. We have provided a breakdown of how we plan to spend an average of £2.3 billion a year through the farming and countryside programme, showing planned spend for each of the years between 2026-27 and 2028-29. That was set out in a farming blog, which is available on the Government website.
It is clear that we cannot achieve our environmental goals or have food security unless farm businesses are profitable. By increasing investment in our environmental land management schemes, we are helping farmers to protect the environment and the business foundations of farming—our soils, our water and our pollinators—which will help to reduce their input costs and boost productivity.
We know that there is high demand from farmers for our ELM schemes, so I am pleased that SFI26 will be opening to small farms later this month. The hon. Member for Keighley and Ilkley said that it was for small farms only, but the first window is also open to those without an existing agreement, so it is a slightly wider opening than he hinted at in his speech.
As was announced at the NFU conference, in 2026-27 we will invest £120 million in new productivity grants, which can help businesses to cut costs, improve efficiency and protect profits. Farmers can also boost their businesses through the animal health and welfare pathway, a programme designed to strengthen biosecurity, manage disease risks and improve animal health and welfare outcomes, which, in turn, boost farm productivity and profitability. We are also continuing our work to ensure fair competition across the supply chain, and have announced planning reform to unlock food and farming infrastructure development. The Government’s new farming and food partnership board has set out how it will work to drive growth in all sectors, improving productivity and profitability. It is beginning its work with two sectors—horticulture and poultry—but it will get on to work in others.
Our vision is to help farmers to improve their productivity and profitability, and to collaborate with them on delivering positive environmental change. Continuing to phase out delinked payments will enable us to invest in the long-term future of farming, by ensuring that funding is targeted where it can have the greatest impact. I commend the regulations to the Committee.
Question put.
(4 months ago)
Commons ChamberFarming cashflows are under pressure, and farming businesses need clarity, certainty and clear policy direction from this Government now more than ever. However, with partial U-turns, continuous consultations, new taskforces, road maps, frameworks, reviews and now—finally—an announcement that the renewed sustainable farming incentive will be launched, but not until summer, farming businesses are really struggling to financially plan ahead. In all this confused policy direction, has the Minister decided the budget allocation for the new SFI scheme? How much will be available per farm? What will the assessment criteria be? Given that she wants to open up the scheme first to smallholdings, has she yet defined the definition of a small farm?
We have been quite clear that the new SFI should be simpler. We do not want it to be distributed in the way that it has been in the past; under the Conservatives, 25% of that scheme went to 4% of farms. That is why we have decided to open up the scheme first and foremost to small farms. We are in negotiations about the definition. All this will be set out in great detail, and there is transparency and simplicity ahead. We will not fall into the traps of creating schemes so complex that they cannot be properly administered by the Rural Payments Agency—that was the legacy that we received from the Conservatives.
(6 months, 3 weeks ago)
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The right hon. Lady is correct, but I am trying to get this into perspective in terms of overall land use.
There have been many calls for the land use framework to be published. I hope I can reassure hon. and right hon. Member that we will publish it early next year. Having looked at some of it, I am totally fascinated by it; when we publish it, I think we will have very many interesting debates about what it demonstrates. As I see it, the food strategy goes together with the land use framework, which goes together with the farming road map—all of which are in parallel production even as we speak.
Cash flow challenges are hitting many of our farming businesses right now. Baroness Batters, of the other place, has produced a profitability review, which seems to be hidden in the depths of the Department at the moment. Will the Minister guarantee that the profitability review will be published this week, before the Budget, so that all our farmers, the stakeholders and us, as Members of Parliament, can scrutinise it and lobby the Chancellor to make the right decisions before the Budget next week?
I do not think that the lack of appearance of Baroness Batters’s report has stopped anyone lobbying the Chancellor; lobbying is happening outside even as we speak.
Of course it will be published, and it will be published this year. I cannot think of any Government who produce large reports on matters of interest in the week before the Budget. The hon. Gentleman can expect to see it this year, as my right hon. Friend the Secretary of State told the EFRA Committee in evidence, I think last week.
I could understand why the right hon. Member for Aldridge-Brownhills would be worried if solar farms were planned to take up more than 0.4% of land in England in the next period, up to 2035, but they are not. Also, the 1.5 million homes that this Government have said they will deliver in this Parliament are likely to take up approximately 26,000 hectares, which is 0.2% of English land. That is quite a small land take to transform the lives of the many hundreds of thousands of people who are currently in need of homes. The Government are quite right to pursue a target of 1.5 million homes, and clearly one needs to build those homes on land. As I said, 26,000 hectares, which is 0.2% of English land, is the approximate amount of land that will be needed to ensure that we can house many people who currently do not have the prospect of having a home of their own.