Support for Hill Farmers

Scott Mann Excerpts

Wednesday 12th February 2020 Westminster Hall

[George Eustice]

The Prime Minister is also very keen that we open up new markets. There are great opportunities for our lamb sector in markets such as the middle east and the far east, including in countries such as Japan. We should not always take a glass-half-empty view when it comes to trade. We also have offensive interests, particularly in our livestock sector.

We are looking at those opportunities around the world for our lamb sector. I have already had discussions with New Zealand, for instance, about whether together the UK and New Zealand could develop the market for lamb in the United States. There is a very small, underdeveloped market for lamb in the US at the moment, but it is growing, particularly among younger consumers in the US. These are all opportunities that we have as we leave the European Union and take back control with an independent trade policy.

I want, though, to spend most of my time talking about future agriculture policy, as concerns about the loss of the basic payment scheme—direct payments—and the speed of the transition were at the heart of the opening remarks made by the hon. Member for Westmorland and Lonsdale. I will simply say that, in terms of future policy, I do not think it possible to defend the idea of arbitrary, area-based payments, because in essence they are a subsidy for land tenure or land occupation and land ownership. That means that the biggest payments go to some of the wealthiest landowners in the country. It means that people who perhaps sell a business and get millions of pounds in profits can invest that money in land, to shelter their wealth, and then on top of that claim a BPS payment, a subsidy, from the taxpayer. That just is not sustainable, justifiable or defensible in the long term.

Therefore the premise behind our Agriculture Bill is this: let us get rid of the subsidy on land tenure or ownership and instead pay farmers properly and reward them adequately for the work that they do for the environment. The system will be based on payments for delivering public goods and environmental outcomes and for protecting genetic heritage through rare breeds, protecting water quality and so on.

[Scott Mann (North Cornwall) (Con)]

My hon. Friend the Minister will know as well as I do that many upland farmers also support some of the tributaries that run into our main estuaries, and we have declining populations of salmon and sea trout in those. Will ELMS be trying to repopulate some of our rivers with salmon and sea trout? Is that something that we can do through upland farming?

[George Eustice]

It is absolutely the case that one key priority of the future scheme and one objective set out in clause 1 of the Bill is about improving water quality. Any measures and interventions that farmers implement that will lead to improved water quality will be exactly the type of project that we would want to support.

I also point out that it seems already to be the case, from some of the work that we have done, that when it comes to sheep farmers in particular, around 30% of them do not actually receive the BPS payment; they are in some kind of contract farm agreement and effectively their landlord takes the BPS payment while they are the ones doing all the work and raising the sheep. It is not at all clear that the current area-based BPS payment is in fact in the interests of the sheep sector.