Agriculture Bill

Theresa Villiers Excerpts

2nd reading & 2nd reading: House of Commons & Money resolution: House of Commons & Programme motion: House of Commons & Money resolution & Programme motion
Monday 3rd February 2020 Commons Chamber

[The Secretary of State for Environment, Food and Rural Affairs (Theresa Villiers)]

I beg to move, That the Bill be now read a Second time.

This Bill will introduce the first major reform of agriculture policy in this country for half a century. Now that we have left the European Union, we are determined to do things differently and to pursue the priorities of the people of this great nation. That means strengthening the Union of our United Kingdom by levelling up opportunity, to unlock our country’s potential. As we commence consideration of this landmark Bill, I want to highlight the huge contribution that farmers make to our society by putting food on our plates and conserving the natural landscapes that we all value so much. This Bill will provide our farmers and land managers with a chance to play a fundamental role in tackling the greatest environmental challenges of our time: protecting nature and tackling catastrophic climate change.

Brexit means that we can finally leave the common agricultural policy, to build a brighter, better, greener future for British farming. With its exasperating rigidities, complexities and perversities, the CAP is a bad deal for farmers, a bad deal for landscapes and wildlife, and a poor return on public investment for the taxpayer. We can do so much better.

[Caroline Lucas (Brighton, Pavilion) (Green)]

I hope very much that we will be able to do better. The Secretary of State talks about looking after our farmers and higher standards, but will she guarantee that those higher standards will not be undercut by cheaper imports that do not meet those standards? If they are, we will not be doing our farmers any favours at all and will simply be outsourcing lower standards. Can she guarantee a legal commitment that no imports will undermine those standards that we will have in our country?

[Theresa Villiers]

I can reassure the hon. Lady that our manifesto is very clear on this. We will maintain our high standards of animal welfare, food safety and environmental protection. It is there in our manifesto, and we will defend that line in our trade negotiations.

[Sir Edward Leigh (Gainsborough) (Con)]

This weekend, I was approached by a young farmer who wants to succeed his grandfather as a tenant farmer. His landlord is the Church Commissioners—not so much a Christian organisation as a violently commercial one, which I suppose may be its right. Can my right hon. Friend assure all our good, solid tenant farmers, who are the bedrock of our support in the countryside, that we stand four-square behind them against rapacious landlords?

--- Later in debate ---

[Theresa Villiers]

I can. My right hon. Friend will know that the Bill contains provisions to introduce greater fairness for agricultural tenants, which we believe is very important. That is one way in which the Bill has been strengthened since the version considered in the last Parliament.

[Sir John Hayes (South Holland and The Deepings) (Con)]

Speaking of rapacious predators, farmers and growers in my constituency and elsewhere have been victims of the habits and customs associated with monolithic retailers. We welcome in the Bill the powers that the Government will introduce to give a fair deal to farmers and growers. Will the Secretary of State speak a little more about how and when she intends to use those powers?

[Theresa Villiers]

I will come to those later in my remarks, but as my right hon. Friend acknowledged, an important part of the Bill is introducing greater transparency in the supply chain, so that farmers get a fairer deal for the produce that they create.

[Dr Matthew Offord (Hendon) (Con)]

Does the Secretary of State agree that the theory of productionism, which lies at the heart of the common agricultural policy, encourages farmers to put as much land as possible into agricultural use, thereby disincentivising room for biodiversity? Can she confirm that the Bill will reverse that trend?

[Theresa Villiers]

The Bill enables us to provide financial assistance for environmentally friendly farming practices. Providing more space for biodiversity, trees and nature will, I hope, be at the centre of many of the environmental land management schemes that we will be able to take forward under the Bill.

[Bob Seely (Isle of Wight) (Con)]

Is the Secretary of State aware that providing modest support for small-scale farmers could be extremely valuable? That is part of my campaign for an Island deal similar to the one enjoyed by the Scottish islands. It could include support for small-scale abattoirs or humane slaughter on farms, which is the most humane way of slaughtering animals for human consumption, as well as milk storage, grain storage and vegetable box erectors on the Island. Those would work for not only my patch but many other parts of the United Kingdom. How will this excellent Bill help? Will she come to the Isle of Wight to talk to my farmers and see that for herself?

[Theresa Villiers]

I would be delighted to meet my hon. Friend to discuss those important suggestions, and I would be more than happy to visit his constituency.

[Marsha De Cordova (Battersea) (Lab)]

I thank the Secretary of State for giving way; she is being incredibly generous with her time. I want to take her back to the fact that the Bill lacks any legal guarantees to protect our food standards from being undermined. The Conservative party’s manifesto may have referenced that, but the Bill does not, so will she give us a cast-iron guarantee that the Bill will protect those standards?

[Theresa Villiers]

Our manifesto is clear. We will stick to the commitments in our manifesto. The Prime Minister reiterated that only today.

[Ian Paisley (North Antrim) (DUP)]

The Secretary of State knows Northern Ireland well, so she will know that the big issue facing agriculture is farm incomes, which have fallen by 23% in the last two years. What assurance can she give to farmers listening in Northern Ireland tonight that the Bill will encourage an increase in both farm productivity and farm incomes?

[Theresa Villiers]

My hon. Friend will appreciate that agriculture is a devolved matter, but the Government’s manifesto does commit us to maintain the same overall levels of support for our farmers in each year of the current Parliament. We do clearly recognise the importance of ensuring and securing prosperity in the farming community in Northern Ireland, and we will work closely with the Department of Agriculture, Environment and Rural Affairs on these matters in the weeks and months ahead.

We are going to put the broken system of the CAP firmly behind us. We are replacing it with an approach based on the principle of public money for public goods. We have committed in our manifesto to support that new approach with an overall level of funding to match 2019 levels for every year of the current Parliament. The Chancellor has already announced that the Government will provide £2.852 billion of direct payment support for the 2020 scheme year.

The objective of the Bill is a productive, profitable, resilient farming sector, empowered to produce more of the high-quality food that is prized around the world and appreciated so much here at home, all the while meeting the highest standards of food safety and traceability, animal health and welfare, and stewardship of the natural environment. Now more than ever before we need to recognise the vital importance of the work that farmers do because our climate is changing, because our ecosystems are under increasing pressure and because by the end of this decade 9 billion of us will share this planet.

[Sir Charles Walker (Broxbourne) (Con)]

I say to my right hon. Friend that we must not get too misty-eyed about farmers. There is far too much cattle slurry, from dairy farms in particular, going into our rivers and destroying those rivers, and we really do need to make sure that farmers are held accountable for what they do with the slurry their cattle produce.

[Theresa Villiers]

Through a combination of regulation and farm support payments, we are certainly doing everything we can to ensure that farmers play their part in addressing and reducing pollution, and contribute to cleaner water and cleaner air.

Finding a way sustainably to feed a rapidly growing global population is essential if we are to have any chance of tackling the climate and nature crisis that we face. Getting Brexit done means that we are able forge ahead with the reforms that the United Kingdom has sought for so long from the European Union, but never managed to secure. For 40 years successive UK Governments of all political complexions have vowed to secure reform of the CAP, and for 40 years Ministers returned from Brussels and stood at this Dispatch Box with very little to show for their efforts. This Bill will therefore deliver one of the most important environmental reforms for decades. It shows that we can deliver a green Brexit, where we have a stronger and more effective focus on environmental outcomes than was possible while we were a member of the European Union.

[Simon Hoare (North Dorset) (Con)]

My right hon. Friend is being characteristically generous in giving way. I agree with her entirely about the need to green and be environmentally friendly in farming. Against that backdrop, is she able to indicate her thinking about the support this Bill could provide to those farmers who are really keen to invest in agri-tech as a way of reducing the need for both insecticide and pesticides?

[Theresa Villiers]

The new scheme of farm support will include support for agri-tech to support productivity enhancement in a sustainable way. My hon. Friend raises an important point, which I will refer to later in my remarks.

If we get right the reform we are contemplating today, we can be a beacon for others to follow. Over $700 billion is spent around the world on agriculture subsidies. If we successfully deliver a new approach to farm support here and that encourages even a fraction of those billions of dollars of farm subsidies to be diverted into environmental improvement schemes, we will have a created a massive boost to efforts to address the climate crisis. As Secretary of State, I want to emphasise that I fully recognise the urgency of that crisis. I have been driving forward this Bill as just one part of the biggest package of legislative reform in Whitehall, but I am determined to go further. In the coming weeks, I will be publishing documents outlining more detail on our proposals for the future of farming.

The Government have always been clear that we will seize the opportunity Brexit presents to deliver reforms that work for our farmers across our Union and that help to secure crucial environmental goals, but I am afraid that that cannot be said of the official Opposition. In all the years Labour Members had to change things, they did nothing. They wanted us stuck in the EU, locked forever into the CAP and anchored to a status quo that has been holding us back for decades. I am shocked that, in tabling a reasoned amendment, they have signified their intention to vote against this Bill.

[Mike Amesbury (Weaver Vale) (Lab)]

I speak here as a patriot, and I have quite a farming community in Weaver Vale, and I and Opposition Members certainly want to maintain good British standards. Why does the Secretary of State not be true to the Government’s words in the manifesto and put this into legislation, as the National Farmers Union has called for?

[Theresa Villiers]

The hon. Member has heard my response on that. It is in the manifesto, and we will deliver on our manifesto commitments.

The first chapter of the Bill provides the framework for funding schemes to support farmers, foresters and land managers. Clauses 1 to 3, which contain the meat of the Bill, will empower the Government to devote public money towards securing the public goods that people value so much, but which the market does not fully recognise or reward.

[Several hon. Members rose—]

[Theresa Villiers]

No, I will not give way.

That includes improving standards of animal health and welfare, managing land in a way that enhances cultural and natural heritage, and improving public access to the countryside. Of course, protecting the environment will be right at the heart of our new approach. The Bill will enable the Government to support farmers to deliver improved water and air quality, increased biodiversity—for example, through enhanced protection for our hedgerows—and measures to address climate change. We all here know that farmers and land managers are already doing a huge amount to meet these environmental goals, but, as in so many parts of our economy and our society, we need to do so much more if we are to have a chance of reaching net zero and preventing disastrous climate change. These changes in farm support will help us to meet our hugely ambitious target for planting trees and safeguarding peatland.

[Geraint Davies (Swansea West) (Lab/Co-op)]

I am very grateful to the Secretary of State for the gracious and generous way in which she has given way. I point out to her that, as she will probably know, livestock farming contributes some 27% of methane production—methane is 85 times worse than CO₂ for global warming—and, what is more, slurry contributes about 40% of the secondary PM2.5 in UK cities. Why does the Bill not contain anything about air pollution, despite her saying it is all about climate change and helping the environment?

[Theresa Villiers]

I am sorry to hear that Labour wants to talk down British farming. The reality is that well-managed livestock production can provide important environmental benefits, including for biodiversity. I think we need a debate on livestock farming that reflects the facts, which include the fact that our livestock farmers are some of the most carbon-friendly in the world in the way they produce their products.

We know how vital it is to protect soil health. Soil is clearly one of our most precious national assets, and we have added it to the list of purposes underlying the schemes that we can pay for under the Bill. This is a direct response to the views expressed in this House about the previous version of the Bill. A further addition is to include in clause 1 the conservation of native breeds and plants, so that the species that sustained our ancestors are kept safe for future generations. Work is already well under way to prepare and implement these crucial reforms. Our environmental land management scheme is the cornerstone of our new agriculture policy. Extensive tests and trials are under way in different parts of the country. We will launch the ELM national pilot in England in late 2021, and the scheme will launch fully in 2024.

ELM will provide a powerful driver towards meeting the goal set out in our 25-year environment plan, which is to leave the environment in a better state than we found it. Getting ELM right is crucial for meeting our commitment to net-zero carbon emissions, and to meet the tough targets set out in our forthcoming Environment Bill. I emphasise that our goal is to design ELM schemes that work for farmers and land managers, and in which a very wide range of farmers and land managers can take part.

[Ian Paisley]

I welcome the points that the Secretary of State makes about protecting our environment, because without a good environment we cannot produce the good, tasty, and traceable food for which Britain and the United Kingdom are famous. Does she recognise that the UK currently imports 16% of its milk? Why can we not buy more British milk from British farmers and close that deficit?

[Theresa Villiers]

I would encourage everyone to do that. We produce some of the finest food and drink in the world, and I encourage everyone to reflect that in their shopping habits.

We fully recognise the particular challenges faced by upland farmers—indeed, I discussed that issue just a few days ago with a group of farmers in Northumberland National Park. We are determined that ELM will also work for upland farmers, and the incredible work they do to safeguard our beautiful natural landscapes will put them in a strong position to take part in our environmental schemes.

[Tim Farron (Westmorland and Lonsdale) (LD)]

Will the Secretary of State give way on that point?

[Theresa Villiers]

No.

Reformed funding support for farmers and land managers will be an important part of our programme to level up the rural economy, and we will provide grants and funding to improve productivity and help farm businesses become more resilient and successful. We believe that farming efficiently and improving the environment can, and indeed must, go hand in hand. We will therefore support investment in green agri-tech, as referred to by my hon. Friend the Member for North Dorset (Simon Hoare), and invest in research and development to help raise sustainable productivity levels.

Clause 4 includes a duty on the Secretary of State to set out a multi-annual plan for financial assistance, while clauses 5 and 6 include provisions that will require the Government to make annual reports on the amount of financial assistance provided in England. Those three clauses are designed to provide greater certainty and stability about assistance in the future, and are in direct response to concerns expressed by right hon. and hon. Members about the earlier version of the Bill. Clauses 7 to 13 provide that during a seven-year transition period basic farm payments will gradually be phased out.

I strongly believe that the changes in the Bill will be positive for farmers and the environment, but change of this magnitude will also have far-reaching impacts, and adjustment to the new approach will not always be easy. As I emphasised in the debate on the Direct Payments to Farmers (Legislative Continuity) Act 2020, a managed seven-year transition period up to 2027 will give farmers time to adapt to the new system, and provide time for the new schemes to be fully tested before they are delivered across the country.

[Tim Farron]

I am extremely grateful to the Secretary of State for giving way. She will appreciate that in that seven-year transition period farmers will be expected to cope with the loss of the basic payment scheme—according to her Department’s figures, 85% of funding for livestock farming comes from that scheme—and for all the likely and theoretical benefits of ELM it will not be functional for everybody until 2028. Does she agree that a wiser and more compassionate way of dealing with this issue would be to not phase out BPS until 2028, rather than starting before that?

[Theresa Villiers]

I understand the hon. Gentleman’s point. In part, we want our grants for productivity and investment to help plug that gap. But we have to get on with this; we must make progress in transforming the way we support land management in this country. I am afraid the climate crisis is urgent.

Clause 11 contains provisions to introduce delinked payments during the transition, and where we can, and subject to constraints in the withdrawal agreement, we will introduce simplifications to the existing BPS scheme. Our transition to the new schemes opens the door to a fresh approach to the rules that we expect farmers to meet, as provided for in clause 9. We are determined to have a far more rational and proportionate approach to compliance than the inflexible CAP regime that we are leaving. For too long farmers the length and breadth of this country have had to put up with systems of inspection, compliance, and penalties that often seemed to defy logic or common sense. Outside the EU, we can do better.

Clauses 18 to 20 provide that in exceptional circumstances the Government can act to support farmers through significant market disturbances in England. Our farmers want to be competitive, collaborative, and innovative, and to negotiate effectively at the farm gate to get a fairer return. We are using the Bill as an opportunity to take further action, and to improve fairness in the agriculture supply chain.

[Tonia Antoniazzi (Gower) (Lab)]

Will the Secretary of State accept the offer from the National Farmers Union to work with the Government on legislative provisions, in order to safeguard standards while allowing sufficient flexibility to conduct meaningful trade negotiations?

[Theresa Villiers]

I am in regular touch with the National Farmers Union—indeed, I spoke to its representatives only today. Throughout the process of negotiating our new relationship with the European Union, and our trade agreements with the rest of the world, there will be strong engagement from the Departments for Environment, Food and Rural Affairs and for International Trade, and from the Government as a whole, with farmers and other stakeholders on those crucial matters.

[Sir Greg Knight (East Yorkshire) (Con)]

Will my right hon. Friend give way?

[Theresa Villiers]

I have to make progress because I know there is a long speakers’ list.

Clauses 21 to 26 on data will increase transparency and help to manage risk and market volatility more effectively, and clause 27 will help protect UK producers from unfair trading practices. The Bill enables us to make progress on our new multi-species livestock information programme. That addition to the Bill that was debated in the previous Parliament will support a game-changing initiative to strengthen biosecurity through traceability, and help to strengthen consumer confidence in the quality and safety of the food that reaches the supermarket shelf. Parts 4 and 5 include new UK-wide provisions on fertiliser and organic products, and on reform of agriculture tenancies in England and Wales. Many of those provisions will benefit farmers in every corner of our United Kingdom, delivering a fairer and more modern agriculture system.

The Bill includes new powers for the devolved Administrations in Wales and Northern Ireland, which they requested to enable them to bring forward new agriculture policy. We fully respect the fact that agriculture is a devolved matter, and we have worked closely with the devolved Administrations on this Bill. I thank them for the collaborative approach that they adopted. Where clauses cover devolved matters, we will of course seek the appropriate legislative consent motions.

Crucially, this Bill fully recognises the importance of food production and food security. In response to concerns expressed in this House, and beyond, about the previous version of the Bill, clause 17 places a duty on Ministers to report regularly on food security to Parliament. The Government are committed to boosting the best of British, and to championing our iconic produce on the global stage. Our manifesto commits us to maintaining and defending our high standards of food safety, animal welfare, and environmental protection as we embark on our trade negotiations with countries around the world.

We will give our farmers unfailing support as their businesses adapt to the bold and radical programme of change that this Bill ushers in, so that they can maintain and enhance the high standards that are the backbone of their success, play their part in tackling climate change and giving nature the space to recover, and continue their vital work of feeding the nation. I urge the House to back this historic change to agriculture policy in this country. Together we can seize this opportunity to deliver a better future for British farming, and I commend the Bill to the House.

[Several hon. Members rose—]