Agriculture Bill

Tim Farron 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

[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.

--- Later in debate ---

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

Thank you, Mr Deputy Speaker. It is a great honour to share this debate with so many Members making incredibly impressive maiden speeches on both sides of the House. I did not expect there to be even one mention of Nottingham Forest, but there were two from our new colleagues. It is a team with a rich European heritage and, like the United Kingdom, I am sure, a prosperous European future at some point.

Today, Brexit goes from the emotional to the practical, and we are instantly reminded that “Get Brexit done” is the most misleading political slogan since David Steel told Liberals to go back to their constituencies and prepare for government. Brexit is not done and will not be done for perhaps 10 years or more, but our agricultural industries might well be done if the Government get this wrong—and there is every sign today that they will. We must design an agriculture policy that supports agriculture and food production and rewards farmers for the public goods that we rely on them for. We need to begin by acknowledging that this Bill will be a bad deal for Britain if it is not a fair deal for farmers.

First, we must address the transition from the current system. I have been horrified by the Government’s wilful deafness to the farming community over the phasing out of direct payments. ELMS may be a step forward, but the Government’s own figures show that 85% of livestock farm incomes come through direct payments. The phase-out begins in 11 months, even though ELMS will not be fully available until 2028. That is seven years of lost income and uncertainty, when we may lose hundreds of the farmers needed to feed us and deliver vital environmental and public benefits—how short-sighted and foolish. The answer is simple: the Government must not begin to phase out the BPS until 2028, when ELMS is available to all. The Government must listen to our farmers in Cumbria and across the country and make that announcement today.

In order to achieve a fair deal for farmers, it is essential that public goods are defined, to recognise the incredible work that they are already doing. The ultimate public good that farmers provide is food. We must have a coherent food production strategy, and yet the Bill fails to address that. It is a dreadful missed opportunity. Food production is the central motivation for most farmers, and food security is a real challenge for our farmers. Some 50% of the food we consume in the UK is imported, compared with 35% about 20 years ago. We are in a precarious position. How stupid would we be to put our farmers in a similarly precarious position?

We could solve so many of our problems if our farmers got a fair market price for their produce. The Liberal Democrats were proud to introduce the Groceries Code Adjudicator during our time in coalition, but of course the Conservatives limited its powers. The adjudicator could be empowered to take referrals from advocates such as the NFU, the Tenant Farmers Association or, indeed, Members of Parliament. They could expand its scope to investigate unfairness in every element of the supply chain. It must have powers to penalise those who abuse their market power to pay farmers a pittance. In short, it must have the power to secure a fair price for farmers.

A fair price for farmers will be made harder by the Bill’s failure to impose import standards. The consequences of cheap goods flooding our market would be catastrophic. Cheap imports, a market watchdog that lacks teeth and the phasing out of farmers’ main source of income in less a year are threats to farms that are plain for all to see except, it would appear, by this Government. If we fail to support farmers to be productive and to survive, there will be no farmers left to deliver any public goods.

The public good that I fear is in most danger of being overlooked is the one hardest to quantify or reward—the work farmers do in maintaining the aesthetics of our land. It is a privilege to call the Lake district and the dales of south Cumbria my home. Two or three years ago, UNESCO granted world heritage site status to the Lake district, largely due to the contribution of our farmers to the maintenance of our landscape. As well as being worth £3 billion a year to the economy, tourism in Cumbria provides 60,000 jobs. Without farmers to maintain the landscape, the entire industry would be undermined.

This is not just true of Cumbria. Helping farmers to deliver public goods and improving the productivity and resilience of UK agriculture mean releasing farmers from bureaucracy, badly run payments agencies and, worst of all, insecurity. If we want a diverse and bountiful ecology, we need farmers to steward and deliver it. If we want a better environment, we need farmers. The intentions behind this Bill may be good. In practice, though, it looks set to do more harm than good, because the Government have not listened to the farming communities that will bear the brunt of a poorly managed, detail-free transition.

[Several hon. Members rose—]