Asked by: Lord Carrington (Crossbench - Excepted Hereditary)
Question to the Department for Environment, Food and Rural Affairs:
To ask Her Majesty's Government what comparative analysis they have undertaken of the number of dairy farmers affected by COVID-19 provided (1) in the letter sent to Peers by Lord Gardiner of Kimble on 22 April, and (2) in the briefing by the National Farmers Union provided to MPs on 15 April; whether they found any significant variation between those figures; and if so, what steps they intend to take in response.
Answered by Lord Gardiner of Kimble
Dairy farmers are crucial in ensuring that food supplies remain resilient in this difficult period. While the vast majority of the UK's dairy farmers are largely unaffected some have been directly impacted by the closure of the food service sector as a result of the lockdown measures taken in response to COVID-19. Between 5 and 10 per cent of total milk production goes to the food service trade. We continue to work closely with the National Farmers Union, the Agriculture and Horticulture Development Board (AHDB) and Dairy UK to ensure that those most affected are supported.
In recognition of the unprecedented challenges facing this sector on 7 May we announced a new fund to support those dairy farmers who have seen decreased demand due to the loss of the food service sector. Eligible dairy farmers in England who have lost more than 25% of their income over April and May due to coronavirus disruptions will be eligible for funding of up to £10,000 each, to cover 70% of their lost income during this qualifying period. This will enable these producers to continue to operate and sustain production capacity without impacts on animal welfare.
The AHDB, together with Dairy UK, have launched a new £1 million campaign to drive an increase in the consumption of milk. Running over 12 weeks, the campaign will highlight the role that milk plays in supporting moments of personal connection during times of crisis. Defra and the devolved administrations are jointly contributing towards the financing of this campaign.
The dairy industry can also access various Government backed loan schemes. The COVID-19 Business Interruption Loan Scheme is available to dairy farmers, milk buyers and milk processors. In addition, the new Bounce Back Loan scheme applies to businesses operating in agriculture and will ensure that the smallest businesses can access up to £50,000 loans.
We also took a number of early emergency steps to support dairy farmers and those in other sectors. These included designating employees in the food sector as key workers and temporarily relaxing the normal rules on drivers' hours, enabling the sector to keep supply chains running, including deliveries from farm gate to processors.
Public intervention for skimmed milk powder and butter also continues to be available. Industry can sell skimmed milk powder and butter into public intervention when the price they would receive on the open market falls below the intervention price. This provides a floor price for dairy products. UK processors are also eligible for the recently opened private storage aid scheme for dairy.
Furthermore, the statutory instrument (SI) temporarily relaxing some elements of competition law for the dairy industry was laid before Parliament on 1 May 2020 and applies retrospectively from 1 April 2020. This makes it easier for the dairy industry to collaborate to maximise production, processing and storage efficiency in order to avoid wastage and to ensure that as much product as possible can be processed into high quality dairy products. The AHDB and Dairy UK have offered to work with the dairy industry to support the enactment of the powers under the SI. We and the Devolved Administrations are working closely with them on this.
We will continue to engage closely with representatives from all parts of the dairy supply chain to support the sector throughout this challenging period.
Asked by: Lord Carrington (Crossbench - Excepted Hereditary)
Question to the Department for Environment, Food and Rural Affairs:
To ask Her Majesty's Government, further to the letter sent to Peers by Lord Gardiner of Kimble on 22 April, when they expect to receive the proposals by the Agriculture and Horticulture Development Board and Dairy UK about the alleviation of overproduction in the dairy farming sector during the COVID-19 pandemic.
Answered by Lord Gardiner of Kimble
Dairy farmers are crucial in ensuring that food supplies remain resilient in this difficult period. While the vast majority of the UK's dairy farmers are largely unaffected some have been directly impacted by the closure of the food service sector as a result of the lockdown measures taken in response to COVID-19. Between 5 and 10 per cent of total milk production goes to the food service trade. We continue to work closely with the National Farmers Union, the Agriculture and Horticulture Development Board (AHDB) and Dairy UK to ensure that those most affected are supported.
In recognition of the unprecedented challenges facing this sector on 7 May we announced a new fund to support those dairy farmers who have seen decreased demand due to the loss of the food service sector. Eligible dairy farmers in England who have lost more than 25% of their income over April and May due to coronavirus disruptions will be eligible for funding of up to £10,000 each, to cover 70% of their lost income during this qualifying period. This will enable these producers to continue to operate and sustain production capacity without impacts on animal welfare.
The AHDB, together with Dairy UK, have launched a new £1 million campaign to drive an increase in the consumption of milk. Running over 12 weeks, the campaign will highlight the role that milk plays in supporting moments of personal connection during times of crisis. Defra and the devolved administrations are jointly contributing towards the financing of this campaign.
The dairy industry can also access various Government backed loan schemes. The COVID-19 Business Interruption Loan Scheme is available to dairy farmers, milk buyers and milk processors. In addition, the new Bounce Back Loan scheme applies to businesses operating in agriculture and will ensure that the smallest businesses can access up to £50,000 loans.
We also took a number of early emergency steps to support dairy farmers and those in other sectors. These included designating employees in the food sector as key workers and temporarily relaxing the normal rules on drivers' hours, enabling the sector to keep supply chains running, including deliveries from farm gate to processors.
Public intervention for skimmed milk powder and butter also continues to be available. Industry can sell skimmed milk powder and butter into public intervention when the price they would receive on the open market falls below the intervention price. This provides a floor price for dairy products. UK processors are also eligible for the recently opened private storage aid scheme for dairy.
Furthermore, the statutory instrument (SI) temporarily relaxing some elements of competition law for the dairy industry was laid before Parliament on 1 May 2020 and applies retrospectively from 1 April 2020. This makes it easier for the dairy industry to collaborate to maximise production, processing and storage efficiency in order to avoid wastage and to ensure that as much product as possible can be processed into high quality dairy products. The AHDB and Dairy UK have offered to work with the dairy industry to support the enactment of the powers under the SI. We and the Devolved Administrations are working closely with them on this.
We will continue to engage closely with representatives from all parts of the dairy supply chain to support the sector throughout this challenging period.
Asked by: Lord Carrington (Crossbench - Excepted Hereditary)
Question to the Department for Environment, Food and Rural Affairs:
To ask Her Majesty's Government what assessment they have made of the actual number of dairy farmers who require support given the COVID-19 pandemic; and what steps they have taken to ensure that appropriate and prompt support is provided to those that need it most.
Answered by Lord Gardiner of Kimble
Dairy farmers are crucial in ensuring that food supplies remain resilient in this difficult period. While the vast majority of the UK's dairy farmers are largely unaffected some have been directly impacted by the closure of the food service sector as a result of the lockdown measures taken in response to COVID-19. Between 5 and 10 per cent of total milk production goes to the food service trade. We continue to work closely with the National Farmers Union, the Agriculture and Horticulture Development Board (AHDB) and Dairy UK to ensure that those most affected are supported.
In recognition of the unprecedented challenges facing this sector on 7 May we announced a new fund to support those dairy farmers who have seen decreased demand due to the loss of the food service sector. Eligible dairy farmers in England who have lost more than 25% of their income over April and May due to coronavirus disruptions will be eligible for funding of up to £10,000 each, to cover 70% of their lost income during this qualifying period. This will enable these producers to continue to operate and sustain production capacity without impacts on animal welfare.
The AHDB, together with Dairy UK, have launched a new £1 million campaign to drive an increase in the consumption of milk. Running over 12 weeks, the campaign will highlight the role that milk plays in supporting moments of personal connection during times of crisis. Defra and the devolved administrations are jointly contributing towards the financing of this campaign.
The dairy industry can also access various Government backed loan schemes. The COVID-19 Business Interruption Loan Scheme is available to dairy farmers, milk buyers and milk processors. In addition, the new Bounce Back Loan scheme applies to businesses operating in agriculture and will ensure that the smallest businesses can access up to £50,000 loans.
We also took a number of early emergency steps to support dairy farmers and those in other sectors. These included designating employees in the food sector as key workers and temporarily relaxing the normal rules on drivers' hours, enabling the sector to keep supply chains running, including deliveries from farm gate to processors.
Public intervention for skimmed milk powder and butter also continues to be available. Industry can sell skimmed milk powder and butter into public intervention when the price they would receive on the open market falls below the intervention price. This provides a floor price for dairy products. UK processors are also eligible for the recently opened private storage aid scheme for dairy.
Furthermore, the statutory instrument (SI) temporarily relaxing some elements of competition law for the dairy industry was laid before Parliament on 1 May 2020 and applies retrospectively from 1 April 2020. This makes it easier for the dairy industry to collaborate to maximise production, processing and storage efficiency in order to avoid wastage and to ensure that as much product as possible can be processed into high quality dairy products. The AHDB and Dairy UK have offered to work with the dairy industry to support the enactment of the powers under the SI. We and the Devolved Administrations are working closely with them on this.
We will continue to engage closely with representatives from all parts of the dairy supply chain to support the sector throughout this challenging period.
Asked by: Bell Ribeiro-Addy (Labour - Streatham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking to include agricultural businesses in the support packages introduced by the Government.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
The Government has announced unprecedented support for business and workers to protect them against the current economic emergency including an initial £330 billion of guarantees – equivalent to 15% of UK GDP.
On 6 May the Government announced a new fund which will enable eligible dairy farmers in England to access up to £10,000 each to help them overcome the impact of the coronavirus outbreak. This will cover 70% of their lost income during April and May to ensure they can continue to operate and sustain production capacity without impacts on animal welfare.
Businesses in the agricultural sector may benefit from the range of support measures made available, which includes:
The Business Support website provides further information about how businesses can access the support that has been made available, who is eligible, when the schemes open and how to apply - https://www.businesssupport.gov.uk/coronavirus-business-support.
Asked by: Baroness Bennett of Manor Castle (Green Party - Life peer)
Question to the Department for Environment, Food and Rural Affairs:
To ask Her Majesty's Government what they are doing in relation to the measures to react to SARS-CoV-2 to support the adoption of agroecological farming practices in the dairy sector, which require small, largely grass-fed operations rather than factory farming.
Answered by Lord Gardiner of Kimble
Defra is working very closely with the dairy and other agricultural sectors through this period of disruption to manage the impact of Covid-9 on the dairy supply chain.
The Government encourages environmentally-friendly farming. Each farming method has its own benefits and it is a farmer’s commercial decision to choose the system that best suits their farm. Environmentally-friendly farming and food production can go hand in hand.
To support the dairy industry through impacts of Covid-19, we have introduced a wide range of measures, which will also benefit dairy farmers employing agro-ecological practices.
We have eased some elements of competition law to make it easier for dairy processors to come together to maximise production, processing and storage efficiency and ensure as much product as possible can be processed into high quality dairy products.
Moreover, in recognition of the unprecedented challenges facing this sector we announced on 7 May a new fund to support those dairy farmers who have seen decreased demand due to the loss of the food service sector. Eligible dairy farmers in England who have lost more than 25% of their income over April and May due to coronavirus disruptions will be eligible for funding of up to £10,000 each, to cover 70% of their lost income during this qualifying period. This will enable these producers to continue to operate and sustain production capacity without impacts on animal welfare.
AHDB together with Dairy UK have also launched a new £1m campaign to drive consumption of milk. Running over 12 weeks, the campaign will highlight the role that milk plays in supporting moments of personal connection during times of crisis. Defra and the devolved administrations are jointly contributing towards the financing of this campaign.
Alongside the Covid-19 Business Interruption Loans Scheme, HMT has announced the new Bounce Back Loan scheme which will also apply to businesses operating in agriculture. This will ensure that the smallest businesses can access up to £50,000 loans. The Government will provide lenders with a 100% guarantee on each loan, to give lenders the confidence they need to support the smallest businesses in the country. We will also cover the first 12 months of interest payments and fees charged to the business by the lender.
The existing public intervention scheme for skimmed milk powder and butter continues to be available. This provides a floor price for dairy products, supporting the dairy industry to sell skimmed milk powder and butter into public intervention when the price they would receive on the open market falls below the intervention price. In addition from 7 May, UK dairy processors are also eligible to apply for EU funded private storage aid in respect of skimmed milk powder, butter and cheese.
For organic dairy farmers whose milk is being sold as conventional milk, we offered a derogation to allow these farmers to provide their cows with conventional feed in order to reduce costs.
The new Environmental Land Management scheme will be the cornerstone of our future agricultural policy. It will reward farmers and land managers for the delivery of public goods with public money. The ELM scheme is being designed collaboratively with stakeholders. We are considering how more environmentally-sustainable farming approaches, including organic farming and agro-ecological approaches, may fit within ELM where these contribute towards the delivery of environmental public goods. Land managers will be paid for delivering the following public goods set out in the 25 Year Environment Plan: clean air; clean and plentiful water; thriving plants and wildlife; protection from and mitigation of environmental hazards; beauty, heritage and engagement with the environment; mitigation of and adaptation to climate change
Meanwhile, Countryside Stewardship (CS) provides a stepping stone to the future scheme, paying for environmental enhancements now as area-based payments are phased out. CS supports Defra’s Strategic Objective of ‘a cleaner, healthier environment, benefitting people and the economy’. Through the scheme, farmers can apply for funding to improve their local environment – from restoring wildlife habitats and creating woodlands to managing flood risk.
We will continue to offer Countryside Stewardship agreements in 2021, 2022 and 2023.
Asked by: Baroness Jones of Whitchurch (Labour - Life peer)
Question to the Department for Environment, Food and Rural Affairs:
To ask Her Majesty's Government what steps they are taking to encourage UK consumers to support UK farmers by buying their meat, dairy and vegetable products during the current COVID-19 crisis.
Answered by Lord Gardiner of Kimble
Half of the food that the UK population consumes is home-grown, once we take account of food production that is exported, and is renowned for its quality and high standards of food safety, traceability, animal welfare and sustainability. We will always champion our farmers and producers; supporting them to grow more of our great British food, and to provide a reliable and sustainable food supply to the British public.
The Government is aware that coronavirus represents a very significant challenge, affecting daily life and farming businesses up and down the country. We are supporting British farmers and the UK food and drink industry through this crisis and beyond.
We are working closely with the sector as they develop consumer-facing marketing campaigns. Specifically, the Agriculture and Horticulture Development Board (AHDB) and Dairy UK are launching a £1 million campaign, supported financially by Defra and devolved government partners, to encourage consumers to reconnect with milk.
Separately, Quality Meat Scotland, AHDB and Meat Promotion Wales have launched a £1.2 million ‘Make It beef’ campaign, aimed at showing consumers how they can recreate easy to cook restaurant-style meals with high-quality cuts, like steak.
We will continue to engage with and support similar initiatives that highlight the qualities of British meat, dairy, and vegetable products.
Asked by: Baroness Rock (Conservative - Life peer)
Question to the Department for Environment, Food and Rural Affairs:
To ask Her Majesty's Government what consideration they are giving to grant schemes to support dairy and tenant farmers.
Answered by Lord Gardiner of Kimble
Defra is working very closely with the dairy and other agricultural sectors through this period of disruption to manage the impact of COVID-19 on the dairy supply chain.
We have eased some elements of competition law to make it easier for dairy processors to come together to maximise production, processing and storage efficiency and ensure as much product as possible can be processed into high quality dairy products.
Moreover, in recognition of the unprecedented challenges facing this sector we announced on 7 May a new fund to support those dairy farmers who have seen decreased demand due to the loss of the food service sector. Eligible dairy farmers in England who have lost more than 25% of their income over April and May due to coronavirus disruptions will be eligible for funding of up to £10,000 each, to cover 70% of their lost income during this qualifying period. This will enable these producers to continue to operate and sustain production capacity without impacts on animal welfare.
The Agriculture and Horticulture Development Board together with Dairy UK have launched a new £1 million campaign running over 12 weeks to drive an increase in the consumption of milk. Defra and the devolved administrations are jointly contributing towards the financing of this campaign.
Alongside the COVID-19 Business Interruption Loans Scheme, HMT has announced the new Bounce Back Loan scheme which will also apply to businesses operating in agriculture. This will ensure that the smallest businesses can access up to £50,000 loans. The Government will provide lenders with a 100% guarantee on each loan, to give lenders the confidence they need to support the smallest businesses in the country. We will also cover the first 12 months of interest payments and fees charged to the business by the lender.
A vibrant tenanted sector is vital to a successful future for agriculture, a third of agricultural land in England is tenanted. Tenant farmers can access the business support schemes the government has put in place to help in these unprecedented times.
In addition, Defra has worked closely with the Country Land and Business Association and the Tenant Farmers Association on a joint initiative to encourage all rural landlords and tenants to work together collaboratively and compassionately at this time in respect of all tenancy matters, but particularly regarding rent payments, notices to quit and finalising new tenancy agreements. Furthermore, from 27 March 2020, court possession proceedings have been suspended for a 90-day period. This is in line with public health advice to limit all nonessential movement and it provides agricultural tenants with additional assurance that they are protected from eviction proceedings during this difficult time.
As the situation evolves Defra will continue frequent engagement with farming (including tenant farming) and processor representatives to understand the urgent support needed to help ensure the continued viability of all parts of the sector.
Asked by: Baroness Redfern (Conservative - Life peer)
Question to the Department for Environment, Food and Rural Affairs:
To ask Her Majesty's Government what steps they are taking to ensure long-term sustainability of the British dairy sector; and whether service contracts have been checked to ensure that all public services source milk from UK dairy farmers.
Answered by Lord Gardiner of Kimble
The Government is working closely with our agriculture sectors to manage the impact of COVID-19 and is determined that our dairy sector will emerge from the current COVID-19 crisis with a sustainable future. While the vast majority of Britain’s dairy farmers continue to supply their contracts at the usual price, between 5 and 10 per cent of total milk production goes to the service trade, and these farmers have been impacted by the significantly reduced demand following the closure of the food service sector.
To support the sector we have temporarily eased of some elements of competition law to make it easier for the dairy industry to come together to maximise production, processing and storage efficiency and ensure as much product as possible can be processed into high quality dairy products. This approach will allow the market for milk to adjust to the change in demand for milk while allowing production to be restored when shops, restaurants and pubs are able to open again. Exempted activities have been developed in conjunction with the dairy industry.
Moreover, in recognition of the unprecedented challenges facing this sector on 7 May we announced a new fund to support those dairy farmers who have seen decreased demand due to the loss of the food service sector. Eligible dairy farmers in England who have lost more than 25% of their income over April and May due to coronavirus disruptions will be eligible for funding of up to £10,000 each, to cover 70% of their lost income during this qualifying period. This will enable these producers to continue to operate and sustain production capacity without impacts on animal welfare.
The Agriculture and Horticulture Development Board together with Dairy UK have launched a new £1 million campaign running over 12 weeks to drive an increase in the consumption of milk. Defra and the devolved administrations are jointly contributing towards the financing of this campaign.
The dairy industry can also access various Government backed loan schemes. The COVID-19 Business Interruption Loans scheme is available to farmers, milk buyers and milk processors. In addition, the new Bounce Back Loan scheme, which will apply to businesses including those operating in agriculture, will ensure that the smallest businesses can access up to £50,000 loans.
In the longer term the Government is keen to see greater levels of collaboration between producers and we will continue to support farmers who want to harness the benefits of working together. Our Agriculture Bill includes powers to introduce a new domestic system for recognising producer organisations, which will be better tailored to the requirements of UK producers.
The Bill also includes powers to introduce and enforce statutory codes of practice to address unfair trading practices which can occur between milk producers and purchasers. We will carry out a full consultation on dairy contracts to take account of the range of stakeholder views and anticipate launching the consultation later this year.
British food and drink are renowned around the world for its quality and integrity and we want consumers, including public service organisations, to be able to benefit from our nutritious dairy and other agricultural products. Respecting our World Trade Organization commitments on public procurement, central Government and its executive agencies in England are mandated to source produce that meets UK minimum production standards, as outlined in the "Government Buying Standards for Food and Catering”.
Asked by: Baroness Pinnock (Liberal Democrat - Life peer)
Question to the Department for Environment, Food and Rural Affairs:
To ask Her Majesty's Government what plans they have, if any, to issue guidance on the rights of access to public rights of way during the COVID-19 pandemic.
Answered by Lord Gardiner of Kimble
The Government has published general guidance on access to green space on GOV.UK at https://www.gov.uk/government/news/coronavirus-guidance-on-access-to-green-spaces and FAQs on what you can and can’t do https://www.gov.uk/government/publications/coronavirus-outbreak-faqs-what-you-can-and-cant-do/coronavirus-outbreak-faqs-what-you-can-and-cant-do#public-spaces--outdoor-activities--exercise. Defra has also issued guidance to local authorities and organisations such as the National Farmers Union and the CLA to pass on to their members specifically on rights of way. This advises landowners and occupiers who have a path crossing through a garden or working farmyard to display a polite request, if necessary, for the public to use another path and includes suggested wording. Further information for landowners can be found at:
https://www.gov.uk/government/news/operational-update-covid-19
Asked by: Kate Osamor (Labour (Co-op) - Edmonton)
Question to the Department for Environment, Food and Rural Affairs:
To ask the Secretary of State for Environment, Food and Rural Affairs, whether he plans to introduce an additional grant scheme for people working in the agricultural sector that are facing market disruption as a result of the covid-19 outbreak.
Answered by Victoria Prentis - Attorney General
The Government is aware that coronavirus represents a very significant challenge, affecting daily life and every part of the economy. The agricultural sector plays a vital role in maintaining the UK’s food security. We are working closely alongside the agricultural industry to ensure that we understand and manage the impacts to the industry.
The department has been in close discussion with banks to ensure the farming sector has access to financial support to ease cashflow problems during this period, including through the HMG backed Coronavirus Business Interruption Loan (CBIL), and the Bounce Back Loan scheme, which was announced on 27 April, and is the latest step in a package of support measures announced by the Chancellor. The Government will provide lenders with a 100% guarantee on each loan, to give lenders the confidence they need to support small businesses. These loans will be from £2,000 up to £50,000, capped at 25% of firms’ turnover, and the Government will cover the first 12 months of interest payments and fees charged to the business by the lender. Almost all UK businesses will be eligible to apply for a loan under the scheme.
In March, Defra worked with BEIS to introduce new measures to support businesses in the food sector keep food supply flowing on to shelves and into homes. These included a temporary relaxation of competition rules to allow supermarkets to work together. The legislation to bring in this change was introduced on 27 March and has a retrospective effect from 1 March.
In April, we temporarily relaxed further elements of competition law to support the dairy sector during this period. Legislation was laid before Parliament on 1 May to enable collaboration between dairy farmers and producers, supporting them to adapt to changes in the supply chain including decreased demand from the hospitality sector. The legislation will apply retrospectively from 1 April 2020.
On 6 May, Defra announced a new fund to support English dairy farmers who have seen decreased demand due to the loss of the food service sector. Dairy farmers access this funding for those qualifying months, with no cap set on the number of farmers who can receive this support or on the total funding available. Eligible dairy farmers who have lost more than 25% of their income over April and May due to coronavirus disruptions will be eligible for funding of up to £10,000 each, to cover around 70% of their lost income during the qualifying months to ensure they can continue to operate and sustain production capacity without impacts on animal welfare. The Welsh Government announced the opening of a similar scheme on 12 May.
The availability of this funding followed the launch on 5 May of a joint Government and Devolved Administrations backed £1 million campaign aiming to boost milk consumption and help producers use their surplus stock. This 12-week campaign is being led by Agriculture and Horticulture Development Board (AHDB) and Dairy UK. This follows a similar on-going campaign led by AHDB and retailers to promote the consumption of beef products.
While the Government has made a wide-ranging package of measures available to businesses to support them through this difficult period, we continue to keep the situation in each sector under review. Legal powers were included in the COVID-19 Bill enabling us to offer further financial support if we believe it is necessary.