Committee stage & Committee Debate: 1st sitting: House of Commons
Tuesday 11th February 2020

(4 years, 2 months ago)

Public Bill Committees
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Daniel Zeichner Portrait Daniel Zeichner
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Q I would like to return to the vexed issue of imports to potentially lower standards. ffinlo, you mentioned some of the potential impacts. I would like everyone to comment on the potential environmental impact, given that people are so positive about the potential here. If we do find ourselves being undercut by lower-standard imports, what would be the effect on the environmental aims in the Bill?

Caroline Drummond: I think potentially farmers will walk away from supporting them ultimately, if the marketplace is not delivering against the requirements expected of the imported produce and farmers are increasingly required to deliver against goods that are costing them from a business perspective. That is one of the big dangers. A bigger issue is offshoring, and the fact that we have nine years to deliver against the sustainable development goals. We have the Paris agreements. We have a fantastic opportunity with the conference of the parties talks on climate change being held in this country later this year to herald our ambitions for delivering and demonstrating leadership in environmental delivery and in climate change mitigation delivery.

We might think we can compete on a global level in terms of a huge productivity market, but actually we are just small producers on a global scale. Our real opportunity lies in being the best at what we do. We already have such a good background: despite all the criticism that farmers get for delivering or not delivering against the environment, they have been hugely committed since 2001, after foot and mouth, through entry level stewardship and higher level stewardship agreements, to deliver vast changes and improvements, with strong ownership in how farmers are farming in this country. It would be a real shame to lose that. The Bill is an opportunity to build on that backbone and to place our farmers in a position whereby we continue to be world leading, but with more focused ambition and strong clarity on what we deliver from an environmental perspective.

Jack Ward: In terms of delivering environmental outcomes, we are looking at a balance between a farmer or grower’s own investment and public money. If you start to cut away at the farmer’s ability to invest as an individual, you lose an important part of the funding that will deliver the overall environmental improvements that you are looking for.

ffinlo Costain: I think the future for UK farmers has to be in quality. Volume production will increasingly become a mug’s game. I would not advise farmers to go into it. It should be about environmental excellence, animal welfare excellence and sustainability excellence. The danger is that if it comes into the country, some customers—perhaps quite a lot of customers—will buy it. That is where the undermining happens: it undermines our ability to develop that comprehensive basis for environmental excellence, and it will challenge emerging supply chains in particular. Part of our big challenge over the next 10 years is to shorten supply chains and to make sure that farmers are better able to claim decent farm-gate prices by selling direct or through many fewer cogs before they reach the customer. I worry about those smaller and emerging supply chains being undermined.

Alicia Kearns Portrait Alicia Kearns (Rutland and Melton) (Con)
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How do you assess that the security of food supply will be improved by the Bill? What do you see as the UK’s greatest threat to food security?

Martin Lines: Food security can only come from healthy soil and a healthy environment. If we over-produce from our soils, we degrade them and there will be no food security for future generations. We need a balance of how we manage our landscape and how much we can produce from that balanced landscape. We can then consider what products we need to import, and whether we need to do other things or change diets or change tjhe system. There needs to be an assessment of how our landscape looks, with a joined-up approach to landscape productivity.

ffinlo Costain: Traditionally, food security has been about volume and about being able to feed everybody. That has led us to the challenges we now face, which Martin just referred to. Food security comes from being able to produce good, nutritious, diverse and seasonally available food. That means we need to restore soil, have good water management, and good community dynamics, with complexity returned to our swards and landscapes where nature works with farmers to produce that food.

Looking forward 40 years to how society could break down as a result of climate change and biodiversity loss, food is the critical factor. If you look around the world at conflicts, including Syria, food is the critical factor that creates conflict. The way that we deliver national security is not by producing volume, but by ensuring that every hectare of our land can produce really good food, and by maintaining the rural economies and the ability of farmers to farm that land. That is why it is critical that we do not go down the route of sequestration here, wilding there, and food here. We need to be able to build broad diversity so that we have national food security in the future.

Caroline Drummond: There is often a lot of confusion around food security. There is the issue of our capability to grow, and having the infrastructure to support farmers with seed, fertiliser, tractor tyres, and investment in that area. There is the issue of what we actually mean by self-sufficiency, how we build our targets, and whether we are ambitious enough. There is food safety. We have some concerns about imported produce in terms of food safety challenges. That has been well heralded. There is also the issue of food defence—our capability to trade confidently, and to have the opportunity to receive food where we do not have self-sufficiency or sufficient produce.

It is a highly complex area. I think it is one area in the Bill where we would report every five years. Perhaps that could be amended to reporting every year, because it is so important.

Jack Ward: In the fresh produce industry, we are very dependent on imports to meet our needs. Arguably, it is the one area of food production where we want to increase consumption. Ultimately, the ability to increase our food security is down to grower confidence, and a willingness by growers to keep investing, and the returns that they can generate from that activity. The last six months have not done great things for grower confidence.

Daniel Zeichner Portrait Daniel Zeichner
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Q I would like to go back to the question of food security, and to some of the points that people have made. I am very concerned by some of what I am hearing, because it seems to me that there is a danger of a two-tier system emerging. A very high-quality, high-value system is, to ffinlo’s point, not about chasing volume. Is there not a potential problem ahead for us if we are not careful, in that we will not produce nearly as much of our own food as we would like? Going back to my earlier question, that also has environmental consequences. It goes back to a point that I think Jack made at the beginning: the sector needs to be profitable to keep people working. Is there a real danger here?

Martin Lines: If I am producing wheat, I can increase my yield by putting more products on, but that has a higher environmental risk, because a lot of those nitrates and products will leave the soil, because the crop has not used them in some years. If we hit the sweet spot with the productivity of our landscape, we can produce what the landscape can cope with, and push it some years, when needed, as well as ease off. It is about finding the balance point. We know from many livestock farmers that reducing livestock numbers actually makes them healthier, better animals, and they produce quicker because there are fewer there and the grass is better.

We have focused for so long just on yield and output, not profitability. Reducing my overall output gives me more profit at the end of the day. It is a funny way to look at how it works, but you end up spending more than you get in return. You chase the extra yield by spending more money. We need to find the place where we deliver as much as we can. Sometimes we can push that if we need to—if there are weather challenges, or other issues—but we should not be out there just to push it, doing environmental damage as a consequence of my farming operations.

ffinlo Costain: The most intensive food systems are environmentally damaging. They are damaging in terms of farm animal welfare, and often just in terms of the jobs that are provided for people, which are not pleasant. The death knell needs to be rung for those sorts of farms.

There is an assumption that with environmental excellence, because of our association with going from mainstream to organic, comes a reduction in yield. There does not need to be a reduction. There are so many examples, here and around the world—Martin being one—of regenerative agriculture, which is giving environmental excellence and social excellence. Farm animal welfare is not an issue on his farm, but elsewhere there are regenerative beef and cattle systems where yield is being maintained in terms of mainstream amounts, and even increased.

There is an assumption that high environmental standards mean a reduction in yield; that is not necessarily the case. It is not just about looking at volume; it is about looking at a whole range of different changes. We need a dietary shift in Britain. That does not mean no meat and dairy, but it probably does mean a bit less meat and dairy as we go forward, and a bit more fruit and vegetables. We can deliver that, with agroforestry approaches and regenerative approaches. We can more than sufficiently provide food for the people of this country—I have no doubt about that—but it will mean changes in diet, and a little bit of change in the way that we farm, at the same time as focusing on multiple outcomes, rather than simply the outcome of producing lots of food. It is food, climate and biodiversity.

Caroline Drummond: We have a tremendous amount of evidence and case studies to demonstrate the importance of integrated farm management practices and how farmers have increasingly adopted them, in terms of economic viability, good performance and optimising the capability of the land. That is a really strong driver. One of the big keys will be how we link the Agriculture Bill with the Environment Bill and the national food strategy—this is such an opportunity for really trying to work out what it is that we want to develop and to balance and to build in what we grow, how we grow it and how we improve the health of our nation as well.

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Kerry McCarthy Portrait Kerry McCarthy
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Q May I return to the regulatory baseline issue I raised with the previous witnesses? The RSPB was involved in the Institute for European Environmental Policy report published this week that suggests that, now we have left the EU, there is a real gap in the regulatory baseline because so many regulations were set at EU level. Is there a need for a firmer regulatory baseline in the Bill so that we know what we reward in terms of farmers going above that baseline, and so on?

Thomas Lancaster: We, the Wildlife Trusts and WWF commissioned the report from IEEP, who are independent consultants, to look at a future regulatory framework. Because the Bill includes provisions to move away from cross-compliance, and in particular to delink payments from land, that potentially opens up gaps in aspects of current environmental regulatory protections that exist only in cross-compliance, particularly around soils and hedgerows—for example, cutting of hedgerows during birds’ breeding season and hedgerow buffer strips. We think there is a gap in the Bill in terms of powers necessary for Ministers to bring forward regulatory protections for soils, hedgerows and other environmental features, and we would like to see the Bill amended to plug that gap.

There is a big opportunity coming off Dame Glenys Stacey’s review. The farm inspection and regulation review the Government commissioned reported in 2018. It called for a more comprehensive regulatory framework that enables a more advice-led approach to enforcement, so that, rather than farmers being penalised but not really understanding the underlying issue and therefore not able to address it, the approach would seek to blend penalties with advice and incentives to ensure that you get better environmental outcomes.

There is an existing model of that in the Scottish Environment Protection Agency and its approach. When a breach is detected, there is a visit from an adviser or a member of staff, who says, “You have to address this breach. You can either go and seek advice or invest in infrastructure if necessary.” They come back a second time. If the breach has been addressed, everything is fine; if it is not, they give them a third visit and, if it is still there, then they penalise them. That approach, which Dame Glenys Stacey supported, and we supported at the time, gets better environmental outcomes in a way that farmers also appreciate and can understand, whereas at the moment our regulatory enforcement is very substandard, it is fair to say.

Again, Dame Glenys Stacey found that of 10,600 staff at the Environment Agency, only 40 do farm inspections. As a farmer, you have a one in 200 chance of being inspected by the Environment Agency, and we know that the agency is again cutting back on some of those regulatory compliance visits. There is a huge challenge in the future, not just in how we reward good practice but in how we ensure a level playing field so that the progressive best farmers out there are not undercut by, effectively, cowboys—unfortunately, there are some. The Bill is silent on that, and for us that is one of the biggest gaps and omissions.

John Cross: The only comment I would make—again as a farmer—is that any more regulation would need to be fit for purpose, logical, proportionate and enforceable. Regulation is fine, but unless it is logical so people can understand it, and it is relatively easy to comply with, it is just a source of frustration to everyone. Certainly, the industry is very keen to move towards an outcome-based form of regulation as opposed to constantly arguing about whether a particular margin is six inches too narrow or not. The industry would be interested in seeing a much more outcome-focused approach.

David Bowles: The EU has been moving towards an outcomes approach, but obviously leaving the EU gives us huge opportunities in the animal welfare sectors, such as sheep, beef and dairy, where there are no specific baseline species standards at the moment. There is a real opportunity to introduce those baseline standards, which will help not just the Bill, but in establishing what the baseline is—and then establishing how to move farmers up the scale, through capital inputs or through specific measures, and paying them where the market does not deliver. There are huge opportunities to improve the baseline regulatory standards in those areas where they do not exist now.

Alicia Kearns Portrait Alicia Kearns
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Q This question is mainly for you, Mr Price. My constituency of Rutland and Melton has quite a few farmers who farm rare breeds. Is there sufficient support for rare breeds in the Bill? Conversely, is that support the right thing to be doing? My farmers who do not farm rare breeds would say that there is a question of fairness in giving too much support to rare breeds.

Christopher Price: I will take the second part first. Should we be supporting rare breeds? Yes, we should. You probably expected me to say that.

Alicia Kearns Portrait Alicia Kearns
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I thought you might, but you never know.

Christopher Price: We should do it, first, for economic reasons. These breeds were bred to be in a British landscape. They can survive in parts of the country that other breeds cannot, or cannot without significant inputs. In many parts of the country, people are farming the wrong animals and are doing so expensively, because they are using certain inputs to support them. We need some help in getting farmers to transition away from the old way of doing things into going back to native breeds.

Native breeds can also provide a wider range of products than many other breeds. I mentioned wools, skins, horns and so on, which all have markets, if people think about it, or are incentivised to start thinking about it rather more. There is a role for Government in that.

Then there is the environmental side of things. The grassland habitats that we so cherish are there because they were grazed by certain animals over generations. If we are going to restore those habitats, the easiest, most straightforward way to do it is by using the animals that created them in the first place.

Lastly, there is the social side. Many of these breeds are part of our history. White Park cows came over Dogger island from mainland Europe before Stonehenge was built. They were part of the Cistercian monks’ currency. Some of the earliest Welsh laws are about how you regulate and use those animals. Herdwick sheep were bred to live on top of hills in the Lake district. Swaledales were bred to be a bit further down the fells. They are an immense part of our culture.

Those are all reasons for supporting them. In terms of how you support them, I would be reluctant for us to go down a simple headage route; I think that would just create the wrong sort of incentives. If a farmer chooses to use native breeds to graze for particular conservation purposes that do not bring him or her a direct financial benefit, that is about the public benefit, which should be rewarded, but it is more about making sure that we have the right infrastructure in place.

There is a lot to do with promoting local produce. We have talked a bit about creating local markets. Some of the more savvy farmers I was talking about are doing an excellent job of that, and part of their brand is selling local breeds and local products from those breeds within a fairly narrow radius—30-odd miles. That is where the premium comes from. It is not for everyone, but people are starting to do it, which is interesting.

Perhaps the single most important thing—we touched on this a bit in the earlier session—is abattoirs. For many of the people that I work for and represent, abattoirs are at least as important an issue as support going forward. We have huge numbers of people who are producing the right animals to the right standards in a very environmentally friendly way. You hear people talking about how their motivation in life is to ensure that their animals have a life worth living and then only one bad day—the day they go to the abattoir—and you have people who want to buy the products, but the whole thing is being stymied in significant parts of the country because there is no abattoir that can cope. If there is an abattoir, it generally will not be able to take the small numbers of non-standard animals and give you back the by-products—the horns, the skins and so on. In many cases, there is no abattoir at all.

If we are talking about short-term Government capital investments, it seems to me that there is a desperate need to invest in pop-up abattoirs or mobile abattoirs. There are practical problems with all of that, but if I could get anything across to the Committee, it would be the need to make sure that we have an abattoir network that is fit for purpose over the next few years, and for the Government to invest in creating that. It does not need to be a long-term investment; once it is there, the market can function and support it, but it is getting us there that matters.

Daniel Zeichner Portrait Daniel Zeichner
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Q I should like to take you up a level, in the sense that since the initial iteration of this Bill, we have become very aware of the climate crisis and Parliament has declared a climate emergency. Do you think there is enough in this Bill to reflect that need for urgent action, particularly given the recommendations from the Committee on Climate Change on policies for net zero referred to earlier? If the NFU can look for a target for 2040, should there not be something in this Bill referencing that?

Thomas Lancaster: We have supported in the past, and would still support, a sector-specific target for net zero by 2040, to reflect the ambition of the NFU and others. We would support an amendment to that effect in Committee and beyond. As a statement of intent and clarity on the role that the sector could play in that climate emergency, it is still a really useful thing to look at. We would also stress that, although this is the Agriculture Bill, in the climate change world there is a lot of talk about nature-based solutions such as peatland restoration, coastal habitats and woodland creation, and the Agriculture Bill, particularly through the land management schemes that flow from it, will be the central mechanism for delivering those nature-based solutions and the aims of the Environment Bill.

Thinking about how public money for public goods can support more sustainable food production that is also carbon and climate friendly, it has an important role to play in building soil carbon, potentially supporting minimum tillage systems, cover crops and other land management interventions that build resilience to climate change in the future. We see climate change running through public money for public goods, from farmed and non-farmed landscapes, and the Agriculture Bill is one of the most important pieces of legislation that we have had in the past decade or probably will have for decades to come in helping to meet the climate emergency that we all face.

Christopher Price: I would support—