All 1 Caroline Johnson contributions to the Direct Payments to Farmers (Legislative Continuity) Act 2020

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Tue 21st Jan 2020
Direct Payments to Farmers (Legislative Continuity) Bill
Commons Chamber

2nd reading & 2nd reading: House of Commons & 2nd reading & 2nd reading: House of Commons & 2nd reading

Direct Payments to Farmers (Legislative Continuity) Bill

Caroline Johnson Excerpts
2nd reading & 2nd reading: House of Commons
Tuesday 21st January 2020

(4 years, 2 months ago)

Commons Chamber
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Caroline Johnson Portrait Dr Caroline Johnson (Sleaford and North Hykeham) (Con)
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I congratulate my hon. Friend the Member for Brecon and Radnorshire (Fay Jones) on her wonderful maiden speech. I campaigned in Brecon and Radnorshire last year and can testify to the fact that as well as being a long journey from Lincolnshire it is an incredibly beautiful constituency, and it is very lucky to have such a passionate campaigner representing it.

Before I talk about the Bill, I should mention that I am married to a farmer who receives some money from the payments to farmers.

Adam Afriyie Portrait Adam Afriyie
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He deserves them.

Caroline Johnson Portrait Dr Johnson
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He does deserve them; my hon. Friend is right.

The Bill is narrow in scope but, as my hon. Friend the Member for Brecon and Radnorshire said, it is small but mighty. The Bill in essence fills a legislative gap caused by our leaving the European Union. When we leave, the rural payments from the EU, unlike some other payments that will continue to the end of the year, will need to stop at the end of January, because the payments that farmers apply for this year in March and that are paid at the end of the year will come out of the 2021 EU budget, of which I am pleased to say we will not be part. The Bill will fill a small legislative gap and continue the scheme for the whole UK.

Leaving the EU is a great opportunity for the United Kingdom. The voters in Sleaford and North Hykeham voted overwhelmingly for it and, at the general election in December, the Conservative party received a huge mandate to deliver it. This morning, I went to Conservative campaign headquarters, where I saw the clock counting down the 10 days until we deliver Brexit and take back control of agriculture policy, among other things. That will give us the opportunity to develop better agriculture support for farmers, help them with economic opportunities, improve the labelling and quality of our food and improve our exports and trade with countries outside the European Union.

The budget for farm payments currently stands at £3.5 billion a year, of which 80% is largely based on the acreage that the farmer farms. Last year, £21 million was given to farmers in Sleaford and North Hykeham alone. It is really important money because 42% of farms would not be profitable were they not to receive the money from the Government. This is not supporting unproductive business, but instead is supporting our farmers and helping them to deliver high-welfare, environmentally sound, healthy food production.

Carla Lockhart Portrait Carla Lockhart (Upper Bann) (DUP)
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The hon. Member referred to her constituency; she will well know that in Northern Ireland the agri-food sector and agriculture make up to £5 billion of turnover in the economy. Does she agree that it is vital to take into account the size and type of farm and land in the policy going forward? The Government should engage directly with farmers in Northern Ireland. In that vein, I invite the Minister to my constituency in Upper Bann to visit farmers and see the difference between farming in Northern Ireland and farming on the mainland. Does the hon. Lady agree on that point?

Caroline Johnson Portrait Dr Johnson
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I cannot promise that the Minister will visit, but I certainly agree that there is great importance in looking at the different size of farms and the different types of schemes that will be right for each different type of farming as we leave the EU. I will discuss that later.

It is noticeable that we are the party of farmers—of supporting farmers and rural communities. That is obvious today as we look around the Chamber and see how well supported this debate is on the Government Benches compared with on the Opposition Benches.

Simon Hoare Portrait Simon Hoare (North Dorset) (Con)
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Does my hon. Friend agree that one task of everyone in this place who supports British farming and agriculture is to make the clear argument, as she is, about the importance of the sector to an increasingly urbanised media, commentariat and, indeed, House of Commons? There are more urban MPs than there are rural. We need to make sure that the needs of agriculture in this country are well understood.

Caroline Johnson Portrait Dr Johnson
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I could not agree more with my hon. Friend; he is absolutely right. I have a new map for my office wall that shows the constituencies by colour, as per the recent election result. It is noticeable that rural Britain is overwhelmingly blue in representation, because we are the party of the farmers. I am sure we will continue to make the arguments positively and that Ministers will continue to do the same.

Karen Bradley Portrait Karen Bradley (Staffordshire Moorlands) (Con)
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I thank my hon. Friend for giving way. I would like to build on the comments of my hon. Friend the Member for North Dorset (Simon Hoare) in his recent intervention. My farmers in Staffordshire Moorlands contribute so much to the local economy. They often say that what they really want is a fair price for what they produce, but they need support to be able to achieve that. Does she agree that the challenges that the farmers in Staffordshire Moorlands face are different from those of the farmers in her constituency and that therefore we need a scheme for rural payments that recognises the differences across the country?

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Caroline Johnson Portrait Dr Johnson
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I absolutely agree with my right hon. Friend. The challenges in farming are certainly very different from the uplands to the lowlands and to the flat areas of some of the eastern counties, and we need schemes that reflect that without their being so overly complex that nobody knows which ones are right for them.

We have £3.5 billion, which comes in part from the UK Government budget and in part from the EU— although one should perhaps reflect on the fact that the EU money coming back to us was probably ours to start with. I have a few questions for the Minister. We have committed to keeping the budget the same in this Parliament. Is that the total budget that would have come from the UK Government and the EU, or is it just from the UK budget? It is likely that costs will increase over time—tractors and fertiliser become more expensive. Will the money come in the form of a cash budget, or will it increase in line with inflation over the next four years?

I also have a question about the currency. Today, €1 is worth 85 pence, but it might not be in September. Normally, the budget is set in euros and, in September, the currency is reviewed and the money for British farmers converted into pounds. This will affect our farmers’ costs and competitiveness, so if, in September, it looks like they will receive less as a result of the currency changes between now and then, will that be adjusted accordingly?

I understand that when the CAP is abolished under the withdrawal agreement payments to farmers will be exempt from state aid rules, provided they are equivalent to the CAP. How would the currency fluctuations affect that rule?

I wish now to look at the different types of payments that are made. As I have said, 80% goes broadly to acreage, but 10% of people get 50% of that money, and the smallest 20% of farms get only 2% of the money. This fact is often published in the media. Indeed, £2.8 million is given to farmers in Westminster when there are no farms in Westminster. This does make it a less popular scheme, and it makes it very difficult for new entrants to farming—people who want to be farmers but who were not born into a farming family—and creates an increase in the drive for size of farms. That is why I welcome the changes that the Government are making. Their new schemes will be much more sensitive, because they will look at what the farmer delivers rather than how much land the farmer owns. That is a much more positive scheme.

Many of my constituents write to me almost every day with their concerns about the environment. This is something that the country can really get behind. They want farmers to produce good food and they want the environment to be supported, so giving farmers money on the basis of what they do, rather than on how much land they have, is a very positive change. Indeed, 96% of farms are run by families—combinations of parent, child and grandparent—who see themselves as generational custodians of the land, rather than the owners of property. They also care about ensuring that the land is well looked after and that the environment is cared for so that it can be a profitable and productive farm, producing great food in the next generation.

I know that my farmers locally in Sleaford and North Hykeham welcome the Government’s scheme to produce clean air, clean water, quality soil, biodiverse habitat and a beautiful rural environment and to continue all those things. None the less, I do have a couple of points on this matter, too. The first is about size and complexity. At the moment, one criticism of the scheme is that the money goes to the very richest farmers. If there is a plethora of different schemes—we recognise from the contributions made so far that there needs to be different schemes for different types of farming—or if they are too difficult to understand, only the largest farms with an office full of staff, who are able to weigh up the pros and cons of different schemes, will be in a position to take advantage of them. Farms run by small family combinations, or even a solitary farmer, will find it much more difficult to work out which scheme will work for them.

That is also true of the design of the schemes. For example, one of the laudable aims of the Government is to increase the accessibility of the countryside to the public. However, that is much easier for a huge landowner who does not live on their farm to achieve than it is for a farmer who lives in a very small farm and who may be suffering from the effects of rural crime and not really want people coming through their farmyard.

Ian Paisley Portrait Ian Paisley (North Antrim) (DUP)
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I appreciate that the hon. Member has given way. She is making an absolutely excellent point about how these schemes work. I am sure that, like my farmers, farmers in her constituency will work out quite quickly which schemes benefit them the most. Does she agree that the key issue in this direct payments matter is to ensure a rebalancing of the relationship between the primary producer—the farmer—the supermarkets and the processors in between? If that relationship is right, farming really can flourish for all of our nation.

Caroline Johnson Portrait Dr Johnson
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I thank the hon. Gentleman for his intervention. He is right that, for too long, farmers have not necessarily been treated fairly by all the supermarkets. The Groceries Code Adjudicator and some voluntary schemes by some of the supermarkets are improving the situation, but I do agree that there is still a long way to go to ensure that farmers receive a fair proportion of the reward for food production.

Will the Minister elaborate on what guidance and help will be available to smaller farmers to ensure that they can easily understand the scheme options, rather than having to go through lots of government papers?

Finally, I want to echo a couple of points that have been made on the multi-year settlements. Minette Batters, head of the National Farmers Union, and some Members in the Chamber today have talked about the importance of a multi-year settlement. This Bill does great things in ensuring that farmers know what they will get this year, but, as yet, although we know the size of the envelope, we do not know how the money will be targeted for the year after. When designing environmental schemes, I would encourage the Minister to design longer-term ones as far as possible, because if a farmer is to plant trees or plough up fields to create a meadow, they need to know that that will be there for a long time, and that they will not have to change it again, or be incentivised to plough that meadow up again in two years’ time.

Virginia Crosbie Portrait Virginia Crosbie (Ynys Môn) (Con)
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Does my hon. Friend agree that the farmers of Ynys Môn are vital to our economy and to our communities and that they and their families—she mentioned much about families and the family farm—need certainty to plan for their children’s future and for their own future?

Caroline Johnson Portrait Dr Johnson
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I thank my hon. Friend for her intervention. She is indeed right that we need certainty and a multi-year settlement. Farmers also need paying on time. There was a reference earlier to the RPA. As part of the Environment, Food and Rural Affairs Committee in the previous Parliament, I can say that we did an inquiry into how quickly those payments were made to farmers after they were applied for. I am pleased to say that, under the tenure of this Government, that has improved and the target of 90% was met. In fact, it was exceeded this year, but there have been huge difficulties with mapping. I look to Ministers to ensure that, as these new schemes are introduced, the Department is well resourced and has the right type of staff to be able to ensure that farmers receive payments promptly when they deliver these great public goods for our community.

Finally, I want to talk about one public good in particular. As a children’s doctor myself, I am very concerned about the health of our children. Some 22% of five-year-olds in the United Kingdom now are obese. Only 8% of children get their five a day, and that has not massively changed over the past 30 years. However, what has changed is that, 30 years ago, 83% of that fruit and veg was produced in the UK, and now only 54% is grown here. That means that we have a huge capacity to improve the amount of home-grown fruit and veg. In fact, we could grow the sector by 66% overnight if people were to consume their five a day immediately. I encourage the Minister to think of the public good of producing extra food as well as producing environmental access improvements. We should think of food production, particularly fruit and veg production, as a great public good for our society, as it would really help to improve the health of our nation.