Agriculture Bill

Lord Wigley Excerpts

Committee stage & Committee: 1st sitting (Hansarad) & Committee: 1st sitting (Hansarad): House of Lords
Tuesday 7th July 2020 Lords Chamber

[The Earl of Caithness (Con) [V]]

My Lords, I will pick up a theme started by the noble Earl, Lord Devon, when he mentioned the importance of this Bill. This is an absolutely vital Bill—a watershed Bill in British agricultural terms. It is going to be a template for the future, very much as the 1947 Act was a template for farming for about 50 years. It is a privilege to be allowed to take part in these proceedings, which demonstrate how important it is for the Government to get the Bill absolutely right, because it will set the tone for farming for many years to come.

The noble Earl, Lord Devon, was also right to question the wide spread of the Bill because the wider the Bill is spread, the less money there will be to go around, and important projects could well fall by the wayside. I too urge the Minister to clarify exactly how far this Bill is going to spread, whether reservoirs are to be included and whether the whole of forestry is to be included. There is a definitional problem here as far as I can see. In Clause 1(1) we talk about woodland and in Clause 1(2) we talk about forestry. Do these mean exactly the same things? I hope the Minister can be clear about that before we move to the next stage.

I added my name to two amendments in this group and I will first talk to Amendment 37, moved by my noble friend Lady McIntosh of Pickering. I was attracted to this amendment because it refers to

“protecting or improving the management of landscapes”.

Farmers do not exist in isolation but within a landscape, and farming is absolutely crucial to that landscape and its productivity. I am a great believer in multi-functional landscapes. There is no such thing as the average farmer: farmers vary hugely, as does the soil on which they farm. What is able to be grown in one field could be very different from that grown in an adjacent field, perhaps because the soil has changed from green sand to heavy clay and there are two different products to deal with it. Farming is therefore a much more complicated business than a production factory.

The idea of landscapes is gaining momentum, as the noble Lord, Lord Greaves, said and I agree with him on this point. The key factor in making landscapes work sensibly is to work on a big, cohesive basis. The Minister knows a lot about the great success of the Northern Devon Nature Improvement Area, which is a template for how such projects could work. It is working on a water catchment area, as the noble Lord, Lord Greaves, said, and it brings farmers and other users of the countryside together to get the right policy for that area.

Amendment 7, which is a probing amendment, concerns growing crops for biofuel. There is potentially a very big future market for farmers growing bioenergy crops such as miscanthus for carbon capture and storage. I would not want them to be unable to obtain taxpayers’ money, considering the public good they would be doing. Can the Minister confirm that bioenergy crops are also included in this ambit?

Turning to Amendment 67 in the name of the noble Lord, Lord Teverson, I like the idea in principle of trying to attach the rewards of this Bill to the Environment Bill. Of course, there is a fundamental flaw in the noble Lord’s proposal. If, for instance, he had a farm that was subject to a tier 3 grant in a nature recovery area, he could well be signing up purely to get the money. If I were farming outside that area—not a nature recovery area—but wanted to increase my songbird population, I would be excluded by the noble Lord’s amendment. I hope the Minister will take up this point because it is key to the success of this Bill. We have to enthuse the farmer: I would much rather the farmer was enthusiastic about biodiversity and improving the ecology and the soil—wanting to spend the time doing it—than in the scheme purely in order to get the grants.

[Lord Wigley (PC) [V]]

I am happy to follow the noble Earl, Lord Caithness. I certainly identify with his comments on the 1947 Act and its significance. God help us if agriculture went back to the state it was in in the 1930s. There needs to be a reliable, transparent and dependable framework which our farmers and everyone involved in the countryside can depend upon. I draw attention to my interests as declared in the register.

This Bill applies primarily to England, although Wales will also come within its scope until such time as Welsh Ministers decide to have our own legislation. As the noble Lord, Lord Bruce, mentioned a moment ago, Amendment 66 addresses the question of the relationship between Wales, England, Northern Ireland and Scotland and the new regimes that will emerge. In the context of the European Union, there has been a framework for some understanding, whereas at the moment, unless some mechanism is brought in, there is a danger of us not having such a framework. My Amendment 66, which is in this group, attempts at least to flag up this question and seek an answer. This issue is probably better addressed later in the Bill, when we have already dealt with provisions relating to Wales—Schedule 5 and Part 7. Amendment 290, in the name of the noble Baroness, Lady Jones of Whitchurch, is probably a better point at which to address it. None the less, my amendment gives the Minister an opportunity to explain the initial thinking on it.

I agree with what was said in introducing the first amendment about the need for certainty and clarity. We need transparency regarding what exactly is going to replace the existing regime. The CAP can rightly be criticised for being expensive and bureaucratic, but it had one benefit: it brought certainty. It is important that farmers and others have certainty. In order to invest in the land, they need long-term certainty. We need to investigate that issue in Committee.

I also accept entirely what the noble Lord, Lord Bruce, and others said about less favoured areas. We need clarity and certainty there, too, because they depended so much on the European regimes. I support the noble Baroness, Lady McIntosh, on the question of reservoirs and water storage—an issue that might become even more important, given the climate change dangers we are facing. Having said this, many of these issues will be discussed in greater detail in considering later amendments, so on that basis, I will curtail my remarks at this point.

[Baroness Jones of Moulsecoomb (GP) [V]]

My Lords, it is always a pleasure to follow the noble Lord, Lord Wigley. I will speak to my own Amendments 8, 22, 25, 31 and 50, which all relate to the issue of air pollution. I also support the amendments signed by my noble friend Lady Bennett of Manor Castle and Amendment 37, on pasture-fed grazing livestock systems, in the name of the noble Baroness, Lady McIntosh of Pickering.

In this clause, there is near-unlimited potential for amendments, so we should all be commended if we manage to stay focused on our most pressing issues. As I said, the main focus of my five amendments in this group is on reducing the air pollution that results from farming and from land management, and on recognising the benefits of doing so.

Agricultural activities are a critical source of air pollution in rural areas—not just the fumes from machinery but the chemicals, slurries and manures that are applied to the land. Reducing this air pollution would obviously be of great benefit to the people who live and work on and around the land, but it would also benefit nearby towns and villages while reducing the accompanying smells. In most cases, farming-related air pollution is not an inevitable by-product of farming activity; it is in fact a huge waste of resources. For example, the offgassing of ammonia and nitrogen gases is an escape of nutrients that would be much better off retained in the soil.

--- Later in debate ---

[The Earl of Caithness [V]]

In introducing the amendment, the noble Lord, Lord Addington, said that farmers would have to get paid to do all these good works in the future. We should pause and thank all the many farmers doing exactly these now without any money at all from the Government. They are doing it of their own free will because they love the land that they farm—they might have been farming it for generations—and the biodiversity and nature that goes with it. We must pay them a big thank you for continuing the work.

The noble Lord, Lord Addington, jogged my mind. It slightly irks me that we paid farmers to take hedges out and destroy landscape and biodiversity. We are now going to pay the same farmers to put those things back. It is worth remembering that a lot of farmers did not take out any hedges and kept the biodiversity but got no money at all for that.

I put my name to Amendments 65 and 106 and I was pleased to do so. Amendment 65, tabled by my noble friend Lady McIntosh of Pickering, would add the words,

“agriculture, horticulture and forestry in England”

to the end of Clause 1(3). At the moment, the wording just stops at “England”. It seems logical to put the words in the amendment into the Bill.

While I am on forestry, my noble friend Lord Gardiner did not say on the first amendment—I am not surprised —what he actually means by “woodland” and “forestry”. Are they the same or two different things? If there will be grants for help for forestry and biodiversity, presumably there will be no grants for people planting vast acres of Sitka spruce, which are biodiversity unfriendly.

Forestry also raises another issue covered by Amendment 106: who gets the benefit of these payments of public money? I will focus on tenant farmers, as my noble friend Lady McIntosh of Pickering did. When I was a land agent, my experience was that pretty well every tree was not in the tenancy agreement; it belonged to the landlord. Tenants were not allowed to plant woodland. That was excluded and outside the tenancy agreement.

We have an imbalance here and two different classes of farmer. We have the owner-occupier, who can do everything on their own land, and the tenant, who will be severely restricted. Who will get the benefit from these payments? If the tenant signs up to a scheme, I know many landlords who will say to them, “Thank you; I’m glad you signed up to that scheme. I’m glad you’re getting the money. Your rent is now going to increase and I’m going to take most of that money from you because you can afford to pay it.” Who will get this money? Is there a way one can incentivise tenants to do these schemes and reap the benefit that they deserve for putting the risk, capital and expertise at stake in doing so?

[Lord Wigley [V]]

My Amendment 94, which I will speak to solely, addresses a central weakness in the Bill, identified in this debate and the preceding one: the open-ended nature of the powers given to the Secretary of State under Clause 1, which states that money can be used for

“managing land … in a way that … improves the environment”,

or cultural heritage, or mitigating climate change, or improving the health of livestock, presumably including racehorses et cetera. That strikes me as far too open-ended an approach in a Bill that is, after all, an agriculture Bill.

Therefore, later in Clause 1, at page 3, line 12, I propose that these words be added:

“‘land’ means land that is used for agricultural, horticultural or forestry purposes or which is intended to be so used, or used for purposes ancillary to those functions.”

That gives a clear definition, to my mind, of the purposes of Clause 1(1). Without something along those or similar lines—no doubt the wording could be improved—it is far too open-ended. Although the present Minister and Secretary of State would want to work within the confines of the Bill, once it is on the statue book it will be open to all sorts of abuse. I do not think that is the intention of an agricultural Bill and that is why I propose this amendment.

[Lord Carrington (CB) [V]]

My Lords, I declare my farming and land-owning interests, as set out in the register, in particular my receipt of basic payments over the years. I support Amendments 2, 3, 15, 20, 23, 36, 64, 85 and 106, which aim to concentrate this agricultural Bill on farming, horticulture and forestry, with the associated aims of encouraging sustainable farming, strengthening food security, and improving animal welfare, access and the environment. However, we need to consider the starting point and existing situation, if the Bill is to succeed.

Currently, farmers are governed by the CAP and receive area-based payments. Figures show that 25% of farmers are profitable without the BPS. Direct payments account for around 58% of average farm businesses’ income. Figures rise for both beef and sheep. Although it is accepted that area-based payments are going and that payments will be made in exchange for public goods, there is little understanding among farmers of what this means. This is not helped by the almost complete lack of detail. Only 10 days ago, I received the policy discussion document on environmental land management schemes. It says all the right things, but clearly demonstrates how much more is to be done. The low take-up of current environmental schemes is due to them being both complicated and bureaucratic.

Farmers are not a homogenous group of wealthy landowners; nor is land homogenous. Farmers have very different levels of education and expectations of life. The Bill will shock most of them, because so much detail is missing and may not be available until 2024. This brings into question the Minister’s statement that there is a seven-year transition period. We will be clearer about what we are transitioning into only after 2024, which makes it a four-year transition by some definitions. Many farmers will just close their eyes and continue to farm as they know best.

For the Bill to be a success, there needs to be a high take-up of the new ELM scheme, otherwise farming profitability will sink, farmers will go to the wall and important farming skills will be lost. To avoid this awful scenario, ELM details are essential as soon as possible. In particular, we need to know how much farmers will be paid. Area payments have worked well, in the absence of any other reliable measurement, so do not discount them, although they sound like winding back the clock.