Agriculture

The draft regulations apply progressive reductions to delinked payments, with higher percentage reductions applied to amounts in higher payment bands. The budget remains at £2.4 billion annually, but the way it is allocated has changed. Farmers can now access a range of environmental land management schemes and grants to improve productivity and sustainability.

Questions whether the proportion of subsidies directed towards promoting food production is adequate as the transition occurs, given the need for increased home-grown food production.

Asks about clarity regarding inheritance issues and delinked payments. Suggests that transferring ownership should not affect payment eligibility when a business is passed on through death in the family.

Highlights frustration among farmers due to slow disbursement of funds. Requests details on any impact assessment conducted for the Environmental Land Management (ELM) scheme, noting concerns about operating without full data or understanding of impacts.

Expresses concern over short and mid-term confidence among farmers being at its lowest level since records began, with production expected to decrease. Questions whether it is the right time to make these reductions given current challenges faced by farmers.

Government incompetence in rolling out ELMS has left farmers struggling. The underspend of over £220 million intended for farmer support is still not being utilised by the Government despite the urgent need. Labour calls for transparency on impact data regarding the scheme and urges the Secretary of State to distribute promised funds immediately.

DEFRA's approach to agriculture needs reform, especially concerning ELMS which does not increase payments but redistributes them. There is a need for more tax breaks and better regulation in the food industry to ensure quality and support farmers’ income. The Minister should look at hedge laying standards to allow for proper wildlife management along roadsides.

Farron emphasises the importance of Britain's farmers, highlighting their roles in protecting rural landscapes from flooding, developing biodiversity, tackling carbon sequestration, preserving landscape heritage, supporting tourism, and ensuring food production. He discusses the economic challenges faced by farmers due to inflation, underspending on agricultural budgets (£400 million unspent over two years), and the rising mortality rate of livestock (up to 15% in his constituency). Farron argues that grants are not sufficient for immediate support and advocates for intelligent cash-flow measures. He expresses concern about the lack of stewardship schemes and the potential destocking of fells, urging the Government to consider NFU proposals to pause basic payment cancellations and roll out ELMS more effectively.

Welcomes the fact that there will be 50 new actions this year for farmers to transition sustainably. Expresses concern over the time it is taking for farmers and loss of guaranteed income. Emphasises the importance of analysing what is happening around the country, particularly in her constituency where only about a quarter of BPS recipients have applied for SFI. She notes that Liberal Democrats are not voting against regulations but supports changes. Asks for more analysis on stacking options and support for farmers beyond those eligible for BPS.

Supports the shift from basic payments to ELMS, but expresses concern about lack of support for British farmers. Discusses the long-term trend of farm closures and impact of climate change, particularly in Somerset where she has met with a farmer facing severe financial strain due to flooding. Calls for immediate increase of £1 billion in ELMS budget to help farmers transition to sustainable farming. Urges Government to provide funding for Agricultural Development and Advisory Service to aid transitions and mental health support.

Disagrees with questioning the wisdom of bringing the statutory instrument to the House. Emphasises that there is a cross-party consensus on the overall direction, despite differences in detail. Explains the historical context of BPS reforms from 2005 Fischler reforms and argues against direct payments due to market distortion and lack of support for food security. Highlights that 50% of BPS budget went to 10% wealthiest landowners while marginal farmers received little. Argues that delinking legacy payments from land ownership is necessary and the transition plan has been clear since at least 2018.

Mr Geoffrey Clifton-Brown intervened to express concern about potential infrastructure issues if farmers' incomes were squeezed. He asked Mr Spencer to ensure there are sufficient incentives in the new scheme for farmers to invest in necessary infrastructure such as cattle barns, grain stores, and drainage.