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Agriculture Bill - Sitting 2
11 February 2020
Type
Public Bill Committee
At a Glance
Issue Summary
The statement discusses the simplification and improvement of Northern Ireland's legacy basic payment scheme under the Agriculture Bill, and the future policy direction based on stakeholder consultations. MPs are discussing the impact of UK agricultural policy on Northern Ireland's farming sector and the potential for market distortions if standards diverge between different parts of the UK. The discussion focuses on the implications of potential trade policy divergence and funding needs for agriculture, as well as the effectiveness of existing schemes such as young farmer payments. MP Graham Stringer discusses the Agriculture Bill, focusing on the need for timely reviews of agricultural policies. The statement discusses the challenges in supporting young farmers through innovative schemes such as contract and share farming arrangements, and the need for longer lead times in agricultural policy changes. The discussion revolves around the practical implementation of importing food produced to equivalent standards as UK farmers and the necessity for clear legislative changes in the Agriculture Bill. Graham Stringer, MP for Blackley and Middleton South, concludes the session by thanking the witnesses before moving on to the next evidence session. The statement discusses the role of producer organisations (POs) in UK agriculture and compares their effectiveness with those in other countries, highlighting the need for better organization and business model changes. The statement discusses issues related to fruit and vegetable producer organisations (POs) and co-operative models in agriculture. Graham Stringer is chairing a session for evidence gathering on the Agriculture Bill and introduces witnesses from various organisations. The statement discusses issues with current agricultural management systems and agri-environment schemes, emphasizing the need for simplification and stability. The statement discusses the potential impact of imports with lower environmental standards on UK farmers' incomes and their ability to manage the environment effectively. The discussion revolves around the management of uplands and game shooting in relation to environmental schemes under the Environmental Land Management Scheme (ELMS). Graham Stringer discusses the importance of addressing climate change through the Agriculture Bill, focusing on upland peat restoration and supporting new entrants to farming. The discussion revolves around the implementation of a new agri-environment scheme under the Agriculture Bill, focusing on the role of trusted advisers to help farmers construct and manage these schemes. Graham Stringer discusses concerns about the Agriculture Bill's provisions for new entrants into farming and the use of public funds without clear purposes. Graham Stringer thanked the witnesses and introduced new panel members during a session discussing land rents and agricultural tenancy issues under the Agriculture Bill. Judicaelle Hammond and George Dunn discuss improvements needed for the Agriculture Bill. MPs discuss the Agriculture Bill's provisions related to landlord and tenant rights, particularly concerning long-term tenancy agreements and disputes over environmental improvements. MPs are discussing the Agriculture Bill and its impact on agricultural tenancies in England. The discussion revolves around technical changes proposed in the Agriculture Bill concerning tenancy agreements and financial arrangements for farmers. Graham Stringer discusses the proceedings of the committee hearing without proposing specific actions or policies.
Action Requested
Norman Fulton from DAERA outlined that the draft schedule provides a framework for incoming Ministers to decide on specific policy directions. Ivor Ferguson from UFU suggested retaining some form of resilience or volatility payment alongside activity-based payments to ensure farmers' support and prevent disadvantage compared to Irish counterparts.
Key Facts
- Norman Fulton is deputy secretary within the Department of Agriculture, Environment and Rural Affairs for Northern Ireland.
- Ivor Ferguson is president of the Ulster Farmers Union with approximately 11,500 members.
- The profitability figure in recent farm income figures for Northern Ireland fell from over £300 million to £290 million.
- At least 50% of what Northern Ireland farmers produce goes to the mainland GB market.
- For beef production in Northern Ireland, returns to farmers are down by £36 million in the last 12 months.
- Agriculture is a devolved matter but the World Trade Organisation requirements for the agreement on agriculture are deemed reserved.
- There will be added costs if GB and Northern Ireland diverge significantly in their future trade policy.
- Very few holdings hit the cap on BPS payments currently, but it could become an issue for large areas needing good management.
- The young farmer payment provides a 25% additional payment to farmers under 40 with less than 90 hectares.
- A level 2 qualification in agriculture is required for young farmers to qualify for the extra payment.
- There are discussions about creating succession plans and incentives like tax benefits for generational renewal on farms.
- Ivor Ferguson advocates for at least annual reviews instead of five-year reviews.
- Graham Stringer announces the committee has finished two minutes early.
- The statement mentions the challenge of transitioning young farmers onto land using contract and share farming arrangements.
- Nick von Westenholz expresses concern about the quick phase-out of direct payments and its impact on food production stability.
- DEFRA is expected to provide further details on schemes to encourage increased productivity in agriculture.
- The complexity of comparing international food production standards is acknowledged.
- Amendments could require the Government to produce a register of UK farming standards and ensure imports meet these standards.
- There are 'may' powers in the Bill regarding government intervention under exceptional market conditions, which should potentially be changed to 'musts'.
- Graham Stringer ends the session at 14:29:00.
- The session moves to a new witness, Richard Self from Co-operatives UK, starting at 15:01:00.
- The UK's market share for farmer co-operatives is about 6%, compared with Germany’s 17%, France’s 55%, and Denmark’s over 60%.
- Co-operatives can help balance out volatile markets, reducing price volatility for primary produce.
- Larger farmers tend to be more professional in their approach to collaboration than smaller farmers.
- The current PO regime is criticised for being litigious and limiting support to marketing co-operatives.
- Data harvesting and use by co-operatives are seen as important for efficient supply chains.
- Existing competition law protections should be maintained or extended to avoid risk and uncertainty for co-operatives.
- A 30% market share provision is deemed sensible but aspirational in certain areas.
- The Bill aims to strengthen the position of primary producers working in a co-operative.
- Co-operative exemptions could be extended for five years.
- The witnesses are Jake Fiennes from Holkham Estate, Jim Egan from Kings Crops, and Graeme Willis from CPRE.
- Graham Stringer mentions poor acoustics in the room during introductions.
- The discussion focuses on the current common agricultural policy and proposed changes as outlined in the Agriculture Bill.
- The current agri-environment schemes have issues that discourage participation.
- There are 65 people on the speaker's books wanting to do modified stewardship schemes.
- A transition period for farmers is set to start in 2021.
- CPRE signed a letter expressing concerns over potential problems with importing food with lower environmental, welfare and health standards.
- An amendment was previously tabled seeking to introduce a requirement for any international trade agreement to comply with UK standards.
- The whole farming sector and NGO environmental sector agree on the need to maintain high standards.
- Jake Fiennes states that game is not part of agriculture.
- Graeme Willis supports ending peatland burning rapidly as a landscape management practice.
- Kerry McCarthy asks about the potential rewards for farmers under ELMS to encourage re-wetting of peatlands.
- The 25-year plan had a £10 million fund for peat restoration.
- Scotland has committed £250 million for peatland restoration.
- County farms could be developed to produce peri-urban horticulture and other wider purposes.
- Jim Egan suggests that each trusted adviser could manage around 40-50 clients.
- It would require approximately 1,500 to 1,800 such advisers in England.
- Existing agronomists and environmental NGO staff may have the capacity for training and accreditation to serve as these advisers.
- Concerns about the lack of constraints on public funds in the Agriculture Bill.
- Suggestion to tie funding to specific investments that improve farm performance.
- Proposal for a mechanism to support new entrants into farming.
- Graham Stringer thanked the witnesses for attending.
- Judicaelle Hammond introduced herself as director of policy and advice at the Country Land and Business Association.
- George Dunn introduced himself as chief executive of the Tenant Farmers Association of England and Wales.
- The Bill includes soil quality and sustainable food production considerations.
- Farmers receive basic payment scheme (BPS) payments for environmental, animal welfare, consumer safety contributions.
- There is a need for more detailed information on ELMS transition and payment rates.
- The CLA members expect an average term length of 2.9 years for farm business tenancies.
- Landlords often withhold reasonable consent very frequently according to the CLA's concerns.
- The Bill includes provisions allowing arbitration in disputes, which is seen as unbalanced towards tenants.
- George Dunn believes 90% of farm business tenancies in England are let for periods of five years or less.
- Judicaelle Hammond does not agree that there is a market failure and warns against rushing legislation without considering consequences.
- The TFA agrees more certainty about the future would be beneficial.
- The Agriculture Bill includes provisions on tenant farmer options under clause 13.
- There is a provision for farm business tenancies to give landlords an option to end long-term lets early.
- Schedule 3 proposes technical changes to tenancy law from the TRIG recommendations.
- Graham Stringer thanked the witnesses for their evidence during the afternoon session.
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