Agriculture

My Lords, like other noble Lords I thank my noble friend for introducing this timely and very important debate to your Lordships’ House this afternoon. I declare interest as an owner of land in the north of England. Before making my small contribution, perhaps I could join with others in welcoming the noble Lord, Lord Rooker, to his new position. However, as the noble Lord, Lord Tomlinson, said, the reason why the noble Lord is in that position is because of the departure of his noble friend Lord Bach. I do not wish to comment on the reasons for the noble Lord’s departure other than to agree with others that it seems bizarre that he was so unceremoniously dismissed when the architect of the single farm payments fiasco has been promoted to Foreign Secretary. But I would like to say that I very much appreciated working with the noble Lord, Lord Bach, which I did in some detail during the course of the Commons Bill and the Natural England and Rural Communities Bill. I always found him extremely courteous and very helpful. Returning to British agriculture, the fact that so many farmers have been rocked sideways because the single farm payment has not reached their bank accounts speaks volumes and demonstrates only too clearly how desperately vulnerable so many of them are. But I agree with much of what the noble Lord, Lord Tomlinson, said. The truth is that the old system of production-based subsidies was unsustainable and, certainly, politically unacceptable. But, as happens to all industries from time to time, there are big shake-ups and the consequences can be dire, certainly in the short term. I have met and spoken to quite a number of farmers of late. Inevitably, I get fairly mixed messages. But notwithstanding the wise words of my noble friend Lord Vinson and some of his predictions, I believe that among so much gloom and despondency some optimism is beginning to shine through. It would seem that elderly farmers are perhaps less concerned. They have, if you like, done their bit and could look at the single farm payment as a sort of pension. The ones in the middle—those of my age—I think are struggling. They have farmed in a particular way for so long that the change is quite difficult to come to terms with. However, the younger farmers are, I believe, more encouraged by the future. I accept that they buck at all the regulations and no doubt believe, probably quite rightly, that many are quite unnecessary. But they can by and large cope, particularly due to their grasp of modern technology. They have learnt the concept of high quality, traceable food and how to connect with the consumer and the retailer. The problem, of course, is that the retailer has much more to do in connecting with the producer, which is half of the problems that we face today. Furthermore, I have seen some remarkable examples of on-farm diversification, a point that the noble Lord, Lord Tomlinson, raised. But we should not think that this is automatically the panacea for all our farming ills, for the simple reason that not every farm can provide an alternative source of income. Indeed, not every farmer is willing or capable of embracing alternative business opportunities. Why should they? It was not perhaps their calling in life: they are farmers. Most farmers I know accept the need for change, but in return they ask for two things—fairness and consistency. In my belief, both those commodities have been in rather short supply of late. It did not help when the then Secretary of State, Mrs Beckett, hailed the recent deal on the CAP budget as a major success, only to be undermined by the Prime Minister who announced that the CAP needs further reforms. That threw everything into chaos. Now no one seems to know where we stand with regard to future Pillar 1 payments, what levels of modulation are to be implemented and what will be available under the various rural development and agri-environment schemes under Pillar 2. Marketing is clearly a key component of modern farming. Surely, labelling should reflect the true source of the produce sold. It is no use when imported pigs, for example, are treated and cured in this country, and then sold under the Union Jack logo, which I know is happening, for example, in a big plant in the West Country. However, the one point that I find totally illogical is how cheap imports of meat can be allowed to enter our markets, when it is quite clear that they come from countries where animal welfare and general standards of production fall far short of those that are so rigorously imposed on our own farmers. What are the Government doing to redress that situation? Perhaps more importantly, what can the Government do given the WTO trade conditions? Clearly, the role of the farmer in the countryside goes well beyond the production of food, a point rightly made by my noble friend Lord Vinson. Access to the countryside is, by tradition, a free service. Logically, if as a nation we wish to see a landscape that is well cared for and managed to produce not just food but also diverse habitats and wildlife, clearly that must be paid for out of the national purse. I resent the word ““subsidy”” in such cases when clearly the farmer and land manager are being paid to provide a service. Wildlife needs management. It does not just happen. I am bound to say that the balance of nature can at times be very disappointing. Much has been promised in terms of resources for agri-environment schemes, but whether the finance will meet the expectations again remains to be seen. Perhaps I may finish with a few words about the hill farmer. I have a special interest as I own land in the hills, most of which is subject to tenancy, and I know what those farmers are going through. I believe that this stalwart community, many of whose families go back several generations, is worthy of special treatment. Here, the future looks particularly precarious and it is a fact that without the availability of the various environmental schemes, most would not survive. There can be no doubt of the potential impact on some of our most important landscapes. Unless we ensure the survival of those with the special knowledge of sheep husbandry and professional skills the impacts could be very severe indeed. To that end, I suggest to the Minister that the present hill-farming allowance be continued until its successor has been fully thought through and the Rural Payments Agency is fully confident of implementing a new scheme effectively. In conclusion, whereas no one can underestimate the significant problems facing our farmers, I believe that there is, as I have already said, a slightly brighter future ahead. Our farmers have a great track record of resilience, which is second to none. But the future lies in the young men and women who can adapt to those changing forces. However, it is imperative that the Government encourage them in every possible way that they can, which is a lesson that perhaps we could learn from—dare I say it?—the French.