I declare an interest in that our family farm in Cornwall is home to a number of rare breeds and native breeds, including a handful of Greyface Dartmoor sheep.
The spur for today’s debate is a specific issue with the conditions that Natural England is applying for new countryside agreements, particularly when it comes to stocking densities for sheep, but behind that are two much bigger debates that I want to focus on predominantly. First, how do we secure the financial viability of certain farming types, particularly in upland areas, as we move away from the nonsensical area payment scheme to something that rewards environmental and other outcomes, such as animal welfare? Secondly, what are the right
organisational structure and functions of DEFRA’s arm’s length bodies in a post-EU world, and how do we correct the lack of accountability that was an inherent feature of our EU membership?
On the specifics of this issue, as ever, DEFRA is between a rock and a hard place, in that there is currently a very trenchant debate about water quality. We know that, in some geographies, including places such as Dartmoor, diffuse agricultural pollution, some of it linked to winter grazing, is a contributory factor; but at the same time, there is the issue of farm viability. The Minister’s predecessor gave Natural England a steer to try to adjust stocking densities, but gradually, not suddenly—perhaps over five years. However, it is unclear why that seemed not to be followed through. Either Natural England felt that it was doing that and was simply beginning a conversation with farmers, or perhaps it thought that, with the Minister’s predecessor out the way, it could do its own thing. Or maybe the Minister gave Natural England a different order and told it to be more hawkish and move faster. He might want to explain what happened in that instance.
On the issue of viability, the big challenge is that many upland areas are already quite invested in agri-environment schemes. Some would see limited scope to earn more money through agri-environment schemes as the BPS payment falls away. We have considered this quite a lot in DEFRA, and there are three main answers. The first is that, in some of these landscapes, frankly, land rents are too high. There is a lot of evidence that about 50% of the BPS payment that immediately disappeared in the first few years has inflated land rents, and that needs to adjust. Secondly, the Department must depart from the old-fashioned “income foregone” methodology for payment rates. I would like the Minister to say explicitly today that income foregone will no longer be followed and that there will be a margin for farmers in the new environmental schemes, as we always intended.
The third solution is that the Agriculture Act 2020 made provision for ways to reward farmers other than through the conventional agri-environment schemes. In particular, payments can be made to farmers on a headage basis, for instance, if necessary for higher welfare outcomes, or indeed for rare and native breeds. We made explicit provision for wider payments to be made, acknowledging that, in some landscapes, different public goods might be pursued over and above the environmental ones that people tend to associate with them.
In that context, the Minister will know that I have made the case for a new coronation fund to support rare breeds and native breeds in this country. The King has been passionate about our rare breeds in particular, but also our native breeds, throughout his life. The year of his coronation would be a fantastic opportunity to open a fund to support rare breeds such as the Greyface Dartmoor and others that can be found on Dartmoor. The National Sheep Association has called for this and can see an opportunity to add greater value to some of its produce through such a scheme. I hope the Department will take that forward.
I looked at arm’s length body reform during my tenure at DEFRA, and the truth is that the structure we have was designed for an EU era. Many of these agencies were given powers to, effectively, implement EU law directly, and they were specifically designed to bypass
democratic structures. In a post-EU era, we really need to think about how we change this. There is a consultation sitting somewhere in DEFRA—it was due to be published shortly before I departed in September and is still sitting there, should the Minister want it—that basically argues that we should change the function of Natural England when it comes to SSSIs, in particular. It is not sensible for Natural England to have to make the decisions on SSSIs. Instead, Ministers should take such decisions having taken advice from Natural England and others, which would restore accountability.
The Minister will shortly have submissions coming his way, asking him to agree certain licences—for instance, for heather burning on blanket bog. That is because I explicitly made it a legal requirement that the Minister should make that decision based on advice, not that Natural England should make the decision on its own without seeking the advice of Ministers. I hope the Minister will return to that system of accountability and publish the consultation because, in its absence, I am afraid he will be condemned to have episodes similar to this, where things take him by surprise simply because he does not have the powers he should have in the post-EU era.
3.30 pm