My Lords, I thank all noble Lords for contributing to what I think has been an extensive and very interesting debate. I turn to Amendment 6, which I shall address along with Amendments 9, 10, 12, 17,13 and 20. I will say—particularly to my noble friend Lord Northbrook and as a fellow member of the NFU, but to all noble Lords—that the Government agree absolutely that the production of food is of critical importance and that this will not be overlooked in the designing of our future schemes. Indeed, this is precisely why the Bill includes a duty for the Secretary of State to have regard to the need to encourage food production and for food to be produced in an environmentally sustainable way. So I say, in particular to my noble friends Lady McIntosh of Pickering and Lord Northbrook, that Clause 1(4) as drafted recognises the strong interdependence of farming and the environment.
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Regarding the points raised by the noble Baroness, Lady Jones of Moulsecoomb, the reforms in the Bill will ensure that food production today does not come at the expense of food security tomorrow. It will do this by incentivising farmers to secure the foundations of food security, namely our natural resources essential for food production: clean air, clean and plentiful water, wildlife—including pollinators—and soil. The Bill is designed to ensure our farmers and growers receive the important support they deserve to provide healthy, homegrown food made to high environmental and animal welfare standards.
Clause 1(1) sets out the purposes for which the Secretary of State may provide financial assistance, which contribute to underpinning sustainable food production. In practice, this means the Secretary of State may reward land management practices, such as those that support pollinators, which are essential for some food crop, or which help to improve soil health—thus ensuring farming can be sustainable for future generations.
Clause 1(2)(a) of the Bill will help in this respect by giving powers to provide financial assistance for the purposes of starting, or improving the productivity of,
a horticultural activity, and supporting the adoption of new technologies. This could lead to greater resource efficiency. The Government are currently considering the best way to support, for instance, the horticulture sector and will be working closely with the industry to design a replacement for the EU fruit and vegetable aid scheme.
In response to my noble friend Lord Northbrook, let me say that new schemes will offer a variety of ways for farmers to receive an income under Clauses 1(1) and 1(2). The Bill contains many provisions to help food producers better engage with the market, including measures to support investment in technology and research to improve productivity. Part 3 of the Bill will improve transparency in the supply chain and help food producers strengthen their position at the farm gate and seek a fairer return for their produce.
To my noble friends Lady McIntosh and Lord Northbrook, regarding the powers to pay for food production in pandemics, I should also say—and this is a point that I make to all noble Lords—please look at Clauses 18 and 19. This will allow us to pay farmers, should there be, for instance, another pandemic such as the one we are enduring; it would qualify as “exceptional market conditions”. We are confident that we could have used these powers, had we had them, for Covid-19.
The Government will also support the adoption of new technologies to help producers increase both the quality and quantity of the fruit and vegetables they grow. These interventions could see the extension of our domestic growing seasons, enabling more healthy homegrown food to come to market.
In recent years, new developments such as vertical farming have revealed the potential for how peri-urban locations could make an important contribution to the sustainability objectives at the heart of the Government’s new approach and better connect people with the food they eat through local supply chains. Clause 1(2)(a) covers peri-urban areas.
Tackling public health and food issues properly requires a joined-up and practical approach across government departments, which goes beyond this Bill. Defra is working with the Department of Health and Social Care and others to ensure that improving public health is a core priority of government policy. I am grateful to noble Lords for acknowledging the work of Henry Dimbleby and the National Food Strategy. We look forward to the conclusion of his report and further work on that, because I believe it will furnish much of the future work on how we—if I may use this word—cure the country and improve the health and wellbeing of many of our citizens.
As I said in Committee, we believe the best place to encourage healthy eating is later on in the supply chain. It is on the processing of food that we need to target efforts across government and in society. For example, government may support the production of fruit and vegetables, but some could still be used in unhealthy products if not taken in moderation.
Amendment 9 requires Ministers to consider the health needs and well-being strategies which relate to local communities when giving financial assistance under Clause 1. We are concerned that this may not
represent the most effective way to connect farming policy and health policy. For example, if Ministers and officials are considering the question of productivity grants to farmers in Cumbria, the local health and well-being plan for people living there may not be the most relevant consideration, since much of the food produced by farmers may not be consumed in that area. As I noted earlier, the best way to encourage health and well-being through food policy is at the other end of the process.
We all agree that there is more to be done. Covid-19 has brought the risks of obesity, for instance, into sharp focus. It is more important than ever that people achieve a healthier lifestyle. Consequently, the Government launched their new obesity strategy on 27 July to set out practical measures to get the nation fit and healthy, protect people against Covid-19 and protect the NHS. A coalition of partners is supporting delivery of the strategy through the Better Health campaign, which is encouraging adults to introduce changes to help them work towards a healthier weight.
On Amendment 7, the new ELM scheme, which is based on a public money for public goods approach, seeks to reward farmers across a diverse range of land types for the delivery of these environmental public goods. The Bill has been drafted to allow environmental public goods to be delivered in different ways. This could include funding livestock management actions, such as pasture-fed grazing livestock systems, where such systems deliver environmental benefits, improving feed efficiency of livestock through targeted breeding to reduce ammonia emissions, or limiting grazing where appropriate to avoid compaction and run-off. To my noble friend Lady McIntosh, and the noble Lord, Lord Judd, let me say that I am absolutely clear in my mind that the UNESCO designation in the Lake District is because of, not in spite of, pastoral farming.
The Government remain focused on providing public money for public goods and are committed to supporting animal husbandry methods that help to deliver these. Many farmers who employ such farming practices, including upland farmers, will therefore be well placed to benefit from the ELM scheme.
On Amendments 8, 21, and 23, the Government recognise that agroecology and agroforestry can contribute to the delivery of many environmental public goods. For example, organic farming methods can help tackle water pollution, improve habitats for wildlife, reduce flood risk and improve soil quality. Other agroecological farming techniques, such as integrated pest management, agroforestry and mixed livestock and arable farming, can also provide environmental benefits. I should say—I hope that I am going to please the noble Lord, Lord Teverson —that the definition of “better understanding of the environment” is non-exhaustive. I note the point made by the noble Baroness, Lady Young of Old Scone, about putting all these references in, but financial assistance could already be given for this under Clause 1(2)(a), which lists agriculture and forestry, which include agroforestry activities.
On Amendment 11, the Government recognise the importance of attracting skilled talent into farming, which is important for a sustainable and productive agriculture sector over the long term. Clause 1(2)
already allows for financial assistance to be given for the purposes proposed by this amendment. In the Farming for the Future policy update, published in February, the Government gave a commitment to offer funding to councils, landowners and organisations to help them invest in creating more opportunities for new-entrant farmers. We are working towards offering this funding early during the agricultural transition period. I echo the words from the noble Lord, Lord Rooker. Spending a day at Harper Adams University, you see how technology is used by, and grasped by, the students. It is remarkable and absolutely the way forward. We will encourage the development of innovative and collaborative bids that deliver the outcomes my noble friend has highlighted, including facilitating access to land for talented new entrants and providing them with training and business mentoring advice to help them thrive. I know these are points made by many noble Lords, on which I also place great importance.
Turning to Amendment 16, the Government are committed to providing financial assistance for nature-friendly farming under the Bill. ELM will pay farmers and other land managers to deliver environmental public goods as set out in the 25-year environment plan: clean air; clean and plentiful water; thriving plants and wildlife; reduction in and protection from environmental hazards such as flooding; adaptation to and mitigation of climate change; and beauty, heritage and engagement with the environment. I say to my noble friends Lord Randall and Lord Caithness that I have spent a day at Arundel seeing the success of the revival of the grey partridge; it is indeed impressive. Picking up on a point raised by the noble Baroness, Lady Bennett, I said in Committee that,
“Clause 1(5)(b) already includes the conservation of fungi as conserving can relate to the restoring or enhancement of a habitat.”—[Official Report, 16/7/20; col. 1818.]
Fungi are also referred to in other parts of the Bill.
In their policy discussion document, published in February this year, the Government proposed that tier 1 of the new ELM scheme should focus on supporting environmentally sustainable farming. For example, this tier could fund nutrient, pest, soil, and livestock management, field margins and cover, and water storage and/or use. I give my noble friend Lord Caithness the strongest assurance I can muster that the powers in Clause 1(1) already enable the Government to support nature-friendly farming in the way he has outlined.
Turning to Amendment 22, the Government recognise the value of wetlands, the habitats and other environmental benefits they can provide and the way in which they enhance our landscapes. Clause 1 allows financial assistance to be provided for managing land or water in a way that maintains, restores or enhances cultural or natural heritage. Cultural or natural heritage includes wetlands; therefore, the management of our wetlands is already included within the scope of Clause 1. We also know that wetlands may be managed in such a way as to contribute to other environmental objectives already listed under Clause 1 as being eligible for financial assistance. The Government are committed to providing financial assistance to a wide range of
land types through the new ELM scheme, including wetlands, where these land types can deliver our environmental public good objectives.
I turn to Amendment 48. The noble Lord, Lord Greaves, has pioneered much of this and I was glad that he was able to have that meeting. I left it to the professionals because I thought it much better for the officials if they were with the noble Lord in that context. I confirm, and endorse, the Government’s view that commons are some of the most diverse and environmentally rich land in the country and provide excellent opportunities to provide even greater public goods. The Government recognise this and are designing future financial assistance schemes to be accessible to as many farmers and land managers as possible, including tenant farmers and those with common land rights. As part of the planned three-year ELM pilot, the Government will ensure that it tests how best to enable commoners to participate in ELM and provide those environmental benefits. Clause 1 already enables the unique circumstances of common land to be taken into account when designing payment systems. The Government recognise the particular circumstances of commons, and Defra is working closely with stakeholders representing commoners to ensure that these are fully taken into account in the ELM scheme design.
My noble friend Lord Northbrook has suggested that he might be minded to move his amendment and test the opinion of the House. I hope that he will look at the provisions in the Bill. I have outlined Clause 1(2), Clause 1(4), among others, and the Bill’s fair provisions clauses. All of these entrench our shared quest: that the Secretary of State must have regard to food production. But surely, what we are seeking to do, and which our farmers and land managers are very capable of securing, is to enhance the environment, as we must. By the environment, I mean the very ingredients that will make the farmers of the future—the many young entrants whom noble Lords have referred to this afternoon. We will not be doing them well if the soil structure is not remedied. They will not be able to feed the nation as we all want if we do not attend to these environmental imperatives.
I hope that I have reassured my noble friend Lady McIntosh of Pickering that the intent of her amendment is already well addressed, and I hope that she will feel able to withdraw it.
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