UK Parliament / Open data

Direct Payment to Farmers (Reductions) (England) Regulations 2022

I said six to nine months; I am afraid that is the answer I received. I shall check on the timescale, but I assume six to nine months is correct, since that is what my colleague, my noble friend Lord Benyon, has told me.

The noble Duke, the Duke of Wellington, raised a broader point beyond tenant farmers, about small farmers. He is right: small farmers are the backbone of our countryside, and any policy that results in a reduction in the diversity, breadth and viability of our small farmers is not a good one. They are critical to the future sustainability of our countryside. Farmers will be supported throughout the seven-year transition period to the new system. We are reducing direct payments, as the noble Duke said, but that will be gradually over the seven years, which will give farmers time to adapt and take advantage of the new offer. Money saved by direct payment reductions will be reinvested directly into English farming and agriculture through our new schemes. The Government are committed to providing the same cash total to the sector in each year of this Parliament. Some £10.7 million of funding has already been awarded through the interim phase of the future farming resilience fund. That provides, among other things, free business support to farmers and land managers to help them navigate the changes during the early years of the agricultural transition period.

Upland farmers have a particularly important role to play in addition to that of food production, and that is in land management. In their contribution to alleviating the threat of floods, which blight so many communities in this country, there is almost no one in a more important position than those farmers. They are absolutely in the mix when it comes to the new system that has been designed.

I turn to the questions asked by the noble Lord, Lord Carrington, and my noble friend the Duke of Montrose. My noble friend asked what proportion of the money would be spent on schemes which are not related to farming and are purely conservation. Again, I cannot give him a direct number, but there are schemes beyond the system being described today which are designed to support, for example, natural regeneration or tree planting, most of the funding for which comes from the nature for climate fund. We are talking here about a slightly different system which the nature for climate fund supports, but ultimately this is all about good land management.

The Government published a paper, which was updated in September 2019—I may have mentioned it earlier—setting out the impacts of removing the direct payments. That paper is being updated as we speak. The delay is caused by the conflict in Ukraine.

My noble friend and the noble Lord, Lord Carrington, talked also about the impact on consumer food prices. The analysis that we have made in Defra suggests that any effect of direct payments on consumer food prices is limited. However, we are doing a full impact assessment on food security up to 2024, and the results will be made available and will inform future policy design.

It is important that we continue with the transition as planned. Applying reductions to direct payments frees up money which we can use to pay farmers and land managers to encourage environmental protection and enhancement, public access to the countryside, and the safeguarding of livestock and plants. We must also provide opportunities for farmers who wish to leave farming to do so in a managed way. These instruments

will allow the Government to ensure that this can be done. I hope that I have answered the key questions put to me today. I beg to move.

Type
Proceeding contribution
Reference
820 cc110-2GC 
Session
2021-22
Chamber / Committee
House of Lords Grand Committee
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