The new Agriculture Bill – an in-depth analysis of the key changes

Multi-annual budget

The new legislation introduces a multi-annual budget, which is only applicable in England.

The Bill compels the Secretary of State to set out a ‘financial assistance plan’ for farmers which will cover a minimum of five years at a time.

The first plan, due to begin in January 2021, will last for seven years.

If for any reason the Government wants to significantly change an aspect of a plan, then Ministers must update it and explain their reasons for doing so to Parliament.

It is hoped this measure will give farmers certainty and confidence in the short to medium-term.

Allocations of funding for the devolved regions are expected to be decided before the comprehensive spending review due later this year.

Support for tenant farmers

A new section of the Bill has been devoted to reform of agricultural tenancy rules.

The legislation will now allow tenant farmers to lodge objections if a landlord refuses to allow them access to the Environmental Land Management Scheme (ELMS).

TFA chief executive George Dunn said: “This will give tenant farmers the confidence they need to make plans and participate as they desire in whatever new schemes are brought forward by the Government.”

Though he welcomed the changes, Mr Dunn called for the Bill to be strengthened still further with more measures to assist older tenants into retirement, encourage landlords to let for longer periods of time and protect tenants from spurious notices to quit.

Former Defra Secretary Michael Gove had originally planned to deliver tenancy reforms ‘in parallel’ to the Agriculture Bill, but the department now intends to put further, ‘more controversial’, changes on hold with a view to introducing another piece of legislation in due course.

Approach to improving soil health

Under the terms of the new Bill, Defra’s approach to public goods has become less ‘pure’ and more ‘pragmatic’, allowing farmers to be rewarded for things like improving soil health.

The department had previously categorised healthy soil as a ‘natural asset from which public goods can flow’, as opposed to a public good in its own right, limiting the scope for farmers to be paid for improving soil under ELMS.

Though officials refused to confirm healthy soil was now being considered a public good in and of itself, soil has been namechecked on the face of the Bill, signalling a softer approach.

Defra is also re-assessing a Game and Wildlife Conservation Trust ELMS soil health trial focused on crop rotations, which was rejected last year.

Food security and production

The new Bill introduces a legal requirement for the Secretary of State to carry out regular audits of the UK’s food security.

It is hoped these five-yearly reports, to be laid before Parliament, will kick-start a public discussion on their contents, with the possibility that resulting political pressure could force Ministers to take action if the country is seen to be underperforming in any specific area.

The revised legislation also establishes a legal duty for the Government to consider the impact of any changes to farm support on domestic food production.

This means when Defra Ministers are considering how the ELMS, productivity schemes or animal welfare policies are going to work, they must show they have looked at how English food production will be affected by any proposed reforms.

Though farmers will not be paid to produce food, as it is not strictly a ‘public good’, food production will be treated as a ‘public priority’ by the Government.

More limited powers for Welsh Government

The previous UK Agriculture Bill gave Welsh Ministers the power to change agriculture policy – a move which was criticised by farm groups who claimed it would have allowed proper scrutiny to be bypassed.

The Welsh Government has rejected the opportunity to do the same in the new legislation, opting instead to work on domestic legislation in the Senedd.

Welsh Ministers have, however, been given certain powers in the Bill allowing them to issue direct payments after 2020, intervene in agricultural markets, collect and share data and control marketing standards and carcass classifications.

The Scottish Government never had a schedule in the old legislation, and is refusing to provide legislative consent for the new UK Bill on the grounds that it ‘imposes unwanted rules’ in devolved areas, such as livestock traceability and organics.

Powers to tackle supply chain unfairness

The original legislation only allowed the Government to regulate contracts between farmers and first purchasers such as processors and abattoirs, but the new Bill will cover all sellers of agricultural produce, with the Rural Payments Agency (RPA) being considered as a possible regulator in this space.

Though the TFA has insisted the Groceries Code Adjudicator (GCA) should oversee adherence to any new codes, officials are understood to believe the GCA’s role in regulating the ‘small but important’ network of large retailers is very different to the bigger job created by this legislation.

Recognition for native breeds

The new Bill allows the Government to pay farmers for the conservation of native livestock and equines.

Christopher Price, chief executive of the Rare Breeds Survival Trust, said he was ‘delighted’ with the commitment.