Making Farm Policy Post Brexit- Baroness Anne McIntosh

 

Against the backdrop of the biggest change in farming policy for 45 years, farmers would expect to a have a long lead in, with discussion and thorough scrutiny of the new policy.

Not so…Essentially the Government is taking upon itself to draft the detailed proposals by the back door , through regulations i.e. secondary legislation; which cannot be either amended nor properly scrutinised.

Why is this important? Because of the nature of the change. It seems inconceivable that neither Parliament nor farming organisations would be able to fully see, check and test the proposals before they come into effect.

Between 1947 and 1973, farmers received deficiency payments annually from the Government making up the difference between actual market prices and guaranteed prices on the total quantities sold by farmers. Guaranteed prices were agreed by the Government in consultation with the NFU in an Annual Price Review having regard to the costs of production and fair prices for farmers

On joining the European Economic Community in 1973, agricultural payments were made through the Common Agricultural Policy through a mechanism which raises the internal domestic EU price above the ruling world market price.

The Agricultural Bill which is due in the House of Lords in December is a skeleton Bill, simply enabling the Government to make regulations setting the new policy. This has attracted both general and specific criticism for proceeding in this way, bypassing the  normal practice for passing legislation with a lengthy process of three readings and a committee stage in both Houses of Parliament. This procedure permits MPs and Peers to scrutinise closely the proposed legislation to see how it will impact on in this case farmers, landowners and growers. Amendments are considered and voted on and often the draft bill can be improved and clarified as to how it will apply in practice.

It is alarming that the Government is prepared to sweep away the usual powers of parliamentary scrutiny of the policy, thereby depriving farmers of the ability to influence the drafting of proposals to make them more suitable, to test the criteria which will apply and so forth. Farmers have consistently asked for certainty as they need to make decisions now on whether to produce spring lambs and need to know if there will be a market for them. Cereal growers have to decide on investments in their crops.

While the Government has announced that farm support will continue until the end of this Parliament which is expected in 2022, it is not clear what happens to farm support if this Parliament ends before 2022. Until then, farmers will be paid both direct payments and for countryside stewardship schemes.

Farmers will also be affected by other Bills which are to pass through Parliament by 29 March 2019. The Environment Bill will have a cross over on the types of projects bringing benefits for the public good thereby qualifying for future support. The Trade Bill may subject farmers to unfair competition from inferior imported products undercutting home produce such as poultry and sugar from Brazil, beef from Argentina as well as chicken and beef from the United States.

The Immigration Bill introducing a new policy prioritising entry into the UK for skilled workers could make it more difficult to attract unskilled workers for farms , fruit and vegetable growers.

In addition, Defra have to submit over 100 implementing regulations preparing for Brexit before 29 March 2019, relating to food standards and safety, environmental standards and other such.

Meanwhile farmers are not buying livestock, partly owing to a shortage and cost of feed , partly because of the uncertainty of the market and trading conditions post Brexit with the EU and beyond. Farmers are crying out for certainty and by failing to set out what the key policy proposals will be in the legislation they have no idea what the policy or trading conditions will be.

Will there be time for Parliament to examine and scrutinise the Bills and regulations and for farmers and growers to influence the content of the legislation? The timetable is incredibly tight and the Government is showing no sense of urgency in processing the passage of all the outstanding legislation.

It is clear that farmers and growers want a policy that has been thoroughly thought through. Yet the Agriculture Bill does not contain even an outline of the substantive law that will replace the CAP once the UK leaves the EU.

I expect that the House of Lords will do its job of scrutinising the Agriculture Bill with gusto and most likely, will help to fill in the gaps so as best prepare the farmers for what lies ahead in the brave new world post- Brexit.

 

Fresh from the Faroes.

Crossing the North Atlantic from the Faroes to Denmark by ferry, news of the impending Danish election dominates the newspaper headlines.

The sale of a part of DONG ( the Danish Oil and Gas Company ) to Goldman Sachs is being closely monitored, including the shredding of certain key documents by the Finance Ministry before they were registered. DONG was originally state owned and this partial privatisation has proved highly controversial. Will it be an issue in the impending Danish General Election? This has now been announced, to be held in June.

Denmark is a country which is not rich in sources of national minerals and Vespa, based in AArhus, has become one of the largest and most successful Danish companies, specialising in wind turbines.

The Faroe Islands are autonomous within the Danish Constitutional Monarchy. While remote, the Faroes play a strategic role in the North Atlantic, as recognised by Britain when Winston Churchill ordered they be occupied by British forces to secure that corner of the North Atlantic from the Germans.

Otherwise, what are the Faroes most famous for? Their fishing industry and their sheep, the unique blending of which was made famous in the fishermen’s sweater by Sarah Lund in the TV series, Forbrydelsen, or The Killing as we know it.

Apparently, the distinctive designs worn by each fisherman indicated from a distance to their wife on their return after months at sea who had survived the perils of the North Atlantic.

As a first visit, the tour of Torshavn bodes well for future visits and perhaps the next time, taking the ferry on to Iceland to extend the relaxing sea voyage a little further. Now , back in the UK, the visit is but a memory.
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