The Earl of Caithness (Con)

My Lords, the present financial crisis that farmers face was an inevitability the moment we voted for Brexit—I said so at the time. It was a question only of when it was going to happen. HM Treasury knew that there was a budget set in Brussels and that it could get its sticky mitts on to it; once they did so, the farmers were going to be in trouble —and in trouble they are. My noble friend Lord Fuller was absolutely right to say that it is a much bigger issue than the SFI and the basic payment system; it is across the board. The noble Lord, Lord Cromwell, said that Defra’s reputation is at its lowest in living memory—that is a sad thing to have to say in this House for all the farmers. The SFI was a victim of its own success; it was too good to be true, and it was inevitable that it had to be ended or changed. Perhaps that could have been done much better, and there should have been advance warning, but, given the way it was structured, it was inevitable that the benefits were not distributed evenly. The basic payment system, for all its faults—here I chide the Minister for portraying the beneficiaries of the basic payment system as, I think, large and wealthy landowners—was for every farm business. There was equality; it went right across the board. That is not the case for the SFI, which is one of its faults. If you look at the figures for the SFI, you will find that there are 7,800 agreements in the south-west and 1,000 agreements in the north-east. That is not an equal distribution across the country. On top of that, one needs to remember that over half of the land in England is tenant farmed—they are not large, wealthy landowners. The need for equal distribution is an important feature for the Government to consider when adapting the scheme. We have a great opportunity now for the Government to come forward with a revised SFI scheme, but two important changes need to be made to the current scheme: first, it must be available to all on a fair basis, and, secondly, it must benefit nature. One of the problems of the existing SFI is that it has not necessarily benefitted nature. It benefited some farmers who got in there early and made a lot of money, but the figures that I cited for the distribution of the SFI show that there were patches where nature was going to be improved and patches where nature was not getting any benefit at all. That is perhaps the only thing that I would add to my noble friend Lord Roborough’s regret amendment. I am sad that he did not include “and nature and biodiversity”, because that was part of the SFI. Yes, the farmers were going to benefit, but it was public money for public goods, and that includes biodiversity. I will outline my particular fear, as I think this is bound to happen. A whole lot of farmers signed up to the middle tier of the Countryside Stewardship scheme in 2020, which was to last for five years. I believe that there are about 14,000 farmers in that category—the Minister might correct me if I am wrong, because it is important to get it right. Those people were the good farmers: they were ahead of the game, and they took the difficult decision to go into something that was a new idea—and new ideas tend not to work terribly well to begin with—in the expectation that, at the end of the five years, there would be another scheme for them to go into. However, what they will now find is that the doors have slammed shut: there is no scheme for those people to go into. You can drive around the countryside, which is looking particularly good in the spring sunshine at the moment, and look at those areas of bird seed where the drills have gone down you have bird seed, leys and areas set aside for nature. Next year, they are not going to be there because those farmers have no option but to plough up all the good they have done in the last five years, put it down to corn and put the combine in. That would be a tragedy.