Source · Select Committees · Environment, Food and Rural Affairs Committee
Recommendation 3
3
Paragraph: 30
Defra has put insufficient emphasis and care into managing the process of transition itself, and...
Conclusion
Defra has put insufficient emphasis and care into managing the process of transition itself, and there is a risk that this will be a haphazard process leading to unintended consequences. Ministers’ absolute determination to press ahead with the timescale for phasing out direct payments and introducing ELM, even when confronted with significant disruption across Government and the economy, also suggests an unwillingness to adapt to unforeseen circumstances. We would expect that this contingency planning should already be taking place, and we note that Defra officials have previously asked for a delay to the pilot due to delivery concerns. After years of delay and uncertainty, time is now short, and Defra must do more to give us confidence that it will take account of changing circumstances as the agricultural transition proceeds. Defra should commit to regularly reviewing its plan for the agricultural transition and to developing contingency plans, including plans to provide for greater flexibility in the phasing out of direct payments. These reviews should draw on a comprehensive assessment of the impact of Defra’s policies. Defra should implement its contingency plans if it becomes necessary to ensure continued farm viability.
Paragraph Reference:
30
Government Response
Acknowledged
HM Government
Acknowledged
In 2018 and 2019 we published information on the removal of Direct Payments and the evidence that underpinned the changes we were making. Each year we also publish updated data on farming income. The Agricultural Transition Plan sets out our plans for this Parliament on the phasing out of Direct Payments and provides farmers with information about our intended policies. We published this so that farmers can have time to adapt and plan ahead. We are not planning to change the profile of Direct Payments reductions and suggesting otherwise would create unnecessary and unhelpful uncertainty. As funds reduce through Direct Payments, farmers will have greater opportunities to be rewarded for delivering public goods and improving their productivity through the new schemes we are now opening. The Government regularly reviews the economic factors affecting farmers. We are closely monitoring trends in farm income and productivity, as well as take-up of agri-environment and other schemes, as part of our programme of monitoring, learning and evaluation. We will use the findings to inform policy and delivery throughout the agricultural transition. We also routinely review and stress-test our own plans and assumptions about how our schemes will roll out. These reviews are supported by extensive engagement with farmers, delivery partners and land managers so we can understand the situation on the ground. We have learned from previous reforms and are extensively piloting our schemes so that they are built in a way that will work for farmers and we can test, learn and adapt at a small scale. Throughout the development of the environmental land management schemes, we will continue to assess a wide range of direct impacts, including farm incomes and the expected impacts that our policies will have on improving the natural environment.