The Efra Committee held its second evidence session of its Future of Farming Inquiry as it examines Defra's Farming and Countryside Programme.
The session saw MPs use the NAO (National Audit Office) report as a basis for scrutiny of the department's management of the programme.
The report looked at the pros and cons to Defra’s ‘iterative approach’ to the programme, which it said has made it difficult for farmers to plan for their businesses and created ‘widespread uncertainty and risk’.
The NFU briefed Efra committee MPs questioning Defra ahead of the session with key questions around its long-term approach to ELMs, the budget needed to deliver it, as well as issues around delivery such as ensuring IT systems run smoothly.
Spending review to give certainty
Charlie Dewhirst, MP for Bridlington and the Wolds, asked Defra officials about their long-term approach for how ELMs will change to meet targets and how much money would be needed to meet their aims.
Permanent Secretary at Defra Dame Tamara Finkelstein said the department has been continuing to balance certainty and the ongoing changes and that there will be more certainty once they know the next three years of funding from the Spending Review.
When asked if Defra had the data to make its case to the Treasury, Dame Tamara replied “we have great data to make a persuasive case in the Spending Review”.
“The NFU has urgent questions that need answering such as whether government has the long-term, flexible budget available to deliver ELMs in England to help restore farmers confidence.”
NFU Deputy President David Exwood
The NFU’s independent research calculates that £4bn per annum is needed to fund the government’s ambitions. Efra chair Alastair Carmichael asked if Defra recognised this figure as a reasonable.
Dame Tamara responded “no, not particularly”, adding that it is not just about public money “but how you use it, regulation and private investment as well”.
She said they know the budget for the next two financial years and that they are preparing for the Spending Review. She noted that they are looking “right across the department” ahead of the Spending Review to improve efficiency.
Defra Director General for Food, Biosecurity and Trade Emily Miles noted that there is “significant pressure” on the Budget for farming, hence the decision to pause new applications for capital grants, as the scale of uptake has increased. She said that there will not be a budget underspend again.
Urgent questions to be answered
Speaking about the session, NFU Deputy President David Exwood said “the Agricultural Transition Plan needs immediate action and focus”.
He added: “The value of investing in the future of British agriculture has never been more important to enable our farmers to contribute to UK food security by continuing to produce high quality, safe and affordable food alongside their work in improving the environment.
“The NFU has urgent questions that need answering such as whether government has the long-term, flexible budget available to deliver ELMs in England to help restore farmers confidence.”
The Deputy President questioned whether there is an agreed, long-term approach to how ELMs will meet legislated environmental targets, whether there is adequate staffing within Defra to deliver the ELMs rollout, and what plans are in place to ensure that IT systems run smoothly to meet demand.
“Priorities have to be ensuring ELMs is fit for purpose and working for all farm businesses in all sectors, particularly the uplands and tenant farmers, so we can help to deliver on those legislated environmental targets alongside sustainable food production,” he said.
“We need to see an uplift in Higher Level Scheme payment rates and changes to elements of the SFI to ensure it is compatible with both.”
Upgrades on the horizon
Officials did give an update on staffing and issues around outdated legacy IT systems as highlighted in the NAO report.
Dame Tamara said that the Environment Agency in particular has “massively increased” the number of staff, quadrupling from 2019-20 and increasing the number of farm visits.
Referencing the capability of the group’s IT systems, she acknowledged there had been “a number of things” to deal with, but that they are implementing upgrades and aiming for smoother user pathways. The Permanent Secretary confirmed they have renewed the contract for three more years to allow for the building of a “discovery system”.
She added that there will be improvements from implementing AI to allowing farmers to access information on regulations and programmes.
