My Lords, I declare my farming interests as set out in the register. I too add my support to Amendment 12 in the name of the noble Lord, Lord Curry of Kirkharle. I will speak to my Amendment 62, which would give the Secretary of State additional powers to enable the support of diversification activities on farms where the purpose of that activity is to support or maintain the agricultural, horticultural or forestry activity undertaken on that holding.
This is an agricultural Bill and, as such, it should be about ensuring the resilience of the agricultural sector and supporting public benefits from the farmed environment. There is a real danger that vital support could be lost to our farmers. Therefore, it is important to ensure that we support those individuals bearing the business risk and carrying out the day-to-day management tasks. The key for making the case for financial assistance for diversification projects under this Bill is to look at farm business income. Many farmers make a loss from core farming activities, so diversification becomes an important tool for sustaining a farmer’s income. Some 65% of farmers already have some diversified element on farm. In 2018-19 the total income from diversified activities was £740 million. Diversification is about creating income opportunities for a whole farming family and offers the chance for other family members to use other skills to support and maintain a family unit on farm or by staying in the local area. I think in particular about encouraging young people in rural areas, which can only benefit the local economy.
Given the current reliance on BPS, many farms will need to look for additional sources of income once direct payments are phased out. Enabling the Government to provide financial assistance for diversification activities could help to fill this gap and allow farming businesses to build their resilience and sustainability.