My Lords, I declare my interests, which I declared on previous occasions. I will make one small flanking point to those made already.
As I explained to the House on Tuesday, you can see from farming accounts that the vast bulk of a farm business’s income is from traditional agriculture. They are businesses that have a relatively high turnover and low margins. Against that background, we have been talking a lot about various environmental changes that we want to see in the country, which in turn will be paid for by the public money for public goods formula.
However, against the whole-farm income of the vast majority of farms in this country, that amount of money will still almost certainly be relatively small. If a farm business faces a complete crash in its market—I speak as someone who has an animal livestock business that was wiped out in the foot and mouth outbreak—it faces an existential threat. When faced with an existential threat, you simply do everything you can to save that business. In reality, that means that, whatever the rules about how public money is paid for carrying out environment changes of one sort or another, it will simply be stopped and it will have to be sorted out later.
Rather the same problem faces Lake District farmers, where I am chairman of the Cumbria Local Enterprise Partnership, with the Covid outbreak, which has killed off much of the tourist trade, although it is picking up now. It had a pretty devastating effect on farm incomes in a form of agriculture where the margins from traditional husbandry are very low and the farm business’s survival depends on generating tourist revenues.
I argue that the effect of market disruption, quite apart from the impact it might have on any particular farm business, poses a very serious threat to a lot of the entirely good propositions for environmental change and improvement inherent in the debate we are having on the Bill. Therefore, the environmental aspects of what we are discussing are a genuine potential candidate for collateral damage from market collapse. As such, for the reasons the noble Lord, Lord Carrington, and others have given, it is appropriate that these provisions should be in the Bill.
5.45 pm