Conclusions and recommendations
Commission for Rural Communities
1. We
are concerned that, following the abolition of the Commission
for Rural Communities (CRC), there is a real risk of a diminution
in rural expertise within Defra and across Government. (Paragraph
14)
2. The Secretary of
State told us that the new arrangement would provide "a stronger
champion for rural issues at the heart of Government". However,
we recommend that Defra set out in clear and unambiguous terms
how its Ministers and Rural Communities Policy Unit will build
their capacity and expertise in relation to rural issues and how
they will provide the degree of 'challenge' across Government
to act as effective advocates for rural communities. We further
recommend that Defra's Rural Communities Policy Unit be required
to: (Paragraph 15)
- work across Government to ensure policy is 'rural
proofed', (Paragraph 15)
- make its work accessible to the public, and (Paragraph
15)
- continue the data collection and analysis work
of the CRC. (Paragraph15)
3. Fulfilling these
requirements should be included in the objectives of the Head
of the Rural Communities Policy Unit. (Paragraph 15)
4. Defra should, within
six months of the final winding up of the CRC, publish an assessment
of the work of its Rural Communities Policy Unit and an analysis
of the overall savings achieved in providing Defra's rural policy
and statistical work as a result of abolishing the CRC. Following
publication of that report this Committee will wish to scrutinise
the work of Defra's Rural Communities Policy Unit. (Paragraph
16)
Defining the uplands
5. We
consider the uplands landscapes and communities to be sufficiently
exceptional and distinct to merit particular attention from Government.
We recommend that Defra revisit the question of setting out a
statutory UK or England-specific definition of 'uplands'. A clear,
statutory definition would assist the department in targeting
policy and data collection. Such a definition might use a similar
classification to those currently used in European regulations
to define Severely Disadvantaged Areas and Less Favoured Areas.
A Natural Environment Bill, which may arise from the anticipated
Natural Environment White Paper, may provide an appropriate legislative
opportunity to create a statutory definition for the uplands.
(Paragraph 21)
6. We are concerned
that, in their current form, the European Commission's proposals
for new criteria to assess Less Favoured Area (LFA) status would
exclude significant areas of England from the additional support
they currently enjoy and will continue to require. In particular
we would not wish the criteria used for any new classification
to exclude areas currently designated LFAs, such as parts of the
South West of England whether on the basis of altitude, climatic
conditions or any other factor. We therefore urge the Government
to put up a robust defence of the English uplands in its discussions
with the European Commission. (Paragraph 24)
A new national strategy for the uplands
7. Mindful
of our witnesses strictures that it is time to "get on with
it", the Government should set out an uplands action plan;
setting out its policy objectives, the specific action to be taken
to achieve them, by whom, the timescales for implementation and
the scale and source of the resources available. The action plan
should address the breadth of issues considered in High ground,
high potential, allow for flexibility of approach to reflect the
variation between upland areas and encompass action to be taken
by each Government department. (Paragraph 29)
Leadership
8. If
Defra's uplands strategy is to be successful it is imperative
that the department have sufficient influence across Whitehall
to ensure that the Government as a whole recognise the importance
of the uplands and hill farming. We recommend that a Defra Minister
is given cross-cutting responsibilities for the uplands. That
Minister should establish an effective advisory panel to provide
a breadth of expertise to challenge policy proposals and confront
inertia within Government. (Paragraph 32)
Future funding for upland farming
9. Farming
should be the primary activity of hill farms. The Government's
forthcoming uplands strategy must address how, as the first priority,
farming activities can be enhanced and made more efficient to
increase hill farm incomes. We accept that farming will not necessarily
provide sufficient income for some hill farms to continue. The
Government's uplands strategy should therefore consider the barriers
to diversification and new markets and how best to enable farmers
in the uplands to exploit those business opportunities. (Paragraph
38)
Single Payment Scheme
10. The
Tenant Farmers Association advocate a return to headage payments.
Successive governments have resisted such a move. We are not convinced
by the Government's arguments for dismissing this option. We recommend
that the Government look again at the arguments for and against
headage payments and explain the evidence base and grounds for
opposing this method of supporting hill farmers in limited and
specific circumstances. We recommend that it set out under what
conditions it would consider supporting a re-introduction of headage
payments. (Paragraph 46)
Stocking rates
11. We
recommend that stocking rate decisions should be based on an agreed
environmental outcome, for example achieving a set sward length
rather than prescribing the number of livestock and the grazing
season. Stocking rate decisions should be taken locally and involve
local farmers. (Paragraph 51)
Uplands Entry Level Stewardship Scheme (UELS)
12. We
recommend that the Uplands Entry Level Stewardship be reviewed
before the end of this year. The review should consider the challenges
faced by tenants and commoners in accessing the scheme. If the
review finds that they are so disadvantaged, we recommend that
Defra bring forward proposals to remove the barriers to accessing
the schemes, to include a mediation or dispute resolution mechanism
accessible to land owners, tenants and commoners. (Paragraph 55)
Common Agriculture Policy reform
13. The
current rules for calculating 'income foregone' provide insufficient
compensation for uplands farmers and discourage more from joining
agri-environment schemes. We recommend that Defra set out how
the definition of 'income foregone' can be extended for farmers
in Less Favoured Areas only to reflect the costs of running the
farm. One of Defra's aims for the current round of CAP reform
should be a more transparent system of paying farmers for the
benefits being delivered through agri-environment schemes. (Paragraph
60)
Carbon markets
14. The
CRC recommended that the Government establish a functioning carbon
market, but appeared to have little to add apart from their enthusiasm.
A carbon market is unlikely to be established for some time and
therefore Defra should concentrate on the short-term benefits
to the uplands first. We do not anticipate carbon markets making
a significant contribution to the uplands economy for some time.
A functioning carbon market operating in the uplands is an important
long term goal. We recommend the Department for Energy and Climate
Change work with Defra to identify a mechanism by which the uplands
could participate in a carbon market, what regulatory barriers
need to removed and what the likely return to farmers would be
from participating in the market. This work should consider how
peatland restoration could be incorporated into a carbon market.
(Paragraph 70)
15. Restoration of
peat can contribute to increasing carbon storage as well as having
wider environmental benefits. We recommend that Defra explore
how peat restoration projects could contribute to Defra's carbon
budget obligations. (Paragraph 71)
Water markets
16. There
are a range of water management options that could provide an
additional source of income for upland farmers. We recommend that
Defra work with the water industry and the economic regulator,
Ofwat, to encourage the development of water markets more widely
in the uplands. We welcome the inclusion of developing water markets
as part of the Ofwat review. (Paragraph 75)
17. There are several
examples of water companies working with upland land managers
to improve water quality. We encourage the industry, supported
by Ofwat, to explore greater use of the natural environment, particularly
in the uplands, to improve water quality. (Paragraph 76)
18. We recommend that
Defra work with the Environment Agency to identify ways to encourage
local partners and land managers to work together on water sequestration
schemes with the goal of reducing flood risk. (Paragraph 77)
Tourism
19. Tourism
has the potential to be an additional source of income for upland
farmers. Defra's upland strategy should set out how the Government
will support farmers seeking to diversify into business activities
that serve those tourists. (Paragraph 80)
20. Some National
Parks contract farmers to carry out specific activities to manage
the land, such as maintaining paths and walls. We recommend Defra
seek further ways that farmers can generate additional income,
for example by being contracted to assist in clearing snow during
bad weather. (Paragraph 81)
Future development
21. Improved
extension services and demonstration farms, where appropriate,
need to be part of the mix of approaches that will need to be
deployed to improve the competitiveness of uplands farmers. We
recommend that Defra include specific reference in its uplands
strategy action plan as to how it will support improving agricultural,
business and management skills and schemes that enable diversification.
(Paragraph 85)
22. Succession is
likely to remain problematic until the fundamental issues of low
economic viability and high uncertainty of hill farming are addressed.
(Paragraph 88)
Broadband
23. The
internet is a critical business tool. The efficiency of upland
farming will be enhanced by the ability to reliably access information
and transact business online. Defra should set out how and by
when the super-fast broadband trial will be evaluated. Defra's
uplands strategy action plan should set out where and by when
the super-fast broadband trial will be extended, and what resources
have been identified to fund an extension of the trial. (Paragraph
92)
Planning and housing
24. It
is essential that the Government's national planning framework
include policies to mitigate the problems of lack of affordable
housing in rural areas. The Home on the Farm scheme may be part
of the solution to lack of affordable housing—we seek clarification
from Defra as to how the scheme will work in practice. In particular,
we expect Defra to clarify whether, 'Home on the Farm' will be
limited to providing affordable housing and whether retired farmers
and current farm workers will be able to take advantage of the
scheme. (Paragraph 98)
25. We recommend that
Defra work across Government to ensure that the national planning
framework has a flexible and less restrictive approach to housing
in rural areas. The planning framework should enable local communities
to seek innovative and cost-effective solutions to the problem
of affordable housing in rural areas, for example through use
of defence estate properties that are becoming vacant. (Paragraph
102)
National Parks
26. We
support the purpose behind the CRC's recommendation that National
Park Authorities have an additional statutory duty relating to
social and economic well-being. The Authorities' duties to the
landscape and environment and the people who live, work and cherish
those landscapes should have equal status. There appears no reason
why the Sandford Principle should not be preserved and applied
to a third statutory duty. We recommend that the Government seek
an appropriate legislative vehicle to make this change and to
introduce greater flexibility. (Paragraph 108)
27. We conclude that
some Local Enterprise Partnerships (LEPs), that cover rural areas,
appear to lack interest in, and knowledge about, rural issues.
In addition, significant rural areas are not currently covered
by LEPs. We encourage rural and farming representative organisations
engage with LEPs. We recommend that Defra engage with the Department
for Business, Innovation and Skills about including consideration
of rural needs, where appropriate given the geography, as part
of the criteria for selection of future LEPs. (Paragraph 113)
28. There is a lack
of clarity about the current position and how Rural Development
Programme for England (RDPE) funding will be provided now and
in the future. We recommend that Defra provide a clear and precise
description of how funding will be provided across the country,
with or without LEPs. We further recommend that Defra produce
clear guidance for farmers and rural communities as to how RDPE
funding will be administered now and in future. (Paragraph 114)
29. Any confusion
about how RDPE funding will be administered compounds the difficulties
farmers and local communities encounter in receiving information
and accessing funding. We recommend that the Government explore
a simpler means of gaining access to rural funding, of all kinds,
through a one-stop-shop. (Paragraph 115)
30. We recommend that
Defra only use LEPs as a focus for delivery of RDPE funding in
future (after 2013), when they have demonstrated that LEPs have
sufficient geographical extent to benefit farmers in all rural
areas and have sufficient skills, local knowledge and interest
to assist with rural businesses. In the intervening time RDPE
funding is to be delivered by Defra. We remain to be convinced
that the department will be an effective and efficient delivery
body. We expect Defra to set out how it will administer the fund
and what processes are in place to monitor its performance as
a delivery body. (Paragraph 116)
Conclusion
31. In
this report we have highlighted issues raised by the Commission
for Rural Communities in High ground, high potential that we consider
require particular attention. Defra will shortly be producing
its uplands strategy. Defra must decide whether farming is to
be maintained as the central activity of uplands communities,
and if so, explain how this will be achieved. As several witnesses
have said there is now a need for action; we have therefore recommended
that Defra produce an action plan setting out the Government's
objectives, how it will achieve those objectives, the resources
available and the timetable for implementation. (Paragraph 118)
32. As farming is
central to the uplands, the Common Agricultural Policy is central
to the prospects for upland farmers. This Committee is currently
considering the European Commission's proposals for reforming
the CAP. In our deliberations on the proposals we have been mindful
of the variety of agriculture within the UK—we trust the
Government is similarly aware of the needs of all parts of UK
agriculture and particularly the uplands. (Paragraph 119)
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