The Agriculture Bill 2018: A New Climate For Agribusinesses?

Brexit raises numerous questions for the food and farming sector. It was hoped that the Agriculture Bill would answer many of those questions. Does it live up to those hopes? Read our summary to find out.

The Bill does not give the detail of what will happen when the UK leaves the EU. As is common with many statutes today it sets out what DEFRA, or the relevant devolved administration may do. So we will have to wait for the regulations to see much of the detail. The Bill does set out a timetable for the phasing out of direct payments. Current direct payments will continue until 2021. Then there will be a transitional period from 2021-2028, although this can be extended. During this period, the Government can modify direct payments. There is reference to 'de-linked' payments which we interpret to mean converting to direct payments which are not linked to an area farmed by a claimant. At the end of the transitional period, direct payments as we now know them will cease. Current recipients of direct payments may have the ability to take two or more years' payment as a lump sum. The Bill allows the Secretary of State to give financial assistance for a range of purposes. These purposes relate the environment and climate change, public access, animal welfare and animal and plant health. Also the Secretary of State may provide financial assistance to improve productivity which is defined as improving the quality of products and the efficiency of production. However there is no power to give financial assistance to sustain existing food production. Current EU legislation dealing with the support of fruit and vegetable producer organisations and the rural development programmes can be retained and modified. The Bill allows for the collection of data on the agri-food supply chains and the greater regulation of the contracts for the buying of agricultural products. The Bill allows for the regulation of marketing standards, including packaging and food labelling. Also for the formation of producer organisations that will be exempt from certain provisions of the Competition Act. Whilst the Government's emphasis is on farming businesses being fully exposed to the market, it has recognised that there may be circumstances where it may need to intervene. Therefore the Bill gives power to make extraordinary payments in times of 'exceptional market conditions'. The power is limited to "market disturbance", not other exceptional events such as extreme weather...