Agriculture Bill (HC Bill 266)

Part 1 New financial assistance powers

1 Secretary of State’s powers to give financial assistance

(1) The Secretary of State may give financial assistance for or in connection with any of
5the following purposes—

(a) managing land or water in a way that protects or improves the environment;

(b) supporting public access to and enjoyment of the countryside, farmland or
woodland and better understanding of the environment;

(c) managing land or water in a way that maintains, restores or enhances cultural
10heritage or natural heritage;

(d) mitigating or adapting to climate change;

(e) preventing, reducing or protecting from environmental hazards;

(f) protecting or improving the health or welfare of livestock;

(g) protecting or improving the health of plants.

(2) The Secretary of State may also give financial assistance for or in connection with the
5purpose of starting, or improving the productivity of, an agricultural, horticultural or
forestry activity.

(3) Financial assistance under subsection (1) or (2) may only be given in relation to
England.

(4) For the purposes of this section—

• 10“improving productivity”, in relation to carrying on an activity,
  includes—

  (a)

  improving the quality of any products deriving from the
  activity, and

  (b)

  improving the efficiency of the activity in terms of the resources
  15used in, or in connection with, it;

• “livestock” includes any creature kept for the production of food, drink,
  oils, fibres or leathers, or for the purpose of its use in the farming of
  land.

2 Financial assistance: forms, conditions, delegation and publication of
20information

(1) Financial assistance may be given by way of grant, loan, guarantee or in any
other form.

(2) Financial assistance may be given subject to such conditions as the Secretary of
State considers appropriate.

(3) 25The conditions may (among other things) include provision under which the
financial assistance is to be repaid or otherwise made good (with or without
interest).

(4) Financial assistance may be given to a person in connection with a scheme
made or operated by that person for the giving of financial support for any one
30or more of the purposes in section 1(1) and (2).

(5) The Secretary of State may delegate functions relating to the giving of financial
assistance to any other person.

(6) Functions delegated under subsection (5) may include—

(a) the giving of guidance;

(b) 35the exercise of a discretion.

(7) The Secretary of State may by regulations make provision for or in connection
with requiring the Secretary of State or another person to publish specified
information about financial assistance which has been given.

(8) Information which may be specified includes information about—

(a) 40the recipient of the financial assistance;

(b) the amount of the financial assistance;

(c) the purpose for which the financial assistance was given.

(9) Regulations under subsection (7) are subject to affirmative resolution
procedure.

(10) In this section—

• “financial assistance” means financial assistance under section 1;

• “specified” means specified by regulations under subsection (7).

3 Financial assistance: checking, enforcing and monitoring

(1) 5The Secretary of State may by regulations make provision for or in connection
with—

(a) checking whether eligibility criteria for receipt of financial assistance
are met and the consequences, where financial assistance has already
been given, if not;

(b) 10enforcing compliance with conditions subject to which financial
assistance is given;

(c) monitoring the extent to which the purpose of the financial assistance
has been achieved.

(2) Regulations under subsection (1) may (among other things) include
15provision—

(a) about the provision of information;

(b) conferring powers of entry;

(c) conferring powers of inspection;

(d) about the process for determining if eligibility criteria, or conditions
20subject to which financial assistance is given, are met;

(e) about the keeping of records;

(f) about the recovery or withholding of all or any part of financial
assistance;

(g) imposing monetary penalties;

(h) 25creating offences;

(i) prohibiting a person from receiving financial assistance for a period or
until conditions specified in, or determined under, the regulations are
satisfied;

(j) about appeals;

(k) 30conferring functions (including functions involving the exercise of a
discretion) on a person.

(3) Regulations under this section are subject to affirmative resolution procedure.

(4) In this section “financial assistance” means financial assistance under section 1.

Part 2 35Financial support after exiting the EU

CHAPTER 1 Direct payments

4 Meaning of “basic payment scheme” and other expressions in Chapter 1

(1) This section defines or explains expressions used in this Chapter.

(2) The “basic payment scheme” is the Basic Payment Scheme under the Direct
40Payments Regulation (see Title III of that Regulation), as it operates in relation

to England, including the arrangements relating to each of the following
elements of direct payments under that scheme—

(a) so much of a direct payment that does not consist of a greening or
young farmers payment (see Chapter 1 of Title III),

(b) 5a greening payment (see Chapter 3 of Title III), and

(c) a young farmers payment (see article 50 of that Regulation).

(3) The “legislation governing the basic payment scheme” is—

(a) the following retained direct EU legislation—

(i) the Direct Payments Regulation;

(ii) 10any Council Delegated Regulation, or Commission Delegated
Regulation, made under the Direct Payments Regulation;

(iii) any other retained direct EU legislation which relates to the
operation of the basic payment scheme; and

(b) any subordinate legislation relating to retained direct EU legislation
15falling within paragraph (a).

(4) “Direct payment” means—

(a) a payment under the basic payment scheme (whether or not including
a greening payment, a young farmers payment or both elements), or

(b) a delinked payment.

(5) 20The “agricultural transition period for England” is the period for the time being
specified in section 5(1).

(6) “Delinked payment”, except in subsections (1) and (2) of section 7, means a
payment under regulations under that section made by virtue of those
subsections.

(7) 25The “Direct Payments Regulation” is Regulation (EU) No 1307/2013 of the
European Parliament and of the Council of 17 December 2013 establishing
rules for direct payments to farmers under support schemes within the
framework of the common agricultural policy.

(8) “Phasing out”, in relation to direct payments, means taking steps to secure that,
30at least once during the period in which the phasing out takes place prior to the
termination of those payments, there are reductions in the amounts paid out to
some or all of those entitled to receive direct payments.

5 The agricultural transition period for England

(1) The agricultural transition period for England is the period of seven years
35starting with 2021.

(2) The Secretary of State may by regulations amend subsection (1) for the purpose
of extending the period specified in that subsection.

(3) The power under subsection (2) may be exercised more than once (but may not
be exercised if the agricultural transition period for England has already
40ended).

(4) Regulations under this section are subject to affirmative resolution procedure.

6 Power to modify legislation governing the basic payment scheme

(1) The Secretary of State may by regulations modify legislation governing the
basic payment scheme for or in connection with making changes the Secretary
of State considers will simplify or improve the scheme (so far as it operates in
5relation to England).

(2) The provision which may be made under subsection (1) includes provision
made for or in connection with terminating greening payments in relation to
England before the end of the agricultural transition period for England.

Regulations under this section are subject to negative resolution procedure.

7 10Power to provide for phasing out direct payments and delinked payments

(1) The Secretary of State may by regulations make provision for or in connection
with either or both of the following—

(a) phasing out direct payments under the basic payment scheme in
relation to England over the whole or part of the agricultural transition
15period for England;

(b) terminating direct payments under that scheme in relation to England and
instead making delinked payments in relation to England in respect of the
whole or part of the agricultural transition period for England.

(2) For this purpose a delinked payment is a payment, with respect to a year,
20which is made in accordance with the regulations to a person who is under the
regulations entitled to receive it.

(3) Regulations making provision under subsection (1)(b) must—

(a) specify the first year within the agricultural transition period for
England in respect of which delinked payments are to be made (“the
25first delinked year”),

(b) provide that after the end of the year preceding the first delinked year
no payments are to be made under the basic payment scheme in
relation to England otherwise than in respect of that preceding year (or
an earlier year),

(c) 30specify the descriptions of persons who, in respect of a year, are entitled
to receive a delinked payment (whether or not they are required by the
regulations to make an application before anything becomes payable),
and

(d) make provision setting out rules for determining the amount of the
35delinked payment to be made to an entitled person with respect to any
year.

(4) A description of persons specified under subsection (3)(c) may (but need not)
be framed by reference to whether they were entitled to a direct payment
under the basic payment scheme in respect of a specific year (or one of several
40specific years) prior to the first delinked year.

(5) Rules set out under subsection (3)(d) for determining the amount of any
delinked payment to be made to a person may (but need not) be framed by
reference to the amount of a direct payment to which the person was entitled,
or, if specific assumptions are made would have been entitled, under the basic
45payment scheme.

(6) Regulations under subsection (1)(b)may make provision—

(a) for a person who makes a request in accordance with the regulations to
cease to be regarded as a person entitled to receive delinked payments
in relation to England,

(b) for other circumstances in which a person ceases to be an entitled
5person in relation to England, and

(c) for the repayment (with or without interest) of any amount paid as a
delinked payment to which the recipient was not entitled.

(7) Regulations under this section may make provision for or in connection with
the payment of a lump sum (at the request of a person entitled to direct
10payments) in lieu of any direct payments to which that person would
otherwise be entitled with respect to two or more years of the agricultural
transition period for England.

(8) If provision for terminating greening payments is made under section 6(2)
(whether before or after the start of the agricultural transition period for
15England), then subsection (1) above has effect as if the references to direct
payments do not include the greening payment element of direct payments.

(9) Regulations under this section are subject to affirmative resolution procedure.

8 Termination of direct payments

(1) After the end of the agricultural transition period for England no direct
20payments are to be made under the basic payment scheme in relation to
England otherwise than in respect of the last year of that period (or an earlier
year).

(2) If provision for delinked payments is made in regulations under section
7(1)(b)—

(a) 25subsection (1) above does not apply, and

(b) no delinked payments in relation to England are to be made after the
end of the agricultural transition period for England otherwise than in
respect of the last year of that period (or an earlier year).

CHAPTER 2 Other financial support: modification of legislation in relation to England

9 30General provision connected with payments to farmers and other
beneficiaries

(1) The Secretary of State may by regulations modify—

(a) retained direct EU legislation relating to the financing, management
and monitoring of the common agricultural policy, and

(b) 35subordinate legislation relating to that legislation.

(2) Regulations under this section may only be made for the purpose of—

(a) securing that any provision of legislation referred to in subsection (1)
ceases to have effect in relation to England, or

(b) simplifying or improving the operation of any provision of such
40legislation in relation to England.

(3) Regulations under this section may not make any provision of legislation
mentioned in subsection (1) apply in relation to financial assistance under
section 1.

(4) In this section “retained direct EU legislation relating to the financing,
5management and monitoring of the common agricultural policy” includes—

(a) Regulation (EU) No 1306/2013 of the European Parliament and of the
Council of 17 December 2013 on the financing, management and
monitoring of the common agricultural policy;

(b) any retained direct EU legislation made under that Regulation.

(5) 10Regulations under this section are subject to negative resolution procedure.

10 Aid for fruit and vegetable producer organisations

(1) The Secretary of State may by regulations modify the following retained direct
EU legislation for the purpose of securing that it ceases to have effect in relation
to England—

(a) 15Articles 32 to 38 of the CMO Regulation, which make provision about
aid for fruit and vegetable producer organisations (“producer
organisations aid”);

(b) so far as relating to producer organisations aid, Commission Delegated
Regulation (EU) 2017/891 of 13 March 2017 supplementing the CMO
20Regulation with regard to the fruit and vegetable, and processed fruit
and vegetable, sectors;

(c) so far as relating to producer organisations aid, Council Implementing
Regulation (EU) 2017/892 of 13 March 2017 laying down rules for the
application of the CMO Regulation with regard to the fruit and
25vegetable, and processed fruit and vegetable, sectors.

(2) Regulations under this section are subject to negative resolution procedure.

11 Support for rural development

(1) The Secretary of State may by regulations modify—

(a) retained direct EU legislation relating to support for rural
30development, and

(b) subordinate legislation relating to that legislation.

(2) Regulations under this section may only be made for the purpose of—

(a) securing that any provision of legislation referred to in subsection (1)
ceases to have effect in relation to England, or

(b) 35simplifying or improving the operation of any provision of such
legislation so far as it continues to have effect in relation to England
(pending the achievement of the purpose in paragraph (a)).

(3) In this section “retained direct EU legislation relating to support for rural
development” includes in particular—

(a) 40Regulation (EU) No 1305/2013 of the European Parliament and of the
Council of 17 December 2013 on support for rural development,

(b) Regulation (EU) No 1310/2013 of the European Parliament and of the
Council of 17 December 2013 laying down certain transitional
provisions on support for rural development,

(c) Council Regulation (EC) No 1698/2005 of 20 September 2005 on
support for rural development,

(d) so far as it relates to support for rural development, Regulation (EU) No
1303/2013 of the European Parliament and of the Council of 17
5December 2013 laying down common provisions on the European
Regional Development Fund, the European Social Fund, the Cohesion
Fund, the European Agricultural Fund for Rural Development and the
European Maritime and Fisheries Fund etc,

(e) Council Regulation (EC) No 1257/99 of 17 May 1999 on support for
10rural development,

(f) Council Regulation (EEC) No 2080/92 of 30 June 1992 instituting a
Community aid scheme for forestry measures in agriculture,

(g) Council Regulation (EEC) No 2078/92 of 30 June 1992 on agricultural
production methods compatible with the requirements of the
15protection of the environment and the maintenance of the countryside,
and

(h) retained direct EU legislation made under the retained direct EU
legislation in paragraphs (a) to (g).

(4) Regulations under this section are subject to negative resolution procedure.

20Part 3 Collection and sharing of data

12 Agri-food supply chains: requirement to provide information

(1) The Secretary of State may require a person in, or closely connected with, an
agri-food supply chain to provide information about matters connected with
25any of the person’s activities connected with the supply chain so far as the
activities are in England.

(2) The Secretary of State may make regulations requiring a person in, or closely
connected with, an agri-food supply chain to provide information about
matters connected with any of the person’s activities connected with the
30supply chain so far as the activities are in England.

(3) See section 13 for provision about—

(a) the meaning of “agri-food supply chain”,

(b) who is in such a supply chain, and

(c) who is closely connected with such a supply chain.

(4) 35Subsections (1) and (2) do not apply in relation to individuals in a supply chain
so far as they are in the supply chain by reason of them, or members of their
households, being the ultimate consumers (see section 13).

(5) A requirement under subsection (1) must be in writing.

(6) Subsection (1) binds the Crown.

(7) 40Regulations under subsection (2) are subject to affirmative resolution
procedure.

13 Meaning of “agri-food supply chain”

(1) This section has effect for the purposes of this Part.

(2) An “agri-food supply chain” is a supply chain for providing individuals with
items of food or drink for personal consumption where the items consist of or
include, or have been produced using (directly or indirectly, and whether or
not exclusively), the whole or part of—

(a) 5anything grown or otherwise produced in carrying on agriculture, or

(b) any creature kept in carrying on agriculture, or

(c) any creature or other thing taken from the wild.

(3) The persons in an agri-food supply chain are—

(a) those individuals (“the ultimate consumers”),

(b) 10the persons carrying on the agriculture or (as the case may be) taking
things from the wild, and

(c) anybody in the supply chain between those persons and the ultimate
consumers.

(4) The persons “closely connected” with an agri-food supply chain are—

(a) 15anybody supplying seeds, stock, equipment, feed, fertiliser, pesticides,
medicines or similar items to the persons within subsection (3)(b) for
use in the agriculture or taking,

(b) anybody providing, to persons within subsection (3)(b) or (c), services
related to—

(i) 20the health of creatures, or plants, involved in the supply chain,
or

(ii) the safety or quality of the food or drink to be provided to the
ultimate consumers,

(c) any person carrying on activities capable of affecting a matter
25mentioned in sub-paragraph (i) or (ii) of paragraph (b), and

(d) bodies representing persons within any of paragraphs (b) and (c) of
subsection (3) and paragraphs (a), (b) and (c) of this subsection.

(5) Activities of the kind mentioned in subsection (4)(c) are to be treated for the
purposes of section 12(1) and (2) as connected with the supply chain, but this
30is not to be read as limiting the generality of “connected” in section 12(1) and
(2).

(6) In this section—

• “agriculture” includes any growing of plants, and any keeping of
  creatures, for the production of food or drink;

• 35“plants” includes fungi;

• “seeds” includes bulbs and other things from which plants grow.

14 Requirement must specify purposes for which information may be processed

(1) This section applies to a requirement imposed under section 12(1) or (2).

(2) The requirement must specify the purposes for which the information may be
40processed.

(3) Each purpose specified must be in, or covered by, the list of purposes in
subsection (4).

(4) The list of purposes is as follows—

(a) helping persons in agri-food supply chains to—

(i) 45increase productivity,