Agriculture Bill (HC Bill 7)

Agriculture BillPage 41

(c) if made by the Welsh Ministers, may not be made unless a draft of the
statutory instrument containing them has been laid before, and
approved by a resolution of, the National Assembly for Wales;

(d) if made by DAERA, may not be made unless a draft of the regulations
5has been laid before, and approved by a resolution of, the Northern
Ireland Assembly.

(7) Where regulations under this Act are subject to negative resolution
procedure—

(a) if made by the Secretary of State, the statutory instrument containing
10them is subject to annulment in pursuance of a resolution of either
House of Parliament;

(b) if made by the Scottish Ministers, the regulations are subject to the
negative procedure (see section 28 of the Interpretation and Legislative
Reform (Scotland) Act 2010 (asp 10)2010 (asp 10));

(c) 15if made by the Welsh Ministers, the statutory instrument containing
them is subject to annulment in pursuance of a resolution of the
National Assembly for Wales;

(d) if made by DAERA, the regulations are subject to negative resolution
within the meaning of section 41(6) of the Interpretation Act (Northern
20Ireland) 1954.

(8) Any provision that may be made by regulations under this Act subject to
negative resolution procedure may be made in regulations subject to
affirmative resolution procedure.

(9) Section 41(3) of the Interpretation Act (Northern Ireland) 1954 applies in
25relation to the laying of a document before the Northern Ireland Assembly by
virtue of this section as it applies in relation to the laying of a statutory
document under an enactment (as defined in that Act).

(10) This section does not apply to regulations under section 53.

48 Interpretation

30In this Act—

  • “affirmative resolution procedure” is to be construed in accordance with
    section 47(6);

  • “the CMO Regulation” means Regulation (EU) No 1308/2013 of the
    European Parliament and of the Council of 17 December 2013
    35establishing a common organisation of the markets in agricultural
    products;

  • “DAERA” means the Department of Agriculture, Environment and Rural
    Affairs in Northern Ireland;

  • “modify” includes amend, revoke and repeal (and related expressions are
    40to be construed accordingly);

  • “negative resolution procedure” is to be construed in accordance with
    section 47(7);

  • “primary legislation” means—

    (a)

    an Act of Parliament;

    (b)

    45an Act of the Scottish Parliament;

    (c)

    a Measure or Act of the National Assembly for Wales;

    (d)

    Northern Ireland legislation;

  • “private dwelling” means so much of any land as consists of—

    Agriculture BillPage 42

    (a)

    a building or other structure used wholly or mainly as a private
    dwelling, or

    (b)

    a garden, yard, private garage or outhouse enjoyed with such a
    building or structure;

  • 5“subordinate legislation” means an instrument made under primary
    legislation or under retained direct EU legislation.

49 Consequential amendments

Schedule 7 amends the CMO Regulation in consequence of—

(a) Chapter 2 of Part 2 (intervention in agricultural markets: England);

(b) 10Part 2 of Schedule 5 (intervention in agricultural markets: Wales);

(c) Part 5 (marketing standards, organic products and carcass
classification: England);

(d) Part 4 of Schedule 5 (marketing standards and carcass classification:
Wales);

(e) 15Part 4 of Schedule 6 (marketing standards and carcass classification:
Northern Ireland).

50 Power to make consequential etc provision

(1) The appropriate authority may by regulations make supplementary, incidental
or consequential provision in connection with any provision of this Act.

(2) 20Regulations under subsection (1) may modify primary legislation, retained
direct EU legislation or subordinate legislation.

(3) Regulations under subsection (1) which contain provision modifying primary
legislation (with or without other provision) are subject to affirmative
resolution procedure.

(4) 25Other regulations under subsection (1) are subject to negative resolution
procedure.

(5) The appropriate authority may by regulations make transitional, transitory or
saving provision in connection with the coming into force of any provision of
this Act.

(6) 30The appropriate authority is—

(a) the Welsh Ministers, for provision in connection with—

(i) section 43 and Schedule 5,

(ii) section 44, and

(iii) section 49 and Schedule 7 so far as they apply in relation to
35Wales,

(b) DAERA, for provision in connection with—

(i) section 45 and Schedule 6, and

(ii) section 49 and Schedule 7 so far as they apply in relation to
Northern Ireland, and

(c) 40the Secretary of State, for provision in connection with anything not
mentioned in paragraph (a) or (b).

51 Financial provision

There is to be paid out of money provided by Parliament—

Agriculture BillPage 43

(a) sums required for the purpose of—

(i) giving financial assistance under section 1(1) or (2) or 19(2);

(ii) continuing direct payments under the basic payment scheme for one
or more years after 2020 by virtue of regulations under section 10;

(iii) 5making delinked payments by virtue of regulations under section 12;

(iv) operating the public market intervention or aid for private storage
mechanisms under retained direct EU legislation in response to a
declaration under section 18;

(b) administrative expenditure incurred by the Secretary of State by virtue of this
10Act;

(c) any increase attributable to this Act in amounts payable out of money provided
by Parliament by virtue of any other Act.

52 Extent

(1) The following provisions of this Act extend to England and Wales only—

(a) 15Part 1;

(b) Chapter 2 of Part 2;

(c) Chapter 1 of Part 3;

(d) section 34 and Schedule 3;

(e) section 35 and Schedule 4;

(f) 20section 38;

(g) section 43 and Schedule 5.

(2) Section 45 and Schedule 6 extend to Northern Ireland only.

(3) The following provisions extend to England, Wales and Scotland only—

(a) section 32(2), and

(b) 25section 33.

(4) Otherwise, this Act extends to England and Wales, Scotland and Northern
Ireland.

53 Commencement

(1) This Part, apart from section 49 and Schedule 7, comes into force on the day on
30which this Act is passed.

(2) The following provisions come into force on such day as the Secretary of State
may by regulations made by statutory instrument appoint—

(a) sections 18 to 20,

(b) sections 28 to 30 and Schedules 1 and 2,

(c) 35section 32(3) and (4),

(d) so far as relating to England—

(i) paragraphs 10 to 18 of Schedule 3, and

(ii) section 34 so far as relating to those paragraphs,

(e) section 35 and Schedule 4,

(f) 40sections 38 and 39,

(g) Parts 1 and 3 of Schedule 7, and section 49 so far as relating to those
Parts.

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(3) The following provisions come into force on such day as the Welsh Ministers
may by regulations made by statutory instrument appoint—

(a) so far as relating to Wales—

(i) paragraphs 10 to 18 of Schedule 3, and

(ii) 5section 34 so far as relating to those paragraphs,

(b) Parts 2 and 4 of Schedule 5, and section 43 so far as relating to those
Parts, and

(c) Parts 2 and 4 of Schedule 7, and section 49 so far as relating to those
Parts.

(4) 10The following provisions come into force on such day as DAERA may by
regulations made by statutory rule for the purposes of the Statutory Rules
(Northern Ireland) Order 1979 appoint—

(a) Parts 2 and 4 of Schedule 6, and section 45 so far as relating to those
Parts, and

(b) 15Part 5 of Schedule 7, and section 49 so far as relating to that Part.

(5) Different days may be appointed for different purposes.

(6) The other provisions of this Act come into force at the end of the period of two
months beginning with the day on which this Act is passed.

54 Short title

20This Act may be cited as the Agriculture Act 2020.

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SCHEDULES

Sections 28 and 30

SCHEDULE 1 Agricultural sectors relevant to producer organisation provisions

Dairy

5Beef

Sheep

Goats

Pig

Poultry

10Eggs

Cereals

Fruit and vegetables

Sugar

Hops

15Wine

Apiculture

Section 29

SCHEDULE 2 Recognised organisations: competition exclusions

1 Schedule 3 to the Competition Act 1998 (general exclusions) is amended as
20follows.

2 (1) Paragraph 9 (agricultural products) is amended as follows.

(2) For sub-paragraph (1) substitute—

(1) The Chapter 1 prohibition does not apply to an agreement to the
extent that it is an agreement between the members of—

(a) 25a recognised producer organisation (“PO”), or

(b) a recognised association of producer organisations
(“APO”),

for the PO or APO (as the case may be) to carry out one or more of
the activities mentioned in sub-paragraph (1A) on behalf of its

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members (for all or part of their total production), provided that
Conditions A and B are also met.

(1A) The activities are—

(a) planning production;

(b) 5optimising production costs;

(c) concentrating supply;

(d) placing products on the market;

(e) negotiating supply contracts.

(1B) Condition A is that—

(a) 10in the case of a PO, the PO concentrates supply and places
the products of its members on the market, whether or not
there is a transfer of ownership of agricultural products by
the producers to the PO, or

(b) in the case of an APO, the APO concentrates supply and
15places the products of the members of the POs it represents
on the market, whether or not there is a transfer of
ownership of agricultural products by the producers to the
APO or to any of the POs the APO represents.

(1C) Condition B is that—

(a) 20in the case of a PO, none of the producers concerned are
members of any other PO as regards the products covered
by the activities mentioned in sub-paragraph (1A) to
which the agreement relates, or

(b) in the case of an APO, none of the producers concerned are
25members of a PO that is a member of any other APO as
regards the products covered by the activities mentioned
in sub-paragraph (1A) to which the agreement relates.

(1D) But the Secretary of State may decide that the RPO exclusion
applies if Condition B is not met, if—

(a) 30every producer which is a member of more than one PO
holds distinct production units located in different
geographical areas, and

(b) the Secretary of State considers that it is appropriate in all
the circumstances for the RPO exclusion to apply.

(1E) 35If the Secretary of State is considering whether to make a decision
under sub-paragraph (1D), the Secretary of State may by notice in
writing require any party to the agreement in question to give the
Secretary of State such information in connection with the
agreement as the Secretary of State may require.”

(3) 40Omit sub-paragraph (2).

(4) In sub-paragraph (3), for “agriculture exclusion” substitute “RPO
exclusion”.

(5) For sub-paragraph (9) substitute—

(9) In this paragraph—

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  • “agricultural product” means a product that falls within a
    sector mentioned in Schedule 1 to the Agriculture Act
    2020;

  • “recognised association of producer organisations” means an
    5association recognised under section 28 of that Act;

  • “recognised producer organisation” means a producer
    organisation recognised under section 28 of that Act.”

3 After paragraph 9, insert—

10 (1) The Chapter 1 prohibition does not apply to an agreement to the
10extent that it is an agreement between the members of a
recognised interbranch organisation that has the object of carrying
out one or more specified activities, provided that the condition in
sub-paragraph (2) is also met.

(2) The condition in this sub-paragraph is that the organisation has
15notified the agreement to the CMA and provided all further
details required by the CMA, and—

(a) the CMA has decided that it is appropriate for the RIBO
exclusion to apply, or

(b) within two months of the CMA receiving all the details it
20requires, the CMA has not decided that it is inappropriate
for the RIBO exclusion to apply.

(3) In deciding whether it is appropriate for the RIBO exclusion to
apply, the CMA must consider whether the benefit of the
agreement to the specified activities of the recognised interbranch
25organisation outweighs any prevention, restriction or distortion of
competition within the United Kingdom as a result of the
agreement.

(4) The CMA may at any time give a direction to the effect that the
RIBO exclusion no longer applies to a particular agreement.

(5) 30Sub-paragraphs (4) to (8) of paragraph 9 apply to a direction under
this paragraph as they apply to a direction under paragraph 9.

(6) In this paragraph—

  • “recognised interbranch organisation” means an
    organisation of agricultural businesses recognised under
    35section 28 of the Agriculture Act 2020;

  • “specified activities” means the activities specified in
    regulations under section 28(6)(e) of that Act.”

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Section 34

SCHEDULE 3 Agricultural tenancies

Part 1 Amendments to the Agricultural Holdings Act 1986

5Introductory

1 The Agricultural Holdings Act 1986 is amended as follows.

Notices relating to third party determination of rent

2 (1) Section 12 (arbitration or third party determination of rent) is amended as
follows.

(2) 10In subsection (1) for “referred to arbitration under this Act” substitute
“determined in accordance with this section”.

(3) For subsection (1A) substitute—

(1A) Where a notice under subsection (1) is served, the question of how
much rent is to be payable in respect of the holding as from the next
15termination date—

(a) may be required by the landlord or tenant to be determined
by arbitration under this Act (see section 84), or

(b) may be referred by the landlord and tenant for third party
determination under this Act (see section 84A).”

(4) 20In subsection (2), for the words from “demand” to “third party
determination” substitute “notice under subsection (1)”.

(5) In subsection (3)—

(a) for “demand for arbitration under this section” substitute “notice
under subsection (1)”;

(b) 25for “the demand” substitute “the notice”;

(c) in paragraph (a), after “arbitrator” insert “or third party”.

(6) In subsection (4)—

(a) omit the words from “in relation to” to “third party determination”;

(b) for the first “the demand or reference” substitute “a notice under
30subsection (1)”;

(c) for the second “the demand or reference” substitute “the notice”;

(d) for the third “the demand or reference” substitute “the notice under
subsection (1)”.

3 (1) Schedule 2 (arbitration or third party determination of rent: provisions
35supplementary to section 12) is amended as follows.

(2) In the italic heading before paragraph 4, for “arbitrations” substitute
“determinations”.

(3) In paragraph 4, in sub-paragraph (1)—

(a) for “demand for arbitration” substitute “notice under section 12(1) of
40this Act”;

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(b) for “the demand” substitute “the notice”.

Appointment of arbitrators etc

4 In section 12 (arbitration or third party determination of rent), in subsection
(3)(b), for the words from “to the” to “by him” substitute “under section 84
5for the appointment of an arbitrator”.

5 (1) Section 22 (rights to require certain records to be made) is amended as
follows.

(2) In subsection (2), for the words from “in default” to “so appointed”
substitute “by the landlord and tenant (“the parties”) or, in default of
10agreement between the parties, by a person appointed by a professional
authority on the application of either of them; and any person appointed by
a professional authority”.

(3) After subsection (2) insert—

(2A) A party may not make an application to a professional authority
15under subsection (2) in any case if the other party has already made
an application to a professional authority under that subsection in
that case.”

(4) In subsection (4)—

(a) for “the President” substitute “a professional authority”;

(b) 20for “him” substitute “that authority”.

(5) In subsection (5)—

(a) for the first “the President” substitute “a professional authority”;

(b) for the second “the President” substitute “that authority”.

(6) After subsection (5) insert—

(6) 25In this section “professional authority” has the same meaning as in
section 84.”

6 (1) Section 84 (arbitrations) is amended as follows.

(2) In subsection (2), for “the President of the RICS” substitute “a professional
authority”.

(3) 30After subsection (2) insert—

(2A) A party may not make an application to a professional authority
under subsection (2) in relation to a matter if the other party has
already made an application to a professional authority under that
subsection in relation to that matter.”

(4) 35In subsection (4)—

(a) for “the President of the RICS” substitute “a professional authority”;

(b) for “him”, in both places, substitute “that authority”.

(5) For subsection (6) substitute—

(6) In this section “professional authority” means—

(a) 40the President of the Royal Institution of Chartered Surveyors,

(b) the President of the Central Association of Agricultural
Valuers, or

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(c) the Chair of the Agricultural Law Association.

(7) The appropriate authority may by regulations amend this section so
as to—

(a) include a person in, or remove a person from, the definition
5of “professional authority”;

(b) reflect changes in the name or internal organisation of any
body mentioned in that definition.

(8) In subsection (7) “appropriate authority” means—

(a) the Secretary of State, in relation to England, and

(b) 10the Welsh Ministers, in relation to Wales.”

Requests for landlord’s consent or variation of terms

7 Before section 20 insert—

19A Disputes relating to requests for landlord’s consent or variation of
terms

(1) 15The appropriate authority may by regulations make provision for
the tenant of an agricultural holding to refer for arbitration under
this Act a request made by the tenant to the landlord where—

(a) the request falls within subsection (3), and

(b) no agreement has been reached with the landlord on the
20request.

(2) The regulations may also provide that, where the tenant is given the
right to refer a request to arbitration, the landlord and tenant may
instead refer the request for third party determination under this
Act.

(3) 25A request falls within this subsection if—

(a) it is a request for—

(i) the landlord’s consent to a matter which under the
terms of the tenancy requires such consent, or

(ii) a variation of the terms of the tenancy,

(b) 30it is made for the purposes of—

(i) enabling the tenant to request or apply for relevant
financial assistance or relevant financial assistance of
a description specified in the regulations, or

(ii) complying with a statutory duty, or a statutory duty
35of a description specified in the regulations,
applicable to the tenant, and

(c) it meets such other conditions (if any) as may be specified in
the regulations.

(4) The regulations may provide for the arbitrator or third party on a
40reference made under the regulations, where the arbitrator or third
party considers it reasonable and just (as between the landlord and
tenant) to do so—

(a) to order the landlord to comply with the request (either in full
or to the extent specified in the award or determination);

(b) 45to make any other award or determination permitted by the
regulations.