Agriculture Bill (HC Bill 106)

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(5) The regulations may (among other things) make provision—

(a) about conditions to be met before a reference may be made;

(b) about matters which an arbitrator or third party is to take into
account when considering a reference;

(c) 5for regulating the conduct of arbitrations or third party
determinations;

(d) about the awards or determinations which may be made by
the arbitrator or third party, which may include making an
order for a variation in the rent of the holding or for the
10payment of compensation or costs;

(e) about the time at which, or the conditions subject to which, an
award or determination may be expressed to take effect;

(f) for restricting a tenant’s ability to make subsequent
references to arbitration where a reference to arbitration or
15third party determination has already been made under the
regulations in relation to the same tenancy.

(6) The provision covered by subsection (5)(e) includes, in the case of a
request made for the purpose described in subsection (3)(b)(i),
conditions relating to the making of a successful application for
20assistance.

(7) In this section—

  • “appropriate authority” means—

    (a)

    in relation to England, the Secretary of State, and

    (b)

    in relation to Wales, the Welsh Ministers;

  • 25“relevant financial assistance” means financial assistance
    under—

    (a)

    section 1 of the Agriculture Act 2020 (powers of
    Secretary of State to give financial assistance),

    (b)

    section 19 of, or paragraph 7 of Schedule 5 to, that Act
    30(powers of Secretary of State and Welsh Ministers to
    give financial assistance in exceptional market
    conditions), or

    (c)

    a scheme of the sort mentioned in section 2(4) of that
    Act (third party schemes);

  • 35“statutory duty” means a duty imposed by or under—

    (a)

    an Act of Parliament;

    (b)

    an Act or Measure of Senedd Cymru;

    (c)

    retained direct EU legislation.”

Arbitration or third party determination of rent: relevant factors

8 (1) 40In Schedule 2 (arbitration or third party determination of rent), paragraph 3
is amended as follows.

(2) In paragraph (a), omit the final “and”.

(3) After paragraph (a) insert—

(aa) in a case where the tenant is, under an agreement in
45writing with the landlord, required to make payments in
respect of improvements to the holding that are or are to be

Agriculture BillPage 51

wholly or partly financed by the landlord, shall disregard
any effect on the rent of—

(i) the fact that the tenant is required to make such
payments, and

(ii) 5any benefit to the tenant arising from the
improvements before the date on which the last of
those payments falls to be made, and”.

Notices to quit: cases where consent of tribunal not required

9 In Part 1 of Schedule 3 (cases where consent of tribunal to operation of notice
10to quit not required), in Case A, in paragraph (a), for “the age of sixty-five”
substitute “the tenant’s pensionable age (as specified from time to time in
Part 1 of Schedule 4 to the Pensions Act 1995)”.

Succession on death or retirement: condition relating to occupation of commercial unit

10 In section 35 (application of sections 36 to 48), in subsection (2) omit “(and in
15Part I of Schedule 6 to this Act)”.

11 (1) Section 36 (right of any eligible person to apply for new tenancy on death of
tenant) is amended as follows.

(2) In subsection (3)—

(a) omit the words from “subject to” to “this Act and”;

(b) 20for “conditions are” substitute “condition is”;

(c) omit paragraph (b) and the preceding “and”.

(3) For subsection (5) substitute—

(5) For the purposes of the condition in subsection (3)(a), any period
during which a close relative of the deceased was, in the period of
25seven years mentioned in that condition, attending a full-time course
at a university, college or other establishment of higher or further
education shall be treated as a period throughout which the
relative’s only or principal source of livelihood derived from the
relative’s agricultural work on the holding; but not more than three
30years in all shall be so treated by virtue of this subsection.”

12 In section 41 (application by not fully eligible person), in subsection (1) omit
paragraph (a).

13 (1) Section 50 (right to apply for new tenancy on retirement of tenant) is
amended as follows.

(2) 35In subsection (2)—

(a) omit the words from “(subject to” to “subsection (4) below)”;

(b) for “conditions are” substitute “condition is”;

(c) omit paragraph (b) and the preceding “and”.

(3) For subsection (4) substitute—

(4) 40For the purposes of the condition in subsection (2)(a), any period
during which a close relative of the retiring tenant was, in the period
of seven years mentioned in that condition, attending a full-time
course at a university, college or other establishment of higher or
further education shall be treated as a period throughout which the

Agriculture BillPage 52

relative’s only or principal source of livelihood derived from the
relative’s agricultural work on the holding; but not more than three
years in all shall be so treated by virtue of this subsection.”

14 Omit section 58 (effect of direction under section 53 on succession to other
5holdings).

15 (1) Section 59 (interpretation of Part 4) is amended as follows.

(2) In subsection (1) omit the words from “(and” to “this Act)”.

(3) In subsection (2) omit the words from “(and” to “above)”.

16 Omit Schedule 6 (eligibility to apply for new tenancy).

10Succession on death or retirement: condition relating to suitability

17 In section 39 (applications for tenancy of holding), for subsection (8)
substitute—

(8) For the purposes of this section, a person’s suitability to become the
tenant of a holding is to be determined (having regard to any views
15stated by the landlord) in accordance with criteria specified in
regulations made by—

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

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

(8A) The criteria referred to in subsection (8) must relate to the person’s
20likely capacity to farm the holding commercially to high standards of
efficient production and care for the environment, and may in
particular include—

(a) criteria relating to the person’s experience, training or skills
in agriculture or business management;

(b) 25criteria relating to the person’s physical health, financial
standing or character;

(c) criteria relating to the character or condition of the holding or
the terms of the tenancy.”

18 (1) Section 53 (application for tenancy of holding by nominated successor) is
30amended as follows.

(2) In subsection (6) omit the words from “and in making” to the end.

(3) After subsection (6) insert—

(6A) Section 39(8) and (8A) apply for the purposes of determinations
under this section relating to a person’s suitability to become the
35tenant of a holding.”

Succession on retirement: minimum age of retiring tenant

19 In section 51 (cases excluded from operation of section 50(1)) omit
subsection (3).

20 In section 53 (application for tenancy of holding by nominated successor)
40omit subsection (4).

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Regulations and orders

21 (1) Section 94 (orders and regulations) is amended as follows.

(2) In subsection (1), for “the Minister or the Lord Chancellor” substitute “the
Secretary of State, the Lord Chancellor or the Welsh Ministers”.

(3) 5In subsection (2), for “either House of Parliament” substitute—

(a) either House of Parliament, in the case of a statutory
instrument made by the Secretary of State or Lord
Chancellor, or

(b) Senedd Cymru, in the case of a statutory instrument made by
10the Welsh Ministers”.

(4) In subsection (3), for “each House of Parliament” substitute—

(a) each House of Parliament, in the case of regulations made by
the Secretary of State, or

(b) Senedd Cymru, in the case of regulations made by the Welsh
15Ministers”.

(5) In subsection (4), for “each House of Parliament” substitute—

(a) each House of Parliament, in the case of an order made by the
Secretary of State, or

(b) Senedd Cymru, in the case of an order made by the Welsh
20Ministers”.

Part 2 Amendments to the Agricultural Tenancies Act 1995

Introductory

22 The Agricultural Tenancies Act 1995 is amended as follows.

25Appointment of arbitrators

23 (1) Section 12 (appointment of arbitrator) is amended as follows.

(2) The existing subsection becomes subsection (1).

(3) In that subsection, for the words from “the President” to the end substitute
“a professional authority for the appointment of an arbitrator by that
30authority”.

(4) After that subsection insert—

(2) A party may not make an application to a professional authority
under subsection (1) in any case if the other party has already made
an application to a professional authority under that subsection in
35that case.”

24 (1) Section 19 (references to arbitration of certain disputes) is amended as
follows.

(2) In subsection (4), for the words from “the President” to the end substitute “a
professional authority, subject to subsections (9) and (9A) below, for the
40appointment of an arbitrator by that authority”.

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(3) After subsection (9) insert—

(9A) An application may not be made to a professional authority under
subsection (4) above in any case by the landlord or the tenant if the
other of them has already made an application to a professional
5authority under that subsection in that case.”

25 (1) Section 22 (settlement of claims for disputes) is amended as follows.

(2) In subsection (3), for the words from “the President” to the end substitute “a
professional authority for the appointment of an arbitrator by that
authority”.

(3) 10After subsection (3) insert—

(3A) A party may not make an application to a professional authority
under subsection (3) above in relation to a claim if the other party has
already made an application to a professional authority under that
subsection in relation to that claim.”

(4) 15In subsection (4)—

(a) in paragraph (b), after “as an application” insert “to the same
professional authority”;

(b) in the words after paragraph (b), for “the President of the RICS
substitute “the professional authority”.

26 (1) 20Section 28 (resolution of disputes) is amended as follows.

(2) In subsection (2), for the words from “the President” to the end substitute “a
professional authority for the appointment of an arbitrator by that
authority”.

(3) In subsection (3), for the words from “the President” to the end substitute “a
25professional authority for the appointment of an arbitrator by that
authority”.

(4) After subsection (3) insert—

(3A) A party may not make an application to a professional authority
under subsection (3) above in relation to a dispute if the other party
30has already made an application to a professional authority under
that subsection in relation to that dispute.”

27 (1) Section 30 (general provisions applying to arbitrations) is amended as
follows.

(2) In subsection (2)—

(a) 35for “the President of the RICS” substitute “a professional authority”;

(b) for “by him” substitute “by that authority”;

(c) for “as the President” substitute “as that authority”.

(3) In subsection (3)—

(a) after “appointed” insert “by a professional authority”;

(b) 40for “the President of the RICS” substitute “that authority”;

(c) for “by him” substitute “by that authority”.

28 In section 38 (interpretation), in subsection (1), for the definition of “the

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RICS” substitute—

  • ““professional authority” has the same meaning as it has for the
    time being for the purposes of section 84 of the Agricultural
    Holdings Act 1986;”.

29 5In section 39 (index)—

(a) after the entry relating to planning permission insert—

  • “professional authority section 38(1)”;

(b) omit the entry relating to “the RICS”.

Section 35

SCHEDULE 4 10Agricultural products relevant to marketing standards provisions

Milk and milk products

  • Products falling within any of entries (a) to (f) in the table in Part XVI of
    Annex 1 of the CMO Regulation

Spreadable fats

  • 15Products that—

    (a)

    fall within any of paragraphs (a) to (c) in Point 1 of Part VII of Annex
    VII of the CMO Regulation, and

    (b)

    have a fat content of at least 10% but not more than 90% by weight

Beef and veal

  • 20Products falling within the table in Part XV of Annex 1 of the CMO
    Regulation, but excluding any entry in the table for live animals

Poultry and poultrymeat

  • Products falling within the table in Part XX of Annex 1 of the CMO
    Regulation, including any entry in the table for live poultry

25Eggs and egg products

  • Products falling within the table in Part XIX of Annex 1 of the CMO
    Regulation, including any entry in the table for eggs

Fruit and vegetables, other than olives

  • Products falling within the table in any of Parts IX to XI of Annex 1 of the
    30CMO Regulation

Olive oil and table olives

  • Products falling within the table in Part VII of Annex 1 of the CMO
    Regulation

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Hops

  • Products falling within the table in Part VI of Annex 1 of the CMO
    Regulation

Wine

  • 5Products falling within the table in Part XII of Annex 1 of the CMO
    Regulation

Aromatised wine

  • Products falling within the definition of “aromatised wine products” in
    Article 3 of the Aromatised Wine Regulation

10Interpretation

In this Schedule—

  • references to the CMO Regulation are to that Regulation as amended
    from time to time before IP completion day;

  • “the Aromatised Wine Regulation” means Regulation (EU) No 251/
    152014 of the European Parliament and of the Council of 26 February
    2014 on the definition, description, presentation, labelling and the
    protection of geographical indications of aromatised wine products
    as amended from time to time before IP completion day.

Section 43

SCHEDULE 5 20Provision relating to Wales

Part 1 Financial support after EU exit

Direct payments after EU exit: interpretation

1 (1) This paragraph defines or explains expressions used in this paragraph and
25paragraphs 2 and 3.

(2) The “basic payment scheme” is the Basic Payment Scheme under the Direct
Payments Regulation (see Title III of that Regulation), as it operates in
relation to Wales, including the arrangements relating to each of the
following elements of direct payments under that scheme—

(a) 30so much of a direct payment that does not consist of a redistributive,
greening or young farmers payment (see Chapter 1 of Title III),

(b) a redistributive payment (see Chapter 2 of Title III),

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

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

(3) 35The “legislation governing the basic payment scheme” is—

(a) the following retained direct EU legislation—

(i) the Direct Payments Regulation;

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

(iii) any other retained direct EU legislation which relates to the
5operation of the basic payment scheme, and

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

(4) References to a direct payment under the basic payment scheme are to any
payment under that scheme, whether or not including a redistributive
10payment, a greening payment, a young farmers payment or any two or more
of those elements.

(5) The “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
15framework of the common agricultural policy.

Power to modify legislation governing the basic payment scheme

2 (1) The Welsh Ministers may by regulations modify legislation governing the
basic payment scheme, so far as it operates in relation to Wales, for or in
connection with making changes the Welsh Ministers consider would serve
20any one or more of the following purposes—

(a) simplifying the administration of the scheme or otherwise making its
operation more efficient or effective;

(b) removing provisions which are spent or of no practical utility;

(c) removing or reducing burdens, or the overall burdens, on persons
25applying for, or entitled to, direct payments under the scheme or
otherwise improving the way that the scheme operates in relation to
them;

(d) securing that any sanction or penalty imposed under the scheme is
appropriate and proportionate;

(e) 30limiting the application of the scheme to land in Wales only.

(2) The provision which may be made under sub-paragraph (1) includes
provision made for or in connection with terminating greening payments in
relation to Wales so long as that provision does not reduce the amount of a
direct payment to which a person would have been entitled had the
35provision not been made.

(3) In this paragraph, “burden” includes—

(a) a financial cost;

(b) an administrative inconvenience;

(c) an obstacle to efficiency, productivity or profitability.

(4) 40Regulations under this paragraph are subject to negative resolution
procedure (unless section 47(5) applies).

Power to provide for the continuation of the basic payment scheme beyond 2020

3 (1) The Welsh Ministers may by regulations modify legislation governing the
basic payment scheme to make provision for or in connection with securing
45that the basic payment scheme continues to operate in relation to Wales for
one or more years beyond 2020.

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(2) The power conferred by sub-paragraph (1) includes power to provide for the
direct payments ceiling for Wales for any relevant year to be determined, in
a specified manner, by the Welsh Ministers.

(3) Provision made by virtue of sub-paragraph (2)

(a) 5must require a determination in respect of a relevant year to be
published as soon as practicable after it has been made, and

(b) may confer functions on any person in connection with, or with the
making of, a determination in respect of a relevant year.

(4) In this paragraph—

  • 10“the direct payments ceiling for Wales” is the national ceiling of the
    kind referred to in Article 6 of the Direct Payments Regulation that is
    applicable in relation to Wales for any relevant year;

  • “relevant year” means a year in respect of which direct payments under
    the basic payment scheme fall, as a result of provision made under
    15sub-paragraph (1), to be made in relation to Wales;

  • “specified” means specified in regulations under this paragraph.

(5) Nothing in this paragraph affects any power under this Part or any other
enactment to amend or revoke provisions of the legislation governing the
basic payment scheme for any year or years beyond 2020.

(6) 20Regulations under this paragraph are subject to affirmative resolution
procedure.

Other financial support: modification in relation to Wales of general provision connected with
payments to farmers and other beneficiaries

4 (1) The Welsh Ministers may by regulations modify the following legislation so
25far as it operates in relation to Wales—

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

(b) subordinate legislation relating to that legislation.

(2) Regulations under this paragraph may only be made for or in connection
30with making changes that the Welsh Ministers consider would serve any
one or more of the following purposes—

(a) securing that any provision of legislation referred to in sub-
paragraph (1) ceases to have effect;

(b) simplifying the operation of any provision of such legislation, or
35making its operation more efficient or effective;

(c) removing or reducing burdens, or the overall burdens, imposed by
such legislation on persons applying for, or in receipt of, payments
governed by the legislation, or otherwise improving the way that the
legislation operates in relation to such persons;

(d) 40securing that any sanction or penalty imposed by such legislation is
appropriate and proportionate.

(3) In this paragraph—

  • “burden” includes—

(a)

a financial cost;

(b)

45an administrative inconvenience;

(c)

an obstacle to efficiency, productivity or profitability;

    Agriculture BillPage 59

  • “retained direct EU legislation relating to the financing, management
    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,
5management and monitoring of the common agricultural
policy;

(b)

retained direct EU legislation made under that Regulation;

(c)

the legacy regulations.

(4)
In sub-paragraph (3), the “legacy regulations” means retained direct EU
10legislation relating to the financing, management and monitoring of the
common agricultural policy that preceded Regulation (EU) No 1306/2013
and includes—

(a) Council Regulation (EC) No 1258/1999 of 17 May 1999 on the
financing of the common agricultural policy;

(b) 15Commission Regulation (EC) No 1975/2006 of 7 December 2006
laying down detailed rules for the implementation of Council
Regulation (EC) No 1698/2005, as regards the implementation of
control procedures as well as cross-compliance in respect of rural
development support measures;

(c) 20Commission Regulation (EU) No 65/2011 of 27 January 2011 laying
down detailed rules for the implementation of Council Regulation
(EC) No 1698/2005, as regards the implementation of control
procedures as well as cross-compliance in respect of rural
development support measures.

(5) 25Regulations under this paragraph are subject to negative resolution
procedure (unless section 47(5) applies).

Support for rural development: modification of legislation in relation to Wales

5 (1) The Welsh Ministers 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 paragraph may only be made for the purpose of—

(a) securing that any provision of legislation referred to in sub-
paragraph (1) ceases to have effect in relation to Wales, or

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

(3) In this paragraph “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) 45Council 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