Eighteenth Report Contents

Instruments drawn to the special attention of the House

Draft Agriculture (Legislative Functions) (EU Exit) Regulations 2019

Draft Agriculture (Legislative Functions) (EU Exit) (No.2) Regulations 2019

Draft Common Agricultural Policy (Financing, Management and Monitoring) (Miscellaneous Amendments) (EU Exit) Regulations 2019

Draft Common Agricultural Policy (Financing, Management and Monitoring Supplementary Provisions) (Miscellaneous Amendments) (EU Exit) Regulations 2019

Draft Common Organisation of the Markets in Agricultural Products and Common Agricultural Policy (Miscellaneous Amendments) (EU Exit) Regulations 2019

Date laid: 13 January 2019

Parliamentary procedure: affirmative

The draft Common Agricultural Policy (Financing, Management and Monitoring) (Miscellaneous Amendments) (EU Exit) Regulations 2019, and the draft Common Agricultural Policy (Financing, Management and Monitoring Supplementary Provisions) (Miscellaneous Amendments) (EU Exit) Regulations 2019 propose to correct retained EU Common Agricultural Policy “Horizontal” (cross-cutting) regulations, in order to create an agricultural legislative framework that enables current agricultural support measures to continue to function effectively in the UK after EU exit. Making sure that regimes and rules established for the agricultural and fishing sectors continue to be workable after EU exit is equally the objective of the other sets of Regulations listed above.

The Department for Environment, Food and Rural Affairs has laid these instruments with the aim of achieving a smooth transition for the agricultural sector from the regime operated within the EU to a standalone UK framework. Given the importance of the agricultural sector, the House may be interested to see the steps being taken through these instruments to prepare for this transition.

These five sets of draft Regulations are drawn to the special attention of the House on the ground that they give rise to issues of public policy likely to be of interest to the House.

7.The Department for Environment, Food and Rural Affairs (Defra) has laid these five sets of draft Regulations. Defra has provided a shared Explanatory Memorandum (EM) for the draft Common Agricultural Policy (Financing, Management and Monitoring) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (“the CAP FMM Regulations”) and the draft Common Agricultural Policy (Financing, Management and Monitoring Supplementary Provisions) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (“the CAP FMM Supplementary Regulations”). In this EM, the Department says that some of the changes made by the instruments are closely linked to the other three sets of Regulations listed above, as well as to the draft Common Agricultural Policy and Agriculture and Horticulture Development Board (Amendment etc.) (EU Exit) Regulations 2019 - an instrument which the Sub-Committee has already cleared from scrutiny.3 We set out below the main purposes of all six sets of Regulations mentioned by Defra.

8.Defra says of the CAP FMM Regulations and the CAP FMM Supplementary Regulations that they will correct retained EU CAP “Horizontal” (cross-cutting) regulations, in order to create an agricultural legislative framework that enables current agricultural support measures to continue to function effectively in the UK after EU exit. These include Direct Payments to farmers, support under Rural Development Programme schemes,4 and market support in the agricultural sector, as created by retained EU legislation.5 The Regulations will ensure payments to Common Agricultural Policy (CAP) scheme beneficiaries continue in the UK following EU exit, and within a suitable financial framework.

9.In amending provisions of EU legislation, both the draft Agriculture (Legislative Functions) (EU Exit) Regulations 2019 and the draft Agriculture (Legislative Functions) (EU Exit) (No.2) Regulations 2019 provide that legislative functions that have been carried out by the European Commission (“the Commission”) to date will in future be exercised by public authorities in the UK. These functions relate to the CAP; the European Maritime and Fisheries Fund; and the Common Organisation of Agricultural Markets. The purpose of the Regulations is to allow for the continued use of these legislative functions at a national level after the UK leaves the EU.

10.In the EM to the draft Agriculture (Legislative Functions) (EU Exit) Regulations 2019, Defra explains that the EU Regulations being amended confer various legislative functions on the Commission, and that these include specifying forms to be used; setting financial limits or prices; defining scheme eligibility criteria; amending technical annexes to reflect advances in scientific and technical knowledge; establishing key dates; and defining programme or scheme periods. A similar explanation is given in the EM to the draft Agriculture (Legislative Functions) (EU Exit) (No.2) Regulations 2019.

11.As regards the draft Common Organisation of the Markets in Agricultural Products and Common Agricultural Policy (Miscellaneous Amendments) (EU Exit) Regulations 2019, Defra states in the accompanying EM that the instrument will ensure that certain provisions - relating to the reserved policy areas of regulation of anti-competitive practices, regulation of international trade, import and export controls, and intellectual property law - will continue to operate effectively as domestic law after EU exit. It also confers legislative functions held by the Commission in these reserved policy areas on the Secretary of State, to enable the smooth functioning of related schemes for producers, traders, importers, and exporters of agricultural goods. Among other things, the instrument empowers the Secretary of State to make regulations in relation to checks relating to protected designations of origin and geographical indications for wine.

12.In the EM to the draft Common Agricultural Policy and Agriculture and Horticulture Development Board (Amendment etc.) (EU Exit) Regulations 2019, Defra explains that the instrument amends, or removes references to EU terms from, domestic CAP-derived legislation relating to Rural Development; Direct Payments to farmers; the “Horizontal” framework for the financing, management and monitoring of the CAP; and market intervention measures under the Common Market Organisation.

13.Referring to the CAP FMM Regulations and the CAP FMM Supplementary Regulations, Defra states that, if these instruments were not in place for EU exit, the existing retained EU CAP “Horizontal” framework would contain unworkable rules on the disbursement of funding to the agricultural sector; and appropriate authorities would not have the powers to check and enforce the eligibility conditions for such funding. Making sure that regimes and rules established for the agricultural and fishing sectors continue to be workable after the UK’s exit from the EU is equally the objective of the other sets of Regulations. Defra says that the Government have pledged to commit the same cash total in funds to support farmers until the end of the current Parliament, and have also guaranteed that any CAP Pillar 2 projects where funding has been agreed before the end of 2020 will be funded for their full lifetime. These instruments will enable these funding commitments to be realised and delivered through a domestic financial framework.

14.The National Farmers Union has called for clarity on the future regulatory environment for farming and for certainty on long-term funding.6 Defra has laid these instruments with the aim of achieving a smooth transition from the regime operated within the EU to a standalone UK framework. Given the importance of the agricultural sector, the House may be interested to see the steps being taken through these instruments to prepare for this transition.


3 15th Report, Session 2017-19 (HL Paper 280).

4 Defra refers to Countryside Stewardship and Environmental Stewardship as such schemes.

5 In particular, EU CAP Common Organisations of Agricultural Markets (“CMO”) legislation (CAP Pillar 1).

6 See National Farmers Union, Agriculture Bill: NFU calls for long-term policy funding (29 October 2018): https://www.nfuonline.com/news/brexit-news/eu-referendum-news/agriculture-bill-nfu-calls-for-long-term-policy-f/ [accessed 25 February 2019].




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