Debate contribution: The draft Farm Sustainability (Transitional Provisions) Regulations (Northern Ireland) 2025
Debate contribution by Mr Andrew Muir on .
- MLA
- Mr Andrew Muir
- Party at the time
- Alliance Party
- Date
- 18 February 2025
- Type
- Debate contribution (made as a minister)
- Business
- Executive Committee Business
- Heading
- The draft Farm Sustainability (Transitional Provisions) Regulations (Northern Ireland) 2025
- Assembly identifier
- Official Report component 4806737
Read the official Assembly record
Text
I beg to move
Thank you, Mr Deputy Speaker. I am grateful for the opportunity to propose the motion. The Farm Sustainability (Transitional Provisions) Regulations (Northern Ireland) 2025 give my Department the legal powers to introduce the farm sustainability transition payment (FSTP), which is expected to attract approximately 24,000 applications from active farm businesses in 2025. The regulations also include a number of more general provisions intended to enable schemes under the sustainable agriculture programme, such as the suckler cow scheme, the Farming with Nature package and knowledge schemes, whilst also providing the powers to spend the earmarked budget of over £329 million. I have spoken for a long time about the development of these new schemes, which were developed in partnership with the agricultural policy stakeholders group (APSG). The group is comprised of key stakeholders including the Ulster Farmers' Union (UFU), the Northern Ireland Agricultural Producers' Association (NIAPA), the Dairy Council, the Northern Ireland Meat Exporters Association (NIMEA), the Northern Ireland Environment Link (NIEL), the British Veterinary Association (BVA), the Northern Ireland Food and Drink Association (NIFDA) and the Northern Ireland Grain Trade Association (NIGTA). I apologise for all the acronyms. I put on record my thanks to the APSG for its tireless work in the co-design process to get us to this point. This has brought a robustness to the development process. I am grateful for the group's support for the SR in order to enable the continued roll-out of the sustainable agriculture programme. I set out my policy intentions for the future of the farm support development programme, now known as the sustainable agriculture programme, in an oral statement to the House on 24 May last year. I promoted the programme at the Balmoral show and regularly in the farming press. My officials have also provided a number of policy briefings to the Agriculture, Environment and Rural Affairs Committee. The SR ensures that the farm sustainability payment (FSP), when it is introduced in 2026, will be directed towards farm businesses actively engaged in agriculture activity. The draft SR legislates that farm businesses that did not meet specific criteria during a historical reference period, set by DAERA as 2020 and 2021, will not be eligible. That historical years' requirement will not apply to applicants who have set up new farm businesses in any year following 2021. Data indicates that around 1,900 businesses may not meet the specified criteria in 2020 or 2021. I am sure that we agree that that is important and that support should be targeted at active farmers. My Department plans to communicate to those affected by the measures to ensure that support is focused on active farmers during 2025 to enable them to plan effectively. Those impacted on by the historical years exercise will be able to transfer their entitlements, if they choose to do so, by 15 May 2026. Entitlements that are not transferred by that date will expire. Currently, farm businesses that are in receipt of the basic payment scheme must be actively engaged in agricultural activity and meet the active farmer definition, and that will continue for FSTP and FSP. These regulations reinstate that active farmer definition in law. The regulations also establish 2025 as the final year for new applications for the young farmers' payment and the regional reserve. Those who apply for the young farmers' payment in 2025 will still be able to claim the full five years up until 2029. Unfortunately, the provision of that payment has not shifted the dial at all regarding the average age of farmers. With 58% of farmers over 55 years of age, a new approach is needed. 2025 will also be the final year in which new entrants and young farmers can obtain entitlements from the regional reserve. I understand that the ending of these schemes and the time provided for scrutiny of the SR are the main concerns of the Agriculture, Environment and Rural Affairs Committee. I understand those concerns, and I have sought to provide assurance in correspondence that I have sent to the Committee. I also seek to provide assurance today on the Floor. Applications by new entrants over the past 10 years have averaged at about only 10 per year. Unfortunately, we are not making the necessary impact to achieve the generational renewal that is required. As previously set out, those legacy schemes do not meet important value-for-money tests. Having just secured ring-fenced Executive funding in the next and future financial years as part of the draft Budget, it is imperative that we bank that achievement by demonstrating strong value for money on every pound spent to support our farmers in Northern Ireland. The Farming for the Generations scheme, included in the sustainable agriculture programme, is a more holistic policy instrument to support generational renewal. I am pleased to say that the pilot scheme that I launched in autumn 2024 has already proven to be very popular, with strong take-up reported. From previous experience of succession planning interventions, the Farming for the Generations pilot provides an initial programme that will provide evidence towards the development of the main scheme. It seeks to identify the key barriers and propose financial interventions, thereby developing solutions that are scalable. In helping to address the concerns of the Committee, I have asked my officials to expedite the development of the main Farming for the Generations scheme. That will be done in co-design with stakeholders, including the Young Farmers' Clubs of Ulster, and will actively consider the provision of financial support. The policy intent of Farming for the Generations is to encourage and drive increased levels of generational renewal and remove the barriers that exist to planning succession on farms across Northern Ireland. I am determined, and I am happy to put on record my personal commitment to ensuring that the new Farming for the Generations scheme is open for delivery to new farmers and young entrants by autumn 2026. With the young farmers' payment scheme and regional reserve applications continuing in 2025 and young farmers' payment applicants able to claim payments up until 2029, the risk of a gap emerging between the old and the new schemes is removed. Alongside Farming with Nature, Farming for the Generations is a key personal priority for me and my Department. In relation to concerns regarding different approaches across the island of Ireland, I intend to discuss succession planning with Minister Martin Heydon, and my officials have already been engaging with the Department of Agriculture, Food and the Marine (DAFM) to discuss my Department's new approach in detail. I also note the developments across the border. I read about them weekly in the 'Irish Farmers Journal', and I am keen to see how we can share best practice and work together to achieve generational renewal alongside engagement with my counterparts in England, Scotland and Wales. That engagement continues to provide opportunities for shared learning on how we can improve generational renewal in the sector. As was set out in correspondence to the Committee last Friday, to deal with concerns that there were not sufficient entitlements to match the land that is available, there are, at present, around 955,000 entitlements for 1,050,000 eligible hectares in Northern Ireland. The number of entitlements is largely determined by the area that was declared in 2015 when entitlements were allocated. One entitlement was allocated for each hectare that was declared. Clearly, a significant area of land is not used each year to activate entitlements and claim payments. That will continue to be the case, and the presence or absence of the regional reserve provisions for young farmers and new entrants will make no significant difference to the gap that exists between entitlements and available land area. In addition, if there were significantly more entitlements, they would all have to be reduced in value, as the amount of money that is available in the scheme will not increase. Conversely, if a significant gap looks likely to emerge with an entitlements deficit, I will wish for officials to consider the relevant options in response. The issue of entitlements is complex. I recognise that. I am therefore happy to receive further correspondence on the matter, if any Committee member or Member in the Chamber feels that that is necessary. I have asked my officials to offer briefings to the agriculture spokespersons of the political parties on the sustainable agriculture programme (SAP). The first of those briefings has been organised for, I understand, this Friday. Active consideration is being given to how we can optimise the approach to the Committee's handling of the scrutiny of SRs. I value the input of Committee members and will continue to take on board feedback, as I did on the five hectares and three hectares issue. I am happy to meet the Chair and the Deputy Chair as and when necessary. That concludes my overview of the Farm Sustainability (Transitional Provisions) Regulations (Northern Ireland) 2025. I am happy to answer any questions in response to the debate.
1,498 words. Text as published by the Northern Ireland Assembly.
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