Secretary of state George Eustice addresses NFU conference

He began by outlining his personal experience of farming.

"Now as many of you will know, I also grew up on a farm and my family have farmed in West Cornwall for six generations. The names of different fields were passed from generation to generation. We knew our land and every field on each farm and we also knew how best to manage it. Our pedigree South Devon Cattle and British Lop Pigs were almost part of the family since they had been such an integral part of our family story from the beginning.

"So I understand the responsibility and commitment that a farmer feels to the hard work and toil of previous generations. I understand the enormous social capital that exists in our farming community and that farmers will often be the ones to step in to help their community at times of crisis. I also understand the burden of expectation that can exist to loyally continue the family tradition and how this sometimes stands in the way of change. And I understand the pain and trauma of being wrenched from land that has been in the family for generations."

Mr Eustice then turned to the sensitive subject of succession and the farmers of the future.

"However, I also know that sometimes a fresh perspective can make a world of difference; the farmer’s son or daughter who leaves the business to work in a different industry for a while and then returns armed with fresh thinking and new knowledge to take things to a new tot level; or those who never had any connection with farming, made a career elsewhere but always yearned to set up their own farming and food business and are finally able to get back to the countryside with their family. New entrants are the life blood of any vibrant industry and farming is no exception.

"So, as I contemplate the biggest change in agricultural policy in half a century, I want to design one that is not only right for the farmers of today but which is also right for the farmers of tomorrow. The farmers we do not yet know. Who are not in this room. Those who yearn to go farming but cannot get access to land. The farm managers who want to set out on their own and maybe those who left the family farm twenty years ago but wish they could find a way to return."

Read more: Truro and Falmouth MP meets NFU to discuss Agriculture Bill

He had scathing words for Direct Payments, calling the system "irrational" and "useless".

"It is because we are designing a policy for tomorrow’s farmers as well as today’s, that there can be no reprieve for arbitrary area-based subsidy payments. Direct Payments subsidise land ownership and tenure and that is irrational. The largest subsidy payments go to the wealthiest land owners. Direct Payments artificially inflate land rents and stand in the way of new entrants. They encourage some farmers to coast, to take no risks and simply remain in occupation of land in order to collect the subsidy. Area payments are useless as a risk management tool because across farming some of the greatest risks are taken by intensive horticultural enterprises like top fruit for whom the BPS payment is generally an irrelevance. Nor do I believe area payments really support the incomes of our most vulnerable sectors. Indeed some evidence suggests that around 30 per cent of sheep farmers don’t even get the BPS payment because they are forced to rely on temporary grazing or are in some form of contract farm agreement and do not qualify for the payment. And I meet these young farmers, who are in this position."

Looking to the future, Mr Eustice outlined the difference that the Agriculture Bill is intended to bring.

"In 2021, just next year, we will begin reducing the BPS payment, but in a progressive way so that the largest land owners will take the largest reduction. We will also use the powers in the Bill to simplify the legacy BPS scheme and we will be looking closely at issues like the Crop Diversification Rule.

"We are also giving consideration to the development of an exit scheme to help older farmers retire with dignity by providing the option for them to take several years BPS payment in one final settlement in return for them either surrendering their tenancy or selling or renting their farm to create an opportunity for a new entrant.

"We may simplify the existing Countryside Stewardship Scheme even further so that it can become a stepping stone to help farmers gradually move towards the future policy.

"By the end of 2024 we will roll out our new policy which will be open to all. We envisage three components to Environmental Land Management.

"Firstly, there will be a sustainable farming incentive which will be open to any farmer and will incentivise participation in farm level measures such as integrated pest management, sensitive hedgerow management and soil health.

"Secondly, there will be a local environment tier which will incentivise interventions including the creation of habitats, improving biodiversity, tree planting, and natural flood management.

"And finally, there will be a landscape scale tier which will support woodland creation, peatland restoration and other potential land use changes."

This second version of the Agriculture Bill will have a promise on food, Mr Eustice said.

"I am conscious that when we last published it, the NFU and others criticised it for not having enough about food. We have listened. There will now be a legal obligation on the government to produce an assessment of our food security every five years. There will be a new obligation on government when designing any future scheme to consider the importance of food production, and that it is produced in a sustainable way."

He said that the changes would take seven years to complete.

"I recognise that change will take time. We have set a realistic timescale of seven years to complete this journey from the legacy EU scheme to the new policy. We will not undertake change in the chaotic way that New Zealand found itself having to. We want this to be an orderly transition from the old policy to the new. We will pay close attention to the sequencing of different interventions and changes to make sure that we get this right.

"And while we are on the subject of getting things right, let’s have no more jangling nerves about our ability to compete on the international stage. Let’s not get spooked by some New Zealand Haka performance on the global trading environment. We have in this country some of the most efficient and innovative farmers in the world and we need to get on the pitch and compete.

"In the UK, we have built a very special market for food based on provenance with particular attention to food safety and animal welfare standards and we will not jeopardise that through trade deals in the future. I have always been very clear about that – and now we are seeing the whole nation tuning in to this conversation. And little wonder, since one in eight of us earn our livelihood from the food industry, and as a nation we have always cared about the welfare of animals, including our farm animals."

Before closing, Mr Eustice briefly addressed bovine TB.

"So, we have a busy year ahead– developing our farming policy, and securing the right kind of agreement on free trade with the European Union and of course many other issues besides: bovine TB being chief among them in my mind.

"We have made big progress in recent years but I understand that the huge burden of coping with bovine TB and the stress and trauma that this causes farmers. I’m confident that we can turn the tide on this terrible disease, and the steps we have taken so far are beginning to show results. We will shortly be publishing our response to Sir Charles Godfray’s review of our 25-Year bovine TB strategy."

"I know that the NFU will never be shy about making farmers’ voices heard.

"And I know we have some of the best farmers in the world. A decade from now I want the rest of the world to be coming here to the UK to see how it is done."