To ask His Majesty's Government what progress they have made in promoting fairness in supply chains to prevent farmers shouldering price burdens during volatile periods.

To ask His Majesty's Government what progress they have made in promoting fairness in supply chains to prevent farmers shouldering price burdens during volatile periods.

To ask His Majesty's Government what assessment they have made of the impact on farmers of the higher cost of red diesel following the closure of the Straits of Hormuz; and what steps they will take to alleviate any difficulties of increased costs and lack of supply.

To ask His Majesty's Government what assessment they have made of the impact on farmers of the higher cost of red diesel following the closure of the Straits of Hormuz; and what steps they will take to alleviate any difficulties of increased costs and lack of supply.

To ask His Majesty's Government what assessment they have made of the impact of the crisis in the Persian Gulf on the cost of agricultural fertiliser.

To ask His Majesty's Government what assessment they have made of the impact of the crisis in the Persian Gulf on the cost of agricultural fertiliser.

To ask His Majesty's Government what steps they are taking to support farmers in light of the increased cost of fertiliser as a result of the conflict in the Persian Gulf.

To ask His Majesty's Government what steps they are taking to support farmers in light of the increased cost of fertiliser as a result of the conflict in the Persian Gulf.

My Lords, the new sustainable farming incentive offer for 2026 builds on the 2024 scheme but is simpler and more streamlined. When applications open in June this year, priority will be given to small farms and those without an existing environmental land management revenue agreement. Small farms are defined as having at least three hectares and no more than 50 hectares of agricultural land.

My Lords, the new sustainable farming incentive offer for 2026 builds on the 2024 scheme but is simpler and more streamlined. When applications open in June this year, priority will be given to small farms and those without an existing environmental land management revenue agreement. Small farms are defined as having at least three hectares and no more than 50 hectares of agricultural land.

We believe that it is important to encourage smaller farms and those without existing agreements to come forward to access the grants that are available to make their farms more sustainable. It is a little sweeping to say that they are not economic. All farms are different, and it often depends on how they are managed. As the noble Lord said, there is a second window opening in September to which all farms will be able to apply. We are looking to support all farms in increasing food production.

Food productivity is an important part of the Batters review. Much of what we are doing in the new offer and in the farming road map is in response to the Batters review’s recommendations.

We believe that it is important to encourage smaller farms and those without existing agreements to come forward to access the grants that are available to make their farms more sustainable. It is a little sweeping to say that they are not economic. All farms are different, and it often depends on how they are managed. As the noble Lord said, there is a second window opening in September to which all farms will be able to apply. We are looking to support all farms in increasing food production.

Food productivity is an important part of the Batters review. Much of what we are doing in the new offer and in the farming road map is in response to the Batters review’s recommendations.

We have tried to reduce the complexity of the scheme. We want to make it more straightforward for more farms and different types of farms to access. There are opportunities for horticultural growers, which are often smaller farms as well. We are looking to better support tenant farmers and, importantly, are doing more to support people who farm on moorland and in upland areas. If we are to support sustainable farming, we need to encourage all farms to feel that they are part of what the Government are trying to achieve.

We have tried to reduce the complexity of the scheme. We want to make it more straightforward for more farms and different types of farms to access. There are opportunities for horticultural growers, which are often smaller farms as well. We are looking to better support tenant farmers and, importantly, are doing more to support people who farm on moorland and in upland areas. If we are to support sustainable farming, we need to encourage all farms to feel that they are part of what the Government are trying to achieve.

One of the recommendations in the Batters review is about active farming and ensuring that the payments that we make from government go to people who are farming and supporting the food production that our country so badly needs if we are to have food security. That is what we are trying to do.

One of the recommendations in the Batters review is about active farming and ensuring that the payments that we make from government go to people who are farming and supporting the food production that our country so badly needs if we are to have food security. That is what we are trying to do.

The noble Lord raises a really important point. There are a number of challenges for farming around things such as electricity prices, and oil is now being affected by the ongoing war. We are critically aware of that. It is not just farming; there are a number of industries where these kinds of pressures are going to be challenging. One thing that we are doing in Defra is trying to work these issues through. My colleague, Angela Eagle MP, who is the Farming Minister, is talking regularly to farmers about these issues. We have to look at how we can support and manage these kinds of challenges.

The noble Lord raises a really important point. There are a number of challenges for farming around things such as electricity prices, and oil is now being affected by the ongoing war. We are critically aware of that. It is not just farming; there are a number of industries where these kinds of pressures are going to be challenging. One thing that we are doing in Defra is trying to work these issues through. My colleague, Angela Eagle MP, who is the Farming Minister, is talking regularly to farmers about these issues. We have to look at how we can support and manage these kinds of challenges.

The Farming Minister has spent a long time looking at the different options to try to target the types of farm and types of productivity that she wants to increase. The noble Lord is absolutely correct that the management payment has been removed. That was done to increase the amount of budget that would be available for new agreements. We want as many farmers as possible to be able to benefit from SFI funding this year, which is why that payment was taken out. A number of actions have come out but, in some areas, agreements have seen the payments increase for certain activities—for example, on moorlands. Some areas have gained and some have not, but it is about getting the balance towards where the Government want to see things changing.

The Farming Minister has spent a long time looking at the different options to try to target the types of farm and types of productivity that she wants to increase. The noble Lord is absolutely correct that the management payment has been removed. That was done to increase the amount of budget that would be available for new agreements. We want as many farmers as possible to be able to benefit from SFI funding this year, which is why that payment was taken out. A number of actions have come out but, in some areas, agreements have seen the payments increase for certain activities—for example, on moorlands. Some areas have gained and some have not, but it is about getting the balance towards where the Government want to see things changing.

I am beginning to wish I lived in Norfolk so that I could come—it is a long way from Cumbria. I reassure the right reverend Prelate that one of the things we have been working much harder on in Defra, as we develop policies and then manage and oversee them, is working with other departments where there is also an impact. It is really important to have that oversight. The noble Lord was just talking about energy prices, and we work with DESNZ on how best we can approach that. It will be the same for rural-proofing more broadly. It is certainly very much on our agenda.

I am beginning to wish I lived in Norfolk so that I could come—it is a long way from Cumbria. I reassure the right reverend Prelate that one of the things we have been working much harder on in Defra, as we develop policies and then manage and oversee them, is working with other departments where there is also an impact. It is really important to have that oversight. The noble Lord was just talking about energy prices, and we work with DESNZ on how best we can approach that. It will be the same for rural-proofing more broadly. It is certainly very much on our agenda.

The noble Lord is absolutely correct that there is a cap of £100,000. The first tranche is open to small farms and those who do not have an agreement, and then there will be another tranche in September, which will be open to all. That is why the cap is important.

The noble Lord is absolutely correct that there is a cap of £100,000. The first tranche is open to small farms and those who do not have an agreement, and then there will be another tranche in September, which will be open to all. That is why the cap is important.

The short answer is yes, I very much hope that they will be. We are keen to support organic farming and to see more farms become more, shall we say, environmentally friendly.

The short answer is yes, I very much hope that they will be. We are keen to support organic farming and to see more farms become more, shall we say, environmentally friendly.

To ask His Majesty’s Government what is their definition of a small farm in the context of the reformed Sustainable Farming Incentive.

To ask His Majesty’s Government what is their definition of a small farm in the context of the reformed Sustainable Farming Incentive.

To ask His Majesty’s Government what further consideration they have given to the case for energy market reforms following their decision not to implement zonal pricing.

To ask His Majesty’s Government what further consideration they have given to the case for energy market reforms following their decision not to implement zonal pricing.

My Lords, the review of electricity markets arrangements has concluded. This Government have decided to retain a national electricity market pricing regime and have established a programme called reformed national pricing. The purpose of the new programme is to deliver a cohesive package of reforms to improve the efficiency of our future power system. We will publish further detail on the reformed national pricing later this year, which will give market participants and investors clarity on our approach.

My Lords, the review of electricity markets arrangements has concluded. This Government have decided to retain a national electricity market pricing regime and have established a programme called reformed national pricing. The purpose of the new programme is to deliver a cohesive package of reforms to improve the efficiency of our future power system. We will publish further detail on the reformed national pricing later this year, which will give market participants and investors clarity on our approach.

Delivering lower bills and a secure energy supply for families and businesses is absolutely at the heart of what we are trying to achieve through these reforms, particularly with moving towards renewables—that homegrown renewable energy sprint, as we are calling it—in order to get where we can as quickly as we can. The quicker we reduce our reliance on fossil fuels, the more quickly we can reduce bills and do more about getting off the gas grid, which I think is at the heart of the noble Earl’s second question. Of course, the Government are always happy to look at contributions from different groups and NGOs, but the important thing is that we focus on that transition to renewable energies to bring those bills down.

Delivering lower bills and a secure energy supply for families and businesses is absolutely at the heart of what we are trying to achieve through these reforms, particularly with moving towards renewables—that homegrown renewable energy sprint, as we are calling it—in order to get where we can as quickly as we can. The quicker we reduce our reliance on fossil fuels, the more quickly we can reduce bills and do more about getting off the gas grid, which I think is at the heart of the noble Earl’s second question. Of course, the Government are always happy to look at contributions from different groups and NGOs, but the important thing is that we focus on that transition to renewable energies to bring those bills down.

As I have just said, the Government’s focus to bring down energy prices is moving away from reliance on fossil fuels, and I am sure the noble Lord is aware that oil is a fossil fuel. Our focus is on moving to a more renewable energy market, to take away that reliance and bring down energy bills through that route.

As I have just said, the Government’s focus to bring down energy prices is moving away from reliance on fossil fuels, and I am sure the noble Lord is aware that oil is a fossil fuel. Our focus is on moving to a more renewable energy market, to take away that reliance and bring down energy bills through that route.

I thank my noble friend for the question. Nuclear energy is part of the Government’s strategy in order to have sufficient energy for this country and to move away from gas power stations, for example. Personally, I am keen on small modular reactors: they are very important as part of our nuclear energy mix. I know that colleagues of mine in Cumbria have been pressing that we should have them there, as well as in Sheffield.

I thank my noble friend for the question. Nuclear energy is part of the Government’s strategy in order to have sufficient energy for this country and to move away from gas power stations, for example. Personally, I am keen on small modular reactors: they are very important as part of our nuclear energy mix. I know that colleagues of mine in Cumbria have been pressing that we should have them there, as well as in Sheffield.

Clearly, it is absolutely critical that we support families who struggle to pay their electricity bills. We do not want people to

be cold in the winter. I am not aware of any plans to increase that payment at the moment; I will get back to the noble Baroness if I am wrong. It is important to bring down bills but also to work with energy companies on their support for vulnerable customers, because there is a role for energy companies to play in that aspect.

Clearly, it is absolutely critical that we support families who struggle to pay their electricity bills. We do not want people to

be cold in the winter. I am not aware of any plans to increase that payment at the moment; I will get back to the noble Baroness if I am wrong. It is important to bring down bills but also to work with energy companies on their support for vulnerable customers, because there is a role for energy companies to play in that aspect.