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Agriculture Act 2020

Contents

Schedule 5: Provisions relating to Wales

  1. Schedule 5 extends similar powers to the Welsh Ministers as those conferred on the Secretary of State in Part 1 (Chapters 2 and 3), Part 2 (Chapter 2), Part 3 (Chapter 1) and Part 5 of the Act. The powers are intended to be temporary and section 47 (duration of provision in relation to Wales) provides that Schedule 5 and certain related provisions will expire at the end of 2024 (subject to certain savings provision as set out in section 47). Alternative provision will be made by a Wales Agriculture Bill to be introduced in the Senedd. The powers in this Act are needed now to ensure continuity and ensure effective operation of the internal market in the UK.

Schedule 5, Part 1: Financial support after exiting the EU

  1. Paragraphs 1 to 3 of Part 1 of Schedule 5 provide for the payment of Direct Payments in Wales under the basic payment scheme.
  2. Paragraph 1(1) sets out definitions for terms used in paragraphs 1 to 3. Paragraph 1(2) defines the term "basic payment scheme" as covering the basic payment, the greening component, and the young farmers payment. A difference from the equivalent provision for England (Part 1, Chapter 2, section 7), is that paragraph 1 also provides that the basic payment scheme includes redistributive payments. A redistributive payment is a payment for a limited number of first hectares in addition to the payment rate per hectare calculated for all of the land receiving a payment under the scheme. These payments are made in Wales and are not made in England.
  3. Paragraph 2 of Schedule 5 confers on the Welsh Ministers powers to modify certain legislation governing the basic payment scheme so far as it operates in relation to Wales. Paragraph 2(1) specifies five purposes for which the legislation may be modified:
  • Simplifying the administration of the scheme or otherwise making its operation more efficient or effective;
  • removing provisions which are spent or of no practical utility;
  • removing or reducing burdens, or the overall burdens, on persons applying for, or entitled to, direct payments under the scheme or otherwise improving the way that the scheme operates in relation to them;
  • securing that any sanction or penalty imposed under the scheme is appropriate and proportionate;
  • limiting the application of the scheme to land in Wales only.
  1. Paragraph 2(2) clarifies that the Welsh Ministers may terminate greening payments in relation to Wales using the powers available under paragraph 2(1), so long as that provision does not reduce the amount of a direct payment to which a person would have been entitled had the provision not been made.
  2. Paragraph 2(3) defines "burden" (as used in paragraph 2(1)(c)) as including a financial cost, an administrative inconvenience, or an obstacle to efficiency, productivity or profitability.
  3. Paragraph 2(4) provides that regulations made under this paragraph are subject to the negative procedure, unless section 50(5) applies, in which case the procedure is affirmative. These powers reflect those available to the Secretary of State under section 9 of the Act in relation to England.
  4. Paragraph 3 of Schedule 5 confers on the Welsh Ministers powers to modify legislation to secure continuation of the basic payment scheme in Wales after 2020. Paragraph 3(6) provides that regulations made under this paragraph are subject to the affirmative resolution procedure. These powers reflect those available to the Secretary of State under section 10 of the Act in relation to England.
  5. Paragraph 4 of Schedule 5 confers on the Welsh Ministers powers to modify, so far as it operates in relation to Wales, retained direct EU legislation relating to the financing, management and monitoring of the common agricultural policy, and subordinate legislation relating to that legislation.
  6. Paragraphs 4(1) and (2) provide that the Welsh Ministers may make regulations to modify that legislation, so far as it operates in relation to Wales, for one or more specified purposes. Those purposes are:
  • securing that any provision of that legislation ceases to have effect, or;
  • simplifying the operation of any provision of such legislation, or making its operation more efficient or effective;
  • 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;
  • securing that any sanction or penalty imposed by such legislation is appropriate and proportionate.
  1. Paragraph 4(5) provides that regulations made under this paragraph are subject to the negative resolution procedure unless section 50(5) applies, in which case the procedure is affirmative. These powers reflect those available to the Secretary of State under section 14 of the Act in relation to England.
  2. Paragraph 5 of Schedule 5 confers on the Welsh Ministers powers to modify retained direct EU legislation relating to apiculture and subordinate legislation relating to that legislation. Paragraph 5(2) defines "retained direct EU legislation relating to apiculture" by reference to a non-exhaustive list. Paragraph 5(3) provides that regulations made under this paragraph are subject to the affirmative resolution procedure unless section 50(5) applies, in which case the procedure is affirmative.
  3. Paragraph 6 of Schedule 5 confers on the Welsh Ministers powers to modify retained direct EU legislation relating to support for rural development and subordinate legislation relating to that legislation. Paragraph 6(2) defines "retained direct EU legislation relating to support for rural development" by reference to a non-exhaustive list. Paragraph 6(3) provides that regulations made under this paragraph are subject to the affirmative resolution procedure. These powers could be used to make extensions of schemes and projects beyond the existing RDP 2014-20 or to operate a domestic Welsh equivalent.

Schedule 5, Part 2: Intervention in Agricultural Markets

  1. Paragraph 7 of Schedule 5 enables the Welsh Ministers to make and publish a declaration if the Welsh Ministers consider there are exceptional market conditions. Paragraph 7(2) sets out a two-part test to identify where exceptional market conditions may exist. Paragraph 7(3) sets out what must be included in the declaration. Paragraph 7(4) states that the declaration has effect until the specified end-date, which must be no more than three months from the date when it is published. Paragraph 7(5) allows the Welsh Ministers to revoke the declaration made under Paragraph 7(1) by making and publishing a further declaration to that effect. Paragraph 7(6) provides a power to extend the declaration made under paragraph 7(1) for a period not exceeding three months, by making and publishing a declaration to that effect at any time in the 7 days ending with the day of the original declaration’s end date. Paragraph 7(7) allows the Welsh Ministers to make a new declaration of exceptional market conditions relating to the same events if the exceptional market conditions continue. Paragraph 7(8) states that declarations made under paragraph 7(6) must be published and then laid before Senedd Cymru as soon as practicable. Paragraph 7(9) explains the meaning of certain terms used in paragraphs 7 and 8.
  2. Following a declaration under paragraph 7, the Welsh Ministers may then exercise the powers conferred under paragraph 8, until the declaration is no longer in effect. Paragraph 8(2) provides that the Welsh Ministers may give, or agree to give, financial assistance to support agricultural producers in Wales whose incomes are being, or are likely to be, adversely affected by the exceptional market conditions described in the declaration. Paragraph 8(3) provides that the Welsh Ministers may also make such use as they consider appropriate of any available powers under retained direct EU legislation which provides for the operation of public intervention and aid for private storage mechanisms in response to the declaration.
  3. Paragraph 9 of Schedule 5 confers on the Welsh Ministers powers to modify retained direct EU legislation relating to public market intervention or aid for private storage so that operation of such schemes may be tailored to prevailing domestic circumstances when they are used in a period of exceptional market conditions established under paragraph 7.
  4. Paragraph 9(2) provides that the Welsh Ministers may make regulations to modify that legislation for the purpose of securing that such legislation ceases to have effect in relation to Wales otherwise than in connection with exceptional market conditions that are the subject of a declaration under paragraph 7, or altering the operation of that legislation in relation to Wales otherwise than in connection with such market conditions (and pending the legislation ceasing to have effect).
  5. Paragraph 9(3) states that the power conferred by paragraph 9(1) includes the power to make specific amendments to the public intervention and private storage aid schemes that apply only in relation to the exceptional market conditions which are the subject of a particular declaration specified in the regulations.
  6. Paragraph 9(4) states that the powers conferred by paragraphs 9(1) and (2) include the power to change what agricultural products are eligible for public intervention and private storage aid.
  7. Paragraph 9(5) provides that regulations made under this paragraph are subject to the negative resolution procedure, unless section 50(5) applies, in which case the procedure is affirmative.
  8. Paragraph 9(6) defines "retained direct EU legislation relating to public market intervention or aid for private storage" for the purposes of this paragraph.
  9. Paragraph 9(7) states that until paragraph 2 of Schedule 7 to the Act, which amends the existing exceptional measures powers in the CMO (articles 219, 220, 221 and 222 of EU Regulation 1308/2013), is in force, references in this paragraph to exceptional market conditions subject to a declaration under paragraph 7 also includes reference to actions being undertaken under the existing exceptional measures powers.
  10. The powers conferred on the Welsh Ministers in Part 2 of Schedule 5 are very similar to the intervention powers conferred on the Secretary of State under Part 2, Chapter 2 of the Act in respect of England (sections 20-22).

Schedule 5, Part 3: Collection and sharing of data

  1. Part 3 of Schedule 5 confers on the Welsh Ministers powers to collect and share data from those within or closely connected to the agri-food supply chain.
  2. Paragraph 10(1) provides that the Welsh Ministers may require a person in, or closely connected with, an agri-food supply chain to provide information about matters connected with any of the person’s activities connected with the supply chain so far as the activities are in Wales.
  3. Paragraph 10(2) provides that the Welsh Ministers may make regulations requiring persons referred to in paragraph 10(1) to provide such information. Paragraph 10(8) provides that regulations made under this paragraph are subject to the affirmative resolution procedure.
  4. Paragraph 11 defines the meaning of certain terms for the purposes of this Part, including "agri-food supply chain" and persons in and closely connected with such supply chains.
  5. Paragraph 12 provides that the requirement for data to be collected and shared under paragraphs 10(1) and (2) must specify purposes for which the information may be processed. Paragraph 12(4) lists the purposes which include, for example, helping farmers and producers to increase productivity, manage risk and market volatility, and to support animal and plant health.
  6. Paragraph 13 imposes a duty on the Welsh Ministers to publish a draft requirement before a particular requirement for collection of data is imposed under paragraph 10(1). Paragraph 13(1) provides that the final requirement may be imposed in either its draft or a revised form, taking account of comments received in the published timeframe (and any other relevant matters).
  7. Paragraph 13(2) states that the requirement may be imposed on a person at any time once the final drafting has been agreed, when the person is within the published description.
  8. Paragraph 14 sets out the procedures for processing a requirement to provide information under paragraphs 10(1) and (2).
  9. Paragraph 15 provides that the Welsh Ministers may make regulations in relation to enforcement of a requirement to provide information under paragraphs 10(1) and (2).
  10. Paragraph 15(6) provides that regulations under this paragraph are subject to the affirmative resolution procedure.
  11. The powers conferred on the Welsh Ministers in Part 3 of Schedule 5 are the very similar to the collection and data sharing powers conferred on the Secretary of State under Part 3, Chapter 1 of the Act in respect of England.

Schedule 5, Part 4: Marketing standards and carcass classification

  1. Part 4 of Schedule 5 confers on the Welsh Ministers powers in respect of marketing standards in Wales and carcass classification by slaughterhouses in Wales.
  2. Paragraph 16(1) provides that the Welsh Ministers may make provision relating to marketing standards for agricultural products marketed in Wales. This includes the ability to amend or revoke the current marketing standards as set out in retained EU legislation and in domestic legislation, as well as the flexibility to introduce new standards that will be tailored to suit the domestic agricultural sectors.
  3. Paragraph 16(2) provides a non-exhaustive list of certain matters that the regulations may cover; for example, criteria such as appearance, the type of farming or production method and matters relating to storage and transport.
  4. Paragraph 16(3) provides that the regulations make may provision about enforcement and outlines some of the matters that may be covered (amongst other things), such as, for example, conferring powers of entry, creating summary offences and imposing monetary penalties. The list is non-exhaustive. This allows for the ability to amend or revoke the current marketing standards enforcement requirements to be replicated for any new standards which may be introduced, and for existing enforcement requirements to be amended as necessary.
  5. Paragraph 16(4) states that regulations made under paragraph 16 may not authorise entry to a private dwelling, without a warrant issued by a justice of the peace. "Private dwelling" is defined at section 51.
  6. Paragraph 16(5) provides that regulations made under this paragraph are subject to the affirmative resolution procedure.
  7. Paragraph 17(1) contains the list of agricultural products for which marketing standards may be made.
  8. Paragraph 17(3) provides that the Welsh Ministers may make regulations to amend the list of products for which marketing standards may be set, by adding or removing a product from the list, or altering the description of a product.
  9. Paragraph 17(4) provides that regulations made under this paragraph are subject to the affirmative resolution procedure.
  10. Paragraph 18(1) confers powers on the Welsh Ministers to make provision about the classification, identification and presentation of bovine, pig and sheep carcasses by slaughterhouses in Wales. This includes the ability to amend or revoke the current carcass classification rules as set out in retained EU legislation and in domestic legislation, as well as the flexibility to introduce new standards and rules that will be tailored to suit the domestic agricultural sectors.
  11. Paragraph 18(2) states that regulations made under paragraph 18(1) may include provision about enforcement and outlines some of the matters that may be covered (amongst other things), such as, for example, conferring powers of entry, creating summary offences and imposing monetary penalties. The list is non-exhaustive. This will allow for the current carcass classification enforcement requirements to be replicated for any new standards which may be introduced, and for existing enforcement requirements to be amended as necessary.
  12. Paragraph 18(3) states that regulations made under paragraph 18 may not authorise entry to a private dwelling, without a warrant issued by a justice of the peace. "Private dwelling" is defined at section 51.
  13. Paragraph 18(4) provides that regulations made under this paragraph are subject to the affirmative resolution procedure.
  14. The powers conferred on the Welsh Ministers in Part 4 of Schedule 5 are very similar to the marketing standards and carcass classification powers conferred on the Secretary of State under Part 5 of the Act in respect of England (sections 37 and 40).

Schedule 5 Part 5: Data Protection

  1. Paragraph 19(1) applies to a duty or power to disclose or use information where the duty or power is imposed or conferred by or under any provision of Schedule 5. Paragraph 19(2) provides that any such power or duty does not operate to require or authorise the disclosure or use of information which would contravene the data protection legislation (but the duty or power is to be taken into account in determining whether the disclosure or use would contravene that legislation). Paragraph 19(3) defines "data protection legislation" for the purposes of this provision.
  2. Similar provision is made by section 49 in respect of Parts 1 to 6 of the Act.

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