4. Ms Hunter asked the Minister of Agriculture, Environment and Rural Affairs whether he plans to reverse his Department’s decision to introduce a 5-hectare requirement for farms to access payments through the new farm sustainability transition payment. (AQO 601/22-27)

9. Mr McAleer asked the Minister of Agriculture, Environment and Rural Affairs for his assessment of the increase of the minimum claim size from 3 hectares to 5 hectares to access payments under the farm transition sustainability payment. (AQO 606/22-27)

Mr Speaker, with your permission, I will answer questions 4 and 9 together.

As announced in March 2022, the new farm sustainability payment, which is planned to replace the basic payment scheme, will provide a balance between providing a safety net that will help a farm business to withstand shocks that are beyond its ability to manage effectively and encouraging farm businesses to be sustainable, efficient, competitive and able to manage risk proactively.

A public consultation on the policy proposal to increase the minimum claim size to 10 hectares took place in December 2021. The proposal in the consultation to increase the threshold to 10 hectares generated significant stakeholder concern. On the basis of the consultation responses, the decision was announced in March 2022 that the minimum claim size would increase to 5 hectares. I am not currently planning to reverse the decision to increase the minimum claim size. Work is progressing to ensure that the secondary legislation requirements will be in place by the autumn.

On the basis of the 2023 basic payment scheme application data, the number of farm businesses that may be impacted by the move to 5 hectares of eligible land for the farm sustainability transition payment and farm sustainability payment is around 1,400. All land managers with 3 hectares or more of eligible land and who meet the scheme requirements will be able to participate in the farming with nature package when it comes on stream.

Minister, you touched on the consultation that you had. Will you give us a wee bit more detail on your Department's work to assess the impact that the change would have on farmers? Will the Minister restore the previous minimum claim size of 3 hectares for farmers to access the payments?

I thank the Member for her question. There has been significant stakeholder engagement and consultation, primarily through the agriculture policy stakeholder group. I am aware of the figures in relation to the impact, but I am trying to balance future farm support policy in Northern Ireland. I get some of the concerns about support for horticulture. I am exploring that further with officials.

I thank the Minister for his response. Minister, there were families in my parents' generation and before who were reared on 1 acre. You will be aware that the unanimous view of the AERA Committee is that we should revert to 3 hectares. This will knock potentially 1,400 small farm businesses out of business, which will have a knock-on impact on rural planning and vibrancy. Will it be brought in via affirmative procedure? Will you reconsider your decision?

I thank the Member for his question. He outlines clearly the case for 3 hectares. I am happy to attend the Committee in the week commencing 8 July and for that to be added to the agenda so that we can have a further discussion about it. I think that most people know that I want to engage with people and find a way forward for the future farm support development programme that we can all buy into.

Will the Minister explain to those small farmers why he and his Department are against them? The inevitable consequence of that step is to financially drive those small farms out of business. Why does he want that?

My Department and I are against no one: we are trying to find a balanced way forward. The person in the Chair will be aware of the issues that we are discussing. I am happy to consider the issues further at the Committee.

Will the Minister give more detail on the support that is available to farms that will be impacted by the increase from 3 hectares to 5 hectares?

I thank the Member for his question. As I outlined, there is a farming with nature package that is a key Intervention, and I am keen to see what support we can provide to specific sectors, particularly the horticulture sector.

What assessment has the Minister made of the detrimental impact that such a move may have on small farm holdings that, despite being small, produce quality meat to the food chain, which, in turn, provides an income for that small farm holding?

I thank the Member for his question. I have outlined to the Committee the number of businesses that will be affected, and my officials have engaged on that. The number of businesses that will be affected is relatively small, but I understand the case that is being made in the Chamber and am happy to engage with the Committee on the issue so that we can find a way forward.