Since Brexit, a lot of UK legislation has had to be rewritten – and the laws and regulations relating to agriculture are no exception.

The Agriculture Act is the first new piece of agriculture legislation in 70 years. It took two years to pass through Parliament before receiving Royal Assent in November 2020.

The Act lays the foundations for agriculture regulations in the post-Brexit era. It covers food security, animal welfare and tenancy reform. It also offers financial incentives for farmers and land managers to farm sustainably, replacing the existing EU subsidies.

In this article, we run through the changes and look at the developments that have been made since the Bill was passed.

What's changed?

The most publicised change relates to financial assistance.

At the moment, UK farmers are rewarded by the EU's Basic Payment Scheme (BPS). This is being phased out over seven years (starting at the end of 2021) and will be replaced by a new, more environmentally friendly form of financial assistance. This is known as ELMS (environmental land management system).

To be eligible under the new scheme, farmers, producers and landowners need to demonstrate that they're meeting one of the Act's criteria regarding environmentally sustainable food production – to take one example, protecting or improving the health or welfare of their livestock.

The big difference is the eligibility. To get the BPS, you just needed to produce, rear or grow agricultural products and keep some land suitable for grazing or cultivation. Now, you need to demonstrate that you're acting for the "public good" and mitigating the effects of climate change or improving the welfare of your animals.

Farmers and land managers will be rewarded for improving the quality of air and water, promoting biodiversity and soil health and taking measures to reduce flooding.

All of this has been implemented to bring the agricultural sector in line with the UK's 25-year Environment Plan and its emission reduction targets.

Other changes introduced by the Bill

The Bill also introduces a new measure on "food security" – namely, the UK's continuing ability to have reliable access to affordable and nutritious food.

Now that the Bill has passed, the government has to report to Parliament every three years on the topic of food security – and the newly formed Trade and Agriculture Commission will monitor the impact of any new trade deals on the industry.

Cross-compliance checks by RPA and the Animal and Plant Health Agency (APHA) remain in place – but they'll be carried out differently. 

Now, you won't necessarily receive a warning, and the checks could take place more than once a year.

A letter will be sent after the inspection – and if something was found to be non-compliant, the inspector will lay out what remedial actions need to be taken.

Changes to agricultural tenancies

The Bill has been welcomed by some as more "tenant-friendly". This is mainly because of the reforms it makes to agricultural tenancy law – in particular, how it amends or repeals provisions of the Agricultural Holdings Act 1986.

Tenancies covered by this Act – those entered into before July 12 1984 – were subject to strict rules about succession. These regulations will be simplified or removed altogether in such a way that will benefit tenants.

Tenants will now be able to retire before the age of 65 – and the suitability criteria for successors have been softened. This means that tenants will be more certain that their succession plan will be successful.

Some agreements may need to be renegotiated, as landlords can no longer guarantee that they'll receive vacant possession on the death or retirement of their tenant.

The Bill also provides more options for arbitration and third-party determination in the event of rent review disputes.

How does the Bill affect food imports?

A notable omission from the Bill relates to food imports. The government hasn't included an amendment to guarantee that imported food is reared and produced in a way that matches the UK's standards of health and welfare.

This was in spite of the 62 farm and environment organisations that wrote to then-Prime Minister Boris Johnson in January 2021 asking for an amendment to be made.

His government made the Trade and Agriculture Commission statutory as a compromise measure. It rejected calls for an import quality guarantee but said instead that the Commission would offer independent advice on future trade deals.

How this will play out is unclear. The government agreed not to allow chlorinated chicken or hormone-fed beef on British shelves as part of its trade deal with the US. This could be a precedent in future negotiations.

Recent developments

Since the Bill was passed, environment secretary Thérèse Coffey announced that the rollout of ELMS will be accelerated.

The Sustainable Farming Incentive (SFI) was launched in 2022. This is a government subsidy that pays farmers to act sustainably. It lays down standards for sustainability. So far, nine have been announced:

• Arable and horticulture soils standard
• Improved grassland soils standard
• Moorland standard
• Nutrient management standard
• Integrated pest management standard
• Hedgerows standard
• Arable and horticultural land standard
• Improved grassland standard
• Low/no input grassland standard

Tenant farmers can apply for the SFI without seeking their landlord's consent.

How does this affect Wales, Scotland and Northern Ireland?

Agricultural policy is devolved. The Senedd is currently debating a "made in Wales" agriculture bill of its own. In Scotland, MSPs are debating the government's proposed Vision for Agriculture. And at the time of writing, agricultural policy in Northern Ireland is on hold as the Northern Ireland Assembly is suspended.

Do you need help navigating the changes made by the Agriculture Act? At Milners Law, we have a tight-knit team of experienced, no-nonsense farming lawyers who can offer expert guidance at affordable rates. Get in touch for a free, no-obligation consultation.