Millions wasted on farm inspections, says audit office

Farm inspections in England burden compliant farmers, cost taxpayers too much money and are not streamlined or joined up enough, the National Audit Office (NAO) has said.


Nine separate government bodies, including Natural England, the Environment Agency and the Rural Payments Agency, made at least 114,000 visits to English farms during 2011-12 costing £47m, the NAO report found.


More than half of these inspections were carried out for disease surveillance and testing – totalling £28m – and 30% to check farmers’ compliance, costing £19m.


The report by the government’s financial watchdog found the cost to a farm of complying with regulations was on average around a tenth of its net profit.


The NAO investigation concluded that DEFRA has made some progress in adopting recommendations by the 2011 Richard Macdonald Farming Regulation Task Force, an independent report that was set up to reduce red tape on farmers and food processors.


But according to the NAO, DEFRA’s current approach to reform will “not deliver the scale of change expected”.


Farmers considered the rate of improvement in the farm inspection system was too slow, and 84% of farmers surveyed by the NAO believed oversight bodies should co-ordinate their activities more.


It also stated that the department has not collected significant data to understand the scale, nature and effectiveness of farm oversight activity in England and analyse the data on the overall pattern of farm visits.


By contrast, it points out that in Scotland “oversight bodies have come together to identify redundant activity and cut one in six farm visits”.


The NAO has recommended that DEFRA reviews its present arrangements for leading and co-ordinating farm oversight to provide “greater direction and focus”.


In addition, it should also “explore how alternatives to physical inspections might be more widely adopted as a way of improving compliance”.


“Oversight bodies miss opportunities to coordinate activity and share intelligence. They also do not take enough account of most farmers’ commitment to good practice which would allow the bodies to reduce redundant activity and unnecessary cost.”
Amyas Morse, head of NAO

Amyas Morse, head of the NAO, said: “If English farmers are not to be disadvantaged in supplying our food sector, inspections must be proportionate and with minimum burden on the farmer


“That is not happening at present. Oversight bodies miss opportunities to coordinate activity and share intelligence. They also do not take enough account of most farmers’ commitment to good practice which would allow the bodies to reduce redundant activity and unnecessary cost.


“The department has made some progress in exploring how to streamline farm oversight. However, the net result reflects a gradualist approach. Streamlining needs to be driven with a sense of urgency to overcome the individual bodies’ conservatism in a way that is proportionate to the risks.”


NFU deputy president Meurig Raymond said: “The findings from the NAO vindicate our response to the Farming Regulation Task Force, in that many farm businesses believe poor co-ordination and the potential for duplication of inspection are systemic problems.


“While we recognise some progress is being made, this report sets out a challenge for DEFRA to achieve stronger co-ordination among oversight bodies, improved intelligence sharing and collection, and to take account of farmers’ commitment to good practice to help reduce the burden on compliant businesses.


“Following a number of better regulation initiatives, agricultural businesses are looking for regulatory burdens to be lifted as soon as possible. We look forward to seeing how DEFRA responds and implements the key findings from this report and the task force at a much faster pace.”


A DEFRA spokesman said: “As part of our drive to cut burdens in farming we are already rewarding farmers who maintain high welfare and environmental standards with fewer inspections.


“We are also making it easier and cheaper for farmers to comply with regulations. For every £1 spent on new compliance costs, we are saving farmers £13 of old inefficient costs.


“But we can’t rush this overnight. Inspections are crucial to keep Britain free of disease outbreaks, maintain high standards of food production and ensure animals are treated well.”


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