Concerns raised over Defra’s future IT capabilities

Future support payments to farmers in England could be at “high risk” of non-delivery if Defra fails to replace its existing IT support service speedily, according to the National Audit Office (NAO).

In its latest report into Defra’s progress on environmental land management, the NAO includes a section of “digital infrastructure” for agri-environment schemes.

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It notes that, since Brexit, Defra has persisted with the “legacy” IT system, as used under the old CAP.

To keep this payment system up-to-date and working properly, Defra has an IT support contract, which has been renewed several times.

But this contract is due to expire on 31 January 2025, and cannot be extended further, says the NAO report.

“Without continuation of the support provided by the current supplier, or the introduction of a new system, Defra’s ability to deliver existing agreements and payments would be put at risk,” says the NAO report.

Analysis

Recent analysis by Defra suggests developing a new system will take three years, so may not be ready until mid-2027, and probably not fully operational until early 2028.

“This has left Defra in a high-risk situation,” says the NAO. “It is a major risk to delivery, Defra’s reputation, and the achievement of scheme outcomes.”

Defra is seeking to mitigate this by securing a new three-year support contract with a different IT company.

If it is unable to do so, the current support supplier is obliged to provide “termination assistance” for another 18 months.

But this would only take it mid-2026, which could then leave an IT support gap of another 18 months before a new system is ready.

Concern

While not wanting to overstate the scale of the threat, George Dunn, chief executive of the Tenant Farmers Association, said he had always been concerned about the IT system.

“We did question the sense in retaining the old SITI Agri system, with all its historical faults and problems, but the Rural Payments Agency (RPA) was convinced that it could knock it into shape,” he said.

“Given what is stated within the NAO report, there must be urgent clarification from Defra about how the IT is going to be provided.

“I suspect that there will be an opportunity for the RPA to be able to continue using the legacy system without support from an external firm, using internal expertise. However, that cannot be a long-term solution.”

Country Land and Business Association president Victoria Vyvyan said having an efficient and future-proofed IT system at the RPA is “vital” to encouraging scheme participation and getting payments to our members.

“An ambitious and inclusive government will give funding to capacity building through IT systems that guarantee the future of agriculture, as well as environment policy.”

Defra response

A Defra spokesperson said it was committed to restoring stability and confidence among farmers.

“We will optimise schemes, grants and technology in an orderly way, ensuring they produce the right outcomes for all farmers, while delivering food security and nature recovery in a just and equitable way,” said a spokesman.

It insists it is working in an orderly way to upgrade and improve the technology, to provide a smooth transition for farmers.