New agri-environment agreements

Farmers and landowners need to get their skates on now the government has pledged to honour existing and new agri-environment agreements beyond the UK’s departure from the EU.

This is on condition applications to the new scheme are submitted before the Chancellor’s Autumn Statement - and the application deadline for the Countryside Stewardship Scheme is September 30.

Countryside Stewardship provides financial incentives for land managers to look after their environment through activities such as:

•    Conserving and restoring wildlife habitats
•    Flood risk management
•    Woodland creation and management
•    Reducing widespread water pollution from agriculture
•    Keeping the character of the countryside
•    Preserving features important to the history of the rural landscape
•    Encouraging educational access

The scheme is open to all eligible farmers and landowners but it is competitive with points awarded on how well the application enhances local targets to maximise environmental benefit.

There are three main elements to the scheme - the Mid Tier, Higher Tier and Capital Grants.  The Higher Tier is primarily available to those farmers who are leaving an existing Higher Level Stewardship e but the Mid Tier is of interest to farmers more widely, as is the Capital Grant scheme.

Last year was the first year of this scheme and a disappointing number of applications were received because the rules are relatively complicated and the level of financial support is lower than predecessor schemes.  However, possibly because of this, all the applications my firm submitted on behalf of clients in the South West were accepted.

In making an application obviously you must focus on the priority targets for your area and these can be found on line here.

Natural England are tasked with running the scheme and if anyone wants to find out more about it, their contact details are: Natural England, County Hall, Spetchley Road, Worcester WR5 2NP. Email enquiries@naturalengland.org.uk and phone 0300 060 3900.

James Stephen MRICS FAAV
Partner
Rural Practice Chartered Surveyor, Wells
T: 01749 683381
E: james.stephen@carterjonas.co.uk

Compensation for dairy farmers

The EU are proposing to compensate dairy farmers for cutting milk production in a bid to boost its price.

Indications are that payments of 12p/litre may be paid to farmers who commit to reducing milk production over a three-month period compared to the previous year. However funds will be limited and are likely to be paid on a first come first served basis, so farmers are advised to get prepared for the application period.

This could be a real opportunity for some farmers here because, as I reported a couple of weeks ago, milk production in the UK fell by around 10 per cent in July compared to a year ago. Some farmers will have already “pre-qualified” for this particular scheme without having to change anything.

Applications will be made to the Rural Payments Agency and will need to be accompanied by written proof of 2015 production levels which should be relatively easily achieved through the provision of last year’s milk cheques and estimated revised production levels.  

The total pot of money available across the whole of the EU will be £125m and I expect there will be four application periods until the money runs out. But with UK production having already fallen sharply, this money could be used very quickly and farmers are advised to apply at the first opportunity.

According to NFU chief dairy adviser Sian Davies: “When the application window is opens there will be a form made available on the RPA website which farmers can download ready to submit along with their milk cheques.”

It is believed the first application period will relate to reduced milk production from October 1 to December 31, 2016 and any potential applicants should consider what level of production they think they will have during that period in order to be ready to submit the form.

This EU initiative is clearly welcome but if the EU had not abolished its milk quota system in 2015, when world markets were falling in the face of rising milk supplies, perhaps the current level of overproduction in the EU would have been less severe and the latest dairy compensation scheme would be less necessary.

James Stephen MRICS FAAV
Partner
Rural Practice Chartered Surveyor, Wells
T: 01749 683381
E: james.stephen@carterjonas.co.uk

"Leaving the EU can be an opportunity for businesses across the countryside"

Agriculture looks worryingly neglected in North Somerset MP Liam Fox’s department created to win crucial trade deals following Brexit.

His new Department for International Trade has now announced all his ministers but none of their portfolios include a direct reference to agriculture.

The Country Land and Business Association has raised the alarm, pointing out that failure to secure strong trade opportunities for agricultural products will put UK food security and the environment at risk.

The worry is that agriculture will be treated as a low priority or may even be excluded from international trade negotiations.

In response the CLA has published a briefing which explores the opportunities for agriculture and forestry trade outside the EU and sets out the risks if trade declines substantially following Brexit.

CLA director general Helen Woolley said: "Leaving the EU can be an opportunity for businesses across the countryside. We have great entrepreneurs and great products. If the conditions are right we will thrive. But those conditions will not come about without careful planning and tough negotiations.

"Nowhere is that more the case than in agriculture. It is notoriously difficult to establish open trade deals for farming products. It is seriously alarming that no government minister has been given specific responsibility to deliver it.

“We now seek urgent reassurance that the government will deliver for our farmers and rural producers. We expect the Department for International Trade to start working together with us straight away and this is a terrible start.

“There are serious consequences if we don’t get this right. We could see food prices rising and the nation’s food security may be compromised. The environment could start to suffer and many farms and manufacturers could go out of business.

“Farmers and other food producers want to provide the country with a safe, secure supply of food. Land managers want to carry on their good work improving nature and wildlife, helping to tackle climate change and managing the UK’s distinctive landscapes.

“This is why it is so important that ministers assure us all that securing the best deal for food and farming will be a high priority and not an afterthought in their trade negotiations.”

The CLA briefing sets out the five objectives for a trade policy that will allow UK farmers and rural businesses to compete on an international platform.  These include:

•    Opening new markets
•    Growing existing markets at home and abroad
•    Delivering the best deals for UK consumers
•    Equipping businesses to compete
•    Improving farmer resilience

However, I doubt many of these goals will be achieved if there is no high level representation fighting for British agriculture in the international trade negotiations.

James Stephen MRICS FAAV
Partner
Rural Practice Chartered Surveyor, Wells
T: 01749 683381
E: james.stephen@carterjonas.co.uk