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

Basic Payment Scheme

West Country farmers and landowners are worried that the current level of cashflow coming from the Basic Payment Scheme will not be maintained after 2020.

They welcomed the announcement by Philip Hammond, the new Chancellor, that funding under the Common Agricultural Policy will stay - at least in the short term.

This appears to mean that the current level of payments being made under the BPS will be maintained until 2020, which coincides with the lifetime of this EU scheme. What is not clear is whether the domestic rules relating to this scheme will change following our departure from the EU.

Mr Hammond also confirmed that any structural and investment projects signed off before the Autumn Statement at the end of November, “even when these projects continue beyond the UK’s departure from the EU”, will continue to be funded. This should include all projects paid through the Rural Development Programme for England such as agri-environment schemes.

Again this is good news for farmers and landowners committed to long term agreements, many of which still have up to ten years to run. But what will replace these schemes? We need urgent clarity on the future of agri-environment schemes beyond November.

Unsurprisingly, Mr Hammond’s announcement was welcomed by leaders of farming and countryside organisations as good news for the short term.

A National Farmers Union statement said: “This should mean that farmers can count on receiving the Basic Payment Scheme through to 2020, and that agri-environment schemes already in place are guaranteed through to their conclusion,” while NFU president Meurig Raymond added: “I hope that this short-term certainty will help to deliver longer-term confidence. This is exactly what farm businesses need now.”

Similarly Ross Murray of the Country Land and Business Association (CLA) explained: “This will provide a significant degree of reassurance to farmers and other landowners across the country.

“We have been clear, since the start of the EU referendum campaign, that this is the first decision ministers had to make to reassure rural businesses in the event of a Brexit vote. It is therefore a strong signal that will give confidence to businesses considering their future in a difficult agricultural market.”

So, in the short term, this provides farmers and landowners some degree of certainty and gives government breathing space to develop UK agricultural policies which will be fit for purpose.

But it is a pity the government did not start planning for a post-Brexit vote until after the referendum.

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