Category: Policy & Business

The level of tariffs that the UK will levy after Brexit is due to be published shortly.  It has been rumoured for some weeks that the publication was ‘imminent’.  However, like many things regarding Brexit, it has been delayed.  The level of these tariffs is crucial for the agri-food sector, especially in a No-Deal scenario, as they will determine the level of protection UK producers have from low-cost global imports.  The amount of Tariff Rate Quotas granted to importers, another vital issue, should also be proposed at the same time.

In his recent speech at the recent NFU conference, the Defra Secretary mentioned that the UK’s “valuable domestic production” in areas such as sheep meat, beef, dairy products, pig meat and poultry would continue to be safeguarded when the UK announces its new tariffs. However, what went unsaid, is the prospect of increased levels of tariff-free quotas in areas like beef which would approximate the UK’s annual import requirement (circa 300Kt) which was reported shortly after Michael Gove’s speech. This could potentially open a significant proportion of the UK market to imports from countries such as Brazil, Argentina, Australia, as well as EU Member States such as Ireland and would therefore have a negative effect on prices, although British producers would still benefit from the Red Tractor branding premium.

Mr. Gove also reiterated a commitment that the UK would not lower its food standards in order to secure free trade deals. That said, it will be important to pay attention to the nuances underneath such statements. It could be argued for instance that a standard could continue to be upheld if the intended outcome is the same as before. However, most of the focus on standards in the context of trade negotiations is on the processes (methodologies) underpinning those standards. If these diverge, or are relaxed in some fashion, then it is likely to be viewed by the EU as a lowering of standards, even if the UK argues that the same outcome is being achieved.

These points highlight the need to pay close attention to detail in the coming weeks and months. It is often what is left unsaid is more telling than what is set-out in keynote speeches.

The Government plans to give new powers to Police and Local Authorities to deal with illegal traveller sites (see https://www.gov.uk/government/news/government-announces-plans-to-tackle-illegal-traveller-sites).  It will also consider making it a criminal offence to set up such camps.  At present, it is treated as trespass, a civil offence, forcing landowners to obtain a court order before action can be taken to remove those camped illegally.

 

Defra is currently consulting on updating the legislation on water issues.  It aims to improve the long-term planning of water resources and drainage.  Topics covered include flood management and drainage, Internal Drainage Board charges, and the ability to amend abstraction licences.  It can be found at –  https://www.gov.uk/government/consultations/improving-our-management-of-water-in-the-environment.  The deadline for responses is 12th March.

 

The Campaign for the Farmed Environment (CFE) is now ten years old and is set to be re-launched under a new title of Championing the Farmed Environment on the 1st March.  The CFE was originally conceived as a way of demonstrating the (unpaid) environmental work farmers do in order to head-off the threat of compulsory environmental set-aside.  Whilst evolving over the years, the project continues to help farmers integrate environmental work with profitable farming and demonstrates the sector is willing and able to deliver best environmental practice.

The Government is consulting on the introduction of Conservation Covenants (see https://consult.defra.gov.uk/wildlife-management/conservation-covenants/).  Whilst perhaps not sounding very exciting, these potentially open up some interesting opportunities for landowners.  At present it is possible to put legal covenants over land, but only to stop certain things happening (e.g. not being able to build on it).  There is currently no mechanism in law to enforce positive action on the owner of land (e.g. maintaining trees) that is binding on future owners.  Existing agri-environmental agreements are simply a contract between Government and the occupier at the current moment in time.  This new type of agreement would bind the occupiers of the land for the long-term or perhaps even perpetuity – the timescales that many environmental actions work over.  The question might be asked as to why a landowner would do this?  The answer, as often is the case, is money.  Landowners would take payment to enter into such an agreement, either from the Government or the private sector.  The classic example of the latter is bio-diversity offsetting.  A developer would contract with a landowner to replace habitats lost through the development with compensating habitats elsewhere.  The Conservation Covenant means that these new habitats would continue to be managed, even if the land was subsequently sold.

 

The Scottish Government has published a consultation on Environmental Principles and Governance after Brexit (see https://www.gov.scot/publications/consultation-environmental-principles-governance-scotland-4/pages/2/).  This seems to mirror the consultation undertaken by Defra which has resulted in plans for an ‘Office of Environmental Protection’ (OEP), the legislation for which will be included in a new Environment Bill.  Details can be found at – https://www.gov.uk/government/publications/draft-environment-principles-and-governance-bill-2018/environment-bill-policy-paper.  As the OEP appears to be a UK-wide body, it is not clear to us how the new Scottish consultation fits into this framework. 

 

The NFU launched its ‘Future of Food 2040’ report at its annual conference in mid-February.  The document looks at the long-term trends in the food sector over the next 20 years, and what this means at the farm level.  It also includes a number of ‘asks’ of Government to help the industry prosper.  The report can be found at – https://www.nfuonline.com/news/latest-news/nfu-publishes-future-of-food-report/

Michael Gove announced at the NFU Conference that bridging payments will begin for Countryside Stewardship (CS) 2018 payments from the beginning of April.  Payments commenced in December, but it appears that progress has been slow and interim payments will be made to those who have not received a payment before the end of March.  These are expected to be 75%, as per last year, but this has not been confirmed as yet.

The continuous reports of late payments to those with CS Agreements is putting others off from entering these schemes.  Before any payments are received, an outlay will have been made and if agreements include capital items this can be quite considerable.  If payments are not received when they are due, this can lead to cashflow problems. 

We understand from the RPA that it is a good time to be submitting RLE1s.  According to the Agency it does not have a back log and those sent in now should be dealt with in a timely fashion.  RLE1s are can be used for a number of different reasons:

• Land and entitlement transfer
• Boundary changes
• Mergers and scissions of land
• Registering new land

We would still recommend land and entitlement transfers are carried out online where possible, but for land in certain circumstances this is not allowed and a paper RLE1 is still required.  These situations include:

• Where you are only transferring part of a field parcel
• Where the land parcel shows as being less than ‘100% owned’ or has a status of ‘Tenant’, it is not possible to transfer or remove that land online as the system only allows online transfers for land parcels that show as 100% owned.  It is unclear where this status has come from and in many cases it is incorrect, but at present there is no way of changing it.
• Where you want the land to be linked to two SBIs simultaneously.

The last point refers to ‘dual use’ situations i.e. where the Landlord has an Agri-environment agreement on the land, but the Tenant will be claiming the Basic Payment.  In this case the land needs to be linked to two SBIs simultaneously.  In such cases, to retain the Customer Land Link (CLL) and link the land to another SBI an RLE1 must be used, not online transfer.  On the front of the RLE1 clearly mark the existing Customer Land Link between the land and the transferor is to be retained.

Finally, when submitting RLE1s and accompanying maps ensure they are filled in correctly and that maps include as much information as possible.  Use ‘fine’ pens to draw lines, make sure lengths and areas are included if necessary and insert Land Use codes.  Calculate new land parcel numbers if required and put on the maps.  Do not send in accompanying letters with information on, the digitisers do not get to see these, annotate maps if there is further information which may help them.

 

 

A life-long environmentalist is set to become the next Chairman of Natural England.  The Environment Secretary has announced Tony Juniper is the preferred candidate to replace Andrew Sells who is retiring from the post.  Mr Junipe is currently President of the Royal Society of Wildlife Trusts, Executive Director for advocacy and campaigns at WWF-UK and worked for many years for Friends of the Earth.  He has spoken about the need to build a ‘constructive relationship’ with farmers.