Category: Policy & Business

The need to provide a clearer indication of the direction of travel with Environmental Land Management schemes, is one of seven key recommendations, made by the National Audit Office (NAO), to Defra.  The NAO is responsible for holding Government and the Civil Service to account over key policies.  The NAO published its value for money report on the Farming and Countryside Programme on 23rd July 2024.

The report assesses how the Programme is developed and managed, its ability to deliver environmental outcomes, food production, and secure a thriving farming sector, whilst assessing value for money.  The value for money metric is centred on value of the scheme to the taxpayer.  Providing good value for money will be imperative if the schemes are going to be supported by Government in the future.

There are seven key recommendations of the report;

1. Ensure that the business case for the next phase (phase 3) of the programme includes a ‘comprehensive and realistic’ assessment of the funding needed to meet Defra’s objectives.  At present, the funding is based on what was available through EU CAP, not upon what Defra is trying to achieve.
2. Use the business case to provide clearer direction of travel for support schemes.  The NAO especially highlights the need to provide detail on the split between funding for SFI versus other, more substantive schemes.  There is concern from the NAO that SFI could absorb too much of the budget whilst not delivering value for money to the same extent as schemes like Landscape Recovery.
3. Strengthen the programmes’ environmental objectives, including setting targets for the ‘apex goal’ of delivering greater species abundance.  The report mentions that Defra have set objectives for the Programme.  However in some cases they lack sufficient data to assess progress against these objectives.
4. Improve digital and data infrastructure to reduce reliance on legacy systems, which are due to expire in the coming years.
5. Deliver a comprehensive and unified package of advice for farmers.  The report highlights the success of the Future Farm Resilience Fund in delivering business advice.  The advice has been valued by farmers.  However, the NAO feel there should be more advice targeted at delivering better environmental outcomes.
6. Use existing feedback channels to understand better farmers’ capacity for, and response to, continued change.  This should centre on how change will impact engagement levels.
7. Increase transparency to stakeholders around subjects like farm viability and land-use modelling.  More transparency is needed around Defra’s plans to increase the regulatory baseline and stop paying for certain actions as they become the industry standard. On the theme of value for money, the report points to the actions for IPM and Soil Management Plans, and the SFI Management Payment as delivering low value for money although it increases engagement with other actions.

The report also gives some key facts and figures about the Programme.

• 35% of farmers don’t feel confident that Defra (and its ALBs) can deliver changes to its schemes and regulations
• Only 48% of farms are not positive about their future in farming
• 48% of farmers rate their satisfaction with SFI at 8/10 or higher; this figure rises to 81% for ratings of 6/10.  It will be interesting to see how this evolves for 2024, given further changes to the delivery
• On average it takes 8 days to process an SFI application in 2024 (compared to several months for equivalent applications in 2021)

The full NAO report can be found at – https://www.nao.org.uk/reports/the-farming-and-countryside-programme/ .

 

 

The Scottish Government has selected Galloway as its preferred site for Scotland’s third National Park.  Galloway, which beat Lochaber, Loch Awe, Scottish Borders and Tay Forest, will be the subject of a consultation and if successful will become official by 2026.  If Galloway is approved, it will be the first UK National Park to be designated since the South Downs back in 2010.  There are currently 15 National Parks in the UK – 10 in England, 3 in Wales and 2 in Scotland; these are areas of countryside that also include villages and towns which have a separate Authority to help look after them, including responsibility for Planning.  Farming bodies have criticised the plan for the Galloway designation – fearing that recreation and conservation will be prioritised over farming and economic development.  

A report commissioned by the RSPB, National Trust and the Wildlife Trusts reveals that the UK Government needs to significantly increase its ‘nature-friendly’ farming budget to meet climate and nature targets.  The report reveals that independent analysis has found that investment in nature-friendly farming needs to be £5.9 billion per annum if the UK is to meet its legally binding nature and climate targets and to improve the resilience of the UK farming sector.  The current agricultural budget is £3.5 billion of which the report estimates 20-25% is currently spent on agri-environment schemes.  The RSPB, National Trust and The Wildlife Trusts are now calling on the new Government to increase the overall agricultural budget and for  Defra and the devolved Governments to then increase investment in their ‘nature-friendly’ farming schemes.  The full report can be found at https://www.wildlifetrusts.org/sites/default/files/2024-07/Scale%20of%20Need%20Report%20July%202024%20FINAL.pdf

The National Farmers’ Union (NFU) and AHDB, along with NFU Cymru, The Ulster Farmers’ Union (UFU) and NFU Scotland (NFUS) commissioned an independent review of the UK Farm Assurance System back in March (see article https://abcbooks.co.uk/farm-assurance/).  As part of the review, the Commissioners would like to hear from all farmers, crofters and growers.  To this end, the Commission is asking for views via an online survey which can be found at https://app.onlinesurveys.jisc.ac.uk/s/promaraf-2021/the-uk-farm-assurance-review .  Views need to be submitted by 31st August and the report is expected to be available at the end of this year.

The Welsh Government has given more detail to farmers as to which schemes which will be available in 2025.  Readers will recall, back in May the Cabinet Secretary for Climate Change and Rural Affairs, Huw Irranca-Davies, announced that the introductiona of the Sustainable Farming Scheme (SFS) in Wales would be delayed by one year and would now commence in 2026 (see article https://abcbooks.co.uk/sfs-delayed-wales/).  He also stated that, during 2025, there would be a Sustainable Farming Scheme Preparatory Phase of Activity.  Speaking ahead of the Royal Welsh Show, he announced that the 2025 Preparatory Phase will include a number of schemes which will provide ‘advice and support’ to farmers in advance of the introduction of SFS.  The Schemes include:

• Habitat Wales Scheme – originally an interim scheme which was only going to be available in 2024 to plug the gap between the end of Glastir agreements and the start of the SFS.  This will now be offered again in 2025 with all eligible farmers able to apply
• Existing Habitat Wales Scheme Commons – agreements can be extended for 2025
• The Organic Support Payment – again only supposed to be for one year but will be maintained for 2025, supports existing organic producers
• Farming Connect – an extension to 2026, continuing the knowledge transfer and innovation support on farms
• Integrated Natural Resources Scheme – a new scheme which will support ‘farmer-focussed partnerships’ delivering nature-based solutions across a landscape, catchment or on a pan-Wales scale.  It will continue the transition to a new way of supporting farmers and the vital work they do ahead of the introduction of SFS Collaborative Actions’.

A data confirmation exercise is also being launched.  No date has been given for this but, as farmers who wish to apply for Habitat Wales Scheme (HWS) 2025 are being encouraged to complete the data confirmation exercise, we expect it shortly.  It appears this will be voluntary.  However, feedback from farmers who decide to participate in the exercise will provide a more accurate picture of the habitat and tree cover across their farm in preparation for HWS 2025 and the introduction of SFS.

Of course, the scheme of most interest to the majority of Welsh farmers in 2025 will be the BPS.  Although not yet confirmed, it is beleived tht there will be few, if any, rule changes for next year.  The main unknown will be the level of payments.  This will be determined by the new agricultural budget settlement, which the new Westminister administration will be working on over the next few months as part of the wider Spending Review.  

The Planning Advisory Service (PAS) has made available a range of Biodiversity Net Gain (BNG) templates.  The PAS, a branch of the Local Government Association, has commissioned solicitors, Dentons to create a suite of sample agreements that cover the various ways of securing biodiversity gains allowed for under the Environment Act.  The templates which can be found via https://www.local.gov.uk/pas/environment/biodiversity-net-gain-bng-local-planning-authorities/pas-biodiversity-net-gain-bng are being provided for Local Authority Planners and their legal teams so they can modify them to suit their situation.  The hope is that the templates, which are not compulsory, will provide a ‘streamlined approach, enhancing efficiency in drafting agreements, and benefiting all stakeholders involved’.

The new Labour administration set out its legislative priorities in the King’s Speech on 17th July.  Over 35 potential Bills were announced.  Boosting economic growth by easing Planning rules was the centrepiece of the programme.  A Planning and Infrastructure Bill will be introduced which aims to ‘speed up and streamline the planning
process to build more homes of all tenures and accelerate the delivery of major infrastructure projects’.  This may well include provisions to limit the valuation of land where it is compulsorily purchased.  The new Government is already showing its priorities under existing powers.  Three large-scale solar farms have been approved in England, totalling 6,500 acres of farmland, which had been waiting for a Ministerial decision.  There had been strong local opposition to all three.

The tranisiton to clean energy is wider theme of the new Government.  A Bill will be enacted to set up GB Energy, a company headquartered in Scotland, that aims to accelerate investment in renewable energy.  There will be increased protection for workers (and possibly cost for employers) under a new Employment Rights Bill.  A Renters Rights bill will give greater rights to tenants in England, including ending section 21 notices to quit.  New legislation will strengthen the powers of the water regulator – partly to improve water quality in rivers.  There will also be an English Devolution Bill aiming to pass power from Whitehall to the regions – but seemingly requiring Councils to come together in larger adminsitrative units.

 

Defra has released figures for English farm profits.  These show a slightly different picture to the UK figures we reported on last month (see https://abcbooks.co.uk/farm-profits-4/).  In real terms, Total Income from Farming (TIFF) fell by 23% between 2022 and 2023 – from £5.87bn to £4.54bn.  This compares to the 16% drop seen in the UK figures.  It is closer to the sort of reduction we were forecasting for 2023.  The main reason for the reduction was lower crop output.  Sales in the livestock sector were relatively unchanged with a drop in milk values being offset by an increase in poultry income.  There was a small decrease in costs – mainly driven by the lower price of fertiliser.  The full statistics can be found at – https://www.gov.uk/government/statistics/total-income-from-farming-in-england/total-income-from-farming-in-england-in-2023.

Following its landslide victory in the General Election on 4th July, the new Labour administration is starting to bed-in.

In farming terms, the Shadow Defra team have been installed into Ministerial posts – meaning there should be little need for them to get up-to-speed on policy issues.  Steve Reed has become Defra Secretary of State and Daniel Zeichner has a junior position as Minister of State.  Although roles have not yet been allocted, it seems highly likely that Mr Zeichner, MP for Cambridge, will be in charge of the farming portflio as he was in the Shadow Cabinet.  Other Defra Ministers are Emma Hardy, MP for Kingston upon Hull West and Baroness Hayman of Ullock.  Steve Barclay currently retains the Defra brief in Rishi Sunak’s new Shadow Cabinet.

The King’s Speech, where the new Government will set out its initial priorities, will take place on 17th July.  However, Mr Reed, MP for Streatham and Croydon North, has already set out his five priorities for Defra;

• to clean up rivers, lakes and seas
• to move Britain to a zero-waste economy
• to boost food security
• to ensure nature’s recovery
• to protect communities from the dangers of flooding

At present, there is little flesh on the bones of these priorities.  The Labour Manifesto was notably silent on specific commitments to farming.

In the short-term, the most important announcements for rural areas from the new Government are likely to relate to changes in Planning policy.  The Planning system has been identified as a major barrier to the economic growth that is central to Labour’s plans.  The Chancellor, Rachel Reeves, has set out a number of policy initiatives in this area (mostly relating to England);

• the end to the de facto ban on onshore wind
• reinstating mandatory housebuilding targets for Local Authorities (however, as many of these targets were never met in the past, it will be interesting to see what practical effect this has)
• the recruitment of 300 new Planning Officers to help reduce the backlog of applications
• prioritising energy infrastructure, with decisions being made in relation to the national interest (including the effect on growth) rather than just local considerations

There will be a Budget in the autumn, with the date set before Parliament rises for the summer.

Three of the main carbon calculators for farming have agreed to harmonise their methodologies.  The Farm Carbon Toolkit, Cool Farm Alliance CIC, and Agrecalc will work towards a common minimum standard.  Each calculator could still produce a different answer in terms of emissions (the companies state there is no ‘right answer’), but they will use the same sources of base data and make it easier to see why differences occur.  The move comes in response to a report undertaken by ADAS for Defra on the Harmonisation of Carbon Accounting Tools (see https://sciencesearch.defra.gov.uk/ProjectDetails?ProjectId=20967%0A).   More details on the harmonisation routemap, including a webinar in the autumn can be found at – https://farmcarbontoolkit.org.uk/2024/06/19/three-major-farm-carbon-calculators-outline-a-roadmap-to-harmonisation/ .