Category: Policy & Business

No agricultural trades have been included on the latest Shortage Occupation List (SOL).  This follows a major review carried out by the Migration Advisory Committee (MAC).  The report, which can be found at https://assets.publishing.service.gov.uk/media/651557b86dfda600148e37ba/Review_of_the_Shortage_Occupation_List_2023.pdf  recommends eight occupations to be included in the List.  However, none are within the food and farming industry.  This will be a major disappointment to many in the agricultural sector who are having real difficulty in recruiting labour.

However, the Committee has reported that it is not convinced that the SOL provides a sensible immigration solution to shortage issues in low-wage sectors, and says its preference is for the Government to abolish it.  Instead, it suggests that the MAC could be commissioned to examine individual occupations or sectors where labour market issues seem particularly acute, possibly in collaboration with other bodies.  Its concerns arise due to a big change under this Review.  It has been conducted on the basis of its recommendation that no employer should be able to pay below the ‘going rate’ regardless of whether there is shortage.  Previously, being on the SOL allowed employers to pay 80% of the going rate.  As a result of removing this discount, most occupations currently on the SOL are ineligible going forward.   This change would also mean that only low-wage occupations would be eligible to be listed on the SOL, leading to concerns from the Committee that this can lead to worker exploitation and higher administrative costs for employers.

The SOL identifies occupations where employers are struggling to recruit sufficiently from the domestic workforce and migration is considered an appropriate alternative.  Inclusion on the SOL grants an occupation more favourable migration conditions, with the aim to increase the number of applicants for a role and reduce labour shortages.

Higher Level Stewardship (HLS) agreements coming to an end in 2024 may be offered a 4-year extension.  The RPA has said that Natural England (NE) will assess expiring agreements to see if they meet the necessary criteria (i.e no breaches, options remain appropriate for the priority target features on the holding etc.) and, where appropriate, will recommend that RPA offer an extension.  Extensions will not be available on holdings with unmanaged SSSIs or Scheduled Monuments that need to be under scheme options.  The extension will run from the end date of the current agreement.  Within the 4-year extension, in consultation with RPA, it will be possible to leave an agreement at any point as long as certain criteria is met including being accepted onto another environmental scheme which offers the same or greater environmental benefits.

Over the next few months those with an HLS agreement due to expire in 2024 which meet the criteria for an extension, will receive an offer from RPA before the current agreement expires.  The RPA will contact those not eligible for an extension in time for them to apply for a new scheme.  If an agreement has already been extended it may be possible to extend it again.  Further information including eligibility requirements can be found at https://www.gov.uk/guidance/higher-level-stewardship-2023-agreement-extensions?utm_medium=email&utm_campaign=govuk-notifications-topic&utm_source=7dc6a72f-88ae-421a-ab5e-e4c36d78a993&utm_content=daily.

The Agriculture and Rural Communities Bill was introduced to the Scottish Parliament on 29th September 2023.  This will provide the overarching powers to implement future agricultural policies and includes the following objectives;

• the adoption and use of sustainable and regenerative agricultural practices
• the production of high quality food
• the facilitation of on-farm nature restoration, climate mitigation and adaptation
• enabling rural communities to thrive.

The Bill follows a consultation which ran from September to December 2022 and introduced the four-tier framework for future agricultural support payments (see our article of September 2022 https://abcbooks.co.uk/future-farm-policy-in-scotland/).  The Bill does not include the detail of these payments, that will be included in secondary legislation and is likely to be published later in 2024, if the Bill becomes an Act in the coming Spring.  The Bill can be found via https://www.parliament.scot/-/media/files/legislation/bills/s6-bills/agriculture-and-rural-communities-scotland-bill/introduction/bill-as-introduced.pdf

The majority of Welsh farmers will have received their BPS 2023 advanced payment.  The Rural Affairs Minister, Lesley Griffiths announced that 96% of claimants were due to receive 70% of their estimated claim value by 12th October.  Furthermore, slightly different to other years, Rural Payments Wales is operating a ‘payment window’ this year running from 12th October to 15th December, meaning for those who have not received their payment on the first day, but whose claim is subsequently validated before 15th December, they will receive an advanced payment.  Full and remaining balances will be made from 15th December 2023, subject to full validaton of the BPS claim.  Key Farm Facts includes estimated payment rates.  Actual rates will be known once all claims have been verified.

Defra has announced it will be opening Round 2 of the Slurry Infrastructure Grants in November.  It has also already published the full guidance to help farmers prepare in advance, this can be found at https://defrafarming.blog.gov.uk/2023/10/12/slurry-infrastructure-grant-guidance-now-available-for-round-2/ .  In summary, the grant provides funding of between £25,000 and £250,000 to improve on-farm slurry storage to go beyond legal minimums.  Defra has also announced, based on feedback, that Round 2 will have the following five changes compared with the first round;

• Pig farms will be funded for up to 8 months storage to allow pig producers with less land to safely store organic nutrients until they can spread it or export it.  Cattle farmers will remain at 6 months.
• Grant towards a slurry separator can be part of the project to increase storage capacity.
• Support for covering existing stores that are fit-for-purpose with impermeable covers.
• Adding the option to build in-situ cast concrete stores as an alternative to circular and panel stores, lagoons and bags.
• Introducing an option for landlords to underwrite grant funding agreements.

Due to these changes Defra will contact all Round 1 applicants with a ‘time-limited’ opportunity to update their application if they want to change it to include these updates.

In terms of managing demand, Round 1 was heavily oversubscribed.  Defra has said it will be able to invite more projects to submit a full application this year and is encouraging everyone who would like a grant to submit and EOI when the online checker opens wherever they are located.  It says if it does have to limit applications, it will ensure public money is targeted to where it will make the biggest environmental improvements.  It will prioritise projects in areas where coordinated action is needed to reduce water and air pollution from farming.  However, these areas have been significantly increased for Round 2 (these areas can be viewed on MAGIC Maps (see https://magic.defra.gov.uk/magicmap.aspx) by selecting Slurry Infrastrcture Grant – Round 2 (England)).  Furthermore, those who aren’t shortlisted in Round 2, will have another opportunity to apply in 2024, where Defra will look to further widen the target areas. 

To get ready for the opening of the online checker, applicants can work out how much slurry storage they require to reach the scheme storage requirements.  This must be done using the latest version of the AHDB’s Slurry Wizard (see https://ahdb.org.uk/slurry-wizard).

Defra has also answered a common question it receives – whether all slurry stores will need to be covered by 2027?  It has said ‘we do not expect that any new rules will require existing stores to be covered with impermeable covers by 2027’.

The Scottish Government is asking communities and organisations to submit their proposals to become Scotland’s next National Park.  Under the Bute House Agreement there is a key commitment to designate at least one new National Park in Scotland by 2026.  All areas of Scotland are eligible to submit proposals. To meet the criteria, groups must be able to demonstrate, among other factors:

• outstanding national importance due to natural or culture heritage
• a distinctive character and coherent identity
• how National Park status would meet the specific needs of the area
• evidence of local support for the proposal

Detailed guidance has been published this can be found at https://www.gov.scot/publications/new-national-parks-nominations-guidance-appraisal-framework/.  The deadline for submissions is 29 February 2024.

The AHDB is proposing to increase its Levy rates from the start of the 2024/25 financial year.  The Levy Board has said it needs additional funding if it is to deliver more key services.  These include marketing and exports for the Beef & Lamb, Dairy and Pork sectors, and more independent research for the Cereals & Oilseeds sector as requested in feedback through the Shape the Future vote undertaken last year.  It also says the requests to do more have come at a time when the AHDB’s spending power has been greatly reduced, with inflation alone eroding the value of the Levy by around 40%.  AHDB Chair, Nicholas Saphir has acknowledged that there is never a ‘perfect time’ to increase levies, but it has been at least 12 year’s since rates have increased.  The table below shows the current and proposed rates for the four sectors proposing an increase.

Over the coming weeks Levy Payers will be given the chance to ask questions.  Sector councils will then make their final recommendations to the AHDB board who will then put the proposals to Government ministers and devolved administrations later this year.

The latest edition of the Farm Management Pocketbook (aka ‘the John Nix book’) has just been published.  The famous guide to farming business information has been updated for 2024.  More details and how to order can be found at – https://theandersonscentre.co.uk/shop/john-nix-pocketbook-54/.

The most recent State of Nature report shows the UK’s wildlife is continuing to decline.  It reveals that the species studied have, on average, declined by 19% in the UK since monitoring began in 1970.  It reports that nearly one in six of the more than 10,000 species assessed are at risk of being lost from GB.  The fugure is higher for certain groups such as birds (43%) and terrestrial mammals (26%).  Perhaps one of the most stark comments is that the UK is now one of the most nature-depleted countries on Earth.  The landmark report is described as the most comprehensive report on the UK’s current biodiversity.  It follows on from previous editions published in 2013, 2016 and 2019.  The full report can be found via https://stateofnature.org.uk/.

The payment rates under the new Habitat Wales scheme have been announced.  They will be;

• Habitat land – £69 per Ha
• Woodland habitat land – £62 per Ha
• Common land – £29 per Ha (with various top-ups for stocking and managment).

Payments to individual farmers will be capped at a maximum level – although there is no detail yet on what this might be.  Eligible land will be placed in ten broad habitat categories, and then farmers will have to follow the management presricptions for that particular category on the land.  More details can be found at – https://www.gov.wales/habitat-wales-scheme-outline-html.  The Welsh Government has not yet confirmed a budget for the scheme and it is unclear whether all applicants to Habitat Wales will be successful.