Category: Policy & Business

Further to our article published on 25th May (see https://abcbooks.co.uk/farming-transformation-fund/) the Adding Value theme of the Farming Transformation Fund is now open for applications.  As in previous rounds of the Fund, it is a two-stage process, with the initial stage an online checker which can be found at https://check-farming-transformation-fund.defra.gov.uk/adding-value/start.   A reminder that the manual is available online via https://www.gov.uk/government/publications/adding-value-grant-for-farmers-to-improve-crops-or-livestock

The online checker will remain open until 21st July, after which those projects which score high enough will be invited to submit a full application.  Applicants will have until 31st January 2024 to submit their application in full.  Under this theme, £30 million will be available to support farmers and growers to process, diversify and add-value to their products.  It will offer grants of between £25,000 and £300,000 for up to 40% of eligible project costs.  

Defra has released the results from its latest Farm Practices Survey (FPS).  The Survey, run in February 2022, focused on practices relating to greenhouse gas mitigation.  The key findings for the eight different topics in the survey are;

• Nutrient Management – in 2022, 54% of holdings had a nutrient management plan.  However, this is the lowest percentage in the last 10 years – over 60% reported having a management plan in 2012.  It seems quite odd that this figure is going backwards. 
• Anaerobic Digestion – perhaps not too surprising, but the majority of farms do not process slurries, crops or other feedstock by AD.  Just 8.3% of holdings were found to be doing so in 2022, slightly down from 8.9% in 2021.
• Emissions – the proportion of farmers considering greenhouse gases to be either fairly or very important when taking decisions about their land, crops and livestock is 64% in 2022; a decrease from 67% in 2021.   In 2022, 58% of farmers said that they were currently taking action to reduce GHG emissions from their farm.  Of those taking action, the three most common actions are recycling waste materials from the farm (82%), improving energy efficiency (78%) and improving nitrogen fertiliser application accuracy (63%).  The largest change in actions seen between 2013 (when these questions were first asked) and 2022 was an increase in the number of farmers improving efficiency of their manure & slurry management and application.  This has risen from 28% of holdings in 2013 to 52% in 2022.
• Fertiliser, Manure and Slurry Spreaders – just over three quarters of holdings (78%) spread manure or slurry on their grass or arable land in 2022 and 85% spread fertilisers.  Rather worryingly, on 43% of holdings where the farmer spreads at least some manure or slurry themselves, the manure or slurry spreader is never calibrated.
• Manure and Slurry Storage – the most common storage facility for solid manure continues to be temporary heaps in fields with 72% of farmers using this type of storage in 2022.  The most common facilities for slurry storage are tanks (16%) followed by lagoons without a strainer (10%).  Slurry in a tank is far more likely to have a cover than any other type of store.  In 2022, 21% of livestock farmers planned to make changes to their manure or slurry storage facilities.  Of these, 20% planned to make the changes within the next year and a further 58% in the next 1 to 3 years.
• Livestock Health Planning and Biosecurity – in 2022, 73% of livestock farms had a Farm Health Plan, compared with 71% in 2021.  Of those holdings with a FHP in 2022, 83% had created the plan with assistance from a vet or advisor, down from 87% in 2021, although the proportion using a vet or adviser has risen steadily from 60% in 2009 when the survey was first undertaken. This has probably been influenced by Farm Assurance scheme requirements.
• Grassland and Grazing – in 2022, 73% of livestock holdings indicated that a proportion of their temporary grassland had been sown with a clover mix, down from 76% in 2021, with 19% having sown all of their temporary grassland with a clover mix.  High sugar grasses were sown on 59% of livestock holdings with temporary grassland.
• Livestock Feeding Regimes and Breeding Practices – the number of holdings using a ration formulation program or expert nutritional advice was 67% in 2022, but has been steadily falling since 2018.  Those who reported ‘always’ using a program or expert advice was over 20% in 2018, but in the latest survey is now below this level.  In 2022, 49% of commercial dairy holdings breeding dairy cows always used bulls with a high Profitable Lifetime Index (PLI).  This has increased from 40% in 2020.  In 2022 bulls with high Estimated Breeding Values (EBV) were always used by 14% of Grazing Livestock LFA holdings breeding beef cattle and 16% of Grazing Livestock (Lowland) holdings breeding beef cattle.  Rams with high Estimated Breeding Values (EBV) were always used by 7% of Grazing Livestock LFA holdings breeding lambs and 10% of Grazing Livestock Lowland holdings breeding lambs.  However, in 2022, the holdings using bulls and rams with high EBVs at least some of the time accounted for 46% of beef cattle and 43% of lambs at June 2021.

The full release can be found via https://www.gov.uk/government/statistics/farm-practices-survey-february-2022-greenhouse-gas-mitigation-practices 

 

Scottish farmland values increased by more than 30% in 2021 according to a recently published report.  Values for the poorest quality grazing land increased by even more as purchasers looked for land for new forestry plantations.

These findings come from a study undertaken on behalf of the Scottish Land Commission (see https://www.landcommission.gov.scot/downloads/62546512f4179_Land%20Market%20Summary_FINAL.pdf for details).  The aim of the project was to see what are the current drivers in the Scottish land market.  Some key findings were;

• farmland values rose 31% in 2021 (the UK average increase was estimated at 6%)
• hill ground suitable for tree planting rose in value by 60% during 2021
• more land sales are being conducted ‘off-market’
• the amount of land being offered for sale has remained broadly the same in recent years, but at the same time demand has risen (hence the increase in prices)
• basis for valuing land is changing from a focus on agricultural and sporting value towards natural capital value and forestry potential
• there is growing demand for both large rural estates and small ‘lifestyle’ holdings

The report concludes that the Scottish land market is likely to continue to experience strong growth in the foreseeable future.

Defra has provided a little more detail on the upcoming Local Nature Recovery (LNR) scheme.  In a post on its Future Farming Blog (see https://defrafarming.blog.gov.uk/2022/05/27/local-nature-recovery-in-2022/) the Department sets out the broad areas the LNR will fund.  In general, these are quite similar to the areas that the existing Countryside Stewardship focuses on – LNR is due to replace the CS from 2024.  Defra is also looking to recruit farmers and land managers to help in the ‘co-design’ of the LNR.

Defra has now published the full (and final) guidance for SFI 2022.  This can be accessed at https://www.gov.uk/government/collections/sustainable-farming-incentive-guidance.  As has been previously written, the Sustainable Farming Incentive this year covers three land Standards – Arable & Horticultural Soils, Improved Grassland Soils and Moorland.  The updated guidance provides more detail on the working of each Standard and what farmers will have to do.  The opening date for the scheme has still not been given – the latest guidance states ‘late June’.

As in the previous round of the Farming Transformation Fund, Defra is making the manual for the next theme; ‘Adding Value’ available before its launch in June.  The manual can be found at https://www.gov.uk/government/publications/adding-value-grant-for-farmers-to-improve-crops-or-livestock/about-the-adding-value-grant-who-can-apply-and-what-the-grant-can-pay-for

Under this theme, £30 million will be available to support farmers and growers to process, diversify and add-value to their products.  It will offer grants of between £25,000 and £300,000 for up to 40% of eligible project costs.  Once again, there will be an online checker and if a project scores high enough applicants will be invited to submit a full application.  If successful, applicants will have until 31st January 2024 to submit a full application.

The Farming Transformation Fund is part of the Farming Investment Fund (FIF) which was launched last November.  Applications under the Water Management and Improving Farm Productivity themes have already taken place.  Those successful under the 1st stage of the Water Management theme have until 30th June to submit their full application and those invited to make an application for Improving Farm Productivity have until 14th September.   The deadline for claiming equipment under the first round of the Farming Equipment and Technology Fund (the small grant of FIF) is 30th October 2022.

 

A new round of the Farming Innovation Programme is now open.  Farmers and foresters can apply for funding towards innovative methods and technology to solve major problems within the industry.  Defra will work with UK Research and Innovation (UKRI) to invest up to £1m in feasibility studies and projects.  Applications are competitive and there is a two-stage process.  EOI to the first stage must be submitted by 6th July, with the second stage opening in August for those that have been successful.  Project costs are not required at the EOI stage, but to give applicants an idea of scale, total project costs at the full stage must be between £28,000 and £56,000.  Proposals must be able to show how the project will benefit farmers, growers or foresters in England.  Further information can be found via https://apply-for-innovation-funding.service.gov.uk/competition/1158/overview#scope

 

A number of grants will be available over the next three years to assist Welsh farmers during the transition to the new Sustainable Farming Scheme (see https://abcbooks.co.uk/new-welsh-schemes/).  These are now starting to become available; the ‘Small Grants – Efficiency’ and ‘Small Grants – Environment’ opened for applications on the 18th and 23rd May and will close on the 29th June and 1st July respectively.

Small Grants – Efficiency

Small Grants – Efficiency is a capital scheme designed to help Welsh farmers to improve the technical, financial and environmental performance of their farm businesses.  It supports capital investments in equipment and technology and, as in previous schemes, there is a pre-defined list of items available.  Each item has a full specification together with the standard value and the grant value.  The full list of capital items can be found via https://gov.wales/small-grant-efficiency-list-eligible-capital-items-html.  The maximum grant is £12,000 and the minimum is £1,000.  The grant provides a 40% contribution against the actual invoiced costs up to the maximum stated in the scheme rules.  Applications and claims are all online.  The scheme is competitive and applications are scored, each item has a weighting.  If successful, contracts must be accepted within 30 days and all items must be purchased and claimed for within 180 days.  Further scheme details can be found at https://gov.wales/small-grants-efficiency

Small Grants – Environment

The Small Grants – Environment, is a standalone scheme providing a maximum of £7,500 funding per window for Capital Works Projects.  Set lists of Capital Works are available to support the delivery of beneficial environmental outcomes under the following three themes:

• carbon
• water
• landscape and pollinators.

This round of Small Grants – Environment will address the theme of Water.  A programme of capital works is available to help Welsh farmers to carry out projects to help improve water quality and reduce the risk of flooding.  The Capital Works items will be identified as ‘Main’ and ‘Supportive’ Work(s), which, together, form a ‘Project’.  The payment rates for the items can be found via https://gov.wales/small-grants-environment-water-payment-rates-html.  The scheme is competitive and each Expression of Interest will be scored.  Every land parcel in Wales has been assigned a score for each available activity, these can be viewed via applicant’s RPW online accounts.  The highest scoring capital works projects will be selected.  Further scheme details can be found at https://gov.wales/small-grants-environment

Timetable

Other funding is becoming available, the table below shows the application windows for each scheme;

 

 

A new ‘super’ National Nature Reserve (NNR) has been designated.  The Somerset Wetlands NNR will protect 6,140 hectares of saltmarsh, heath and wetland habitats.  The site brings together six nature reserves and other land managed for its nature in the Somerset Levels, Coast and Moors and will join England’s developing Nature Recovery Network.  The new ‘super’ NNR comes 70 years after the first designation of a National Nature Reserve.  The creation is part of the Government’s commitment under the Environment Act to halt the decline of habitats and species.

Defra Statistics

The area of UK land managed according to organic principles grew again in 2021.  Latest figures released on 12th May from Defra put the organic land area (both fully organic and in-conversion) at 507,000 hectares.  This is a rise of 3.6% compared to 2020.  The organic area peaked in 2008 at over 700,000 hectares, but has seen a steady decline until 2018, after which, it started to increase again.  The growth in 2021 has mainly been driven by a 34% rise in the area of in-conversion land.

Organic land now represents 2.9% of the total farmed area on agricultural holdings in the UK.  Grassland makes up, by far, the largest organic area, with permanent pasture taking 61% of the share and temporary grassland 20%.  Cereals are the next highest at 9.2%, increasing by 9% compared with 2020.

In the meat sector, the numbers of cattle and sheep farmed organically fell in 2021 compared to 2020.  Organically reared sheep experienced a 1% decline, to 723,600 head; organic sheep account for 2.2% of the UK flock.  Cattle numbers fell by 2.7% to 295,600 head, making up 3.1% of the total UK herd.  Both organically produced pig and poultry numbers experienced a year-on-year increase of 17.8% and 6.2 % respectively.  At 32,100, organic pig numbers make-up just 0.6% of the total UK pig herd.  Organic poultry numbers now stand at 4.02 million head make up 2.1% of the UK’s flock.

The full details can be found at https://www.gov.uk/government/statistics/organic-farming-statistics-2021

UK Organic Market

The 2022 Organic Market Report by the Soil Association shows the UK organic market grew by 5.2% to over £3 billion in 2021.  The Report summarises the trends in the 2021 organic market in the UK.  Since 2019, the market has seen a 23% growth. spread across food & drink, beauty & well-being and textiles.  Local and online shopping including box schemes, have been big drivers of growth over the last two years.  According to the Report, online and boxed schemes have seen sales increase by 13% to £558m compared with 2020 and by 54% when compared with 2019.  Supermarkets make-up 64% of the organic food market, increasing by 2.4% in 2021.  The food service sector, despite a challenging environment, also experienced a 3.3% year-on-year increase.  The Report shows that shoppers are now spending nearly £60m every week on organic food and drink.