Category: Policy & Business

The application window for the first round of Landscape Recovery pilot projects is now open and will close on 24th May 2022.  Landscape Recovery is the third component of ELM.  It is for farmers and land managers, including groups, who want to take a more radical and large-scale (500-5,000 Ha) approach to producing environment and climate goods on their land, such as establishing new nature reserves, restoring floodplains to help reduce the risks from flooding, or creating woodland and wetlands.  The first round will focus on;

• Species Recovery – Recovering and restoring England’s threatened native species e.g. recovering priority habitats, improving habitat quality and increasing species abundance.  Projects under this theme will be administered by Natural England
• River Restoration – Restoring England’s streams and rivers, improving water quality, biodiversity and adapting to climate change e.g. restoring rivers to a more natural state, improving resilience to climate change, this could be by reducing flood risk.  Projects under this theme will be administered by the Environment Agency

The application process is competitive.  All ‘bids’ will be scored against assessment criteria.  Defra and expert advisers will evaluate the applications and aim to get back to all applicants with a decision by 8th July 2022.  The selected projects will initially be awarded project development funding.  Up to 15 projects will be taken forward within the total project development budget available of £7.5m.  Over the course of the project development phase, which will last up to two years, there will be the opportunity to negotiate public and private funding for implementation.  If a project meets Defra’s requirements at the end of the development phase, it will be awarded long-term funding.  Implementation agreements are expected to be long term, 20 years plus.

Application is via Defra’s eSourcing Portal, for further information and guidance on applying go to: https://www.gov.uk/guidance/apply-for-landscape-recovery-funding-to-protect-native-species-and-improve-rivers?utm_medium=email&utm_campaign=govuk-notifications-topic&utm_source=6b4aa2ed-04c7-4476-b410-2b245a7fc0f8&utm_content=daily

Grassland derogations for livestock manure in Nitrate Vulnerable Zones (NVZs) will be offered again in England in 2022.  The derogation allows up to 250kg of nitrogen per hectare, if the nitrogen comes from grazing livestock manure.  The limit is usually 170kg per Ha.  The derogation is only available to those whose holding is at least 80% grass.  The application window is pretty short and will run from 1st February to 28th February.  A new derogation needs to be applied for each year by telephoning the Environment Agency  on 03708 506 506 (Monday to Friday, 8am to 6pm) with details of the amount of manure nitrogen produced by grazing and non-grazing livestock on the holding in the calendar year.  For more information visit the Defra website at https://www.gov.uk/guidance/grassland-derogations-for-livestock-manure-in-nitrate-vulnerable-zones .

It is now possible to transfer land and entitlements online in England in readiness for this year’s BPS applications.  Claimants have until 16th May (the 15th is a Sunday) to complete the transactions.  It is also possible to ‘add land by email’ now; useful where land cannot be transferred online.  The email should include:

• ‘Add land’ in the title
• the SBI and name of the business requiring the land
• the scheme you require the land adding for i.e. BPS or CS
• the land parcel reference numbers for each field
• a name and contact number

Emails need to be sent to [email protected].  The RPA will need to receive emails by 3rd May to ensure they are completed in time for claimants to make their applications by 16th May deadline.

In Wales, the transfer notification facility for 2022 entitlements is also available on RPW Online.  Note though, RPW must be notified by 15 May 2022 in order for the recipient to make a claim on entitlements they are receiving for the 2022 BPS scheme year.

The Government wishes to increase access to nature and ensure protected landscapes can deliver more for ‘climate, nature and people.  This comes in its response to the Landscapes Review undertaken by Julian Glover, which looked at whether the protections for National Parks (NPs) and Areas of Outstanding Natural Beauty (AONBs) are still fit for purpose (see https://abcbooks.co.uk/national-park-review/).

The response stops short of the recommendation in the Review to set up a new body, but does include the proposal to establish a ‘Landscapes Partnership’ to build on the existing collaboration between National Parks England and the National Association for AONBs.  This would be complemented by roles for the National Trails and National Parks Partnerships with the aim of sharing knowledge and tackling common objectives such as nature recovery and improved public access.  There is also a proposal to create a single set of statutory purposes for ANOB teams and National Park Authorities, providing more consistency and a unified statutory framework for all protected landscapes.  It is acknowledged that the current statutory purpose to ‘conserve and enhance’ is not strong enough.  This will be strengthened to ‘actively recover nature in these areas’.  The response also includes proposals to;

• rename AONB’s as National Landscapes, to reflect the significance of them and give them equivalent recognition in law, support and resources as National Parks.
• improve the monitoring and reporting in Protected Landscapes
• build on lessons learnt from the Farming in Protected Landscapes (FiPL) programme to develop the new ELM schemes
• increase engagement with all parts of society, focusing on connecting young people with nature, increasing the ethnic and socio economic diversity of visitors, and helping people with disabilities to enjoy Protected Landscapes.

Some of the Government’s proposals will involve changes to primary legislation and a 12-week consultation is now underway for these measures, closing on 9th April.  The consultation can be found at https://www.gov.uk/government/consultations/landscapes-review-national-parks-and-aonbs-implementing-the-review  .  The Government’s full response to the Landscapes Review is available via https://www.gov.uk/government/publications/landscapes-review-national-parks-and-aonbs-government-response.  There may be concern in AONBs, which are being ‘upgraded’ to near-National Park status, that some of the problems of being in a National Park may follow.  These are chiefly around the focus on ‘conservation’ in its widest sense – with development or change for almost any reason, being very difficult to achieve. 

The second round of the Future Farming Resilience Fund will be available until September 2022.  The fund, which offers farmers free business advice to help them prepare for the agricultural transition in England, was due to close in March 2022.  But according to Defra, the take up has been slower than expected due to the late harvest.  The 19 providers have been given a six month extension, although not all have taken up all of this time and they can only take on a limited number of businesses so those interested should apply sooner rather than later.

The advisors offer support in different ways.  Some are delivered via workshops or webinars, others offer free one-to-one business reviews and plans.  Refer to Defra’s website to see the providers and the new end dates https://defrafarming.blog.gov.uk/2022/01/14/more-time-for-farmers-to-apply-for-free-business-advice/

The final phase of support under the Future Farming Resilience Fund will be available over a longer timescale.  It should be launched later in 2022 and will run until 2025.

The Agri-Environment Climate Scheme (AECS) will open in Scotland on Monday 24th January 2022.  For most applications the closing date will be 29th April 2022, although there are few exceptions;

• collaborative applications will have until 31st May 2022
• stand-alone slurry store applications have until Friday 24th June 2022 – these options could help farmers prepare for the new slurry regulations being introduced; see article https://abcbooks.co.uk/scottish-water-legislation/ 
• applications for Improving Public Access (IPA) have a separate application window, this will run from Monday 28th February 2022 to 29th April 2022 – NatureScot will be running a webinar in February for applicants applying for IPA

For 2022, most applications will require a full Farm Environment Assessment, covering the whole holding.  Most will also require one or more management plans and new mandatory templates are being provided for 2022; Wader options will require a wader management plan.  For those applying for management of an SSSI or deer management it is advised to contact NatureScot before preparing an application.  Further information is available on the Scottish Government website at https://www.ruralpayments.org/topics/all-schemes/agri-environment-climate-scheme/

The Improving Farm Productivity grant is now open for applications.  It is the second theme under the Farming Transformation Fund (the first one was Water Management).  The grant will pay for capital items to improve farm and horticulture productivity and will pay up to 40% of the costs for;

• robotic horticulture and arable equipment, including robotic weeding and robotic harvesting equipment
• robotic animal welfare equipment such as robotic milking or robotic feeding items
• advanced ventilation control systems for existing horticultural and livestock buildings
• wavelength-specific LED lighting for horticultural crops.

The minimum grant is £35,000 and the maximum per theme is £500,000.  There is a two-stage application process; between 19th January and 16th March 2022 applicants are required to complete an online checker with business information and outline project details.  The checker will give the applicant a score, showing how well the project fits with the three funding priorities – improving productivity, improving the environment and introducing innovation.  It is possible to go through the checker multiple times to improve the application, before submitting it.  The funding is competitive, the RPA will inform those who are invited to make a full application.  The closing date for full applications is 14th September 2022.

Further information can be found via https://www.gov.uk/guidance/farming-transformation-fund-improving-farm-productivity-grant?utm_medium=email&utm_cam paign=govuk-notifications-topic&utm_source=454adb13-48d1-4002-87c5-2f9acf9e083e&utm_content=immediately

Defra is also holding a webinar on Tuesday 25th January for those interested see https://teams.microsoft.com/registration/UCQKdycCYkyQx044U38RAg,5yXTj8SJWE-tGJ3Jh8xTKQ,bMRbicryNkifID4EpSWchQ,7pa4VoVKR0-sbdny22ziNQ,cEBOVeI62ki2hBncOomt4Q,7xl8gYUc_0y-Lm1nbIA8OQ?mode=read&tenantId=770a2450-0227-4c62-90c7-4e38537f1102

The third theme under the Farming Transformation Fund will be Adding Value.  This is aimed at adding value in food production and will be available in Spring 2022.

More details on the operation of Biodiversity Net Gain (BNG) have been released.  This may seem incidental to agriculture but it potentially opens up a new income stream for land managers.  An impact assessment published by Defra alongside a consultation indicates that the annual market for BNG offsets may be in the region of £135m and require up to 10,000 Ha of land (see the market analysis here – Defra, UK – Science Search).  

In summary, BNG is a new policy being introduced in England under the Environment Act.  It requires any development to deliver 10% more biodiversity after the development has been done than was present beforehand.  Whilst it is possible to deliver some of the ‘after’ biodiversity through measures on the site itself such as ponds and tree planting, in many cases compensating biodiversity will need to be sourced away from the development site – the concept of biodiversity offsets.  When Planning Permission is being applied for, the application will have to submit a biodiversity gain plan with the application.  There is a calculator (the Biodiversity Metric 3.0) that is used to work out the ‘before’ and ‘after’ biodiversity.  A market will develop in biodiversity offsets to meet developers needs.  There is a requirement that any biodiversity created has to be guaranteed for 30 years.  Conservation covenants are seen as a key way of ensuring this.

Whilst the Environment Act provides the overall legislative framework, the scheme details need to be filled-in by Secondary legislation.  This is what is being consulted on.  On important announcement is that BNG will not become mandatory until November 2023 – therefore the market for land owners will not be fully developed in the short term (although some firms are already active and trying to set up a ‘bank’ of BNG offsets).  Another important date is that only habitats created after 30th January 2020 can be used as offsets.

One unresolved issue is the interaction of all the various ‘land management’ initiatives.  For example, could a landowner create a habitat to sell the biodiversity offsets, but then also sell the carbon credits, nutrient balances or any other environmental ‘service’.   This also applies to land entering a Defra scheme under ELM – could this also pick up BNG credits?  The consultation indicates Defra is ‘minded’  to allow BNG offsets and other market co-exist as long as any outcomes paid for are ‘distinct and additional’.  This builds on Defra’s payments principles under ELM schemes where it seems ‘stacking’ of payments will be allowed as long as different agreements do not ‘pay for the same thing twice’.  Although this seems positive for landowners the precise interpretation of these rules is still not clear and may not become so until both ELM and BNG scheme rules are published.  

The consultation on BNG runs until 14th April 2022.  The documents can be found at https://www.gov.uk/government/consultations/consultation-on-biodiversity-net-gain-regulations-and-implementation.

Northern Ireland plans to continue with area-based direct payments as part of its new farm support proposals.  However, they are likely to be lower than current levels and total receipts will be capped at relatively low levels.  These proposals are set out in a consultation issued by the Northern Irish government and closely follow the Future Agricultural Policy Framework published in September (see https://abcbooks.co.uk/ni-farm-policy/).

There will be eight main ‘components’ of support;

1. Resilience Measure:  an area payment, but at lower levels than currently.  Farm Sustainability Standards will replace cross-compliance but these will be amended and include new requirements like soil sampling, nutrient planning and data provision.  There are proposals to alter the eligible land and active farmer definitions.  Payments will start to be reduced after a threshold of £60,000.  One proposal is to raise the minimum claim threshold to 10 hectares.  There will also be a Crisis Framework put in place to deal with periods of very low market prices.  Details are still to be worked out, but it will move away from the EU mechanisms such as Intervention and Private Storage Aid and likely be more focused on direct payments to farmers.
2. Headage Sustainability Measure:  17% of the current support budget will be diverted into headage payments for suckler cows, a beef slaughter premium and possibly ewe headage payments.  The suckler payment will be limited by quotas based on historic production.  There will be requirements on maximum age at first calving and calving intervals to drive productivity improvements.  The slaughter premium (‘Beef Transformation Measure’) will be targeted at getting animals finished earlier with the eventual aim of having all beef animals slaughtered by 24 months.  it is not intended to bring in a ewe premium initially, but this will be kept under review.
3. Farming For Nature: this will build on existing NI agri-environment schemes.   The measures will evolve over time and the consultation indicates that funding will gradually shift from the Resilience measure so that this element becomes the ‘central plank’ of support.  There will be trails of new schemes to see what works – there is a clear desire for collaboration and landscape-scale schemes to achieve a critical mass in habitats.  Areas that will be focused on include hedges, walls, field margins, pollinators, buffer strips, tress (including agro-forestry and planting around farmyards), natural grasslands, farm ponds and control of invasive species.
4. Farming for Carbon:  there is less detail on precise measures under this heading as they are still being worked on.  It is highlighted that removing low-productivity animals (via the headage payment system) will release land for other ‘carbon friendly’ uses such as forestry.  Other areas being explored include feed supplements, livestock genetics, fertiliser additives, fertiliser application, increase use of legumes, peat restoration and increased use of anaerobic digestion.
5. Investment:  this primarily relates to grants for capital investment on farm.  These will be targeted at items that improve productivity, innovation, cooperation and environmental outcomes.
6. Knowledge:  this is seen as key to the success of many of the other measures, with farmers’ education, knowledge and skills being vital to implement the improvements targeted.  The measure will build on existing programmes such as Business Development Groups.  Whilst the details are being worked on, there is a strong presumption that Continuous Professional Development (CPD) and lifelong learning will be part of the package.  This may, in time, become compulsory in order to access funding.
7. Generational Renewal:  linked to the measure above, there is a view that getting farm businesses into the hands of younger people will drive innovation and lead to a better-skilled sector.  The consultation proposes a Succession Planning Facilitation Service to prepare businesses.
8. Supply Chains:  the focus here is on farm-level issues rather than sector-wide measures as the latter will be covered in the Northern Ireland Food Strategy Framework.  Measures being looked at include better market information to increase transparency, better training for farmers on the food chain, and support for collaboration between primary producers.

More details on the consultation can be found at – https://www.daera-ni.gov.uk/sites/default/files/consultations/daera/21.22.164%20Consultation%20on%20Future%20Agriculture%20Policy%20Proposals%20for%20NI.pdf .  It runs until the 15th February 2022.