The Expression of Interest for the Sustainable Production Grant (SPG) is now open and closes on 11th October 2019. The scheme provides capital grants to :
enhance on-farm nutrient management
protect and enhance water, soil and air quality
increase on-farm water efficiency
increase on-farm resource efficiences
Grants of between £12,000 and £50,000 are available.
Glastir Woodland Creation
The next Expression of Interest window for Glastir Woodland Creation opens on 30th September and closes on 8th November 2019. Grants of between £1,600 per hectare and £4,500 per hectare are available for establishing different types of woodland. There is also a fencing grant (£3.48 per metre) and maintenance payments of between £30 and £60 per hectare for either 5 or 12 years. In addition, there may also be a Woodland Creation Premium Payment of £350 per hectare for 12 years where agricultural production has ceased to make way for the woodland.
Basic Payment Scheme 2019 Support Scheme
A reminder that claimants need to apply for the BPS 2019 Support Scheme. This will ensure they receive 90% of their estimated 2019 BPS payment within the 1st week December if they do not receive their full BPS payment on 2nd December. Online applications will be available in October.
Defra has published the final independent report on the review of England’s National Parks and Areas of Outstanding Natural Beauty (AONBs). The review, which commenced in 2018 (see article https://abcbooks.co.uk/national-parks-review/) found the current system of National Parks and AONBs is ‘fragmented’, ‘marginalised’ and often ‘misunderstood’. The central proposal from the review is to bring National Parks and AONBs together as part of one family of National Landscapes under a National Landscapes Service (NLS). Other landscape designations may eventually be brought under this umbrella including urban National Parks. At present, the ten National Parks in England operate very much as separate entities with little coordination between them.
The report goes on to say the current system of governance is outdated and needs to change. It found in many cases the boards were too big, did not do a good enough job in setting a strategic direction and are ‘deeply unrepresentative of England’s diverse communities’. The report recommends for AONBs in particular, that funding for these be increased, they are give a new shared purpose with National Parks and more say on development within them. It also suggests the ‘cumbersome title’ of AONB be replaced with National Landscapes. Three existing AONBs are proposed to be given National Park status – the Chilterns, the Cotswolds, and Dorset and East Devon.
In total, the report (of 168 pages) makes 27 proposals under the following 5 key areas:
Landscapes alive for nature an beauty
Landscapes for everyone
Living in landscapes
More special places
New ways of working
Those farming in such areas might be concerned by the report. Especially those in AONBs which look set to get an ‘upgrade’ under the proposals; including potentially extra planning controls. One of the criticisms of National Parks is that they stifle development in the name of preservation. The report recommends that the ‘social and economic wellbeing of communities’ should be a statutory purpose of ‘National Landscapes’ and there is another recommendation aiming to promote affordable homes. Even so, many working in these areas will be concerned that perception remains that they are largely a recreational resource for the wider population. The full report can be found at https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/833163/landscapes-review-final-report.pdf The Government now has to decide whether to enact any of the recommendations.
There has been a reshuffle in the junior Ministerial positions at Defra. Rebecca Pow has replaced Therese Coffey following her move to the Department of Work and Pensions (DWP). Ms Pow, MP for Taunton Deane, will share her new role as Parliamentary Under Secretary in Defra with one in the Department for International Development. In Defra she will be responsible for animal welfare, marine biodiversity & environment, and domestic & international forestry. Ms Pow is a former Parliamentary Private Secretary in Defra, she has also served as Chair of the Defra Backbench Committee and sat on the Environmental Audit Select Committee. Prior to politics she worked as a journalist specialising in the environment, farming and gardening. Other changes in the Department include the promotion of Zac Goldsmith to Minister of State. Mr. Goldsmith only joined in July, replacing Macclesfield MP David Rutley.
Readers will recall Higher Level Stewardship (HLS) agreements due to expire in 2019 were rolled-over for another year in some cases. This was allowed after an assessment to ensure the agreements still met the rules and provided they were delivering the environmental outcomes they were initially set up to produce. Nearly 900 agreements were extended in this way. Defra and Natural England (NE) have decided to offer the same for those HLS agreements expiring in 2020 – comprising around 1,750 agreements. NE will make an initial assessment and an advisor may need to make a visit. If the current agreement is deemed suitable, NE will recommend to Defra to offer a one-year extension. NE is expected to have completed its assessments and recommendations by December 2019. Defra will make the final decision and send out amended offers which agreement holders will need to sign and return if they want to take up the new offer. Those not wishing to extend their agreement, or who are not offered an extension may apply to the Countryside Stewardship Scheme. Furthermore, those agreements which expired in 2019 and were offered a one year extension, will be offered a further year as long as all the agreement criteria continue to be met.
Those who made a BPS claim in 2018 in excess of €2,000 should be receiving a reimbursement shortly via the Financial Discipline Mechanism (FDM). The rate being used for 2018 is 1.346% (1.310% in 2017). The RPA calculates the reimbursement by taking the 2018 payment, deducting the first €2,000 and any other reductions (i.e. for a late claim), but not cross compliance penalties. This figure is then multiplied by 1.346% and any cross compliance penalties are deducted to give the final amount. Payments will start hitting bank accounts from mid-September. Remittance advice slips will be sent with ‘FDM Reimbursement’ on them once payment has been made.
Financial Discipline is the mechanism which allows for a crisis reserve to be available to the farming industry if required for such things as a disease outbreak, but without exceeding the European budget. Each year a percentage is removed from the BPS across all Member States, called Financial Discipline. If the FDM fund is not all used to relieve a crisis it is paid back to those with an eligible claim in the following year. This refund is being paid to eligible 2018 claimants from the 2017 FDM fund.
With its aspiration for British farming to reach net zero greenhouse gas emissions by 2040, the NFU has launched its Achieving Net Zero report. The report sets out three main headings or ‘pillars’ to help achieve its goal:
Improving farming’s productive efficiency – reducing emissions by using a wide range of techniques to deliver the same or increased output with fewer inputs
Improving land management and changing land use to capture more carbon – by planting more hedgerows, woodlands, improving soil organic matter and looking after grassland and pastures which store carbon
Boosting renewable energy and the wider bio-economy – replacing fossil fuel emissions by increasing the use of bioenergy and bio-based materials e.g hemp fibre and sheep’s wool.
The 12 page report also acknowledges the policy measures to achieve net zero emissions by 2040 will require a partnership approach. Support for producers will be required not just from Defra but also from the Department for Business, Energy and Industrial Strategy (BEIS), the Treasury and other Government departments. The full report can be found at https://www.nfuonline.com/news/bulletin/nfu-unveils-its-plan-for-british-farming-to-deliver-net-zero/?leader
The Agriculture Bill will need to be reintroduced in the next Parliamentary session. Following Boris Johnson’s prorogation of Parliament, the Bill, which gives the Government powers to introduce a new farm policy after Brexit, has ‘fallen’ and will not be carried over to the next session. The Bill was put before Parliament last September (see article), but has been held up, due to other (more urgent) matters. It will now have to be re-introduced into Parliament in the next session, details of which are to be set out in the Queen’s Speech, expected to be on 14th October. With the Agricultural Transition period due to commence in 2021, the NFU is calling for a delay to its start by at least one year, as there is no guarantee legislation will be in place. For the Agricultural Transition period to start in 2021, the Agricultural Bill would need to receive Royal Assent by summer 2020.
Payments will continue to be made in Euros as well as Sterling for the 2019 Basic Payment Scheme. This has now been confirmed by Defra even if the UK leaves the EU without a deal on 31st October. This year the payment window opens on 2nd December as the 1st falls on a Sunday. However there is no clarification for 2020 payments. There could be a one-off ‘renationalisation’ permanently converting entitlements from Euros to a Sterling basis, but again, we do not know at what rate; it may not be the average September rate as is the current mechanism.
Details of the ‘Operation Yellowhammer’ worst-case scenario planning in the event of a No-Deal Brexit have been published. This comes after MPs forced the Government to put the document in the public domain which had previously been classed as ‘Official Sensitive’. In terms of the food chain the report states that, although there will be no food shortages, the range of products will fall and prices will rise (affecting low-income groups the most). Certain types of fresh food supply will decrease. There is a risk that panic buying will cause or exacerbate food supply disruption. In a wider context, the document states that protests and counter protests will take place across the UK and that there may be a rise in civil disorder. The document can be seen at – https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/831199/20190802_Latest_Yellowhammer_Planning_assumptions_CDL.pdf
The Government has launched a consultation – A new Deal for Renting, seeking views on its decision to remove Section 21 of the Housing Act and to improve the grounds and process for evictions under Section 8. Readers may recall we wrote about these proposals back in April (https://abcbooks.co.uk/residential-lettings/). A Section 21 notice is the current method by which Landlords can end an Assured Shorthold Tenancy (AST) by giving the Tenant at least two month’s notice after the initial Term (usually six months) has expired. Under the new proposals a Tenant cannot be evicted from their home without ‘good reason’. The aim is to provide more stability for Tenants. Alongside the removal of S21, the Government also proposes to strengthen the Section 8 eviction process to enable Landlords to regain their property in the event they need to sell or move into it themselves.