10 Mar 2004 News Item

Following government announcements that GM maize crops will be processed for animal feed in the UK, with a view to planting in the future, the Royal Institution of Chartered Surveyors is calling on the government to create a land register the public can consult. "The government," says RICS spokesperson Kate Bourne, "are obliged by EC law to create a register and there is talk about implementing one, but we dont believe it goes far enough. There needs to be a more stringent set of objectives put in place outlining how such a register would be drawn up and maintained, and what sort of access the public would have to it".

NOT YET DIVERSIFIED? NOWS A GOOD TIME TO TRY!

Article 1651350 PRW - Wednesday, March 03, 2004

Although Farm earnings have increased, partly through increased diversification projects, there is still scope for greater rewards, predict the farm business consultants Strutt & Parker. In the next 2 years of DEFRAs diversification grant scheme, the MTR changes are likely to cut farm incomes and diversification must be a priority stratagem. A DEFRA survey indicates that up to 70% of farming households have supplementary incomes through diversification schemes or outside work, earning above £1800. Some 3,600 farms had a diversification turnover of between £20,000 and £50,000, with 1,800 farms having an income of more than £50,000.

The Government and the EU has financed farm diversification schemes to the tune of £152 million between April 2001 to the end of 2006 through the Rural Enterprise Scheme. Their aim being to provide rural developments towards more sustainable, diversified and enterprising economies. This helps English farmers, except in designated Objective 1 areas such as Merseyside, South Yorkshire, Cornwall and the Scilly Isles, to adapt to changing markets and develop good new business ideas. Grants are discretionary, and none are guaranteed and in Objective 1 areas separate funding initiatives are applied.

A community-orientated project attracts more favourable funding than individual farm projects to the extent that 100% community benefit could attract a 100% grant. Most applications get between 30 and 40%, however, although some in Least Favoured Areas may attract 50%. Farmers interested in diversification should check the Rural Enterprise Scheme website at http://www.defra.gov.uk/erdp/schemes/res/, and Land agents, Surveyors and consultants will also be in a position to advise those with a serious proposition.

Kathryn Pennington ,Exeter office Tel: 01392 215631 kathryn.pennington@struttandparker.co.uk , David Taylor Press office Tel: 020 7318 5194 david.taylor@struttandparker.co.uk

NEW AGRICULTURAL SUPPORT PACKAGE TO BENEFIT THE ENVIRONMENT

Article 1647515 PRW - Friday, February 27, 2004

The Mid Term Review of the Common Agricultural Policy to be published on the 1st January 2005 will emphasise environmental benefit and changes to the way farmers manage their land. It will not require agricultural production to receive support payments, provided that land is maintained in a good agricultural and environmental condition

This provision will be known as “Cross Compliance” has objectives that include the protection and management of soils, the reduction of damage to habitats and landscape features and further control of water pollution from agriculture. There are likely to be 18 specific directives which farmers must comply with relating to environmental, animal health, plant health, animal welfare and food safety issues.

DEFRA research on the implementation of Cross Compliance will be published in the Spring, but the practical implementation of form filling and paperwork that will be required to demonstrate compliance with the various conditions and directives is an area of concern.

Obligations relating to set-aside will also change to reduce the minimum areas and strip widths. The is thought to benefit hedgerow and waterside habitats and give farmers the benefit of being able to take out of production what is often the least productive land.

The growing of energy crops on set-aside land should provide a reliable source of energy from renewable resources and give farmers the opportunity to diversify out of food production.

DEFRA intend to launch the Environmental Stewardship Scheme which is an amalgamation of all the existing agri-environment packages into a scheme with two levels of support. The Entry Level Scheme will entitle a farmer to £30 per hectare for issues such as hedge and ditch management, provision of buffer strips and taking land out of production. To be entitled to the Entry Level Scheme support, farmers will need to achieve sufficient points before they receive payment. Points are awarded for different objectives within the scheme.

The next level of support is to be known as the Higher Level Scheme, with support of up to £500 per hectare. This scheme will incorporate the provisions previously contained within the Countryside Stewardship Scheme and Environmentally Sensitive Areas.

The proposed Environmental Stewardship Scheme will be funded via cuts in direct payments, known as modulation. FPDSavills estimate that modulation cuts could rise to 15% by 2010, although some sources predict total modulation of 23% by the end of the decade.

Hugh Coghill, FPDSavills Director of Rural Property said: “In future, if farmers do not wish to enter into agri environment schemes then they will be financially worse off due to the effects of modulation. Therefore, FPDSavills believe that farmers will need to support the new system in order to enjoy the environmental benefits and to maximise agricultural returns.

CONTACT INFORMATION ; Hugh Coghill +44 (0) 1603 229 229 hcoghill@fpdsavills.co.uk, John Vaughan (Press Office) +44 (0) 20 7034 4725 jvaughan@fpdsavills.co.uk

UK Energy Crops Scheme for England - 2005

The Energy Crops Scheme (ECS) provides establishment grants for two energy crops, short-rotation coppice (SRC) and miscanthus, and aid to help SRC growers set up producer groups.

Applicants need to demonstrate that they have or will have an energy end-use for the crops. This could be a biomass power station or a community energy scheme using heat or combined heat and power (CHP) technology. The end-use(s) must be within a reasonable distance of the crops (generally 10 miles for small installations, 25 miles for large installations). Energy crops can also be grown for own use, e.g. to heat a home or business (see case study).

For information on end-use options in your area, contact your Community Renewables Initiative Local Support Team, British Biogen or Renewable Power Associations the two bio-energy trade associations. The Energy Crops Section at Crewe can also advise on approved end-users in your area.

Energy Crops Scheme and Environmental Stewardship

As you are aware there has been some speculation over whether and to what extent land in the ERDP Energy Crops Scheme (ECS) in England will be eligible for Entry Level Stewardship (ELS). Subject to obtaining agreement from the EU Commission, we propose that:

1.Land in ECS will be eligible for ELS provided it meets all ELS scheme requirements (such as the registration of parcels on the Rural Land Register), and will count towards the area for which the points target is calculated and payment is made for ELS.

2.ELS options may not be located within a parcel covered by ECS, even on areas that are left un-cropped in accordance with ECS rules.

3.However, field boundaries (such as hedges) may be entered into ELS boundary management options.

Please note that the above reflects Defra’s current intention and cannot be taken as a legally binding statement. Definitive guidance will be published on our website and in the ELS scheme handbook once the Commission has approved our plans.

Crops for Energy Branch

Email: industrialcrops@defra.gsi.gov.uk

If you have any queries, please do not hesitate to contact us.

Page last modified: 19 May, 2005

Environment Sensitive Farming - 2005

Rural Development Service ADAS – Applies to England only

Following on the Consultations of Defra (Department of Environment, Food and Rural Affairs) and HM Treasury Consultation June 2004.

Pesticide Management

Nutrient Management

Manure management

Waste Management

Soil Management

Environment Sensitive Farming

- practical advice for land managers

Free Workshops – Further Dates Announced

Further dates have been announced in the series of free workshops for farm advisers, agronomists, consultants and others who help farmers manage their businesses. The workshops are being run by ADAS under the Environment Sensitive Farming initiative. Environment Sensitive Farming provides the opportunity for farmers and advisers to look after the land and so protect payments under the Single Payment Scheme, to make Environmental Stewardship work for the business, to save on inputs and to protect soils.

To reserve your place visit www.environmentsensitivefarming.co.uk or ring the Events Line on 01954 268301. New dates are being added all the time so keep an eye on the website for further dates in your area. BASIS and FACTS points will be awarded.

Date: Venue: Topic:

21 June Radley Nr Abingdon, Oxon Pesticides handling, biobeds and agricultural wastes

23 June Ilkley, West Yorkshire Manure and nutrient management on livestock farms

24 June ADAS High Mowthorpe, Malton Manure and nutrient management on livestock farms

4 July Thame, Oxon. Pesticides handling, biobeds and agricultural wastes and Environmental Stewardship issues

12 July Uttoxeter area Waste/manure management on livestock farms in light of the new Agricultural Waste regulations

15 July Leominster area Waste/manure management on livestock farms in light of the new Agricultural Waste regulations

Workshops are being held throughout England to address local issues and the practical measures that can be taken to alleviate them. Topics will include: protecting soils, minimising pollution from organic manures, safe pesticide use, better nutrient management, minimising water pollution, preventing soil erosion and, with the imminent introduction of the new Agricultural Waste Regulations, farm waste management. Arable, livestock and mixed enterprises will all be catered for.

The Environment Sensitive Farming initiative is funded by Defra through the Rural

Development Service and supported by CLA, NFU and LEAF.

ESA Scheme in N.Ireland

Environmentally Sensitive Areas Scheme (along with the Countryside Management Scheme and Organic Farmers Scheme) an integral part of the agr-environmental measures included within the Rural Development Plan submitted in respect of Northern Ireland. ESA covers 20% of land in NI.

Organic Farming Scheme UK(England) 2005

What is it?

A Defra Scheme which forms part of the England Rural Development Programme ( ERDP) and is jointly funded by Defra and the European Community. In applying to enter the Scheme, applicants enter into a binding undertaking with Defra which will last for five years. There are two options under the Organic Farming Scheme (OFS):

1. payments to help farmers convert to organic farming (conversion option) during the period of their undertaking; and

2. payments to help existing organic farmers maintain their land in an environmentally beneficial way for the period of their undertaking (maintenance option).

· Download a flyer leaflet on the Organic Farming Scheme. [46KB]

What are its objectives?

To encourage the expansion of organic production in England in order to help supply the increasing demand for organically produced food. Conversion to organic farming systems also provides demonstrable gains in terms of soil health and fertility, benefits for bio-diversity and wider landscape benefits resulting from the use of crop rotations, as well as from the absence of synthetic pesticides, herbicides and fertilisers.

What are the payment rates?

Conversion Option payment rates

Rates of Aid £/hectare

Year 1 Year 2 Year 3 Years 4-5 Total

Top fruit orchards - apples (other than cider apples) pears, cherries and plums 600 600 600 30/yr 1860

Land eligible for the Arable Area Payment Scheme and land in permanent crops (including cider apples) 225 135 30 30/yr 450

Other improved land 175 105 23 23/yr 349

Unimproved grassland or rough grazing 25 10 5 5/yr 50

Maintenance Option payment rates

Rates of Aid £/hectare

Years 1-5 Total

Top fruit orchards - apples (other than cider apples) pears, cherries and plums) 30 150

Land eligible for the Arable Area Payment Scheme and land in permanent crops (including cider apples) 30 150

Other improved land 23 115

Unimproved grassland or rough grazing 5 25

What is the application process?

· For conversion aid: Before applying to the conversion element of the Scheme, applicants must have agreed a conversion plan for the land to be entered into the OFS conversion option with an Organic Inspection Body (OIB). They must have registered the land as “in conversion” to organic farming and must submit a copy of the OIBs acknowledgement letter, confirming the date on which their application to apply for organic registration was received by that OIB, with their application to the Organic and Energy Crops Implementation Team (OECNIT) at Crewe RDS .

Applications for the OFS conversion option must be submitted within 12 months of the date on which a farmers application for registration with an OIB was received. An application submitted after this deadline cannot be accepted. An original certificate of registration must also be submitted to Defra within the same deadline and completes the conversion application process.

· For maintenance aid: Most agricultural land in England that is fully organic and not currently receiving OFS conversion aid may be eligible for a five year maintenance undertaking. Before applying to join the Scheme, applicants must already be farming the land organically and be registered as an organic producer with an OIB. Applications for the OFS maintenance element of the Scheme must provide a valid certificate of registration and map with their application to the OECNIT at Crewe. They must also remain registered with an OIB for the full duration of their OFS undertaking.

Free advice on conversion to organic production is provided through the Organic Conversion Information Service (OCIS). The OCIS telephone number is 0117 922 7707.

How to apply?

It has been replaced by the Organic Entry Level Stewardship element of the new Environmental Stewardship scheme.

What do farmers have to do in return for these payments?

Farmers must farm all of the land in their organic unit in accordance with specified standards from its entry into conversion, and from 30 May 2003, under the maintenance option, for the entire period of their undertaking. In the UK, the OIBs are responsible for ensuring that these standards are complied with.

What has uptake under the OFS been since 2000?

· Statistics on the Organic Farming Scheme

Are there any case studies or examples of the Organic Farming Scheme?

Successful examples of the Organic Farming Scheme in practice can be seen in our case studies pages

Recent developments on the scheme

In November 2003, ADAS Consulting Ltd completed an Evidence Assessment to inform the Review of the Organic Farming Scheme, and aid in the development of Entry Level Stewardship.

Where to go for more information?

Information on current research into Organic Farming can be found at:-

·http://www.defra.gov.uk/farm/organic/research/index.htm

If you require details on the following Research organisations, HDRA, EFRC and WIRS they can be found at:-

· http://www.hdra.org.uk/

· http://www.efrc.com/

· http://www.wirs.aber.ac.uk/

The OFS in the future?

Find out more about the new Environmental Stewardship scheme on our website, or download the new promotional booklet [1.5MB]

Page last modified: 19 May, 2005

Page published: 10 December, 2002

Hill Farm Allowance

What is it?

The Hill Farm Allowance (HFA) is one of the ten England Rural Development Programme (ERDP) schemes, which provides dedicated support to beef and sheep producers who farm the English Less Favoured Areas (LFAs). It is designed to ensure that agriculture continues to make its irreplaceable contribution to rural society and the managed environment of the English uplands. It replaced the Hill Livestock Compensatory Allowance (HLCA) scheme, where payments were based on animal numbers and encouraged over production. The HFA is an area-based scheme with environmental conditions providing a bedrock of support on which producers can build businesses which will assure a viable and sustainable future using the various other schemes in the England Rural Development Programme. A booklet providing further information on the Hill Farm Allowance is available.

An analysis has been completed which illustrates the impact of the transition from HLCA to HFA. The report uses actual payment data for HFA 2001 and HCLA 2000.

· Click here to download information on the March 2002 report on the transition from HCLA to HFA document [1.28MB]

What are the benefits of the Hill Farm Allowance?

The HFA:

· contributes to the maintenance of the social fabric in upland communities through support for continued agricultural land use and;

· helps preserve the farmed upland environment by ensuring that land in LFAs is managed sustainably.

Support for hill farmers is a social, economic and environmental measure. Area payments are a more rational basis for delivering this type of support. Having a more explicit environmental objective provides a clearer recognition of the farmers role in maintaining upland habitats.

Who can apply for the Hill Farm Allowance?

The HFA is open to extensive sheep and suckler cow farmers in Less Favoured Areas (LFA). Therefore any producers who submit an Integrated Administration and Control Scheme (IACS) Area Aid Application (AAA) may be eligible for HFA if;

1. they have a minimum 10 hectares of eligible forage land;

2. they keep breeding sheep and /or suckler cows;

3. they stock at a minimum of 0.15 livestock units per hectare (or less if they have an acceptable environmental reason for stocking at a lower rate);

4. they follow good farming practice including the avoidance of overgrazing undergrazing and unsuitable feeding practices;

5. no prohibited substances are found during veterinary or other investigations;

6. they undertake that the LFA land upon which their claims are based will continue to be farmed for five years from the first time they receive LFA support.

For further information see the HFA Frequently Asked Questions page.

How do I apply?

There is no specific HFA application form, but all HFA claimants must submit an IACS Area Aid Application. To register their wish to claim HFA, the claimant needs to indicate this on their IACS AAA form. HFA 2001 did not require such an indication. Additional information to support the claim will be taken from producers Sheep Annual Premium Scheme (SAPS) and/or Suckler Cow Premium Scheme (SCPS) claims.

The Single Payment Scheme and Hill Farm Allowance

Defra has confirmed that it is possible for two separate claimants to claim on the same area of land, one under the Single Payment Scheme (SPS) and the other for the Hill Farm Allowance (HFA). In order to qualify, both must satisfy the relevant scheme rules and should declare the Less Favoured Area (LFA) land on their respective SPS application forms.

The relevant scheme rules are set out in the scheme guidance notes.

In particular, a "grazier" (see Note A below), who is an SPS claimant in his own right can claim HFA on additional grazed LFA land while his landlord can simultaneously claim SPS on that land.

In that case the landlord could be liable for any cross compliance breaches on the LFA land (including, for example where the land is overgrazed or poached by the grazier’s animals) and the grazier could be liable for the consequences of both cross compliance breaches as well as for any breach of ’Good Farming Practice’ (GFP) conditions in respect of his HFA payment.

A grazier who is not an SPS claimant can claim HFA on land which is also part of the landlord’s holding for SPS purposes.

The landlord may be liable for cross compliance breaches. The grazier for any GFP breaches.

If entitlement is unclear, landlords and graziers are advised to take professional advice to avoid making claims and finding that their application is refused and are liable to pay a penalty for over-declaration of land.

[Note A: In this context, "grazier" refers to a farmer who uses the LFA land under a grazing licence. Where land is let out under a tenancy agreement, including a Farm Business Tenancy, etc., a landlord will not be able to claim SPS as the land will not form part of his holding.]

Page last modified: 19 May, 2005

Page published: 10 December, 2002

What is the Farm Woodland Premium Scheme?

Defras Farm Woodland Premium scheme (FWPS) aims to enhance the environment through the planting of farm woodlands, thereby improving the landscape, providing new habitats and increasing biodiversity. It supports the creation of farm woodland by encouraging farmers to convert productive agricultural land to woodlands through annual payments to compensate for agricultural income forgone. Payments are made for 10 years (for mainly conifer woodlands) or 15 years (for mainly broadleaved woodlands).

FWPS payments are additional to woodland establishment grants available under the Forestry Commissions Woodland Grant Scheme (WGS). Entry into the FWPS is conditional upon the land concerned being converted to woodland under the WGS.

The WGS and FWPS were closed to new applications on 28 June 2004. The new English Woodland Grant Scheme will be open in July 2005. Information on transitional arrangements is available on the Forestry Commission website.

The FWPS is part funded by the EU. Until 1 January 2000 it was governed by EC Regulation 2080/92 on forestry measures in agriculture and all approvals issued before that date are still governed by that Regulation. All approval issued on or after 1 January 2000 are governed by EC Rural Development Regulation (1257/99).

The ERDP provides for a total expenditure over 7 years of £77m on the FWPS and £139m on the WGS over the 7 years 2000 to 2006.

A booklet providing guidance information on the Farm Woodlands Premium Scheme is available for download from the "Forms and Regulations section of the Defra website, or you can download it directly by using the link below:-

· Farm Woodlands Premium Scheme Rules and Procedures booklet [153Kb]

What are the benefits of Farm Woodland Premium Scheme?

The Government is committed to increasing woodland cover and the FWPS has been particularly successful in encouraging farmers to convert their agricultural land to woodland.

Research has shown that, although sites established under the farm woodland scheme were still very young (no more than 10 years old), there were signs that declining farmland birds such as Linnet, Yellowhammer, Skylark and Song Thrush were making use of the woodlands surveyed. An article in the BTO News [March/April 2000] said it was encouraging to see that the early phase of woodland growth was beneficial to many species, including several with worrying population trends. Well designed woodland enhances the landscape and provides useful habitat for a number of species.

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What are the rates of payment?

FWPS payment rates (applicable from 1 April 1997)

TYPE OF LAND PAYMENT RATE

Arable land

Outside Less Favoured Areas £300/hectare/year

Disadvantaged Areas of Less Favoured Areas >£230/hectare/year

Severely Disadvantaged Areas of Less Favoured Areas £160/hectare/year

Other Improved land

Outside Less Favoured Areas £260/hectare/year

Disadvantaged Areas of Less Favoured Areas £200/hectare/year

Severely Disadvantaged Areas of Less Favoured Areas £140/hectare/year

Unimproved Land

Less Favoured Areas (whether Severely Disadvantaged or Disadvantaged Areas) £60/hectare/year

These payments are in addition to the full range of establishment grants available under the Forestry Commissions Woodland Grant Scheme.

Where FWPS land is used to meet a farmers set-aside requirements under the Single Payment Scheme (SPS), the FWPS payment rate may have to be reduced to zero. This is because such land will already be attracting a set-aside entitlement payment under the SPS.

Page last modified: 19 May, 2005