AgriFacts February 2020 Your monthly roundup of news, prices and other farming matters
The Agriculture Bill - update Having won the general election last year the majority Conservative Government confidently introduced The Agriculture Bill to Parliament on 16 January 2020, where it received its first reading in the House of Commons. The Bill received its second reading on 3 February 2020, heralding the next chapter in the UK’s Agricultural Policy to replace the European CAP.
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The transition period will allow farmers time to understand how new schemes such as the Environmental Land Management (ELM) scheme can work best for their farms
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The Government’s press release on 16 January stated that this legislation has been brought forward to free UK Agriculture from the bureaucratic CAP, boost productivity and deliver better environmental benefits and public goods.
Anyone wishing to bring a Countryside Stewardship Scheme (CSS) to and end prior to the agreed expiry in favour of entering into an ELM scheme will be able to do so without penalty
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Farmers and land managers are to be rewarded with public money to provide public goods including: better water and air quality; improved soil health: higher animal welfare standards; improved access to the countryside; and flood mitigation. This Bill will help the Government to contribute towards their net zero emissions by 2050 whilst helping to boost farmers’ productivity.
At a later stage of the transition period the Government plans to de-link Direct Payments from the requirement to farm the land. The intention is for this to allow farmers to invest in and diversity their business whilst also opening up opportunities for new entrants within the sector
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The Bill will legally require any UK Government to report regularly on food security to Parliament
The main concern for UK agriculture is that the cost of providing these public goods will be undermined by trade deals, enabling UK food to be undercut by cheaper imports produced to lower standards. The Secretary of State for Environment, Food and Rural Affairs Therese Villiers stated during the opening session of this year’s Oxford Farming Conference that the Government would be willing to walk away from any trade negotiation which would compromise our food standards. It was interesting that none of the audience gave a vote of confidence in that being delivered however. Perhaps that was why in a later interview for BBC’s Countryfile aired on 26 January the Secretary of State confirmed that: “We will hold the line. It’s in our manifesto. We have the commitment of the Prime Minister on this. We know how important for our farmers, but also for our economy, for our standards and welfare and our values. It is important that those are reflected in our trade negotiations. We will defend our national interest and our values including our high standards of animal welfare.” “In terms of chlorinated chicken and hormone beef, there are legal barriers to their imports and those are going to stay in place.” So what are -
The Knowns
The Unknowns •
Most importantly the future of trade deals in relation to agricultural goods
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The rate and method at which the Direct Payment will be reduced from 2021;
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The method in which public goods will be measured and ultimately how public money support will be paid to reward farmers for the benefits;
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The details of how of de-linking Direct Payments will work if introduced, and the potential impact on the industry;
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Whether the WTO will allow the UK to ban imports of food produced to lower welfare standards accepted in other countries;
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When the ELM schemes will be launched
It seems likely that the introduction of ELMS will be delayed and our view is therefore that those interested in environmental schemes and offsetting some of the reduction in BPS should look to the Mid Tier CSS. The introduction of the Environment Bill could also open up opportunities to sequestrate carbon and provide biodiversity offsetting for new development. Grants will be available to help farmers become more efficient and diversify, but now is the time to strategically review your business and identify what you can do to make it more resilient for a less certain future. Our team are always happy to talk through options with you.
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This Bill seeks to replace the current EU Direct Payment system
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This Bill has the support of the manifesto commitment to maintain the overall annual funding for farm support at current levels for the duration of this Parliament
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It commits to multiannual funding deals so that Treasury cannot influence on an annual basis
Big farmland bird count
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Funding available for Direct payments for 2020 will be the same as in 2019. The Direct Payments to Farmers (Legislative Continuity) Bill has been introduced to Parliament to enable this to happen
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There will be a 7 year transition period from the current Direct Payment in England which is due to start in 2021
The Big Farmland Bird Count will take place from 7-16 February. Organiser Game and Wildlife Conservation Trust (GWCT) says there has never been a more important time to take part in the initiative. To find out more information please see link below;
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During this transition period the value of the Direct Payments will be reduced
Robert Browne Fisher German LLP
https://www.bfbc.org.uk/