GFW Rural Focus - Spring 2024

Welcome

Welcome to the first issue of GFW’s Rural Newsletter. In this edition Elliot Taylor provides an insight into the spring season so far and the importance of strategic planning to make your business more resilient in challenging times.

Archie Gray provides a spring livestock market update and explains how the first quarter of 2024 has unfolded.

With the recently implemented cap on 6 Sustainable Farming Incentive (SFI) Actions we discuss what this will mean for farmers affected by this change.

We will answer some of the common questions farmers have in terms of permitted development rights, and explain the requirements for Countryside Stewardship (CS) capital claims.

The SFI cap - balancing production and the environment | Page 2 Strategic Business Plans

Page 4

Grants

Spring Mart Update

Page 6

The SFI cap - balancing production and the environment

Sarah Bramwell | Assistant Farm Business Consultant

The enforcement of DEFRAs cap on the 6 SFI actions that encourage ‘rewilding’ of arable land has left questions for farmers who have live agreements taking their farms out of production, along with farmers who have been effected by the immediate enforcement of the cap.

The restriction has come about as roughly 1% of those who applied for SFI in 2023, entered 80% or more of their farm into actions that involve taking land out of food production.

What does this mean for farmers in this 1%?

At the end of the three year agreement, it is likely that a portion of this land must be returned to arable production. With the vague seed mix prescriptions for the SFI actions, a tactical choice of mix should now be made. Not only one that is cost effective and fulfils the criteria of the action, but one that contains species which will maintain and enhance arable ground, rather than creating soil full of wild flower seeds at the end of those 3-years, competing against your arable crops.

SFI

applications going forward

There are still plenty of opportunities for new SFI applications to utilise the actions available, maintaining productive arable land and balancing

environmental actions to reduce risk on farm. NUM3, legume fallow, is becoming a crucial part of many arable rotations. With no cap on this action, a 50:50 split of winter wheat and legume fallow rotations are becoming more common, to reduce risk and maintain farm gross margins, without having to take land out of production.

There is still the potential to utilise the restricted actions to their fullest extent, taking less productive blocks of land out of production. Areas that may be considered opportunities for this are:

▪ Wet field corners

▪ Blocks in fields shaded by dense woodland

▪ Oddly shaped field corners that increase working time to manoeuvre machinery into these areas

Taking these areas out of production can potentially increase profit margins on a field by field basis by removing unproductive areas.

Looking forward, new actions promised for Summer 2024 will aim to support the farming of productive land with payments for direct drilling and variable rate fertilising, balancing the financial decision between farming the land and taking it out of production.

SFI Actions with 25% cap

IPM2: Flower-rich grass margins, blocks, or in-field strips

AHL1: Pollen and nectar flower mix

Understand your seed mix requirements

MUST contain:

- 4 grass species (excluding ryegrass)

- 10 wild flower species

Grass free seed mix containing at least two of the following:

- Common knapweed

- Musk mallow

- Oxeye daisy

- Wild carrot

- Yarrow

AHL2: Winter bird food on arable and horticultural land

AHL3: Grassy field corners or blocks

A seed mix containing at least six crops that will provide an extended supply of small seeds for farmland birds.

MUST NOT contain:

- Artichokes

- Reed canary grass

- Giant and intermediate sorghum

- Maize

- Miscanthus

- Sweet clover

- Tic beans

No seed mix requirements.

IGL1: Take grassland field corners or blocks out of management No seed mix requirements.

IGL2: Winter bird food on improved grassland No seed mix requirements.

Take a fresh look what GFW offer

To find out more about our range of services scan the appropriate QR code below:

Strategic business plans: strengthen your farms response to unpredictable weather

Elliot Taylor | Partner

As the spring season unfolds across the UK countryside, farmers are once again facing the unpredictable whims of the weather. From unseasonal temperatures to prolonged periods of rain since last autumn, the agricultural industry has grappled with a range of challenges that have impacted crop growth, livestock welfare, and overall farm productivity.

Prolonged wet spells have delayed planting schedules and increased the risk of soil erosion and waterlogging, stunting root development and compromising crop yields. The wet spring made 2024 lambing particularly tedious in some regions. In both cases, farmers have had to adjust their strategies to accommodate the monotonous weather.

Volatile weather patterns underscore the importance of resilience and need for adaptability in farming practices. A successful business plan will be able to establish a new course of direction in the case of unpredictable events or cope with a change and fall back into line with the plan once the challenge has been overcome.

Farming is rarely considered an exact science due to the quantity of external factors that influence the outcome of the hard work that farmers put into their businesses. Whether it is the unpredictable nature of the ‘delightful’ British weather, or the extreme price volatility the industry has experienced over the last 18 months ‘Lady Luck’, good or bad, often plays a

key role in whether you can successfully navigate these challenges. Of course, it can be sometimes easier to dwell on the factors out of your control rather than focusing on those that you can change.

Creating a strategic business plan:

Making several small changes to your farming business can have an enormous positive impact on your bottom line. Fundamentally, focusing on those factors in your control will help mitigate against those outside of your reach and will help to reduce risk. As important as it is to concentrate on the detail by making those important marginal gains, it is equally vital that you take a step back and look at what direction you want your business to go in and how to get it there.

We have seen many farmers embracing sustainable techniques such as cover cropping and conservation tillage to enhance soil health and mitigate the effects of extreme weather events which have diverted aspects of their business plan to adapt to these unpredictable events.

Having a strong business plan is vital. Not least to prepare for the eventual removal of direct support payments but also because being able to achieve your objectives can only be possible from careful planning and carrying out detailed business analysis.

As spring unfolds into summer, farmers will continue to monitor weather forecasts closely, adjusting their strategies and operations accordingly.

Capital grant claiming - what is required

Elliot Taylor | Partner

Success stories regarding concreting farmyards and roofing muck stores which are now being used as general farm sheds are a common topic of mart talk at the moment, however, it must be remembered that certain conditions do apply in terms of the claim being made to receive the monies.

Funding is paid once works have been completed, requiring the following supporting evidence:

▪ Invoices

▪ Bank statements (respective to invoices)

▪ Pictures throughout the process of the works

▪ Confirmation of planning permission (if required)

▪ Catchment Sensitive Farming Approval (if required)

Capital items such as new roofing, concreting, and laying of hardcore tracks, will usually require planning permission. If agricultural permitted development rights can be utilised, this is subject to the correct

applications being made and approval obtained from the local authority, the eligibility of using PD rights is best determined on a case by case basis.

Without the correct form of evidence grant funding will not be paid, or will be significantly delayed while the correct documents are received.

Once a claim has been made, roofing over a muck stores or silage pits must be in their respective uses for 5 years once the claim has been processed, the Rural Payments Agency may ask for monies to be paid back if they find that the correct use hasn’t been maintained.

Permitted Development Rights: benefitting from your assets

Hannah Wafer | Associate

One of the most commonly asked questions when discussing development is ‘can I use permitted development (PD) rights?’ Often the answer is a site specific one. However PD Rights can cover a wide range of development types, whether that be the erection of a new agricultural building or slurry store, the laying of a new access point, the conversion of an existing farm building to residential or commercial use, or an extension to your dwelling. PD Rights often provide a simpler and more cost effective way to achieving planning permission, but may be subject to certain limitations.

Given the change in farm payments and transition into new funding streams, now is a prime opportunity to consider making best use of your existing assets and planning for the future with the assistance of PD rights as an alternative to applying for full planning permission.

Spring mart update

Archie Gray | Assistant Farm Business Consultant

There has been a promising start to the spring with some strong mart prices. Lamb prices have rocketed recently with buoyant demand arising from the combination of Easter and Ramadan. This incentivised many producers to bring forward as many lambs as possible and has now worsened the supply shortages, this means prices remain firm, despite demand from processors falling sharply in response to the low margins they are currently experiencing.

Prices remain firm, despite demand from processors falling sharply in response to the low margins they are currently experiencing.

Cattle prices remain strong even though there have been some price dips in recent weeks for some classes of stock. Processor demand has fallen due to strong prices and weak margins. The anticipation is however, that during the spring the supply of cattle will reduce, so the industry anticipates another price lift is on the horizon.

Cattle prices remain strong despite price dips in recent weeks for some classes of stock. Processor demand has dipped due to strong prices and weak margins. The anticipation is however, that as spring workloads increase with the improving weather, supply of cattle will reduce further so the industry anticipates another price lift is on the horizon.

Property Management: compliance

Lorna White | Partner

In recent years, the media have ensured that new lettings legislation has been well publicised, giving tenants more rights and awareness. Did you know there were more than 170 pieces of letting legislation that we are governed by? The most recent ones include the Smoke and Carbon Monoxide Alarm (Amendment) Regulations 2022, where the original legislation was amended to include smoke detectors on each floor of the property and carbon monoxide detectors in all rooms with fixed combustion appliance (excluding gas cookers), however with the amended regulation the detectors must be replaced and fixed by the landlord, not the tenant during their tenancy.

Another significant legal requirement that came into force on 1st April 2020 was EICRs, Electrical Installation Condition Reports, these check the safety of the wiring of a property, lasting five years and must be provided at the start of a tenancy to the tenants before move in.

The penalties for not complying with certain pieces of legislation can range from unlimited financial penalties to £5,000, for being in breach of the smoke and carbon monoxide alarm regulation. In some cases imprisonment can also be enforced, and the Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020 holds up to £30,000 penalty fees. Another consideration is if you are not up to date with certain certificates, this can void your eviction notice, making it extremely difficult to gain possession of your property back.

At GFW, we don’t just offer a tenant find, or managed service to our clients, we recognise that there are a lot of landlord’s where their tenants are long term and just need some guidance. This can range from rent increases to a one off inspection and a compliance check to ensure you are up to date with the current legal requirements.

News within the business

Over the spring we are delighted to have welcomed a number of new members of our Rural Team at GFW. Just coming out of the winter, Helen Bell joined us as a Rural Practice Surveyor predominantly working from our Bedale office. Following this, we were joined by Archie Gray as an Assistant Farm Business Consultant. Further into the spring, Heather Warburton joined us as a Senior Rural Surveyor who will be working across the North-east. Most recently, Olivia Ward has joined us as a Farm Business Consultant working throughout Yorkshire and Durham. We look forward to expanding the team and growing our wealth of knowledge into the future.

Some members of our team are set to conquer the Sponsored Scafell Pike by Night challenge on Saturday 25th May in aid of Macmillan Cancer Support who support two million people yearly living with cancer.

2024 Grant Update: Eligibility of land for standalone capital grants

Key dates for your diary

Grant Deadlines

16-31 May Deadline for submitting 2024 Countryside Stewardship or Environmental Stewardship claim without reduction was 15 May 2024. You can still submit a claim between 16-31 May with a 5% reduction applied to the claim value. You have until 11:59pm on Wednesday 2 September 2024 to submit a claim, but the later you submit it, the greater the reduction.

31 May Lump Sum Exit Scheme entitlements and evidence form must be returned to the RPA.

1June -1 July You can still submit a Countryside Stewardship or Environmental Stewardship claim between 1 June to 1 July with a 10% reduction applied to the claim value.

Support our team in their climb up Scafell Pike at night all in aid of Macmillan Cancer Support - simply scan the adjacent QR code with your smartphone

Land located on a Site of Special Scientific Interest (SSSI) or Scheduled Monument is only eligible for Standalone Countryside Stewardship Capital Grants if the land is already covered by an existing CS or Environmental Stewardship (ES) agreement. For more information in scheme eligibility please contact the GFW Rural team.

28 June Full application deadline for the Slurry Infrastructure Grant.

2 Sept Deadline for rotational option declarations for CS revenue claims if this was not confirmed at the time of the revenue claim.

Rolling Application Windows

- Sustainable Farming Incentive (SFI)

- Standalone Countryside Stewardship Capital Grants

Events

17 June

19 June

20 June

21 June

Rural Drop In - Bedale

Rural Drop In - Barnard Castle

Rural Drop In - Alnwick

Rural Drop In - Hexham

Take advantage of our free consultation offer to drop in and talk to our experts.

Elliot Taylor Partner 07590 445301

elliottaylor @georgefwhite.co.uk

Caroline Hall Partner

07469 152151

carolinehall @georgefwhite.co.uk

Pippa Cartwright Associate

07968 750137

pippacartwright @georgefwhite.co.uk

Heather Warburton

Senior Rural Surveyor 07551 414859

heatherwarburton @georgefwhite.co.uk

Helen Bell

Rural Practice Surveyor 07590 230510

helenbell @georgefwhite.co.uk

Olivia Ward Farm Business Consultant 07872 501647

oliviaward @georgefwhite.co.uk

Tom Bell

Graduate Rural Surveyor 07586 131734

tombell @georgefwhite.co.uk

Linda Maiden

Service Team Assistant 0333 920 2220 Ext 2206

lindamaiden @georgefwhite.co.uk

Andrew Entwistle Partner 07977 518156

andrewentwistle @georgefwhite.co.uk

Carolyn Milburn Partner

07969 740512

carolynmilburn @georgefwhite.co.uk

Adeline Rutherford Associate

07854 435328

adelinerutherford @georgefwhite.co.uk

RURAL TEAM

Sarah Bramwell Assistant Farm Business Consultant

07834 525087

sarahbramwell @georgefwhite.co.uk

Felix de Bretton-Gordon

Graduate Rural Surveyor 07590 961332

felixdebrettongordon @georgefwhite.co.uk

Jane Mogridge

Service Team Assistant 0333 920 2220 Ext 4217

janemogridge @georgefwhite.co.uk

Robyn Peat Chairman 07860 487038

robynpeat @georgefwhite.co.uk

Jessica Clark Partner 07912 895919

jessicaclark @georgefwhite.co.uk

Liz Rhodes Senior Rural Surveyor 07469 151400

lizrhodes @georgefwhite.co.uk

Alastair Lumsden

Senior Rural Surveyor 07799 462149

alastairlumsden @georgefwhite.co.uk

Sally Heath Farm Business Consultant 07586 131736

sallyheath @georgefwhite.co.uk

Archie Gray

Assistant Farm Business Consultant 07443 883868

archiegray @georgefwhite.co.uk

Josh Johnson

Graduate Rural Surveyor 07876 860640

joshjohnson @georgefwhite.co.uk

Joel Hobson

Graduate GIS Analyst 07586 128080

joelhobson @georgefwhite.co.uk