Landscope wc120115

15/01/2015

Headlines

12/01/2015

GMOs: MEPs vote for European Member States to have power to allow or ban GMOs MEPs have voted to allow Member States more powers to ban the cultivation of genetically modified (GM) crops in their countries based on grounds that include ethical reasons, favouring certain habitats, landscapes or organic farms but NOT on health or risk to the environment, which are assessed (and cannot be challenged) by the EU’s food safety authority, EFSA. So what does this really mean?

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It gives countries more flexibility to decide their own approaches to GM but is not an end to the GM debate.

Countries can negotiate with biotech firms to grow (or not grow) specific GM crops and can also ban GMOs based on the grounds above.

Countries must ensure that suitable measures are taken to avoid cross-border contamination of neighbouring farms, but the legislation does not include mandatory measures or a liability regime.

It should allow faster approvals of new biotech crops, enabling pro-GMO countries such as Spain to grow them.

The change will apply immediately once approved by Ministers. Environmental groups have welcomed the decision as it allows countries to keep GMOs out if they want to but they are worried that it allows biotech companies to negotiate with governments and prevents countries from banning GMOs based on evidence of environmental harm. EuropaBio, an organisation representing biotech industries, claimed the plans are a “stop sign for innovation in Europe”.

CAP reform: Scottish Rural Development Programme timetable published While the Programme still needs approval from the European Commission, the first schemes will open in January and the current timetable is below: January

Farm capital investment schemes

March

Forestry Agri-environment

‘Early’ 2015

May ‘Spring’ 2015

Food and Drink Knowledge Transfer and Innovation Fund Environmental Cooperative Action Fund LFASS LEADER Broadband fund

Open to applications in January 2015 due to some of these investments being linked to young farmers, who have an age cut-off which obliges applicants to submit their application for support prior to their 41st birthday. submitted and assessed as normal with contracts and payments issuing after SRDP approval contracts likely to issue in autumn 2015. To safeguard key habitats and species, some priority multi-annual agri-environment contracts due to expire in 2014 are being renewed. issue contracts and payments as soon as possible

Applications submitted and assessed through Single Application Form in May 2015 as part of the usual CAP claim system, with payments being made in spring 2016.

Local Action Groups (LAGs) will be able to commence work to develop projects with partners for consideration and approval from spring 2015 onwards.

Delivered by Community Broadband Scotland as part of a wider package of support.

Ongoing

Scottish Rural Network

Is ongoing and will continue during the SRDP approval process.

2016

Beef Efficiency Scheme Advisory Service

Launch in 2016 Launch in 2016

Petition for Defra to continue to fund rural community councils (ACRE) Ninety years of dedicated support for England’s 11,000 rural communities is under threat after the Government warned it may withdraw funding from the ACRE Network, which funds the nationwide network of rural community councils. The councils fund, lead and enable thousands of projects to help people tackle the challenges they face – from lack of affordable homes, broadband or public transport to supporting the young, 1

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the elderly and the most vulnerable in our society. ACRE is calling on Defra not to withdraw funding from the ACRE Network. Sign the petition here.

World economy: “warning lights are flashing on the dashboard”, Cameron David Cameron has warned that global instability was having a negative impact on Britain’s economy and that the entire globe could be dragged back into another crisis. This on the same day as the number of empty shops in Great Britain increased for the first time in two years (to 10.3%) and footfall fell (a new tongue twister!).

The latest OECD report says that UK growth is expected to continue at a strong pace into 2015, that UK interest rates are expected to start to rise in the middle of 2015 but warned that there was a growing risk of stagnation in the Eurozone. In other data from the Office for National Statistics, the proportion of workers claiming they are under employed i.e., would like to work longer hours is at 9.9%, higher than at the start of the recession, and so indicating a dearth of work in the UK and slack in the economy.

Election 2015: Mansion tax splits MPs Only 56% of Labour MPs support the introduction of a mansion tax, while 39% think that expanding the number of council tax bands would be a better way of taxing expensive houses, according to a British Property Federation poll. 69% of all MPs favoured reforming council tax bands.

Farming World food prices fall for third year in a row The price of food, apart from meat, has fallen as supply has increased, according to the UN’s Food & Agricultural Organisation, with the overall index falling 3.7% compared with 2013. Meat prices are at an alltime high, up 8.1% from 2013 amid strong global demand. Cereal prices dropped 12.5% in 2014 after record production levels and a rise in stocks. Sugar fell 4.8% in December due to strong supplies in major producing countries, such as Brazil. Palm oil as a biodiesel feedstock fell 2.4% to a 5-year low in December. The dairy index also fell to its lowest level since late 2009 as slowing imports by China and Russia left abundant export supplies on international markets. Milk powders, butter & cheese saw the largest declines.

Dairy farm input costs There has been a general fall in costs in 2014 of key variable inputs on dairy farms, according to Dairy Co. Feed, electricity, oil and diesel costs have all fallen buy fertiliser costs have risen by 3-4%. Many contractor forage charges were cost neutral although the cost of bale wrapping increased by nearly 10%.

Property Issues Scotland: contribution of deer management to the Scottish economy The Association of Deer Management Groups and Lowland Deer Network Scotland and others are carrying out an in depth survey to assess the contribution of deer management to the Scottish economy.

Neighbourhood planning: changes to speed up process of making a plan Councils will have just 13 weeks to consider a community’s application to create a neighbourhood area, reduced to 8 weeks where the neighbourhood area follows a parish boundary. Where applications cover an area straddling more than one planning authority, the period for consideration will be extended to 20 weeks. The Government is also clarifying the information that must be submitted with the neighbourhood plan, so that independent examiners have sufficient information to assess the plan’s environmental effect.

Residential Markets   

House prices rose by just 0.2% in December, according to Nationwide. The slowdown in rises has cut annual house price inflation from 11.8% in June to 7.2% at the end of 2014.

Annual house price inflation was 7.8% in December 2015, according to Halifax, the slowest rate of growth since January last year. The number of sales increased by 0.3% in 2014Q4 compared with Q3, the lowest growth rate since November 2012. It expects price growth of 3 - 5%.

The RICS expects a 3% increase in house prices in 2015, with modest rises in all parts of the country, but London cooling significantly; it says that while concerns surround the 2015 election and the potential base rate rise, the Stamp Duty reform is forecast to boost activity. Although there are some

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concerns about mortgage availability in the wake of the Mortgage Market Review, a firm economy and stamp duty reform should underpin activity levels.

The Government predicts 7.4%, slowing to 5.9% in 2016 and 5.8% in 2017.

The Centre for Economics and Business Research (CEBR) expects UK house prices to fall 0.6% in 2015 and by 3.3% in London.

The number of UK mortgages to buy houses fell 12.4% in November compared with October and was down 6.6% on the year. Loans to first-time buyers fell 11% on the month and 3% on the year.

(Council of Mortgage Lenders). Revenue & Customs said that only 98,490 homes were sold in November, the first time that the number of monthly transactions has fallen below 100,000 in a year.

The changes to the stamp duty system may give the housing market a boost in the first half of this year, although most commentators believe that the impact will be temporary.

Demand for rented property picked up in the second half of 2014 with higher enquiries and demand comfortably outstripping new supply of rental property from landlords. Rents are expected to rise by 2% in 2015 (RICS).

Environment The Langholm Moor Demonstration Project Seven Year Review – December 2014 The Project is a 10-year project designed to show whether and how it is possible to manage the moor to produce a combination of good habitat, a population of breeding hen harriers in line with its SPA status, and economically viable driven red grouse shooting. To date, the Project is NOT confident that the target of 1,000 brace shot can be achieved within the 10 year project timescale given current management measures; grouse recovery appears to be restricted by raptor predation of adult grouse and low grouse productivity post laying, also likely to be associated with raptor predation.

Environment Agency data on flood risk now available free of charge The data is (finally!!!) being released as part of the Government’s commitment to make information easily accessible and free.

And finally…

‘I disapprove of what you say, but I will defend to the death your right to say it’ A paraphrase of Voltaire’s attitude on Helvétius, a French philosopher

Whilst every effort has been made to ensure the accuracy of this briefing, its information may not be comprehensive and recipients should not act upon it without seeking full professional advice.

If you have queries regarding any of the articles, please contact jason.beedell@smithsgore.co.uk (01733 866562) or andrew.teanby@smithsgore.co.uk (01522 507310)

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