Elms: latest government proposals

Farmers urged to respond to Defra’s Environmental Land Management Policy discussion document

There are really important changes to our industry being considered at government level and we all need to take an interest in nudging the government in our direction.

At the time of writing, Defra has just published an Environmental Land Management Policy discussion document. This is out for consultation until 5th May 2020 and I would encourage you to respond.

A three-tier system is proposed. Our industry is used to this approach to grant schemes and is an area we could support.

In order to get a high level of uptake into Tier 1, it will need to be simple and easy to apply for. The example actions listed include nutrient management, livestock management, buffer strips, cover crops and water storage.

One choice discussed is whether to use price levels set by government or market price-setting. I would encourage responses supporting clear setting of rates for this Tier by Defra. Anything else suggests complication and risk for the applicant. To my mind, this is probably also the approach that should be set for Tier 2, perhaps with some additionality in terms of payments one can bid for/opt into.

The other choice discussed is the basis of payments. Previous iterations of the Agriculture Bill accepted the need for there to be an element of incentive. I believe this needs to be reinforced as there is an indication that Defra could slip back to an income forgone/cost incurred approach.

The second tier will focus on practices such as tree planting, habitat creation, flood mitigation… in other words doing things that are likely to take areas out of agricultural production and into environmental land use. 

There is a discussion to be had in this section about payments being based on the implementation of an action or on actual results (measuring biodiversity gain etc). 

Of course, it is important that the system is based, to some extent, on the results. However, regardless of results, a farmer will have put the required land use in place and the success of the scheme will be heavily dependent on circumstances out of his/her control – the weather, for example, or pests/diseases brought in by wild animals or insects  – so he/she should not be recompensed entirely on the basis of the results. 

At Tier 3, where landscape scale projects are envisaged, it may well be fair for a more detailed and results-based system to be put in place, as long as the risks involved are balanced by a higher incentive.

Agreement length is discussed. To my mind there should be options for 5- or 10-year agreements at both Tier 1 and 2, with perhaps up to 25 years at Tier 3. Flexibility will also need to be built into the system in case a farmer’s situation significantly changes during the term of an agreement.

Defra has also published Farming for the future – Policy and progress update. This is not a consultation, but the Government’s view of our future and makes interesting reading. It includes more detail on how the decoupled lump sum payment might work if made available from 2022. This is worth a read.

For more information on these documents, and how any outcomes might affect your rural business, contact Mark Russell, head of Rural at Carter Jonas Cambridge, on 01223 346628 or mark.russell@carterjonas.co.uk