Payments to support soil husbandry within the Sustainable Farming Incentive will be 30% higher than was previously allowed, encouraging better management to help build soil carbon. The restoration of peatland also has a significant role to play in the UK’s strategy to achieve Net Zero. To help develop and support peatland restoration projects the Nature for Climate Peatland Grant Scheme has just been launched. It can be used for baseline monitoring and to develop restoration partnerships and models to attract additional private investment.

Agriculture benefits from an exemption so business rates are rarely on a farmers’ radar until they diversify and exceed the rates relief available to small businesses, at which point in some cases they can jeopardise viability. As part of its fundamental review of business rates the government is inviting feedback on a series of proposed reforms.

FOOD & FARMING

Eco-scores introduced for food and drink
A new traffic light system of ‘eco scores’ on food and drinks packaging is being launched in order to enable consumers to make more environmentally conscious choices over what goes into their shopping basket. Foundation Earth, a new non-profit organisation that is backed by the government, has partnered with companies including Sainsbury’s, Nestle, Co-op, Marks and Spencer and Abel and Cole, amongst others, to introduce the new system. The proposed front-of pack eco impact scores range from a G (lowest score, in red) up to an A (highest score, in bright green) similar to the approach used on domestic appliances. Within the UK, the scoring will be based on an academic paper by Poore and Nemecek (2018) which assessed the environmental impact of foods through four key criteria: water use, water pollution, biodiversity and carbon. Information about the product and a life cycle assessment will be used to calculate the impact and generate its eco score. The method assesses a product’s environmental impact by taking into account how it is grown, processed, packaged and transported. The environmental impacts are weighted 49% to carbon and 17% each for water usage, water pollution and biodiversity loss. A pilot programme is being launched this autumn 2021, with hopes for a full roll out in 2022. It remains to be seen how consumers will respond to the new scoring system.

EU plans to end caged animal farming by 2027
The European Commission has said it will phase out caged animal farming across the bloc by 2027. Farmers would be supported by subsidies to upgrade their equipment. The use of battery cages was banned in 2012, leading many producers to transition to enriched colony cages. A ban on caged animal farming is not currently planned in the UK although all the main UK supermarkets have made voluntary commitments to stop selling whole eggs from caged hens and in some cases the policy applies to ingredient eggs too. Some are already 100% free range and/or barn eggs whilst most of the rest have set 2025 deadlines.

Another welfare issue gaining prominence are the issues in broiler production caused by fast growth rates. Marks and Spencer has just become the first major UK retailer to commit to switch all its chicken lines to slower growing breeds over the next 12 months. As a signatory of the Better Chicken Commitment, M&S would otherwise be required to make this change by 2026.

POLICY

England: Scheme payment rates boosted by 30%
Environment Secretary George Eustice used the Cereals show to announce how maintaining and improving soil health will be incentivised through the Sustainable Farming Incentive (SFI). Defra has also updated its Agricultural Transition Plan, providing more information on the SFI and Defra’s progress in policy creation to date. The minister’s speech focused on the impacts of climate change on farming, explaining that extreme weather events are happening more frequently and pose a risk to farmers. Mr Eustice highlighted the benefits of investing in soil health and fertility in order to counter the risks of climate change, increase farming’s environmental resilience and boost productivity. He referenced reducing the use of synthetic fertilisers and instead focusing on low tillage systems that build soil organic matter. Mr Eustice explained that the SFI will support building soil health through three new soil health standards – arable and horticultural soil, grassland soil, and moorland and rough grazing soils. Soil health has always been part of the SFI but it is clear that Defra wants to make it a central element of future government funding, with an emphasis on nutrient analysis, green fertilisers, no-till and companion cropping. This is a major shift away from the CAP approach, which struggled to tackle soil health issues.

Of crucial importance to farmers is how their future environmental delivery work will be remunerated; Mr Eustice said he wants to set payment rates which genuinely reflect the cost associated with these options and incentivises farmers to take part. The payment rates for the three new soil standards will be 30% above the rate that the previous EU income forgone methodology would have allowed. For more information on the Agricultural Transition Plan update, see our latest briefing note. 

Scotland: £10 million to tackle biodiversity loss
The Scottish government has announced a £10 million Nature Restoration Fund which will support projects that restore nature, safeguard wildlife and tackle biodiversity loss and climate change. The fund will be available for a mix of urban and rural focused projects; examples include natural flood management, green active travel routes, planting wildlife corridors and improving greenspace for outdoor learning. Half of the £10 million will go to local authorities to support new or existing projects which help to address biodiversity loss and climate change but also promote the health and wellbeing of local communities, reducing inequalities. The remaining £5 million includes a small project competitive fund of £1 million which is open for applications until 27 July 2021. The funding will be distributed by NatureScot. The Nature Restoration Fund is a welcome announcement in progressing Scotland’s action not just on climate change but importantly, on biodiversity.

ENVIRONMENT & NATURAL CAPITAL

Nature for Climate Peatland Grant Scheme launches
Natural England has launched the first round of Discovery Grants as part of the Nature for Climate Peatland Grant Scheme, created to help support the development of new peatland restoration projects. The government intends to use the scheme to invest over £50 million in peatland restoration and support its target of restoring approximately 35,000 hectares of peatland in England by the end of this parliament. The Discovery Grants accompany the main Restoration Grants and are available for organisations to scope and develop restoration sites. There will be two rounds of bidding, applications are open for the first round of Discovery Grants and close on 1 September 2021.

The government suggests that applications for the Discovery Grant funding may include:

• Developing new peat partnerships and projects and engaging new partners or landowners

• Building capacity and capability in emerging peat partnerships

• Exploring opportunities for private investment funding

• Developing site understanding, for example through baseline monitoring or site surveys.

In order to access the scheme information and to make an application you will need to be registered on Defra’s e-Tendering system – Bravo Solution. If you would like to discuss the scheme please contact Jon Dearsley.

WWF sets out UK’s environmental boundaries
WWF, in collaboration with 3Keel, has assessed the UK’s current environmental footprint and what action is required to reach reduction targets. Its report Thriving Within Planetary Means breaks the overall environmental footprint down into six different indicators – ecological, material, biomass, nitrogen and phosphorous use and CO2 emissions. When assessing the UK’s environmental impact, WWF included the overseas impact that the UK has through the goods it imports. The overseas land footprint required to meet the UK’s current demand for just seven key commodities amounts to the equivalent of 88% of the UK’s total land area.

The report endorses the concept of a ‘just transition’ asking that the UK and other wealthy countries assist poorer nations in developing sustainably alongside reducing poverty. WWF states that the UK must reduce its environmental footprint by 75% by 2030 if the nation is to stay within its planetary limits. In order to do this, the report calls for urgent, sustained and transformative action to change how we produce and consume materials. The key areas for action are nutrient use, water use and pollution, material consumption, degradation and land use change, biomass consumption, greenhouse gas emissions, chemical pollution and marine resource use. The targets that the report sets are bold and on short timescales, illustrating the level of action the organisation believes is needed.

PROPERTY & DEVELOPMENT 

Biodiversity Metric 3.0 launched
Natural England has unveiled the much anticipated Biodiversity Metric 3.0, within a new ‘sustainable development’ toolkit. As proposed in the Environment Bill, biodiversity net gain must be measured using a recognised biodiversity metric. The new Biodiversity Metric 3.0 provides a new and updated way of measuring and accounting for nature losses and gains resulting from development or changes in land management. The metric will become the industry standard biodiversity metric for all on-land and intertidal development types in England.

Natural England advises that the previous Biodiversity Metric 2.0 should continue to be used for the duration of existing projects rather than switch, as the results may differ. A key difference between the metrics is that ecological connectivity has been removed. Within the sustainable development toolkit, Natural England has also announced the Small Sites Metric (SSM), a beta version designed to simplify the process of calculating biodiversity net gain on smaller development sites, however this SSM cannot be used to calculate offsite losses and gains. The Environmental Benefits from Nature Tool has also been launched to give developers a way to explore the benefits that habitats bring to people. This tool was developed by the University of Oxford and it is hoped it will improve the design and outcomes of future development. If you would like to discuss biodiversity net gain implications and opportunities please contact Jon Dearsley.

For more information on Biodiversity Metric 3.0 see our briefing note.

Business & Economy

Making business rates fairer
As the latest step in the government’s fundamental review of business rates, proposals to make the system in England more streamlined and fair have been published for consultation. If adopted, revaluations of non-domestic properties would take place every three years instead of the current system of five - ensuring they better reflect changing economic conditions. The consultation covers reliefs and exemptions, the business rates multiplier, and valuations. It also seeks views on the case for the introduction of alternative taxes to either replace or complement the business rates system including a series of questions on capital value based taxation. The consultation is open until 24 August and the review will conclude in the autumn.

Government issues first ever Green Gilt
HM Treasury is issuing the UK’s first Green Gilt (or Sovereign Green Bond) through the UK Debt Management Office. It will use the money raised to finance UK government expenditure on projects that are critical in tackling climate change and other environmental challenges. The UK wants to become a global leader in green finance. Its new UK Government Green Financing Framework sets out how the UK government plans to raise money through the issuance of Green Gilts and retail Green Savings Bonds via NS&I. It also contains the process for selecting and verifying the green projects that will be eligible for financing. The UK will issue at least £15 billion of Green Gilts in the 2021-22 financial year, starting in September 2021.

There are six types of green expenditures which will be financed across the UK – clean transportation, renewable energy, energy efficiency, pollution prevention and control, living and natural resources, and climate change adaption. This green finance action from the UK government is a clear indication of the UK putting money where its mouth is in terms of finding solutions to decarbonising the economy and tackling environmental degradation.

OTHER RURAL NEWS

Bark beetle tree pest spreading
Two new breeding populations of the larger eight-toothed European spruce bark beetle (Ips typographus) have been identified in woodlands in Kent. The UK Chief Plant Health Officer confirmed the findings earlier this month following routine Forestry Commission plant health surveillance activities. Movement restrictions are in place to minimise the risk of onward spread of the beetle, with further surveillance being conducted in the local areas. Following a finding of the beetle in Kent in 2018, a demarcated area that covers parts of Kent and Sussex has been enforced, restricting additional movement of conifer material that is capable of spreading the pest. The beetle does not affect human health but can be a seriously destructive pest to spruce trees, woodland managers, land owners and tree nurseries are being urged to remain vigilant.

And finally…
Cow gut microbes could be key to zero plastic future
We already knew that ruminants rely on microorganisms to help break down the vegetation that they consume. It turns out that some of the microbes found in a cow’s stomach are actually capable of breaking down certain kinds of plastics. Researchers from the University of Natural Resources and Life Sciences in Vienna believe the bacteria produce enzymes that usually break apart the chemical bonds of cutin, a natural polyester produced by plants to protect the walls of the plant cells. They hope that in the future, both the bacteria and enzymes might be engineered to help recycle plastics.