The 50 projects Defra has just awarded Farming Innovation Programme funding to reveals a wealth of promising ideas. More immediately many farmers are focused on the ELM scheme and topics such as regenerative agriculture. In our new Soil Spotlight we modelled a transition to a regenerative system supported by SFI and carbon income, and showed that in the medium term its net margin can exceed conventional agriculture.

In this issue we also discuss the results of a heat pump user survey which shows attitudes differ according to whether the owner decided to install it. We also provide an update on proposed extensions to the protections for residential tenants in Scotland and a pilot project that could see the Crown Estate Scotland purchase estates on behalf of communities.

FOOD & FARMING

Does regenerative farming add up?
In our recently launched Soil Spotlight we used the Savills Virtual Farm to explore the financial impact and viability of a transition to regenerative agriculture. The virtual farm is a 830 hectare arable farm with clay based soils in the midlands. In year one, the net margin on a like-for-like regenerative farm was 41% lower than a conventional system. By year six, the Savills Virtual Farm regenerative model still generated a lower income from food production, however it also benefitted from reduced exposure to artificial inputs and a greater diversity of income streams leading to a higher overall net margin. Within the Spotlight we also analyse soil carbon schemes available in the UK to assess how they might help improve soil health and whether it is now the right time for farmers to enter the voluntary carbon market. For more information, read our Spotlight or talk to our food and farming and natural capital teams who will also be at the Groundswell Festival on 28 and 29 June.

Farming Innovation Programme awards funds
Fifty farming projects have been awarded a share of £30 million through the Farming Innovation Programme, their topics include:

• Climate smart farming, for example using remote sensing, sensors and soil measurement to promote a more efficient approach to fertiliser timings and rates

• Sustainable farm-based protein, for example diagnosis and prediction of early-stage Johne’s disease in cattle

• Feasibility round two for early stage projects considering productivity, sustainability and resilience, for example novel dual-action biopesticides for wheat

• Research starter round two for food production issues, for example evaluation of pyrolysis to improve the sustainability of onion production and reduce costs.

Demand has also been strong for the latest round of the Farming Equipment and Technology Fund (FETF), leading Defra to increase its budget from £17 million to £31 million. Over 3,000 applications were received for the FETF 2023 Productivity and Slurry grants which help cover the cost of over 90 pieces of equipment, from rainwater harvesting tanks to tree shears. 21 new items were added in 2023, including camera-guided inter-row sprayers and mulchers for forestry, orchards and vineyards. The FETF 2023 was made up of two themes: Animal Health and Welfare, and Productivity and Slurry. Applicants can apply for Animal Health and Welfare grants until midday on 15 June 2023.

Livestock reduction requirements pulled
Most farmers who graze animals on Dartmoor’s protected sites will not be asked to reduce livestock numbers this year. Instead Defra has announced an independent evidence review into the management of protected sites on Dartmoor that will be chaired by David Fursdon. As a result Natural England is now proposing one year extensions to existing HLS agreements with no reduction in livestock numbers in most areas. In due course it intends to work with farmers to consider the results of the review and return to offering longer agreements.

Drones used to spray pesticides in the UK
Airborne drones are being used to spray pesticides for the first time in Great Britain. The technology will be trialled to control plants and weeds growing around railway infrastructure in a way that is lower risk to workers. The Health and Safety Executive (HSE) approved the trial. Professor Andrew Curran, HSE’s chief scientific adviser, said “this could have big implications for other industries especially agriculture”.

POLICY

Scotland: Tenant protections extended
The residential rent cap in Scotland is likely to remain in place for a further six months. Further tenant protections, such as restrictions on evictions, will also be extended if the proposal is approved by Parliament. This means:

• Most in-tenancy private rent increases would still be capped at 3%

• Landlords could apply for increases of up to 6%

• Enforcement of evictions would continue to be paused for six months

• Increased damages for unlawful evictions of up to 36 months’ worth of rent would continue to be applicable.

The Cost of Living (Tenant Protection) (Act) was introduced in October 2022 to protect tenants against the impact of rising household costs. In March 2023, the Scottish Parliament voted to extend the measures to 30 September, with the option to extend again for a final six-month period to 31 March 2024. This final extension into 2024 now appears highly likely to occur. The existing rent cap is currently subject to a legal challenge.

Higher payment rates for woodland
How can Wales plant 86 million trees by the end of the decade? The Welsh government will now increase payment rates to pay 100% of 2023’s actual costs. The substantial uplift comes following discussions earlier in the year with the farming and forestry sectors regarding potential blockers to woodland creation. Tree planting is important for tackling the climate emergency as trees help cool the planet, removing and storing carbon while releasing oxygen back into the atmosphere. Trees are also an asset for the farming community as they create shade and shelter for crops and livestock, and improve livestock wellbeing too. The government is encouraging farmers to take advantage of the support from the two grants available, these being the Small Grants Woodland Creation Scheme, for support to plant areas up to two hectares and Woodland Creation Grants, for support to plant larger areas of woodland.

ENVIRONMENT & NATURAL CAPITAL

Collaborate to improve water security
A collaborative approach is needed to improve the environment and ensure adequate water supplies are available for people, agriculture, wildlife and the environment. This was the message heard by the National Drought Group. Though spring rainfall has been a welcome relief for most of the country, the nation is experiencing more extreme weather more often, with parts of the country suffering from drought and flooding at the same time. Experts have advised ongoing action will remain vital for securing water supplies in the future.

As of 16 May, the total reservoir capacity across England was at 92%. This compares with 49% at the end of September 2022, when reservoirs were at their lowest following the drought through summer. Almost all river flows are normal or higher for this time of year. Parts of East Anglia, as well as Devon and Cornwall, remain in drought. The Environment Agency, Defra, the National Farmers Union and the agriculture sector have worked together to plan support for farmers in East Anglia. This includes regular updates on the prospects for irrigation and the Environment Agency introducing water abstraction e-alerts to help optimise water availability. A new multi-sector Water Resources East Dry Weather Group will meet regularly and work together to collectively help identify local opportunities for support.

Protecting peatland a key part of policy
Protecting peatlands and wetlands will be a condition in Scotland’s future support for land management. The new EU CAP also recognises the importance of peatlands and wetlands as stores of soil carbon. Visiting Brussels for EU Green Week, Rural Affairs Secretary Mairi Gougeon said the EU policy was "closely aligned to and supportive of Scotland's own vision". Ms Gougeon has agreed in principle that Scotland will take forward the EU’s Good Agricultural and Environmental Condition (GAECs 2) covering the protection of wetlands and peatland and integrate it with Scotland’s own rural support policy. More information is expected this summer.

UK’s first carbon neutral butter
Carbon neutral butter will soon be found on UK supermarket shelves. Wyke Farm will launch its carbon neutral salted farmhouse butter under its Ivy’s Reserve brand. It will be produced at a new Wyke Farm dairy facility which is powered by home-produced renewable electricity and gas, as well as being water efficient. After reducing its emissions, the company uses offsets to achieve full carbon neutrality. The product joins a premium carbon-neutral cheddar which was launched last year.

PROPERTY & DEVELOPMENT

Owning a heat pump in an old house
Heat pump users are highly satisfied with their heat pumps. That is the conclusion of a user survey into the technology conducted by Nesta. While heat pump users showed lower satisfaction and lower confidence specifically with respect to the ease of use and control, overall satisfaction between heat pump and gas boiler users are very similar. 73% of heat pump owners are as satisfied or more satisfied with their heat pump. However, this varied depending on whether they installed the heat pump into their own home or whether they ‘inherited’ one by moving into a home with a heat pump already installed. Those who installed a heat pump were typically more satisfied.

Satisfaction did not differ according to the age of the property, which could be good news for rural communities. The Savills Spotlight on the Rural Homes Energy Challenge showed older properties were more typically found in rural areas. Rural areas may have to contemplate a ban on new installations of fossil fuel heating in off-gas grid homes as soon as 2026 according to one government consultation. Heat pumps could be one alternative technology. The survey involved 2,500 domestic heat pump owners and over 1,000 domestic gas boiler owners.

Active travel funding for rural communities
Active travel funding will create 120 miles of cycling tracks targeting underserved rural areas. The new tracks have been announced as part of a £200 million fund for active travel, however the announcement has faced criticism because it follows an announcement in February for which the budget was then cut by two-thirds. According to analysis by the Transport Action Network campaign group, funding dedicated to active travel in England outside of London will be only £1 a head per year over the rest of the current parliament, against equivalent figures of £23 for Wales and £58 in Scotland. A shift towards more active travel is an integral part of achieving net zero and air quality targets.

More positively, Active Travel England (ATE) which is the newly formed government agency led by Chris Boardman MBE, is now a formal consultee in the planning process. It is expected to consider applications representing 60% of England's annual housing consents. ATE will review planning applications equal to or exceeding 150 housing units, 7,500 square metres of floor space or an area of five hectares. Its role will be to promote good active travel design by ensuring developments include walking, wheeling and cycling connectivity to schools and local amenities.

Network of geothermal power stations
The greatest geothermal potential lies beneath some of the towns and cities most in need of investment. A network of underground geothermal plants is being proposed as one way of levelling up these locations. A study by the University of Durham found areas that have been earmarked by the government as part of its levelling up agenda are about three times as likely to be rich in untapped energy from the earth. Geothermal energy is utilised by drilling a borehole down to around two to three miles below the surface. Cold water flows down at low pressures to the hot rocks beneath the Earth’s surface. A second borehole returns the warm water to the surface where it can be used to heat buildings or generate electricity. Areas with the most potential include Redcar and Cleveland, Middlesbrough, East Lindsey, Hartlepool, Northumberland and Bassetlaw, all of which appear in the top 10 of the index used to identify areas in need of levelling up. Rishi Sunak has said the report would help the government decide whether there was a bigger role for deep geothermal energy in the UK economy.

BUSINESS & ECONOMY

Renewable energy in conservation areas
The Scottish government is consulting on measures to make it easier to install sustainable energy equipment, particularly in conservation areas. Changes would affect permitted development rights (PDR), for example:

• Allow the installation of solar panels on domestic properties in conservation areas in certain circumstances

• Extend PDR for replacement windows so that they cover houses and flats within conservation areas

• Remove the requirement that an air source heat pump installation in a conservation area must be at ground level.

The renewable energy technologies review runs until 23 August and is the third part of a phased review of PDR.

OTHER RURAL NEWS

Selling estates to communities
Crown Estate Scotland may help to buy highland or country estates and then sell them back to local communities. It has announced a Community Land Accelerator pilot project with the Scottish Land Commission. In the previous edition of Landscope, we reported on the Rural Land Market Insights Report 2023, which warned individuals or communities could be locked out of the land market due to increasing prices. The ambition is for the Crown Estate Scotland to purchase land in the first instance and then allow the community more time to fundraise and buy the land from the crown. The Crown Estate Scotland has said “this project is just getting underway and the type and scale of assets that may be involved is not yet clear”.

Ministers are also likely to push state bodies that own large amounts of land, to sell to community groups. The Scottish land fund, which finances community buyouts, will also be getting an extra £1 million a year to support buyout bids, meaning the fund’s annual budget should reach £20 million by 2026.

And finally… Back from oblivion
Few would ordinarily celebrate the revival of a “scruffy looking weed”. That was how the York groundsel was described by the scientist who discovered it in 1979. The plant was only found in York and was the product of natural hybridisation between the common groundsel, a native British plant, and the Oxford ragwort which was introduced to Britain from Sicily centuries ago. However, its weed-like appearance likely contributed to its demise, being wiped out in 1991 by herbicide use and construction projects. Prior to its eradication, seeds were harvested from three small plants which were kept on a windowsill in the University of York and sent to the Millennium Seed Bank at Kew. Natural England planted 100 seeds at the Rare British Plants Nursery in Wales where all but two germinated. The seeds have since been sown into special pots around York and can be found flowering on the streets and railway sidings of the city. The achievement is being hailed as the first de-extinction event to ever occur in the UK.