In addition to government incentives, private firms are also getting on board. McCain has pledged to source all its potatoes from farms using fully regenerative methods by 2030, an ambitious target which leaves it 9 years to source 370,000 acres of regeneratively farmed potatoes. Elsewhere, legal challenges are exploring the limits of human impact on the natural environment, in order to manage ‘too successful’ species reintroductions in Scotland, and to understand the mitigation needed for housing development in England. A new report from WWF highlights the impact of climate change on iconic native species such as the Mountain hare. 

FOOD & FARMING

Defra promotes rotational grazing
Defra has released guidance on using rotational grazing on permanent grassland, in order to increase the number of plant species and improve soil health. This signals an approach from government in line with the proposed Sustainable Farming Incentive, prioritising land management practices that promote regenerative agriculture. The guidance defines permanent grassland as land used for at least five consecutive years to grow grasses, legumes, herbs and wildflowers. The benefits of rotational grazing include increasing the quantity of forage, improving soil health, organic matter and fertility, reducing the need for artificial inputs and reducing feed costs. The guidance goes on to describe what successful mob and forward grazing looks like and promotes the AHDB soils manual to monitor improvements in soil health. It’s encouraging to see Defra endorsing land management practices that previously may have been seen as ‘non-conventional’, as regenerative models increasingly move centre stage.

Savills return to Cereals 2021
Cereals 2021 will return to Lincolnshire fields on Wednesday 30 June and Thursday 1 July. Two of the Savills team will be amongst those speaking at the event. Emily Norton, head of rural research will be chairing ‘Synergistic Solutions’ taking place in the Cereals AHDB Theatre on 30 June at 3pm. This session explores the value that ‘mixed farming’ enterprises such as agroforestry, livestock and bioenergy can bring to arable businesses. Henry Grant from our renewable energy team will also be speaking at the ‘Future Power in Your Hands’ on 1 July from 3.15pm in the New Era Theatre. He will be joined by Jonathan Scurlock, NFU and Innes McEwen, Future Biogas, to discuss the energy landscape, the increasing value of carbon, goals to stop using fossil fuels and how arable farmers can harness bioenergy options most effectively into their businesses. Please do drop by the Savills stand (number 224) where colleagues will be delighted to see you. We will be following Covid-19 regulations on the stand with hand sanitisers in place and social distancing observed.

Tensions over beavers
Trees for Life, a charity that campaigns for rewilding, is pursuing a judicial review of NatureScot’s decision to issue licences to farmers to allow them to cull beavers. In 2019 the Scottish government designated beavers a protected species, however hundreds of beavers have formed colonies in the Tay area of the southern Highlands after being released from private collections in the area in the early 2000s. Farmers say they are requesting licences to cull the beavers on a case-by-case basis, needing to control the numbers of beavers due to the damage they cause to agricultural crops. NFU Scotland and Scottish Land and Estates are in support of NatureScot’s licensing approach, which has been described as ‘robust and lawful’. According to The Guardian, by the end of 2019, 87 beavers had been shot under lethal control licences. Trees for Life argues that beavers could be relocated to other areas of Scotland, such as the Cairngorms, but NatureScot responded that many of the beavers in Tayside have already been relocated to Knapdale on the Argyll peninsular, and to reintroduction projects in England. Just last month, Natural England announced a Species Reintroduction Taskforce, citing beavers as a keystone species to focus policy on. The beaver is an iconic symbol of a greater tension across the UK in deciding what species we want to encourage and where. This judicial review raises the questions of when should humans intervene in ecosystems and if it is possible to be too successful in species reintroduction.

McCain commits to regenerative potatoes
McCain has launched a range of ambitious sustainability targets across its operations and supply chain, as part of its latest sustainability report. The company has pledged to source all its potatoes from farms using fully regenerative methods by 2030 – leaving it with nine years to source 370,000 acres of regeneratively farmed potatoes. This is no easy task as producing root crops whilst minimising soil disturbance is notoriously difficult. The company says it intends to reduce soil movement on farms to retain CO2 in the soil, reduce usage of artificial fertilisers and instead use organic manure and ensure soils are covered throughout the year to avoid soil erosion and strengthen the soil structure. McCain has also committed to sourcing 100% renewable energy by the end of the decade and ensuring all its packaging is either recyclable, reusable or compostable by 2025. The CEO of McCain, Max Koeune referenced the pandemic as putting a spotlight on ‘the precarious nature of our global food system’ but, he said ‘the largest challenge we face is climate change’. Since 2019, the Canadian company has achieved a 6% reduction in absolute CO2 emissions across its global operations. The company’s regenerative pledge is ambitious and admirable and certainly signals the future direction of supply chain demands, however whether it is achievable is yet to be seen.

POLICY

Carbon border tax on the cards
‘Carbon leakage’ is the term used to describe the prospect of industries leaving the UK to avoid increasing domestic carbon regulations. As the UK toughens domestic legislation in an effort to decarbonise before 2050, carbon leakage is increasingly likely. In order to avoid this and to protect domestic industries from being undercut by foreign competitors, a Carbon Border Adjustment Mechanism could be introduced. The mechanism would place an extra charge on goods made in countries with lower or relaxed emissions policies. In order to meet World Trade Organisation rules, the tax would have to cover the same industries as the UK’s Emissions Trading Scheme (ETS).

The government is looking to extend the ETS to cover agriculture and land use, meaning any carbon border tax would also apply to agricultural imports. A review of the current system will be undertaken this year and the prime minister’s official spokesperson said that the Department for Business, Energy & Industrial Strategy is ‘looking into’ the idea. Within its Green Deal, the European Commission has set out the introduction of a carbon border tax and it could come into force by the end of 2022. A report from Grantham Institute last month said that failure by the UK to keep pace with the EU’s policy could risk UK exports being penalised by a carbon border adjustment mechanism. The noises coming from government sound like a carbon border tax may be likely, however implementing such a tax is easier said than done. For more information see our Carbon Market in Minutes.

English Woodland Creation Offer announced
The Forestry Commission has opened the English Woodland Creation Offer (EWCO) for applications. The scheme will make £15.9 million available in its first year to provide greater financial incentives for landowners and farmers to plant and manage trees. The grant can cover 100 per cent of eligible standard capital costs of woodland creation, meaning costs are covered for buying and planting the trees, and then maintaining them for 10 years. EWCO will be designed to allow farmers to make the most of green finance opportunities. For example, applicants will be supported to register their planting under the Woodland Carbon Code wherever eligible.

The government is offering attractive payment rates to kick start planting activity. Additional financial contributions are available for well-designed woodland that provides public and wider environmental benefits. Additional contributions will be available for:

• Nature and species recovery - between £1,100/ha to £2,800/ha available

• Tree planting near watercourses and rivers (riparian buffers) - £1,600/ha available

• Reduced flood risk - £500/ha available

• Improved public access - £2,200/ha available

• Close to settlements - £500/ha available

• Improved water quality - £400/ha available

If you would like to discuss the opportunity presented by the English Woodland Creation Offer please contact Mark Townsend.

Introduction of the Kept Animals Bill
New measures to crack down on livestock worrying have been introduced in England and Wales. The Kept Animals Bill includes measures such as:

• Increasing the scope of livestock species covered by the law, such as llamas, emus, and enclosed deer

• Increasing the scope of locations covered by the law, such as roads and paths

• Increasing powers for the police to seize dogs after particularly serious incidents

• A new power to take samples from livestock and dogs suspected of an offence

• Modifying powers of entry so police can enter premises to identify and/or seize a dog.

Welsh Minister for Rural Affairs Lesley Griffiths said, “I know the measures will be welcomed by many who keep livestock and who live in the countryside.” However, while the NFU welcomed the Bill, it believes more could have been done. NFU deputy president Stuart Roberts said implementing increased fines would “act as an appropriate deterrent and would also reflect the financial loss to the farm business as a result of an attack”. He also added that “the current wording that a dog has to be under ‘close control’ around livestock causes confusion for dog owners, farmers and the police”.

ENVIRONMENT & NATURAL CAPITAL

Nutrient neutrality issues
There has been a challenge to the refusal of a planning application on nitrate neutrality grounds on the Somerset levels. Mendip District Council refused a planning application for up to 148 homes on land at Wookey Hole Road, Wells. The site sits within the catchment area for the Somerset Levels and Moors Ramsar site. The developers appealed, however a planning inspector reported that Natural England had confirmed that the planning proposal had the potential to add to nutrient loads (phosphorous) within the catchment of the Ramsar site. It was therefore deemed that the proposal would require mitigation and be subject to a Habitat Regulations Assessment. The inspector concluded that with no certainty over the course of nutrient impact mitigation for the site, a cautionary approach must be taken and therefore in this instance planning permission must be refused.

Nature feeling the heat of the climate crisis
WWF has released a report titled ‘Feeling The Heat’ which analyses and predicts the likely fate of nature beyond 1.5 degrees of global warming. The report highlights 12 species that are experiencing the impacts of climate change, in order to outline how their future depends on society’s urgent response to the climate crisis. In the report, the dramatically different impacts of a 1.5 degree versus a 2 degree temperature increase are demonstrated. One of the species that the report focuses on is the mountain hare, the UK’s only true native hare species. Mountain hares live in the Scottish Highlands, in the summer they display a brown pelage that blends in with the environment and then in October they moult and switch to a white coat that keeps them camouflaged in the snow. In March, the hares moult again and revert to their summer colours. However, annual snow cover in the Scottish Highlands has declined by over 37 days on average between 1960 and 2016 meaning the hares camouflage is now mismatched to their environment for at least one month each year. During that time, they exhibit white fur against a snowless background, leaving them much more vulnerable to predators. The report also looks at the effect of climate change on bluebells, bumblebees and Atlantic Puffins.

PROPERTY & DEVELOPMENT

BNG will apply to all major infrastructure
The government has announced that new Nationally Significant Infrastructure Projects in England, such as future transport and energy projects, will need to provide a net gain in biodiversity and habitats for wildlife. Originally such projects were exempt from biodiversity net gain (BNG) requirements, the Environment Bill will now be amended to include them. HS2 will aim to deliver a net gain in biodiversity on its Crewe-Manchester leg. The change is likely to mean that the compulsory purchase requirements of such projects will expand to include the land required to offset its impact within the scheme design. For more information on BNG see our explanatory briefing note.

Business & Economy

Australian trade deal will benefit Scotch whisky
Prime Minister Boris Johnson and his Australian counterpart, Scott Morrison, have signed the UK’s first post Brexit trade deal. Details are still yet to be confirmed at the time of writing, however a number of elements are expected within the deal. For example, the UK agrees to a zero-tariff, zero-quota access for Australian agricultural exports. In return for this, Australia will remove tariffs on products such as Scottish whisky and cars as well as providing greater access to UK services companies. Australia is the 8th biggest market for Scotch whisky exports, worth £113 million in 2020. It is believed that the tariff cut will help boost sales and support distillers across Scotland, as Australia is a key market for premium single malt Scotch. The whisky industry currently supports more than 10,000 jobs in Scotland and more than 40,000 jobs across the UK. However, many farmers and food producers remain concerned that a zero-tariff trade deal will undermine domestic production in key sectors such as beef, lamb and sugar.

New trade deal to help boost export of UK food and drink
The UK has secured a new trade deal with Norway, Iceland and Lichtenstein. According to the government, the deal will boost critical British sectors like digital services, and reduce tariffs on high-quality British food and farming products, supporting jobs nationwide. It has been touted as the most advanced trade deal that the three European countries have done to date, with cutting edge digital provisions that mean when British firms export to Norway and Iceland they will be able to benefit from commitments that limit unnecessary paperwork. The agreement significantly cuts tariffs as high as 277% for exporters to Norway of cheese such as West Country Farmhouse Cheddar and Traditional Welsh Caerphilly, pork, poultry and other goods. UK wines and spirits including Scotch Whisky will also now be recognised in Norway and Iceland. The deal also reduces import tariffs on shrimp, prawns and haddock which will reduce costs for UK fish processing and support jobs in the industry across Scotland and the east coast of England. The deal has been agreed in principle but is yet to be signed.

OTHER RURAL NEWS

And finally…
Riot shields become greenhouses
Police in South Wales came up with the idea of reusing riot shields and transforming them into greenhouses. PC Richard Thomas had the brainwave when he was asked to dispose of a pile of old shields during lockdown. Rather than seeing the plastics head to landfill, he set up an initiative to donate the shields to schools and other organisations in order to create greenhouses for community gardening.