The Savills Portfolio

Landscope

19 May 2021

Cornwall Council has stopped issuing planning consents for development in the catchment of the River Camel Special Area of Conservation due to the risk that development could generate phosphate pollution and damage the designated site. 

Nutrient neutrality issues are affecting an increasing number of catchments, which presents farmers and landowners with an opportunity to provide natural capital offsets that generate an income and directly benefit wider society. In the Poole Harbour catchment farmers are altering their land management practices to generate the offsets required.

In its plan to revolutionise the treatment of animals in the UK the government has confirmed it will launch an Animal Health and Welfare Pathway to pay farmers to improve animal health and welfare, reduce carbon emissions and slow the rise of anti-microbial resistance. Finally, the Co-op has announced plans for all of its own brand food to be carbon neutral by 2025.

 

FOOD & FARMING

A plan to revolutionise animal welfare
The government has published an action plan for animal welfare that it says will revolutionise the treatment of animals in the UK and introduce measures to protect the welfare of animals abroad. It will consult on how labelling can be reformed to make it easier for consumers to purchase food that aligns with their welfare values. New laws will also be introduced to crack down on illegal hare coursing and police will gain more powers to protect farm animals from dangerous or out of control dogs. The plan includes a number of measures to improve welfare for farmed animals:

• Ending the export of live animals for fattening and slaughter

• Introducing new measures to improve welfare during transport

• Examining the use of cages for poultry and farrowing crates for pigs

• Improving animal welfare at slaughter

• Incentivising farmers to improve animal health and welfare through future farming policy.

As part of its new farming policy the government is developing an Animal Health and Welfare Pathway which will forge a new deal between government and farmers to promote healthier and higher welfare animals. It says the Pathway will pay farmers to improve animal health and welfare, reduce carbon emissions and slow the rise of anti-microbial resistance.

To deliver these reforms, the government will be introducing a series of Bills and regulations: an Animal (Welfare) Sentience Bill and a Kept Animals Bill were announced in the Queen’s speech and the Animal (Welfare) Sentience Bill has since entered Parliament. Christopher Price, chief executive of the Rare Breeds Survival Trust, has voiced strong support for the government’s intention to recognise animal sentience in law. He concludes that “the future of the UK livestock sector depends on high welfare systems becoming mainstream”.

Not all elements of the plan have the full support of stakeholders, Minette Batters, NFU President has “serious concerns about the government’s intention to raise the bar at home, without any certainty that the same standards will be applied to imports”. She argues “it is not uncommon to see journey times for live animals in Australia exceed 24 hours without access to feed or water. In comparison, the government has recently consulted on reducing domestic journey times in the UK to eight hours”.

First move made for carbon neutral food to become mainstream?
The Co-op has announced that the own-brand food and drink that it sells will be fully carbon neutral by 2025. It is the first supermarket to make this commitment and forms part of a longer term climate plan to achieve net zero for both its direct and indirect carbon emissions by 2040. It will cut the emissions associated with its products by making its 200 delivery vehicles electric, ending the use of fossil fuel heating, lowering agricultural emissions, cutting packaging and reducing environmental impacts from soy in animal feed. Offsetting will then be used to achieve carbon neutral status.

To help make lower carbon choices easier for customers its own-brand plant-based foods will be price matched against their meat equivalents. The Co-op also intends to invest the money raised from the carrier bag levy in UK based nature restoration projects and create an innovation fund for carbon reduction research and development initiatives.

The Co-op will report annually on its progress and is lobbying the government to mandate disclosure of carbon impacts by businesses, suggesting that it sees a competitive advantage in being a leader on these issues. Now it has made the first move it will be interesting to see how other supermarkets respond, given they have a track record of competing to match and exceed the ambitions of their competitors on issues which resonate with their customers, as we saw with targets for ending the sale of eggs laid by caged hens.

Arla will buy green power from its farmer owners
Arla Foods has committed to becoming a net zero business by 2050. As part of its efforts, the business is introducing a ‘circularity loop’ for its farmer owners to supply the cooperative with green power as well as milk. By paying market rates for the power and cutting out the ‘middle man’, farmers should make more profit on the green power that they generate compared to selling it to third party utility firms or other end-user businesses.

Arla will buy Renewable Energy Guarantees of Origin (REGO) certificates from the farmers which guarantee that one MWh of electricity has been produced from renewable energy sources. It hopes that through buying from its farmers it will both improve the financial performance of their businesses and encourage them to increase their generating capacity.

Why does the EU’s gene editing stance matter to the UK?
Pressure is mounting on the EU to lift its restrictions on gene editing. Gene editing involves changing the native genetic material of an organism, without introducing foreign genes (for more information on the distinction see this blog). This technology is largely seen as accelerating processes that could otherwise occur naturally through selective breeding. In 2018, the European Court of Justice ruled that such techniques would be governed by the EU’s existing rules on genetically modified organisms (GMOs). The European Commission has recently decided that the 2001 legislation is “not fit for purpose” and has launched a review, potentially opening the door to gene-edited crops in the future. Indeed, the study concludes that such technologies “have the potential to contribute to a more sustainable food system”.

Why does this matter to the UK? Defra has already embarked upon a similar review and seems to favour separating gene editing from genetic modification, making it easier to use the technique. During a recent consultation however, concerns were raised that divergence from EU regulations may result in trade restrictions. With the recent change in EU rhetoric, such concerns may prove to be a moot point. British plant breeders have welcomed the news from over the Channel. National Institute of Agricultural Botany chief executive Dr Tina Barsby said the news “could turn out to be a great day for genetic innovation and its contribution to addressing the urgent global challenges of food security, climate change and sustainable development”.

Dr Barsby also expressed hope that the devolved administrations in Edinburgh, Cardiff and Belfast might come to recognise the potential benefits of the technology too. Scottish rural economy secretary Fergus Ewing has previously said that SNP policy remained to keep Scotland GM free but that the country shouldn’t ‘shut its eyes and ears’ to scientific progress. Reclassification of gene editing by Europe would potentially allow an SNP administration to maintain alignment with the EU while also permitting gene edited crops to be grown.

 

POLICY

Making the agricultural transition fair for farmers
The IPPR think tank has proposed a renewed social contract for farming as part of the shift towards a net zero and nature-positive economy. In its report, it points out that “farming in the UK is facing not one but several transitions”, including new agri-environment schemes, new trading arrangements and climate change. The report breaks this social contract down into six priority areas of action:

• A shared understanding of the food and farming system of the future

• The expected contributions of the farming sector to new legally binding environmental targets

• Implement agri-environment schemes that reward farmers who deliver environmental public goods

• The reform of the farm regulatory system to support farm improvement and provide a trusted legal baseline

• Enabling farmers to navigate the transition by developing new business models

• Establishing and embedding a trade policy that upholds domestic environmental standards and producers.

Through the agricultural transition, Environmental Land Management (ELM), National Food Strategy and Trade and Agriculture Commission the government is laying the foundations for developing its policy and activities in these areas. But the industry continues to be forced to plan and make decisions based on headline information only. At a recent Environment, Food and Rural Affairs Committee evidence session industry representatives were asked whether they considered that Defra’s agricultural transition was still deliverable by 2027. In response George Dunn, Chief Executive of the Tenant Farmers Association said that it was “extremely tight for time” and that “Defra is guilty of allowing activity to be a proxy for progress”. Tom Bradshaw, Vice President of the National Farmers Union (NFU) criticised the lack of an impact assessment for the most substantive change in agricultural policy in decades. The NFU believes that there should be detailed modelling done on the financial consequences of the withdrawal of direct payments and its replacement with the ELM scheme. He acknowledged that this was a complicated process, but did not believe it was a sufficiently good excuse not to conduct impact assessments.

Interim general licence for gamebird releasing
Releasing pheasants and red-legged partridges in European Protected Sites and within a 500 metre buffer zone around them will be licensed for an interim period of four years. During this time, Defra and Natural England intend to assess the impacts of gamebird management on individual sites. The new general licence will control the density of birds to keep it below the threshold at which there is any possible risk of damage to the site. For red-legged partridges the licence conditions stipulate that the density cannot exceed 700 birds per hectare and release pens must not be in semi-natural or unimproved habitats. For pheasants, the density released must be no more than 700 birds per hectare of release pen. Release densities for both will be lower if stipulated in a Site of Special Scientific Interest (SSSI) consent. Higher densities are permitted in the surrounding buffer zone.

All shoot managers releasing gamebirds on these sites and in the surrounding buffer zone will need to provide Defra and Natural England with details on the total number and species of gamebird released. Details of any relevant SSSI consent will also be required. An online reporting form will be available from 31 May 2021. Shoots unable to comply with the general licence must instead apply for an individual licence.

 

ENVIRONMENT & NATURAL CAPITAL

How much carbon does miscanthus sequester?
The first dedicated, independent study into the carbon life cycle of miscanthus has shown the crop to be a net carbon negative feedstock with the potential to capture a net 0.64 tonnes of carbon per hectare per year in the ground; this sequestration is sufficient to offset 2.35 tonnes of CO2e. The University of Hohenheim study found that crop’s underground rhizomes and decaying leaf litter fixes and stores 3.05t/ha/year of CO2e, whilst emissions from field operations and delivery emit 0.7 t/ha/year of CO2e, leading to the net position of 2.35 t/ha/year of CO2e sequestered. Around 26t/ha/year of CO2e will be contained in the harvested crop; if it is burnt as fuel this element will release the CO2 that it absorbed whilst growing. Miscanthus supplier Terravesta says that the crop’s carbon efficiency means that it is well placed to help deliver the UK’s net zero by 2050 objective and increasing the area of miscanthus grown is complementary to afforestation, rather than competing against afforestation.

Regulating burning on deep peat
The regulations preventing the burning of vegetation in England on areas of deep peat (over 40cm deep) on a SSSI that is also a Special Area of Conservation or a Special Protection Area are now in force. Burning is still permitted in some circumstances such as on steep or rocky land or where a licence has been issued to allow the burning of vegetation for wildfire prevention or conservation purposes. Defra has now issued guidance on the licence application process, this confirms that a blanket bog restoration plan also needs to be submitted. Separate guidance relating to this plan says that it must include a map of the area showing the size and habitat type (including evidence that at least 75% of the area is made up of a single species and sphagnum mosses are absent or scarce). The plan must also identify the condition of the blanket bog, address any issues with habitat restoration and include details about any plan to burn to restore the blanket bog habitat.

New Nitrate Leaching Tool launched
To help reduce nitrate pollution the Environment Agency (EA) has developed a tool to estimate annual losses of nitrate at field and farm scale. It uses data provided by farmers during farm visits and is unique as few nutrient management tools estimate nitrogen losses at the field scale and model nitrogen losses that occur as a direct result of different farm practices. In additional to the environmental benefits, minimising losses will benefit farmers financially too as the nutrient use efficiency of their crops will be higher.

Natural England calling for help to shape biodiversity net gain services
Natural England has put a call out to ask landowners, estate managers, tenants, those who advise or support the rural sector, developers and Local Planning Authorities for their feedback and input on what its digital services for biodiversity net gain (BNG) should look like. By signing up here individuals will have the chance to influence the design of services supporting BNG, gain early insight into developments and work collaboratively with partners to determine how BNG will work on the ground. Collaboration is essential if we are to ensure that the theory of BNG is rolled out correctly in order to successfully maximise the benefits that the concept can create to society.

 

PROPERTY & DEVELOPMENT

Nutrient neutrality issue spreads to Cornwall
Cornwall Council has paused issuing planning consents for development in the catchment of the River Camel Special Area of Conservation after Natural England highlighted concerns over excess levels of phosphates. Last month Natural England issued a letter to the council explaining that the protected area was at risk from the effects of eutrophication caused by excessive phosphates. Additional development in the area could increase the phosphate load entering the catchment, and therefore Natural England has advised the council that permission for a project may only be given if an assessment allows it to be certain that it will not have an adverse impact on the integrity of the designated site. Cornwall Council has responded by saying it will review the advice, seek legal assistance and for the time being will not approve new developments unless applicants can show that they are nutrient neutral.

Scotland: General statutory compliance on tenanted agricultural holdings
The Tenant Farming Commissioner has issued a new guide covering general statutory compliance on agricultural holdings. It aims to help interested parties understand their responsibilities with statutory obligations and suggests pragmatic ways to fulfil these. Topics covered include electrical inspections, smoke detectors, asbestos inspections and private water supply inspections.

 

Business & Economy

Rural sector apprenticeship review
The Institute for Apprenticeships and Technical Education has conducted a review into its agricultural, environmental and animal care route. The review provides the Institute with an opportunity to assess the future challenges and opportunities facing the workforce today and in the future. The project is a collaborative process involving a public consultation, and engagement with employers and other stakeholders from across the sector. Changes were made to current occupations and new suggestions were made, for example the prioritisation of a forest manager/officer occupation. The review agreed that demand for occupations related to tree planting and woodland management will increase in the future to meet national tree planting targets. The review also identifies traditional heritage skills that are at risk such as sheep shearing, thatching, coppicing and dry-stone walling. Apprenticeships could play a role in protecting these traditional skill sets. The review also committed the Institute to improving the accessibility of technical education, stimulating training provider markets, ensuring apprenticeships are transferable, clarifying the opportunities for career progression and promoting diversity and inclusion across technical education programmes.

Global construction market bounces back
According to RICS Global Construction Monitor for Q1 of 2021, the global construction market appears to be bouncing back post pandemic. However, it has been widely reported that there are supply chain bottlenecks emerging, with border closures leading to increased costs for materials and transport. Demand for construction materials, combined with logistical delays has also resulted in an increase in the price of timber. Late 2020 and early 2021 have seen exceptionally strong trading conditions with sawlog prices rising sharply, a position they are expected to maintain throughout 2021.

 

OTHER RURAL NEWS

And finally…
Belgian farmer moves the French border
A Belgian farmer accidently redrew his country’s border after moving a border stone which was in his tractor’s path. The farmer, annoyed at the stone always being in the way, had moved it 2.3m, unknowingly placing it inside French territory. The border stone dates back to 1819 when the border between France and Belgium was first marked out, having been formally established under the Treaty of Kortrijk, signed in 1820 after Napoleon’s defeat at Waterloo five years earlier. Luckily the farmer’s mistake didn’t cause an international incident, instead local Belgian authorities are planning to contact the farmer to ask him to return the stone to its original location.