Our initial reading is that there is more to gain than fear in its immediate impact, but the long-term direction of travel is significant. It has the potential to revolutionise the conditions attached to land ownership, depending upon how the polluter pays and rectification of pollution at source principles are applied. Strictly interpreted they are a significant burden, but their practical application remains to be seen. The Bill’s introduction of net environmental gain on all development is a key opportunity for landowners who can help developers offset the environmental impact of their site by enhancing habitat nearby or elsewhere.

Returning to Brexit, Boris Johnson has negotiated a revised Brexit Agreement with the EU. During their special sitting last Saturday, MPs supported moves to delay approval of the deal, and parliamentary arithmetic remains tricky meaning the outcome is far from certain. If approved the UK would leave the EU and aim to negotiate a free trade agreement during the 2020 transition period; this would be a positive outcome for agricultural trade. Brexit has drawn attention to the extent to which we are reliant upon the EU for our fresh produce. Whilst this is likely to remain the case, Savills Research shows there is potential to grow more in the UK and for significant investment to be made in ‘vertical farms’.

FOOD & FARMING

Vertical farming to grow in the UK
A Scottish start-up plans to build more than 40 vertical farm sites across the UK. Shockingly Fresh currently is developing five sites which use naturally lit, hydroponic towers to grow leafy vegetables. By cropping in a controlled environment they are able to cut pesticide usage because exposure to pests and disease can be minimised. The company believes enhanced yields from the sites will reduce the UK’s reliance on off-season imports from Europe. The company has launched an investor seed round to kick start its expansion over the next five years.

A new development facility has also been launched at the James Hutton Institute campus at Invergowrie. The £500,000 Innovation Hub for Controlled Environment Agriculture (IHCEA) is designed to tackle issues around the establishment and cost of vertical farming. It also seeks to develop sustainable food production through fully controlled systems. The project, launched in partnership with farm technology company Liberty Produce, was funded by Innovate UK through the Crop Health and Protection agri-tech centre. The existing indoor farm at the Institute has been described as the most advanced of its kind. Existing spaces are also being reused for vertical farming, for example declining car ownership in Paris means there are many surplus underground carparks: three have been converted by urban farmers Cycloponics into farms growing mushrooms and chicory.

Our latest Savills Spotlight on Controlled Environment Agriculture highlights just how important the sector may become within the UK’s future food supply. Over half of the £14 billion worth of fruit and vegetables imported into the UK are from more water insecure nations than the UK itself. Vertical farming systems represent an attractive method of on-shoring supply while reducing climate risk and improving input use efficiency. Globally, the industry is already worth £1.5 billion and is expected to be worth £8 billion by 2025.

Rural crime hub launched
The NFU has launched an online advice service to help farmers’ combat rural crime. The Rural Crime Hub provides information on prevention and crime reporting, as well as business advice for NFU members. NFU Deputy President Guy Smith said he knows “first-hand that rural crime remains one of the most pressing issues” and emphasised the importance of “reporting any incidents of crime to the police so it is recorded properly and investigated”.

Scotland: Crofting Bill dropped
The Rural Economy Secretary Fergus Ewing has confirmed to the Rural, Economy and Connectivity Committee that the Scottish Government’s plans to introduce a new Crofting Bill have been suspended due to the workload created by Brexit. In 2017 the Committee's report called for a new Bill to reform and update the law surrounding crofting, because many were finding the rules and procedures less and less relevant to their circumstances. A Government consultation was held later that year.

Bovine TB: Effectiveness of badger culling
A new study carried out by scientists from the Government’s Animal and Plant Health Agency has concluded that “industry-led [badger] culling was associated with reductions in cattle bovine tuberculosis (TB) incidence rates after four years but there were variations in effects between areas”. Their analysis found a decrease in local TB rates in cattle in Gloucestershire and Somerset, but no significant difference in Dorset. The researchers did note the farmer-led culls were not set up as a scientific experiment and therefore causality and interpretation of the results is subject to some uncertainty. They concluded that culling badgers will not provide the entire solution to bovine TB and the impact of the policy needs to be evaluated alongside other TB controls.

Beef prices and trade
Last week, Parliament’s Environment Food and Rural Affairs Select Committee took evidence from producers’ and processors’ representatives on low beef prices. Between November 2018 and August 2019 beef farmers’ incomes have reduced by £170 million. The witnesses attributed this to a decrease in demand from UK consumers at the same time as a two per cent increase in production. During summer 2019 consumers appeared to be switching away from beef towards fish, particularly salmon. This was partly attributed to the ‘serious bad press’ which has been affecting the meat industry. The witnesses agreed that the export market is vital in order to make sure all parts of the animal are consumed and that the EU will always be our most important export customer. They said the Government needed to do more to promote market access for UK beef abroad, particularly in China. Since then a trade deal has been announced which for the first time in 20 years will give British beef full access to the Chinese market. The Government is suggesting this is a £230 million boost for the British beef industry, and hope more processing plants and also pork exports will be approved in due course.

POLICY

Brexit agreement reached with the EU, now the focus returns to the UK parliament
The European Council has endorsed the new Brexit agreement and has invited the Commission, the European Parliament and the Council to take the necessary steps to ensure that the agreement can enter into force on 1 November 2019. The new agreement effectively replaces the controversial Northern Ireland ‘backstop’ with a border for goods in the Irish Sea. Northern Ireland would be part of the UK Customs Union, but would follow EU customs rules for a minimum of four years after the transition period ends in 2020. In theory these measures negate the need for a border on the island of Ireland, however the proposed deal still needs checking by legal and customs experts. Other parts of Theresa May’s original Withdrawal Agreement remain the same – issues such as the UK divorce settlement, transition period, and citizens’ rights. The UK has requested that the political declaration makes specific references to a future relationship based on a free trade agreement with zero quotas and tariffs.

During Saturday’s sitting of the Commons, the Government was unable to pass a motion to approve the Withdrawal Agreement, because MPs changed the question and supported an amendment which was intended to delay a vote on approval until the legislation required to implement Brexit is in place. This left Boris Johnson obliged to request an extension to the Article 50 negotiating period under the terms of the ‘Benn Act’, however he told the Commons he would “not negotiate a delay with the EU”. Reluctantly he did write a letter requesting an extension to Article 50, as per the text in the Benn Act, but he did not sign the letter and also included a second letter to the EU, stating that the Government did not desire another extension and insisted that the UK could still leave on 31 October.

The Government had intended to bring back a motion for MPs to approve their negotiated withdrawal agreement via a straight up-and-down vote where no amendments are allowed. However this fell foul of parliamentary procedure which prevents the same question being asked twice in a parliamentary session. Its strategy now is to move forwards with the Withdrawal Agreement Bill which implements the details of the Withdrawal Agreement into UK domestic law. The Bill has been introduced into Parliament, and the Government has indicated that if it is amended substantially so that its purpose is changed e.g. creating a customs union or requiring a confirmatory public vote, then they would halt the Bills progress. In this scenario, if the EU has not granted an extension to Article 50, we would leave without a deal on 31 October as not all the withdrawal legislation would have been passed. However, if the EU had granted an extension request in this scenario the Prime Minister may renew efforts to call an early general election.

Queen’s speech sets the agenda
Parliament re-opened on 14 October following a short prorogation. The Queen’s speech set out the new programme for Government and focused heavily on law and order. Announcements relevant to the rural sector included Agriculture, Fisheries and Trade Bills to seize the opportunities that arise from Brexit; an Immigration Bill which will end free movement and lay the foundation for a fair, modern and global immigration system; an Animal Welfare Bill to strengthen protection and sentencing; and the Environment Bill which has already been published and is covered in greater detail elsewhere in this edition of Landscope. Debates on the speech were scheduled up until 22 October. Once completed the Queen’s speech will be voted on; losing this vote has previously been interpreted as a vote of no confidence, however that is not strictly the case and the Prime Minister has said he will not resign if it is voted down.

Food safety inquiry launched
An inquiry into food safety and standards has been launched by the Public Accounts Committee. It will consider the effectiveness of regulation and the impact of the UK’s exit from the EU on the food regulation system. The Committee will also consider emerging risks and challenges. Witnesses from Defra and the Food Standards Agency will be questioned on 28 October, and the inquiry is open to written submissions from stakeholders.

Food labelling: Meaty terms
During the summer the European Parliament's Committee on Agriculture and Rural Development agreed to restrict descriptions like "sausage", "burger" and "steak" to use only on products containing meat and not to vegetarian alternatives. A recent letter by Defra Minister of State Zac Goldsmith shows that Defra does not support this position. Its view is that vegetarian sausages and burgers have been on the UK market for many years and don’t mislead consumers if clearly labelled; “the Government should not put unnecessary barriers in the way of new foods being put on the market”. By contrast in the dairy industry terms such as milk, butter and cheese are not allowed to be used on plant based foods.

Scotland: National islands plan
The proposed National Islands Plan sets out a number of measures to help the public sector meet the needs of island communities and improve life on the islands. It will help tackle issues including depopulation, a lack of housing and improve transport and health services.

ENVIRONMENT & NATURAL CAPITAL

The Environment Bill: More to gain than fear
The Government published the long-awaited Environment Bill (the Bill) on Tuesday 16 October. As influential as the Agriculture Bill may be in re-designing the future of payments to land managers, the Bill promised a revolution in the conditions attached to land ownership. From this perspective, it could have presented a significant concern to farmers. Following our initial reading there is more to gain than fear in its immediate impact, but the long-term direction of travel is significant. The primary goal of the Bill is to improve environmental governance. Better environmental consideration will be introduced into all future policy making based upon five principles:

   1.  The inclusion of environmental protection in policy making

   2.  Preventative action to avert damage

   3.  The precautionary principle, for the environment only

   4.  Rectification at source

   5.  Polluter pays principle

Strictly interpreted, these principles introduce a much greater burden on land managers to avoid environmentally damaging behaviours, but their practical application remains to be seen. The Stacey Review of farming inspection and regulation suggested that a strict application of polluter pays was impractical. The Bill also contains a threat to abstraction licences as it will allow them to be revoked or varied without compensation where they are causing ‘considerable’ environmental damage and/or less water is consistently abstracted than their licensed volume. 

The Bill formally introduces the concept of net environmental gain on all development which will be of interest to landowners especially in high-development areas. In essence, net gain means that the environmental impact of a development is quantified and an equivalent environmental improvement plus a 10% gain has to be delivered elsewhere. It effectively takes an additional slice out of landowners’ planning gain to improve a habitat nearby that merits investment. This is the carrot for land managers in the Bill: a formalised approach for net environmental gain, which may generate a considerable pot of funds for natural capital improvements in the farmed landscape. Any interested landowners should contact Jon Dearsley in the first instance. If you would like to read our full briefing on the Environment Bill click here. 

The Environment, Food and Rural Affairs Committee has launched an inquiry into the Environment Bill which will accept views from stakeholders until 3 November. The Prime Minister has since announced that he will chair a new Cabinet Committee on Climate Change to drive further action across government to protect our environment, reduce emissions and improve air quality. The Government acknowledges that getting to net zero emissions by 2050 will require profound change across government and society.

Nature prescriptions to improve health
Every £1 invested in nature projects for those suffering with poor mental health, could save almost £7 in future health care costs. The study by Leeds Beckett University for The Wildlife Trusts, found 95% of those who suffered from poor mental health were showing signs of improvement just six weeks after they started working in nature for five to six hours a week. The nature prescriptions include work such as clearing ponds and protecting habitats. They also found that every £1 invested in regular nature volunteering projects generates an £8.50 social return by encouraging healthy active lifestyles and reducing loneliness. The report calls for more investment in nature-based services to allow them to become more widespread; their results suggest the concept offers a win-win for individuals, society and the environment.

Geothermal energy for Eden Project
The Eden Project has secured funding for a geothermal energy project on its site. It will drill three miles into the granite crust beneath Eden and use the ‘hot rocks’ to generate renewable energy. The majority of the £16.8 million scheme is being funded by Cornwall Council and the EU and will include a research programme to establish the extent of the green resource. The first well will power the heating for Eden’s biomes, offices and greenhouses. It is hoped that will pave the way for a second well and an electricity plant to allow it to export heat and power to the local area. Should that happen, Eden will generate enough renewable energy to allow it to become carbon positive by 2023. Eden Project co-founder Sir Tim Smit said geothermal power is “the missing piece of the jigsaw in a 24/7 clean renewable energy future” because it can act as a baseload in a similar way to nuclear and coal have historically.

Pilot scheme boosts environmental performance
Farmers and land managers in a “Payment by Results” pilot are more motivated to succeed, delivering “exceptional results” for the environment, according to a report into the pilot scheme. The pilot investigated upland and lowland environmental management options in Wensleydale, North Yorkshire and Norfolk and Suffolk in the east of England. The farmers recorded a 43% higher score for the number and diversity of seed bearing plants than nearby sites under conventional funding schemes. This shows payment by results can provide a better food source for farmland birds during the winter months. The report concludes the result-based approach has “considerable potential” for the design of the future Environmental Land Management scheme – the Government’s future vision for farming outside the EU.

Grouse moor research conclusions
A moorland management project met with “successes and challenges” over the 10 years it ran. The Langholm Moor Demonstration Project aimed to see if a grouse moor could protect hen harriers and other raptors while remaining commercially viable. The final report outlined numerous successful features, including addressing decades of heather loss and the recovery of the grouse population, but that the population did not recover enough to allow commercial shooting to make an adequate economic return. A joint statement from a number of groups including the Scottish Gamekeepers Association said the project “showed that gamekeepers using modern management techniques…led to improved populations” and called it a “watershed” moment. A Scottish Government review of grouse moor management practices is expected to be published later this year. Reversing the decline in heather cover is good news because a separate report in the journal Current Biology found that heather nectar contains a natural "bumblebee medicine", which is active against a harmful bee parasite.

PROPERTY & DEVELOPMENT

Green belt homes are unaffordable
Only one in 10 homes built on the green belt in England during the last decade is affordable, according to the Campaign to Protect Rural England. Its Space to Breathe report also highlighted that around a third of the 266,000 future homes earmarked for green belt development are likely to be affordable. Separate research by the Office for National Statistics found that living close to a green area such as a park or golf course can boost the value of the property by £2,500 on average. Those within 100 metres were more likely to see the boost than those more than 500 metres away. Views of open greenery such as fields, or stretches of water including rivers and the sea, can boost prices by £4,600 or 1.8% on average. The study looked at more than a million property sales in urban areas of England and Wales between 2009 and 2016.

BUSINESS & ECONOMY

Reforest Scotland for rural jobs
Reforesting Scotland to match the EU’s average forestry cover would provide thousands of rural jobs according to the Scottish Green Party. Only 18.7% of Scotland is forested while the average European tree cover is over double that at 40%. Lorna Slater, co-leader of the party, said “forestry can provide a job every 42 hectares, compared to one job every 330 hectares for grouse shooting or one every 183 hectares for agriculture”. She added “reforestation can bring new life to areas of rural Scotland that are too often treated like visitor attractions rather than real communities”.

OTHER RURAL NEWS

And finally…
Spot the difference
Painting a cow to look like a zebra can reduce fly bites by 50%. The Japanese scientists behind the study claim it could be an environmentally friendly alternative to pesticides. It is believed that the striped pattern confuses the fly’s motion detection and so deters them. It took only five minutes per cow to paint six Japanese black cows with the distinctive pattern. The economic impact of biting flies on cattle production in the United States alone is estimated to be around $2.2 billion per year.