A reinforced sense of community has emerged and entrepreneurial food enterprises are adapting, launching takeaways and delivery services to meet the needs of their communities. The Government and retailers have sought to reassure consumers that there is no shortage of food, what has changed is where we consume it; previously 65% of meals were consumed at home, increasing this to 90% has put more pressure on supermarket supply chains.

The Chancellor Rishi Sunak has said he will do whatever it takes to protect jobs and incomes and has announced a range of economic reliefs. Many farm and estate diversification enterprises will be eligible for the business rate reliefs. The drier weather is finally allowing arable farmers to get out onto the land and begin sowing what for many will be a larger than normal acreage of spring crops.

FOOD & FARMING

Coronavirus – effects and support for food and rural businesses
Supermarkets and their supply chains are feeling the pressure of increased consumer demand in the wake of the coronavirus outbreak. Several chains have resorted to cutting the product ranges in store and are encouraging their manufacturers to focus on supplying products for which there is the greatest demand. The cuts in products for different supermarkets include moving from 20 styles of pasta to six, while Morrison’s have reduced their bakery lines from 17 to seven. The aim is to make production as efficient as possible without pausing to change packet sizes or product type. Executives insist there is no shortage of food, the problem lies more in logistics. The proportion of food eaten at home is increasing from 65% to 90%, putting more pressure on supermarket supply chains and logistics whilst demand on food service and restaurants drops. Supermarkets are struggling to restock shelves and online delivery services are running at maximum capacity.

In an effort to allow supermarkets to pool data and resources, the Government has relaxed competition laws. This will permit retailers to share data on stock levels, though in case this voluntary cooperation does not happen the Government has included powers to compel it within the Coronavirus Bill. Retailers will also be able to share distribution depots and delivery vans and cooperate to keep shops open. Laws around drivers’ hours have also been relaxed to allow more food deliveries. Food retail workers, as well as farmers, have been classed as key workers. In order for these workers to continue working, their children can continue to attend school if they cannot be safely cared for at home.

Boris Johnson will not ask for an extension to the Brexit transition period, despite the global nature of the coronavirus crisis. He said “[an extension is] not a subject that’s being regularly discussed” and added “there is legislation in place that I have no intention of changing”. Yet the virus is already having an impact on negotiations as chief EU Brexit negotiator Michel Barnier tested positive for coronavirus and planned talks in London have been cancelled.

Consideration of the Environment Bill by a Public Bill Committee has been suspended due to current circumstances. It is unlikely that all committee activity will be suspended as some are focused upon the outbreak itself, such as the COVID-19 and food supply inquiry being held by the EFRA committee.

Our latest briefing note details how recently announced economic reliefs for businesses and individuals impacted by coronavirus, which might assist diversified farm businesses. Key issues covered include:

• The extension of business rate reliefs and announcement of grants

• Statutory Sick Pay reimbursements

• The new Job Retention Scheme

• Protections for private renters

UK no longer grade A
The UK is now a 'B' grade nation in a global assessment of animal welfare. Parliamentary delays due to Brexit have held up planned animal welfare laws on animal sentience and export regulation. The Animal Protection Index ranks 50 countries from grade A to G. Despite the downgrade the UK remains one of the highest scoring nations because not one country received an 'A' grade this year. World Animal Protection (WAP) argues that animal welfare concerns are proven threats of disease outbreak. It added that several nations, including China, the USA, Vietnam and Belarus, need to do more to protect both animals and people from zoonotic diseases. Besides the threat of disease, WAP says intensive farming systems cause immense suffering and cruelty to billions of animals each year.

Safe and sustainable sewage sludge use
The Environment Agency has reviewed the regulatory regime for sewage sludge treatment, storage and use. By 2021 the regulation of sludge spreading will be changed so it falls within the Environmental Permitting Regulations. A new framework will aim to improve the perception of the use of sludge. Currently the regulation focuses on its heavy metal content, but to maintain industry and consumer confidence the new rules will demonstrate that hazards due to micro-plastics, anti-microbial resistance and other chemicals are controlled.

US to lift ban on UK beef
The US has agreed UK disease control measures meet their standards following a three week inspection last year. This means British beef could soon be sold in the US, creating £66 million worth of export opportunities for British farmers over the next five years. The British Meat Processors Association has said “while the US is unlikely to be a high-volume destination, there are great opportunities to market our high-quality grass-fed beef at a premium”. The Government is due to begin negotiating a free trade agreement with the US this month.

POLICY

Preparing for water supply pressures
The Environment Agency has launched a long-term plan to ensure future water security. Predictions show that if no action is taken an extra 3.4 billion litres of water will be needed each day between 2025 and 2050 to meet public demand. An increasing population and requirement to improve the environment and increase resilience to droughts and climate change will be needed. The impact will be most apparent in the South East where an extra 1,765 million litres a day will be needed. Agriculture, power and industry will also increase their demand. In the East, an extra 444 million litres a day will be needed with 64% going to agriculture and spray irrigation. To manage and meet demand the National Framework for Water Resources aims to reduce demand, improve efficiency and distribution, avoid waste and develop new supplies of water. Regional water resources plans will be created by 2023. They will tackle the issue using demand and supply side measures such as storage, water reuse and transporting water. It is hoped average water use per person can be cut from 143 litres to 110 litres per day.

The UK Droughts & Water Scarcity programme has published an Irrigation Water Strategy to ensure agriculture “receives its fair share of the nation’s water resources and uses it in a sustainable and efficient way”. Three strategic themes have been identified:

• Managing irrigation “hotspots” and forecasting demand

• Addressing regulatory and environmental challenges linked to a changing climate

• Working together to build resilience to climate and water risks.

Exporting responsibility is not an option according to the report. More than 50% of our food is already imported, some inevitably due to out of season demand for produce. But the report says “producing fresh fruit and vegetables in the UK requires much less water than growing similar crops in countries we rely on for imports”.

England: Agricultural tenancy reform
Defra has now published its analysis and intended action following the consultation on agricultural tenancy reform proposals which it ran between April and July 2019. It had already included legislative changes to enact some of the proposals within the Agriculture Bill, such as repealing the commercial unit occupation test and introducing an improved suitability test. Defra’s latest document shows that for the remaining proposals, which included allowing assignment of AHAs and widening the pool of eligible successors, the measures would not deliver its policy aims in their current form. In some cases it will now work to refine its proposals with stakeholders and industry whilst in others alternative suggestions to achieve the same policy aims will be explored. The proposals to allow succession to grandchildren and to withdraw succession rights once a tenant reaches five years past state pension age will not be taken forwards. 

Three crop rule dropped
Defra minister George Eustice had previously ruled out a relaxation of the Basic Payment Scheme’s ‘three crop rule’ but has been forced to do a U-turn. He confirmed the rule would be relaxed across England to help farmers get back on their feet following extreme weather and flooding. To support flood hit farmers, an additional £6 million has also been added to the Farming Recovery Fund. Scottish growers have also been granted a derogation from the three crop diversification rule. NFUS combinable crops chairman Willie Thomson said “the derogation… will make a difference… but it is already looking that fallow may be a more economic option than planting for some parts of the country”.

ENVIRONMENT & NATURAL CAPITAL

UK’s first “super national nature reserve”
The UK’s first “super national nature reserve” has been created. Seven landowners have joined forces to connect disparate areas of land across the Purbeck Heaths in Dorset, forming a 3,331 hectare nature reserve. By combining their land and forming a single nature reserve it is hoped the varied landscape will be easier to manage and wildlife will be able to move freely across it. Management activities on the land will include removing non-native Scots pine, allowing the heathland grazing of pigs and cattle, and even encouraging bare patches to promote the growth of Yellow Centaury.

In Nottinghamshire, Sherwood Forest landowners, local authorities and conservation groups have also agreed to work together to secure the future of the ancient woodland. They have signed the Sherwood Accord and committed to encourage collaboration, increase investment in habitat restoration and ensure measures to address issues such as reducing carbon emissions and improving people’s health and wellbeing are put at the heart of decision-making.

A national forest for Wales
A national forest running the length and breadth of Wales is planned. The Welsh Government says creating a connected ecological network running throughout Wales will play an important role in protecting nature and addressing biodiversity loss. The plan has been backed by £5 million in the Welsh Budget and a further £10 million of Glastir Woodland creation and restoration funding.

Innovating to Net Zero
The UK cannot go climate neutral much before 2050 unless people stop flying and eating red meat. The claim is made by the government-funded research group Catapult in its Innovating to Net Zero report. It says achieving net zero before 2050, as some groups have suggested, would require measures "that push against the bounds of plausibility". The report does say that being carbon neutral by 2050 is possible but only if ministers act much more quickly. It suggests economic incentives to go low carbon should be introduced and tradable instruments developed such as carbon credits. It also argues that power markets should be reformed and energy use planned for local areas.

Huge soil health knowledge gap
Just 0.41% of the environmental monitoring budget goes towards protecting soil. A freedom of information request by the Sustainable Soils Alliance (SSA) revealed that £60.5 million is spent monitoring water quality and £7.65 million checking air quality, but just £284,000 auditing soil. SSA director said the figure was “staggering but not surprising”, adding that “it reflects the widespread under-investment in soil health”. Defra is planning to design an indicator for healthy soils and to establish a new natural soil monitoring scheme.

PROPERTY & DEVELOPMENT

Protection for residential tenants increased
Measures to protect renters and landlords affected by coronavirus are being introduced across the UK.

England

• Emergency legislation to suspend new evictions from social or private rented accommodation while this national emergency is taking place, initially for at least three months

• No new possession proceedings through applications to the court to start during the crisis

• The three month mortgage payment holiday available to homeowners will be extended to landlords whose tenants are experiencing financial difficulties due to the virus

• The Government is asking landlords to show compassion and to allow tenants who are affected by this to remain in their homes wherever possible.

Wales
The Welsh Government has agreed that the UK Government’s measures will apply in Wales.

Scotland

• The mandatory grounds for eviction notice period under the Private Residential Tenancy is being temporarily increased from three months to six months

• The three month mortgage payment holiday is available to landlords and the Scottish Government is urging banks to increase this to six months.

England: Electrical safety inspections
The regulations to make five yearly electrical safety inspections mandatory for private rented dwellings have been approved and will come into force on 1 June 2020. From 1 July 2020 a test must be completed before the tenancy can commence. Existing tenancies must have their first test by 1 April 2021.

Reservoir safety to be strengthened
The Government has accepted all the recommendations made by the independent review into reservoir safety following the Toddbrook reservoir (Whaley Bridge) incident. This will mean the inspection regime and enforcement are strengthened and additional responsibilities are placed on landowners. The Environment Agency has said it will act quickly to implement the recommendations. On a separate but related matter the inquiry held by Norfolk County Council into the river embankment breach at Wainfleet in Lincolnshire, concluded that one of the principal causes was that the embankments didn’t afford the protection of a newly constructed flood defence due to the way they were constructed.

Wales – Local land tax explored
A report looking into the potential for a Local Land Value Tax (LVT) in Wales has been published. It was commissioned from Bangor University by the Welsh Government and is exploring alternative forms of local taxation to examine how to raise stable revenue for local services in the fairest way. Its modelling found that a 1.41% rate on residential land would be sufficient to replace council tax, whilst a 3.9% rate on properties that currently pay non-domestic rates would be sufficient to replace that tax. The report notes that agricultural land has been exempted from property-based taxes for over 100 years and there is no overwhelming economic rationale for this, but any decision to include agricultural land would likely face significant resistance. It suggests the exemption is due to farmers delivering unpaid public goods which underpin the rural tourist industry as well as benefiting society. It concludes that agricultural land should be included in a comprehensive cadastre for Wales in order to provide clarity on the costs and benefits of any potential exemption from a LVT.

BUSINESS & ECONOMY

The importance of rural connectivity
The importance to the economy of good digital connectivity in rural areas has never been more apparent than now as the Government orders those who can, to work from home. In its ‘An Update on Rural Connectivity’ report the Environment, Food and Rural Affairs Committee calls on the Government to set specific targets for reducing the urban rural digital divide and put in place the investment to achieve them. It asks the Government to honour its commitment to an “outside-in” approach to ensure hard to reach rural areas are prioritised.

OTHER RURAL NEWS

And finally…
Solar powered "fuelling station"
Britain's first solar powered fuelling station will allow 24 motorists to charge their vehicles at the same time. Motorists will have access to a two-storey airport-style terminal while their vehicles charge, including coffee shops, meeting rooms and a supermarket. The site in Braintree, Essex is backed by a £4.9 million government grant. It will be the first of 100 such sites built across the UK over the next five years. Power will come from a solar canopy that shades vehicles on the forecourt as well as two large-scale solar farms that will supply the nationwide forecourt network.