The additional funding will ensure that in the right areas, woodland creation remains a viable opportunity and help meet ambitious national woodland creation targets.

In Scotland new rules have been introduced which will lead to all short term lets being licenced. Concerns over the safety of some properties and the impact of short term lettings on communities have led to the Scottish government introducing several measures. In England, rules surrounding the taxation of second homes and holiday lets have been tightened.

FOOD & FARMING

Profits increased despite the wet autumn in 2019
The latest 2020/2021 results from Defra’s Farm Business Survey have been published. They are based on businesses with a trading year ending between 31 December 2020 and 30 April 2021 so represent the 2020 harvest and production season. For many farmers it was affected by the extremely wet autumn and winter of 2019 and ongoing uncertainty surrounding Brexit and Covid-19. Despite this the results show average Farm Business Income (effectively net profit) across all farm types increased 13% in 2020/2021 compared to 2019/2020.

Cereal farms saw an increase in Farm Business Income of 14% due to firm prices offsetting lower yields and higher fixed costs. However, general cropping farms suffered a 21% fall in income. On dairy farms, average income increased by 9%, with revenue from other cattle enterprises a key driver. The average Basic Payment across all farm types was £28,000, which was little change compared to 2019/20. Despite the fact Basic Payments will be reduced going forwards, 35% of farms were not planning to make any major changes to their business and 36% felt too unsure to make specific plans.

Arla Foods doubles its carbon reduction plan
Arla Foods has increased the ambition of its carbon emissions reduction plan, aiming to reduce its CO2 equivalent scope one and two emissions by 63% by 2030 instead of its original target of 30% below 2015 levels; Arla has already achieved a 24% reduction since 2015. It will increase sustainability investments by 40% over the next five years. This ambitious target is in line with the Paris Climate Agreement target of keeping global warming to 1.5oc over pre-industrial levels. Arla Foods has said it aims to meet this new global target with plans to convert to ‘fossil free’ milk tankers and distribution trucks powered by biogas, biodiesel and electricity instead of fossil fuels. It will also convert to 100% green electricity in Europe through purchase agreements and investment in renewable projects. To meet this target, Arla has also committed to working with customers and farmers. Last year Arla launched a regenerative agriculture project in the UK along with wider sustainability initiatives which sees over 90% of Arla farmers participating in carbon footprint reporting.

Gene editing red tape cut
New legislation has entered into force which the government says has introduced a more scientific and proportionate approach to the regulation of genetic technologies. The changes will help researchers assess new crops in real-world conditions more easily, unlocking innovation that will lead to the development of more resistant, nutritious and productive crop varieties for farmers. All scientists undertaking research with genetic technologies will still need to notify Defra of any research trials. For the time being gene edited plants will still be classified as genetically modified organisms, and commercial cultivation of these plants, and any food products derived from them, will need to be authorised in accordance with existing rules.

Potential gene editing applications include making sugar beet resistant to virus yellows, a disease which reduces yields by up to 50%. Or removing asparagine from wheat, an amino acid which can form acrylamide during cooking and is a probable cancer-causing compound. For an explanation of the differences between gene editing and genetic modification see this article.

POLICY

Commons committee criticises government’s future farming plans
The House of Commons Public Accounts committee has heavily criticised the government’s Environmental Land Management (ELM) proposals for lacking detail, being based on ‘blind optimism’ and not fully quantifying the impact rural land use change will have on the UK’s food security. In the committee’s report, published on 9th January 2022, parliamentarians criticised the new proposals as ‘beset with many of the same issues’ that have undermined previous government plans for the agricultural sector. The committee is concerned that the government has not sufficiently analysed or explained what impact ELM will have on domestic food production and food imports and how it will manage the risks of price rises and food being imported from countries with lower environmental standards. The committee has asked Defra to report back as soon as possible, with detail on how it will communicate better with the agri-food sector, how ELM will be actioned, and critically, how it will meet the government’s environmental plan whilst also maintaining food production.

Scotland: £30 million from AECS in 2021
In the latest round of the Scottish Agri-Environment Climate Scheme (AECS) more than 600 rural businesses were awarded a share £30 million of grants. AECS was launched to promote land management practices which protect and enhance Scotland’s natural heritage, improve water quality, manage flood risk and help businesses mitigate and adapt to climate change. It also aims to improve public access and preserve historic sites. The scheme helps to fund capital items and management options, including conversion to organic farming. Since the scheme first launched around £244 million has been given to almost 3,000 applicants. Annual application rounds will continue until 2024. The 2022 round opened on 24th January and will close on 29th April. Farmers, groups of farmers and other land managers with land in Scotland registered with a Business Reference Number can apply. To discuss the Agri-Environment Climate Scheme further please contact Lachlan Scott.

Apply now for Improving Farm Productivity grants
The application window for Defra’s Improving Farm Productivity grant opened on 19th January 2022. This grant is one of the three themes offered by the Farming Transformation Fund which aims to improve the productivity and profitability of farms in England whilst enhancing their environmental sustainability. The grant can be used to purchase robotic or autonomous equipment and systems to aid production, or to support the installation of slurry acidification equipment.

Between £35,000 and £500,000 of funding can be claimed per applicant, and at least 60% of the project costs need to be paid for through private means, such as a loan or savings. To be eligible for the grant, applicants need to either own farmland or have a tenancy that will remain in place until at least five years after the project has been completed. However contractors only require a registered business address in England to apply. The first step towards obtaining a grant is to complete an online eligibility check by 16 March 2022. Those who are invited to complete the full application have until 14 September 2022. To discuss the Improving Farm Productivity grant further please contact Georgina Sweeting.

ENVIRONMENT & NATURAL CAPITAL

More funding available for woodland creation in England
The government has announced that it is increasing payment rates for woodland creation in England. The annual maintenance payment rates for the England Woodland Creation Offer have been increased from £200 to £300 per hectare. This change is applied to all new and existing grant recipients. As a result of the Countryside Stewardship (CS) revenue payment rate changes, the Woodland Creation Maintenance (WD1) option rate will also increase from £200 to £300 per hectare per year. This will be applicable to all existing and new CS Agreements from 1st January 2022 onwards. Defra is also supporting smaller woodlands by uplifting the Woodland Improvement (WD2) payment to a minimum of £1,000 per year (effective with agreements starting 1st January 2023 onward). This change is intended to incentivise those with less than 10 hectares of woodland to bring their woodlands into active management.

Plans to strengthen protected landscapes announced
The government has responded to Julian Glover’s independent Landscape Review, which looked at whether the protections for National Parks and Areas of Outstanding Natural Beauty are still fit for purpose. The proposal is that a new national landscapes partnership will bring together those responsible for managing England’s National Parks and AONBs to collaborate on increasing nature recovery and improving public access. The package of measures reflects many of Julian Glover’s recommendations, setting out ambitious changes to enable protected landscapes to deliver more for climate, nature, people and places for the next 70 years and beyond. It has been tied into the ambitions of ‘building back greener’ from the pandemic and ‘levelling up’ across the country. A consultation on the proposals is running until 9th April.

Fens East Peat Partnership awarded £800,000 to unlock peat’s climate potential
The Fens East Peat Partnership (FEPP) has been awarded a ‘discovery grant’ of £815,877 from the government’s Nature for Climate Peatland Grant Scheme. The funding will pay for a feasibility study to investigate the state of peat on 20 lowland sites and neighbouring areas across Norfolk, Suffolk, Cambridgeshire and Lincolnshire. The partnership is led by Lincolnshire Wildlife Trust and once the feasibility study has been completed, it will then develop site restoration plans to boost the capacity of the peatlands to store carbon, protect against flooding and provide species rich habitats. The partnership will be working with landowners and other key stakeholders across the country. The FEPP is one of 10 projects in England that have been awarded Nature for Climate Peatland Discovery Grants.

PROPERTY & DEVELOPMENT 

New rules passed for short term lets in Scotland
MPs in the Scottish Parliament have voted to introduce new regulations for homeowners in Scotland who let their properties on short term lets. These regulations aim to tackle the rise in short term rentals through platforms like Airbnb. Whilst the government recognise their benefits for tourists and the economy, local residents have been campaigning for some years to introduce controls to limit antisocial behaviour and to protect local housing for local people. The parliament passed planning control zone regulations to allow local authorities to designate ‘hotspots’ where changes of use to short term lets can be managed. In Edinburgh this has already been in place for almost a year, requiring operators to seek planning permission to create a new short term let. Additionally, the rules require all local authorities to introduce a licensing system for short term lets. Existing hosts and operators will need to apply by 1 April 2023 for each of their properties to be licenced, and all short term lets in Scotland will have to be licenced by 1 July 2024. Application fees are currently uncapped and set at the discretion of local authorities; it is estimated they will range from £214 to £426 for a three year licence.

Second homes tax loophole closed
Historically some owners of second homes in England have avoided paying council tax and accessed small business rates relief instead by declaring an intention to let the property out to holidaymakers. From April 2023, property owners will have to prove holiday lets are being rented out for a minimum of 70 days a year to access small business rates relief, where they meet the criteria. They will also need to have been available for 140 days in the past year and to be available for 140 days in the coming year. Evidence including a website or brochure and letting details and receipts will be required to support claims.

Biodiversity net gain consultation launched
In 2023 it will become mandatory for developments in England to deliver a 10% uplift in biodiversity. Proposals for how the Biodiversity Net Gain (BNG) system could operate have been published for consultation. It covers how BNG will be delivered through the planning approval process and how the offsetting market for biodiversity credits might function. A report by Eftec for Defra in 2020 estimated that BNG will generate a market for around 6,200 biodiversity offsets each year, worth between £135 million and £274 million.

For development under the Town and Country Planning Act 1990 a pre-commencement condition would be imposed and require the planning authority to approve the development’s BNG plan before development can begin. It is also proposed that applicants would be required to include BNG information with their application; this core information would include the pre-development biodiversity value, the proposed approach to enhancing biodiversity on-site, and any proposed off-site biodiversity enhancements that have been planned or arranged for the development. To count towards a development’s BNG requirement, off-site biodiversity gains will need to be secured through a conservation covenant or planning obligation and registered prior to final approval of the biodiversity gain plan. Off-site works will need to start within 12 months of the discharge of the BNG plan condition, however the government will encourage the establishment of habitat banks to generate the credits in advance. The consultation runs until 5th April.

Business & Economy

Carbon border tax could boost UK economy
The Centre for Policy Studies has released a report suggesting a UK carbon border tax requiring importers to pay a tax on their goods related to the product’s carbon emissions would both level up and decarbonise the economy. The report says a carbon border tax on energy intensive imports would mean importers from outside of the UK are put on a level playing field with British businesses and the regions most at risk of being left behind by the drive to net zero would benefit. The report is titled Levelling Up and Zeroing In and it promotes a range of policies to ensure that the net zero agenda works to help the areas most in need of levelling up.

OTHER RURAL NEWS

And finally…
The future of protein: a prickly issue
Research from the University of Aberdeen has shown that gorse bushes could be used to feed people. Gorse is a native but invasive plant that is actively being removed from marginal land, particularly in Scotland. The research, presented at an event on alternative proteins, demonstrated that if all the gorse is removed from marginal land, there is enough gorse protein to easily feed Scotland’s population. Gorse contains 17% protein whilst broom has 21% protein; if protein isolates were produced in the correct and safe way, they can be consumed by humans. The research showed that 1kg of protein from gorse creates 4.5-6kg of CO2, compared to an average 102kg of CO2 for producing 1kg of meat.