Ultimately, the accompanying grounds for repossession will determine the impact upon landlords. The UK Government recently published the temporary tariff regime which it would apply to imports in the event of a no-deal Brexit. Described as “a modest liberalisation of tariffs”, the regime has been widely criticised by agricultural and food industry stakeholder groups. Perhaps illustrating the point that food supply and demand is not static, 2018 was a strong year for UK vineyards, as production more than doubled.

FOOD & FARMING

UK wine production more than doubles
15.6 million bottles of wine were produced in 2018, 130% more than in 2017 and far greater than the previous record of 6.3 million bottles in 2014. The total acreage of vines also grew by 13% to over 1,000 acres, triple the area recorded in 2000. A recent academic study suggests up to 70,000 acres of land in the UK may be suitable for growing grapes. If current growth rates continue, the industry’s 20 year prediction that production could reach 40 million bottles a year is achievable. Such growth would generate significant employment: the number of jobs could increase from 2,000 currently, to 20-30,000.

Sheep theft on the rise
Sheep theft has increased by over 50% in England and Wales since 2016. Nearly 10,000 sheep were stolen in 2018. Of the 381 incidents reported, charges were only bought in a single case. A lack of resources to tackle skilled and organised criminals has been blamed for the poor results. Cases of more than 100 sheep being taken in a single raid are not uncommon.

UN encourages diet change
Advocates of a transition towards a more plant-based diet have now received UN backing following the release of its Global Environment Outlook report. The report backs the theory that an emissions tax on food could reduce greenhouse gases and habitat loss associated with livestock production. It also says lab grown meat “requires smaller quantities of agricultural inputs and land compared with raising livestock” and so could be consumed as an alternative to improve sustainability and reduce the footprint of land use for food production. The report is produced every five to seven years and analyses global environmental threats including plastics, pesticides and habitat loss.

POLICY

Trade tariff schedule criticised
The Government has published details of the UK’s temporary tariff regime which would apply in the event of a no-deal Brexit. It has been designed to minimise costs to business and consumers while protecting vulnerable industries, and has been described by Trade Policy Minister George Hollingbery as a “a modest liberalisation of tariffs”. The temporary import tariffs would not be applied to goods crossing from Ireland into Northern Ireland. The temporary tariff regime is necessary because the EU is a major trading partner with whom we currently enjoy tariff free trade. In the event of a no-deal Brexit, without any action our current external tariff regime would apply to the EU, imposing new tariffs on EU imports and driving up consumer prices. On the other hand if we maintained zero tariffs with the EU, under WTO rules we would have to extend this to the rest of the world and expose vulnerable industries to global competition.

The temporary tariff regime would apply for 12 months, whilst a consultation and monitoring are used to develop a more permanent solution. Under WTO rules tariff rates applicable to ‘third countries’ can only be reduced from current levels, however the situation with the EU is slightly different given we are leaving the free trade zone, meaning that imports from the EU will face tariffs for the first time since the 1970’s. In deciding what level to set its temporary tariff regime at, the Government has needed to play a balancing act between the impact of the tariff coming into play on UK imports from the EU, and the cut which would benefit other trading partners from around the world. Under the temporary tariff regime 87% of goods imported into the UK would benefit from tariff free access. Whilst tariffs would still apply to 13% of goods imported into the UK, some rates would be cut relative to current levels. Beef, lamb, pork, poultry and some dairy imports would be covered by tariffs in an effort to support and protect farmers. Tariffs would also be retained for fertiliser and bioethanol to help protect UK producers against unfair global trading practices, such as dumping and state subsidies. They would also be retained on goods such as bananas and raw cane sugar to ensure that preferential access for developing countries is maintained.

Stakeholders have been critical that the tariff regime was only published two weeks before it could come into effect, giving businesses no time to prepare. In relation to the tariff rates NFU President, Minette Batters said “under the no-deal tariff policy even those sectors that are treated sensitively by our Government will, in most instances, see worrying and large reductions in the tariff rates currently charged on non-EU imports”. Throughout the Brexit process the high vulnerability of the sheep meat sector has been consistently highlighted: the temporary tariff regime retains the existing level of tariff for third country sheep meat imports and does not include any additional market access. The National Sheep Association has described them as a step in the right direction, but remains concerned “that a no-deal will still result in far higher volumes of lamb onto our domestic market than we have historically catered for”. This is because the UK could lose its export access to the EU market, and if regained, this may be at high WTO tariff rates leading to lower exports and consequently higher domestic supplies supressing prices.

EU Farm Commissioner, Phil Hogan, has described the published tariff regime as a “political stunt” that would probably breach international trade rules. The EU Commission is preparing to introduce measures to reduce the impact of Brexit on farmers. Brussels would “stand behind EU farmers with the various tools we have used in the past” said the Commissioner.

Food and drink export growth slows
Analysis by the Food and Drink Federation shows that export growth slowed in 2018 following a 9.7% increase in the value of food and drink exported during 2017. In 2018 the value of food and drink exports only increased by 2.5%, and a slowdown was seen in both exports to the EU and to the rest of the world. Exports of salmon and beer fell by 11.6% and 7% respectively.

Clean growth: Spring Statement
A significant element of the Chancellor’s spring statement focused on clean growth and presents both challenges and opportunities for property owners and rural land managers.

•The Government is launching a call for evidence on a business energy efficiency scheme to explore how it can support investment in energy efficiency measures for small businesses.

•To ensure that wildlife isn’t compromised whilst delivering necessary infrastructure and housing, the Government will mandate net gains for biodiversity on new developments in England to deliver an overall increase in biodiversity. This could provide opportunities for adjoining or off-site landowners.

•To explore ways to enhance the natural environment and deliver prosperity, the Government will launch a global review into the Economics of Biodiversity.

•The Government will also explore public understanding of the emissions from their journeys and their options to offset them. This could include requiring travel providers to offer carbon offsets to their customers.

•To help meet climate targets, the Government will advance the decarbonisation of gas supplies by increasing the proportion of green gas in the grid. This is likely to require more anaerobic digestion plants.

•Introduce a Future Homes Standard by 2025, so that new build homes are future-proofed with low carbon heating and world-leading levels of energy efficiency. This will include a ban on the installation of gas boilers in new homes, which has knock on implications for other utilities. Thomas McMillan Director in Energy Consulting has considered the issues in this blog: Why the gas boiler ban may mean an electric shock for housebuilders.

Extension of Article 50
The EU has adopted a decision which extends the period available under Article 50 to 22 May 2019, provided the withdrawal agreement is approved by the House of Commons by 29 March 2019 at the latest. If the withdrawal agreement is not approved, an extension of the Article 50 period until 12 April 2019 is available, during which time the UK must indicate a way forward to the EU for consideration. Despite this movement from the EU side, and the fact that the House of Commons has expressed a desire not to leave on 29 March 2019 without a deal, Brexit on 29 March 2019 remains the legal position stated in UK statute. Industry bodies including the NFU and National Sheep Association have welcomed the EU’s announcements and reminded MPs that a no-deal Brexit would be disastrous for British farming.

ENVIRONMENT & NATURAL CAPITAL

England: Water shortages in 25 years
Sir James Bevan, Chief Executive of the Environment Agency warned delegates at the Waterwise Conference that within 25 years the UK will not have enough water to meet demand and will be facing an existential threat. Alongside industry action he called for a radical change in public behaviour and attitudes to water use, asking the public to cut their consumption from 140 to 100 litres per day. Coupled with a 50% reduction in leakage by 2050, this would provide enough water for an additional 20 million people.

Coastal flooding inquiry
The Environment, Food and Rural Affairs Committee has launched an inquiry into coastal flooding and adaptation to climate change. Later this year the Government is due to publish its long-term policy statement on flooding and coastal erosion, and the Environment Agency will issue a new 50-year strategy.

Welsh environmental consultation
The Welsh Government has opened a consultation on environmental principles and governance post-Brexit. Unlike in England where the Environment Bill and a new oversight body is proposed, Wales already has overarching sustainable development legislation in the form of the Well-being of Future Generations (Wales) Act so the policy gaps are different.

Arla aims to be carbon neutral by 2050
Farmer owned cooperative Arla aims to be carbon neutral throughout its entire business by 2050. By 2030 it is aiming to have cut its CO2 emissions by 30% per kilo of milk and considers this achievable using current technology. Its emissions per kilo of milk are already less than half the global average. The business believes that a market will develop for more sustainable conventional and organic fresh milks.

Legal action against pest bird killings
Newly formed campaign group Wild Justice is launching legal action against Natural England to challenge the ‘general licence’ it issues which permits the killing of certain wild bird species if they are causing damage to crops, livestock and fisheries. The general licence covers species such as pigeons, crows, magpies and Canada geese. The group is arguing that Natural England’s approach is unlawful as it doesn’t take enough care to judge individual cases.

PROPERTY & DEVELOPMENT

Scotland: Concentrated land ownership criticised
Following a request from Scottish Ministers, the Scottish Land Commission has published a report detailing its ‘Investigation into the issues associated with Large Scale and Concentrated Land Ownership in Scotland’. Hamish Trench, CEO of The Scottish Land Commission said “The evidence we have collected shows clearly that it is the concentration of power associated with land ownership, rather than necessarily the scale of landholding, that has a significant impact on the public interest, for example in relation to economic opportunities, housing and community development. Good management can of course reduce the risks associated with the concentration of power and decision making, but the evidence shows that adverse impacts are causing significant detriment to the communities affected. This points to the need for systemic change beyond simply a focus on good management”. The Commission has separately made recommendations to government which include:

•A statutory public interest test and approval mechanism is introduced for significant land transfers

•A statutory requirement for large landholdings to prepare and consult upon a management plan

•A statutory land rights and responsibilities review

•Promotion of more diverse private ownership to help achieve land reform objectives

•Local engagement in land use change

Sarah-Jane Laing, Chief Executive of Scottish Land and Estates, said: "We are deeply concerned that the report still sees land ownership rather than land use as the prime route to dealing with issues being faced by communities. Nor does the report adequately reflect the positive and substantial contribution made by rural businesses. We also want to see more detailed and compelling examples to support the report's claim that concentrated landownership is damaging fragile communities”. She also highlighted that there are “already significant community buyout powers still to come into force from previous reforms”.

Scotland: Agricultural Leases Code of Practice
Scotland’s Tenant Farming Commissioner, Bob McIntosh, has issued a Code of Practice for Agreeing and Managing Agricultural Leases which is to be followed by landowners, tenant farmers and land agents. The Code sets out some simple principles and practices to follow when agreeing the lease, recording variations and ending a lease.

Labour commit to indefinite residential tenancies
The Labour Party has pledged that the next Labour government will protect private renters in England from eviction with new ‘indefinite’ tenancies, based on rules currently in place in Germany. In Germany there are tightly defined reasons for eviction and tenancies average 11 years in length, compared to an average of four years currently in England. The Party’s policy was previously to introduce tenancies with a three year minimum term. It will now consult with landlord and tenant groups to develop the permitted grounds for termination. Residential tenancies in Scotland are already indefinite. A new Private Residential Tenancy was created for all new lettings after 1 December 2017, the agreement being indefinite, but 18 grounds for repossession are available. In a rural context the lack of a ground which can be used to recover possession of a property in order to house a farm employee has been identified as an issue.

Leasehold system needs reform
Following an inquiry the Housing, Communities and Local Government Committee has said that the leasehold system needs reform, as “the balance of power in existing leases, legislation and public policy is too heavily weighted against leaseholders”. It recommends that existing ground rents should be limited to the higher of 0.1% of the present value of a property or a maximum of £250 per year. The Committee would like the Government to ensure that commonhold becomes the primary model of ownership of flats in England and Wales.

BUSINESS & ECONOMY

New payslip rules
From 6 April 2019, new rules mean all workers, not just employees, must be provided with a full itemised payslip if their pay varies according to the amount of time worked. Use of the broader category of ‘worker’ means the requirement applies to payslips for casual or seasonal workers and people on a zero-hours contract too. Employers paying a worker by the hour must include the time worked on the payslip either as a single total or broken down according to different types of work. If a worker has a fixed monthly salary with no variable pay on offer, there is no requirement to show hours worked. If that worker does work variable overtime at an hourly rate, those hours must be shown.

Apply early for BPS
Defra is encouraging farmers to submit their Basic Payments Scheme applications in good time before the 15 May deadline. It has also aligned the annual claim deadline for Countryside Stewardship and Environmental Stewardship agreement payments with BPS, so all are now due on 15 May. All payments have been guaranteed this year, irrespective of the Brexit outcome.

OTHER RURAL NEWS

Cumbria deep coal mine approved
Cumbria County Council has given the go-ahead to Britain’s first deep coal mine in 30 years. The £165 million project was backed by councillors from across all three major parties who said it will bring both investment and jobs to the area. An estimated 500 jobs will be created onsite with a further 2,000 in the wider supply chain. It is hoped the site will produce 2.5 million tonnes of coking coal per year for use in steel works and will replace imports from the USA, Canada, Russia and Colombia. Opponents say the colliery will harm the UK’s efforts to reduce carbon dioxide emissions, although the developer argues modern steel plants include extensive gas treatment and capture to significantly reduce emissions. In an effort to mitigate some of its emissions the developers have agreed a deal for a 50 megawatt solar farm nearby to provide a third of the site’s energy needs.

Glyphosate deemed a cancer factor
A San Francisco jury has deemed the herbicide glyphosate was a “substantial factor” in causing a man’s non-Hodgkin’s lymphoma. It is the second of 11,200 Roundup lawsuits to go on trial in the US after the first case saw another man awarded $78 million. In 2015, the WHO’s International Agency for Research on Cancer said that glyphosate was probably carcinogenic to humans. Bayer says “science confirms that glyphosate-based herbicides do not cause cancer". The EU also voted to renew glyphosate’s licence in 2017 and the US Environmental Protection Agency insists the chemical is safe if used carefully.

And finally… Food and the F-word
The invention of processed foods like yogurt and gruel also gave us the F-word according to linguists. All F-words in fact, and V-words too. Early processing methods like fermentation gave us softer foods that were easier to chew. Our ancestors’ teeth were worn down less and we retained more of the natural overbite they were born with. This new kind of bite made it easier to pronounce “labiodental fricative” sounds, such as “f” and “v”. Scientists behind the theory have been gathering evidence over five years by studying our ancestors’ physiology as well as the languages of contemporary hunter-gatherer communities in Greenland, Australia and southern Africa.