Sugar beet can be used as a natural substitute for petroleum-based chemicals and is therefore seen as a key building block in the development of sustainable supply chains and a thriving bioeconomy. It is not only sugar beet making a return – Morrisons has reintroduced glass milk bottles as part of its drive to reach net zero emissions by 2030. Glass bottles can be reused for ten years, reducing plastic consumption and ultimately, emissions. Elsewhere, the Scottish Hill, Upland and Crofting group report suggest a very different policy direction for Scottish agriculture, and George Eustice has announced the launch of the Farming in Protected Landscapes scheme and the future funding split for ELM in England.

FOOD & FARMING

Sugar beet key to Scotland’s green recovery
Sugar beet was reintroduced to Scotland last year, 50 years after the closure of the Scottish Sugar Beet factory in Cupar, Fife. The crop has made a return to Scotland as it is believed that it will be part of the solution to climate change, as a key building block in the development of sustainable supply chains. Sugar beet can be used in the production of ethanol as a natural substitute for petroleum-based chemicals used in household goods, as well as in antibiotics and therapeutic proteins. Scotland’s demand for ethanol is expected to double in the next few years, however currently all the country’s supply is imported from Europe. The consortium that is driving the initiative to reintroduce sugar beet is examining the social, environmental and economic impacts of the project and has been exploring the potential of localised micro-processing plants as an option for the onward transportation of concentrated sugar syrup. The consortium says government support and investor interest will be critical to the viability of the reintroduction, but that ultimately this project can support sustainable fuel and chemicals production through biotechnology, creating new jobs to strengthen communities across Scotland.

Milk bottles make a return to Morrisons
As part of Morrisons’ drive to ensure all its farms in Britain are net zero by 2030, it is reintroducing the glass milk bottle. The retailer has introduced the traditional glass pint bottle to 11 of its stores, costing the customer 90p, which compares to 50p for a pint in a plastic bottle. It is hoping to attract customers who have a sense of nostalgia, as well as a desire to reduce their plastic use. Morrisons has set a target of a 50% reduction across its own brand primary plastic packaging by 2025. It is estimated that the trial of the glass bottle will cut plastic bottle use by 40,000 and reduce emissions, due to shorter delivery distances from local suppliers. The trial stores are in Kent and Sheffield, and the bottles will be delivered directly to Morrisons supermarkets by local dairy farms. Once returned, the bottles will be sanitised and can be reused for over 10 years. Morrisons intends to roll out the reintroduction across all of its stores.

Review of Wales’ agricultural pollution rule
Welsh Senedd members have voted 58 votes to 0 to review the new Control of Agricultural Pollution Regulations. Previously approximately 2.4% of Wales was designated a Nitrate Vulnerable Zone (NVZ), but the new rules introduced an NVZ covering the whole country. The tougher rules for slurry storage and spreading created challenges for the operations and infrastructure on many farms. The vote has been dubbed ‘a victory for common sense’ as the cost to farmers of these new regulations was thought to be in the £millions. Stakeholders such as The Farmers Union of Wales were relieved by the news as it has previously expressed concerns at the way in which the legislation was passed. Rural Affairs Minister Lesley Griffiths said that ‘more rapid progress on reducing pollution from agriculture’ was needed ‘across the whole industry’, as according to the Welsh government, agricultural pollution incidents remain high – averaging over three per week in the last three years.

POLICY

Farming in Protected Landscapes programme announced
George Eustice has announced new funding for protected landscapes which is intended to help farmers and land managers within or adjacent to Areas of Outstanding Natural Beauty and national parks to improve the environment in a way that benefits the protected landscape. The projects must either support nature recovery, mitigate the impacts of climate change, increase public access to natural landscapes or support nature-friendly farming businesses. The scheme will run from July 2021 – March 2024 and has £20 million funding available in the first year. Applicants could get up to 100% of the costs of a project funded if there is no commercial gain through it. The programme will work alongside Defra’s existing and new schemes. Applications for more than £5,000 will be judged by a local assessment panel. To apply, land managers must obtain an application form from the protected landscape body where their project is taking place.

The launch of the Farming in Protected Landscapes programme is part of the government’s response to the 2018 Glover Review of Protected Landscapes. Another part of the government’s response is its proposals to increase the area of National Nature Reserves, and to consider the designation of four new areas of protected landscape:

• Yorkshire Wolds AONB

• Cheshire Sandstone Ridge AONB

• An extension to the Surrey Hills AONB

• An extension to the Chilterns AONB

The Prime Minister has committed to protect 30% of England’s land by 2030, and the four new areas would deliver over 40% of the additional 4,000km2 required.

Eustice reveals funding split
Speaking at the Groundswell Regenerative Agricultural Show and Conference, George Eustice revealed that from 2028 there will be an even funding split between the Environmental Land Management (ELM) Sustainable Farming Incentive (SFI), Local Nature Recovery and Landscape Recovery schemes. More details of the SFI pilot have been published and it is clear that it is intended to be applicable for all farmers, providing funding for a menu of land management options which promote a regenerative approach to farming. Little information has been published about the Local Nature Recovery and Landscape Recovery schemes, however we know that both are likely to require substantial cooperation, innovation and collaboration between local land managers. This may make them hard to access for certain farmers. It also signals that Defra is serious about funding land use change as both recovery schemes are likely to fund large scale habitat creation and restoration.

Scottish Hill, Upland and Crofting report released
The Hill, Upland and Crofting Climate Change Group, one of the farmer-led groups set up to provide advice and proposals for the Scottish government’s new devolved agricultural policy, has published its final report. The report focuses on how the sector can cut emissions and tackle climate change, whilst also continuing to deliver high quality food for Scotland. It identified production-based efficiencies, peatland restoration, woodland creation and deer management as focus areas for upland and hill farmers to reduce their climate impact. The group believes that previous support systems have been inadequate because they have distorted land values, creating a competitive disadvantage for hill farming whilst also creating barriers for new entrants. Instead, the report states that future agricultural support payments must be linked to the delivery of adequate agricultural activity; this is a very different approach to public payments from that proposed by Defra in England.

The report stresses that a focus on meeting climate targets should not come at a cost to management which targets biodiversity and that any regulation proposed should be preceded by a period of voluntary uptake. The group also stresses that future policy must not be aimed at artificially culling livestock numbers in an attempt to gain ‘quick wins’, as low input livestock are intrinsic to the wider carbon cycle. The report is optimistic about the potential of private carbon markets for farmers, but voices concern at the emerging structure of these markets. There are multiple proposals on how to enable better carbon auditing and what support farmers will need. The report provides a set of initial recommendations for the Scottish government that will be key in influencing what future agricultural policy looks like.

Call for organic farming in ELM
The English Organic Forum has published a blueprint which promotes the scaling up of the sector and argues for organic farming systems to be included in the design of ELM. The report presents the aligned position of 32 member organisations. It identifies key public goods that could be delivered from 1 million hectares of organic land (equivalent to 10% of England’s agricultural land). These public goods include increased carbon sequestration, worth over £188 million annually, a 50,000 tonne reduction in nitrogen surpluses which equates to a £100 million saving in water treatment costs, and a 1,700 tonne reduction in the application of pesticides. Last year organic food and drink consumption rose 12.9% in the UK however the area of organic land has remained static. The farming body Organic Farmers and Growers believes that a lack of direction and support from the government means many farmers are undecided about whether or not to convert.

ENVIRONMENT & NATURAL CAPITAL

Government promises a nature positive future
The government’s response to the Dasgupta review contained several new measures and commitments with implications and opportunities for the rural sector. Its commitment to a ‘nature positive’ future means it will aim to reverse biodiversity loss globally by 2030 and ensure that all economic and financial decision-making supports the delivery of this. The use of efficient agricultural technologies such as vertical farming and cellular agriculture will receive significant investment. The government is intending to consult on proposals to reform the Better Regulation Framework, in order to understand how environmental impacts can best be taken into account within the design and implementation of regulatory policy. In terms of national accounting, the government is aware that reporting on gross domestic product alone has its limitations and therefore the Treasury and the Office for National Statistics will work together to ensure natural capital is incorporated into national accounts.

Net zero progress and public attitudes
The Climate Change Committee (CCC) has published its 2021 Progress Report to Parliament. The publication reports on both progress in reducing emissions and progress in adapting to climate change. The headline message of the report is that despite the climate promises that the UK government has made this year, it has been too slow to follow these with delivery. The CCC laments the uncertainty and delay of new climate strategies, and says that those which have emerged have ‘too often missed the mark’. The report calls for an ambitious heat and buildings strategy and action on hydrogen, biomass, peat, energy and food plans. Defra responded to the report, saying that the government recognises the urgency that is required.

The government recently conducted a survey into the public awareness of net zero. 83% of participants reported that climate change was a concern. However, only 14% considered climate change to be affecting their local area ‘a great deal’ compared to 42% who considered climate change to be affecting other countries ‘a great deal’. 78% of participants supported the UK’s net zero target; interestingly only 22% of participants considered agriculture to be contributing ‘a great deal’ to climate change.

Scottish land deemed to be a net carbon emitter
Scotland has not met its 2019 overall target for greenhouse gas emissions reductions. The Climate Change (Emissions Reduction Targets) (Scotland) Act 2019 specifies a 55% reduction between 1990 and 2019, but Scotland only achieved a 51.1% reduction. This is partly due to a change in the methodology for reporting emissions which has led to Scotland’s natural assets being classified as net emitters. Previously, Land Use, Land Use Change and Forestry (LULUCF) were shown to be a net-sink of emissions, however calculations have been amended to include the effect of historical drainage and rewetting of peatlands, which has tipped LULUCF into emitting 2.7 MtCO2e in 2019. LULUCF emissions have reduced by 6.4MtCO2e since 1990 and are the sixth biggest cause of emissions in Scotland after transport, business, agriculture, energy and residential property.

The Scottish government is at the front of driving a green recovery to a decarbonised economy. The government recently announced a new fund for Scottish island communities to receive grants of up to £150,000 to support net zero initiatives. The Island Communities Fund will fund green infrastructure projects that support employment, community resilience, and a green economic recovery. With COP26 happening in Glasgow in less than five months, more announcements for net zero investment are very likely, particularly in light of Scotland’s missed 2019 emissions target.

Parliament debates grouse petition
The government held a debate on grouse shooting in response to a petition put forward by Wild Justice that calls for a ban on driven grouse shooting. and the petition argues that grouse shooting is economically insignificant when contrasted with other potential uses of the UK’s uplands, and that it is not beneficial to the environment as muirburn negatively impacts upon climate change and drainage leads to flooding and erosion. Further, it argues predator culls have a negative impact on the ecology of uplands. The lively debate focused on the extent to which grouse shooting supports local rural upland communities, the evidence behind declining and increasing numbers of hen harriers, the carbon sequestration potential of blanket bog, the compatibility of shooting and conservation, and the viability or other uses of moorland.

Environment Minister, Rebecca Pow, concluded “clearly there is a great deal of strong feeling about this issue and people approach it from different perspectives”. From her response it is clear the government is trying to balance socio-economic and environmental perspectives in its decision making and recognises the importance of grouse shooting to rural communities. She said that the government has always been clear about the need to phase out rotational burning on protected blanket bog, citing the ban introduced by the Heather and Grass etc Burning (England) Regulations 2021. She also confirmed that peatland restoration is at the top of the government’s agenda, and that the recently published Peat Action Plan provides a strategy for this. The minister referenced the need to continue to tackle wildlife crime and address the risk of wildfire. It was confirmed that Westminster does not currently have plans to implement measures similar to those recommended in the Werritty review, but that it will be keeping a close eye on what happens in Scotland. To conclude, no direct action to the petition was proposed, but the minister explained the need for mutual understanding on the topic of banning driven grouse shooting, and the importance of fully assessing its environmental, social and economic impacts.

PROPERTY & DEVELOPMENT

UK’s infrastructure bank open for business
The UK’s infrastructure bank was officially launched on 17 June and will focus its efforts on helping the UK to meet the government’s net zero emissions target. Initially, the bank will have £12 billion of capital to deploy and the ability to issue £10 billion of government guarantees, which the Treasury says will help to unlock over £40 billion of investment. The bank will also be able to issue loans, equity or guarantees to private projects. The ‘core mission’ of the bank is to partner with the private sector and local government to increase infrastructure investment to help tackle climate change and promote economic growth across the UK. Investment will be available for infrastructure assets and networks, as well as new infrastructure technology, in particular for clean energy, transport, digital, water and waste. The bank is aware of the implicit tension between climate change mitigation and economic growth and will take careful consideration over possible trade-offs. The bank is referenced in the government’s response to the Dasgupta review as providing a mechanism to enable investment into nature and nature-based solutions. The task of solving climate change and levelling up is no small one, and it will be interesting to see how much influence this new Leeds-based infrastructure bank really has.

Planning reform needed for listed sites to decarbonise
Property investor Grosvenor Britain and Ireland estimates that retrofitting listed buildings to become more energy efficient could lead to a 5% reduction in carbon emissions from the UK’s building stock. Around 500,000 buildings in England alone are protected by statutory listing and many more are situated in conservation areas. In order to make the upgrades, Grosvenor is calling for major planning reform, asking the government to align heritage protection and sustainability more closely in the National Planning Policy Framework.

Business & Economy

Loch Ness pumped storage scheme approved
Plans for a 450MW pumped storage scheme on the shores of Loch Ness have been approved by the Scottish government. The £550 million “Red John” project is expected to create up to 700 direct and indirect jobs in the area and save over 45 million tonnes of carbon dioxide emissions over its lifetime. Pumped storage involves pumping water up to a reservoir when there is excess energy on the national grid and releasing it back to a lower reservoir through an electricity generating turbine when there is demand for power. Such projects provide a sustainable way of smoothing out inconsistencies in power supply that can be caused by renewable energy sources. It is hoped the scheme will reduce instances of wind farms being paid to stop generating power.

Exporting opportunities in new trade deals
The NFU has urged the government to produce a comprehensive strategy in response to the tariff liberalisation within new trade deals. We are still awaiting the government’s response to the Trade and Agriculture Commission’s report of March 2021 and the NFU is asking that the government conduct rigorous economic assessments of the predicted cumulative impact of free trade agreements on domestic UK agriculture. How the UK intends to pursue a liberalised trade policy alongside its assurances not to compromise the UK’s food standards remains an open question. Industry stakeholders are concerned that the UK-Australia trade deal which grants tariff-free access to Australian farmers could see cheaper imports undercut domestic producers. The UK has secured market access to Japan for exports of poultry meat, an estimated boost to the industry of £65 million over five years. The agreement reduces tariffs on frozen chicken cuts from an average of 10% to zero over several years. The government says that the deal demonstrates the high standards of UK poultry production because Japan is known for its stringent food safety and import regime and its taste for high quality meat.

OTHER RURAL NEWS

Fines of up to £5,000 for animal offences
The government has backed a new Bill to crackdown on animal offenders, which would give enforcement bodies powers to serve penalty notices for animal health and welfare offences. Individuals who commit offences against animals will face fines of up to £5,000 under the new legislation. These fines are being introduced to ensure that offenders face tougher penalties for crime, in addition to the new five year maximum prison sentence for animal cruelty which was introduced through the Animal Welfare (Sentencing) Bill earlier this year.

And finally…

A rosé twist on the traditional strawberry
Wimbledon 2021 is underway and will provide a welcome boost to strawberry and cream sales across the nation. But could future years see a twist on this British summer classic? Over in the USA berry breeder Driscoll’s has bred a rosé strawberry which it says “contains sweet, peachy notes capped off with a soft, floral finish that’s as delicate as a rose. Plus, their smooth, silky and creamy texture perfectly complements a hot, summer afternoon”. The berries sell for around double the price of traditional strawberries and Driscoll’s hopes to create a ‘super premium’ segment in the market. It has super sweet varieties in development as well as one tasting of pineapple and papaya.