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Agriculture and Rural Development
The
Single Payment Scheme (SPS) is now up and running but farmers are still
coming to terms with how this should affect the way they manage their
businesses. Hardly surprising, since many have still not received all
they are due in payments. At a more strategic level, the first decision
people are wrestling with is whether or not to stay in active farming.
Provided that their land is kept in Good Agricultural and Environmental
Condition (GAEC) and abide by the Statutory Management Regulations,
they should qualify for the subsidy payments.
This means that, in some areas, farmers may decide to withdraw from production or radically change their businesses.
Areas particularly at risk are:
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Dairy farms – as the price pressure exerted by the big buyers keeps profits down (or non-existent) and TB continues to take its toll, many will think dairying is not worth the candle
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Upland/hill farmers – life in the hills can be hard, and unappealing to young people. As profits decline, viability will be brought into question (as the National Trust has found with its hill land tenants) and under-grazing is going to be a feature
The new agri-environment regimes (Environmental Stewardship in England; Tir Gofal and Tir Cynnal in Wales; and Land Management Contracts in Scotland) offer something of a lifeline but it remains to be seen how many will grasp it. In England, the chaos over the production of maps has done little to smooth the way in ELS, and (in the light of uncertainty over future viability) some farmers are concerned about the length of the commitment needed to enter into HLS. Budgets are constrained, meaning fewer successful applicants, and more disappointed ones who have incurred substantial costs in preparing bids for no reward.
Closer to home, Asken undertook an evaluation of the Morecambe Bay Local Grazing Scheme and reviewed options for its future development. We are now looking at implementing the recommendations of this initial study.
Despite the concerns of the commercial farmer, there is growing interest amongst conservationists in the use of livestock as a habitat management tool. Asken has worked closely with Penny Anderson Associates to assess the feasibility of re-introducing grazing to Cannock Chase in Staffordshire. The challenges are to ensuring animal welfare and achieving co-existence with a high level of public access. We think it’s feasible, so look out for cows and ponies ranging across the Chase in future.
The regulatory aspects of policy continue to bite:
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Agricultural departments within the UK reviewed their Nitrate Vulnerable Zone Action Programmes, as required by the EC. In England, this is having substantial impacts on farmers, especially dairymen. Asken did research into the effects to feed into Defra’s Regulatory Impact Assessment.
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Cross compliance has been a thorny issue. In truth, much of the requirement is simply to comply with the existing law and follow good practice. The need for 2m margins around fields has, however, exercised the English farming bodies.
Future Reforms
The government’s efforts to deflect criticism of Britain’s budget rebate by asking for reform of CAP is likely to be short-lived. Any reform of the current regime is unlikely to be good news for British farmers, although it could benefit rural development (at present, the workings of the so-called Fontainbleau Agreement discourage government participation in co-financed EU schemes). It remains to be seen how the Coalition Government will take forward the UK's agricultural policy and implement EU rules.
Contact us at:
k.taylor@asken.co.uk
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Last updated: 23-Jul-2010