Nutrient neutrality, Fairtrade, Beaver patrol

Policymakers always promise more joined up thinking, but invariably fail to deliver. As discussed below nutrient neutrality is a great example. In a bid to limit the impact of the discharge of potentially harmful nutrients like phosphates from new residential developments in certain sensitive areas, the government said any discharges must be offset elsewhere in the same catchment area. Easier said than done and in some parts of the country the result has been a virtual standstill in the delivery of new housing, one of the government’s other commitments. In a bid to get itself out of a pickle of its own making the government has just announced new measures to mitigate the backlog. Elsewhere, despite promising to allow parliament to scrutinise free trade deals to ensure the farming sector isn’t disadvantaged, the government has waved through its FTA with Australia sans debate. So much for rural proofing.

Do get in touch if we can help in any way
Andrew Shirley, Head of Rural Research

In this week’s update:

• Commodity markets – Fuel prices in the balance
• Nutrient neutrality – Planning backlog spurs action
• Scottish country house prices – Market steady
• Scottish farms – Scenic property for sale
• Beavers – Legal protection introduced
• Trade – Lack of scrutiny for Australian deal slammed
• Food chain - Retail adjudicator role consultation
• Overseas news – Ukraine grain on the move

Commodity markets – Fuel prices in the balance

Red diesel prices are slowly sliding back towards the £1/litre mark as crude oil markets remain in relative equilibrium with demand being tempered by recessionary concerns and supply being held back by geopolitical events and lack of ongoing investment in new production.

Whether the downwards movement continues will depend on the outcome of a production meeting between Opec producers and Russia later this week. US President Joe Biden has been putting pressure on Saudi Arabia to pump more oil, but experts say the aforementioned lack of investment could constrain any significant surge even if producers agree to open the taps a bit wider.

Nutrient neutrality – Planning backlog spurs action

Having twigged that its nutrient neutrality requirements for new housing developments are creating a huge planning backlog and hitting the delivery of much-needed housing in certain parts of the country, the government has just announced two significant measures it hopes will help mitigate the issue.

A letter from Joanna Averley, Chief Planner at the Department for Levelling Up, Housing and Communities (DLUHC), recently sent to the Chief Planning Officers at local authorities, lays out the proposals. One will be a change in legislation that will place a new statutory duty on water and sewerage companies in England to upgrade wastewater treatment works to the highest technically achievable limits by 2030 in nutrient neutrality areas. Planning authorities will be able to take this into account when calculating the potential increased nutrient load from new developments.

In addition, Natural England will establish a Nutrient Mitigation Scheme in nutrient neutrality catchments with Defra and DLUHC providing funding to pump prime it. Developers can then purchase ‘nutrient credits’ which will discharge the requirements to provide mitigation. This will enable LPAs to grant planning permission for developments that have secured the necessary nutrient credits in their catchment.

Oliver Knight, Head of Residential Development Research at Knight Frank, says: “Nutrient neutrality rules are slowing down delivery in some parts of the country, so it is encouraging that the government is looking at solutions to resolve the issue. A tenth of the respondents to our latest survey of volume and SME housebuilders said this was the most challenging factor for their business in the second quarter. However, until any mitigation policy is in place, sites in the 74 affected markets will continue to be held up in planning, contributing to a wider slowdown in housing delivery rates.”

Scottish country house prices – Market steady

Last week I reported on our latest analysis of the performance of England’s prime country house market. This week we head north of the border. According to the results of our Prime Scottish Index, compiled by my colleague Chris Druce, prices remained steady in the second quarter of the year, but are up 4% on an annual basis. Last year saw values grow at the fastest rate in four years. Read the full report for lots more facts and figures.

Scottish farms – Scenic property for sale

If you fancy a picturesque slice of Scotland, our Farms & Estates team there has just launched a stunning Highlands property with oodles of residential, agricultural, forestry, tourism and sporting angles. The Seafield Estate (pictured above) includes a farmhouse, modern lodge, two boathouses and a pair of former cottages with development potential, 153 acres of hill ground, 70 acres of woodland, 55 acres of grazing and 1,400 metres of foreshore on Loch Kishorn – all for £1.45 million.

Beavers – Legal protection introduced

As of 1 October new legislation will make it an offence for anybody to deliberately capture, kill, disturb, or injure beavers, or damage their breeding sites or resting places – without holding the appropriate licence. The NFU, however, has said the move is premature without a proper strategy in place to manage the rodents - aka nature’s engineers - who, in the wrong place, can inflict significant damage on woodland, watercourses and farmland. Hundreds of the animals are already thought to be living wild.

More information about the reintroduction of beavers and other species like the lynx is available in The Rural Report.

Trade – Lack of scrutiny for Australian deal slammed

The government’s decision to ratify its free-trade agreement with Australia without the promised parliamentary debate has been criticised by farming and environmental organisations. They fear that the deal will allow the import of food produced to lower environmental, climate change and welfare standards than required of the UK’s producers.

Meanwhile, a new report from thinktank ResPublica, in conjunction with the NFU and RSPCA, titled UK Trade Policy & Animal Welfare makes some sensible suggestions for how the government should be structuring its free trade deals. A new UK Climate and Trade Commission, set up by Queen Mary University of London and the Trade Justice Movement, will also develop practical proposals for how the UK could better address climate change via its FTAs.

Ruth Bergan, Director of the Trade Justice Movement, commented: “We have seen with the UK-Australia trade deal – agreed this week without a vote, or even a debate in parliament – how vital it is to make sure that trade policy supports rather than undermines action on climate change.”

Food chain – Retail adjudicator role consultation

Farms and estates who directly supply retailers may want to participate in a new consultation on the future of the Groceries Code Adjudicator.

The role was created in 2013 to ensure suppliers were treated fairly by the largest supermarkets. The consultation closes on 11 October.

Overseas news – Ukraine grain on the move

At the time of writing (29 July) a small boat was due to leave the Ukrainian port of Chornomask to test the safe passage of vessels carrying grain loaded at the country’s Black Sea ports. If successful, a number of larger boats was due to leave on Saturday. The shipments follow a deal brokered by the UN and Turkey that will see Russia lift its blockade of the ports. Grain has to start moving to allow Ukrainian farmers to empty their silos ahead of this year’s harvest and reduce the impact of spiralling food costs in countries like Egypt that are heavily reliant on wheat from the region.