Welsh farming, tree felling, back in the USA

Last minute intervention from the government averted the imminent carbon dioxide crisis I mentioned last week, but subsidising fertiliser companies to run their plants when surging gas prices makes them unprofitable is far from a sustainable solution. What does sound more sustainable though is the local food initiative I mention in this week’s “Overseas news” slot, which possibly offers a blueprint for smaller farmers to prosper post-Brexit. Innovation and meaningful partnerships will be crucial.

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 and fert costs surge
• Welsh farming – CAP replacement schedule announced
• International trade – UK lamb back on US menus
• Tree felling – Forestry Commission simplifies licences
• The Rural Report – Sign up to watch our ground-breaking video
• Overseas news – German baker creates local food hub

Commodity markets – Fuel and fert costs surge

As predicted last week oilseed rape is back over 500p/kg again, but given the flea-beetle affected crop’s limited contribution to this year’s harvest, rising fuel and fertiliser costs will be of more interest to the majority of arable farmers. Red diesel costs are up sharply on the week, while ammonium nitrate (AN) fertiliser values have risen by as much as £40/tonne off the back of surging gas prices.

Welsh farming – CAP replacement schedule announced

The Welsh government has said its post-Brexit replacement for EU agricultural subsidies, the Sustainable Farming Scheme, will open in January 2025. Like Defra’s Environmental Land Management Scheme (Elms), it will have a strong emphasis on the environment and public goods, such as improved soils, clean air, clean water and improved biodiversity, alongside sustainable food production. The Welsh government has also confirmed the current Basic Payments Scheme (BPS) would continue in 2022 and 2023, subject to confirmation of sufficient funding from Westminster, and committed £67m to allow the extension of Glastir Advanced, Commons and Organic contracts until December 2023.

Edward Holloway, a member of our Rural Asset Management team, with a number of Welsh clients, says: “The recent announcement has confirmed the long-held expectation that the Sustainable Farming Scheme will be focussed on the environment and the delivery of public goods, and the release of some scheme details early in 2022 will enable farmers to plan for the changes to come. This will be welcome news to most, as will the delay to the phasing out of existing support schemes to 2023, but others will be frustrated that details on future payment rates will not be released for some time. Furthermore, there appears to be a gap between the existing schemes ending in 2023 and the roll out of the new scheme in 2025 – this will be concerning to farmers, who will need to plan accordingly.”

International trade – UK lamb back on US menus

After decades of shunning British lamb, the US government has finally relented and promised to lift a ban on sheep meat dating back to the BSE outbreak at the turn of the century. Beef was given the green light last year. AHDB reckons the trans-Atlantic market could be worth around £37m over five years.

Tree felling – Forestry Commission simplifies licences

From 22 October, a limited number of felling licence applications directly related to the management of tree pests and diseases may be exempt from being included on the Public Consultation Register before the trees are felled, where the Forestry Commission agrees that tree felling needs to be expedited for an overriding biosecurity or public safety benefit. Examples include allowing the prompt removal of ash trees infected with ash dieback and growing within falling distance of roads.

“This may be seen as an opportunity for some but it is worth noting that the relaxation will only apply in very specific scenarios and tree owners will need to tread carefully to ensure they do not fall foul of the requirement for a felling licence,” points out my colleague Edward Holloway who is part of our woodland investment team.

The Rural Report – Sign up to watch our ground-breaking video

This year’s edition of The Rural Report, our unique publication for rural landowners and their advisors, launched last month with a video highlighting some of its key content around the topic of ESG. If you missed it, you can sign up to watch on demand at your leisure. It was a lot of fun making it and includes a thought provoking interview on diversity, with Wilfred Emmanuel-Jones AKA The Black Farmer. I think you’ll find it both entertaining and informative.

Sign up to watch The Rural Report launch video

Overseas news – German baker creates local food hub

The Sustainable Food Trust newsletter is full of interesting stories and this one about how a baker in an unfertile part of southern Germany has inspired farmers to start growing heritage crops once more caught my eye. It shows the power of community, paying fair prices and the demand for locally produced food.

Photo by Joseph Reeder on Unsplash