The Rural Bulletin: 3 August 2017

    A summary of the latest news and issues affecting rural landowners and businesses brought to you by Knight Frank.
2 minutes to read
Categories: Agriculture

New grants to boost farm productivity

Defra has announced new capital grants to help farmers improve water management and forestry productivity. Under the Countryside Productivity Scheme farmers can apply for a minimum of £35,000 to cover up to 40% of the eligible costs of a project, including new reservoirs, irrigation infrastructure, or forestry equipment. The deadline for applications is 3 April 2018. A total of £200m will be available, including £120m to improve farm productivity, £30m for rural broadband and £45m to help rural businesses grow.

Remote broadband in question

Around 60,000 homes in rural areas could be left without high speed broadband after BT Openreach offered to voluntarily provide 99% of UK households with broadband by 2020 in place of regulation. Under the Digital Economy Act, all households would have a legal right to a minimum broadband speed by 2020, but the government is considering abandoning these plans as BT’s offer would provide quicker speeds to more customers, faster. The Country Land and Business Association says it will fight any attempt to water down the legal right to rural broadband.

Rain sparks wheat quality concerns

Harvest has finally made a start in northern England and Scotland, although unsettled weather continues to cause frustration across the UK. Winter barley quality in the North is looking promising, with good yields and quality – in stark contrast to southern England where crops suffered in the earlier drought. Winter wheat harvest is under way in parts of the country, with the wet weather sparking concerns over potential deterioration in milling wheat quality. 

Basic Payment Scheme problems ongoing

Some 14% of farmers in England are still struggling with problems over Basic Payment Scheme (BPS) claims from 2015 and 2016, with 43% of those affecting the 2017 application. According to an NFU survey, common complaints included incorrect mapping or land/entitlement changes, and erroneous penalties imposed by the Rural Payments Agency. Almost a third of farmers completing 2017 forms found errors with land details, while an increasing number (55% against 46% in 2016) had sought professional help. 

Free trade for cheaper food?

A leading think tank says Britain should abandon tariffs on food imports to unlock new trade deals and reduce consumer food prices. The report from the Policy Exchange says UK food prices are 15-18% higher than average world food prices because of tariffs, and points to Brexit as a unique opportunity to open up free trade. However, farming unions have warned that allowing imports of food produced to lower standards could put UK farmers at a competitive disadvantage.