The Rural Bulletin: 13th September 2018

Landmark Agriculture Bill to replace Direct Payments

The new Agriculture Bill, which aims to deliver a cleaner and healthier environment for future generations, was put before parliament on Wednesday (12 September). 

Key features of the bill:

• Direct subsidy payments will be phased out by 2027

• Direct payments will be delinked from the requirement to own land

• From 2021 all direct payments will be reduced. Initial deductions will range from 5% for claims up to £30,000 to 25% for claims over £150,000

• Environmental payments will be delivered via individual environmental land management contracts

“The starting gun has been fired,” said Ross Murray, Chairman of Knight Frank’s Rural Asset Management team. “This is the most significant piece of legislation for farming since 1947 and will form a critical piece of the post Brexit landscape after the UK withdraws from the EU and the CAP.

“Landowners have been given longer than some expected to reshape their businesses to cope with the loss of direct payments, but meaningful change takes time and businesses should start planning now.

“It is significant that payments after 2021 will be delinked from landownership. This offers interesting possibilities for those planning to retire, expand or enter the farming industry.

“The new environmental schemes are also clearly going to favour those landowners who come up with pro-active environmental plans. Given the pressure on the public finances I believe those who engage the earliest will benefit the most as the funding pot for farming will surely shrink.”

Read the bill in full 

Contact Knight Frank’s Rural Asset Management team to find out what the bill means for your business.

NFU Scotland underlines Brexit trade priorities

NFU Scotland has urged politicians to get behind the Chequers Brexit proposals as a ‘no deal’ Brexit would be a disaster for Scotland’s agricultural sector. “Post-Brexit access to trade remains a fundamental issue for Scottish farmers and crofters,” said Jonnie Hall, director of policy.

He highlighted that Scottish producers needed a deal that would be as close as possible to the single market, giving trade access to the EU while retaining the ability to develop new markets. “It is important that politicians…secure something as close to [the] Chequers agreement as possible. If we step away from that, it will be detrimental to [the] UK and Scotland.”

Vivergo closure hits north-east farmers worst

The closure of Vivergo Fuels’ bioethanol plant from 30 September 2018 will see around 1.1m tonnes of feed wheat a year looking for new markets. 

Vivergo sourced wheat from almost 900 farms, predominantly from east and north Yorkshire and northern Lincolnshire. It is also the country’s largest single production site for animal feeds, delivering 0.5m tonnes of high protein feed to over 800 UK farms. 

“This announcement is a significant blow for the UK grain industry,” said Tom Bradshaw, NFU combinable crops board chairman. “As the largest single intake for feed wheat in the county, it will particularly hit arable and livestock farmers in the North East where the plant is based.

“At a time when livestock farmers are suffering with feed shortages, this decision will also have serious knock-on effects.”

Red Tractor to increase farm inspections

Red Tractor will be increasing its farm inspection programme from November, with unannounced visits to improve the scheme’s integrity and maintain consumer trust.

“Red Tractor is already a world-leading assurance scheme; however, we are constantly strengthening our standards in line with scientific advances and consumer demand,” said Jim Mosely, CEO at Red Tractor Assurance.

In a move to become the flagship for British food and farming, Red Tractor also announced its intent to create new modular standards to its current assurance offering, covering organic, environmentally sustained production and enriched animal welfare.

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