The Rural Bulletin: 1st March, 2019

Andrew Shirley, Head of Rural Research comments:

You might think a few days of sunshine would be a welcome respite for rural property owners fed up of the Brexit saga, but already they are being warned to prepare for potential water shortages.

Landowners and farmers also face more uncertainty as it seems the crucial Agricultural Bill that will shape the future of farming once we leave the EU has been delayed until the autumn.

It would be a crying shame if somehow the government manages to sort out Brexit on time, only for the bill to disappoint. 

Act now to secure water supplies 

Farmers are being encouraged to secure water supplies as soon as possible as the unseasonably warm weather and a lack of rainfall mean an increased likelihood of water restrictions.

Robert Cauldwell, Association of Drainage Authorities chairman and Lincolnshire grower told Farmers Weekly: “We need to start planning now for potential problems with water resources this summer. We cannot wait until we have a problem.”

So far the Environment Agency has extended the winter fill period until April. Environment Agency senior adviser Bob Hillier said: “We have been working with farmers to increase flexibility with abstraction where possible.”

The NFU has also requested that the Environment Agency give farmers permission to abstract extra water if it is available. Farmers should submit any pre-approval requests for abstraction and water trading between catchments as soon as they can.

Agricultural Bill not expected to pass until autumn

The Agricultural Bill is unlikely to get through Parliament until summer or even autumn as it is still waiting to enter the report stage before heading to the House of Lords.

The Government had previously insisted that the Agricultural Bill would need to be passed before 29 March 2019 in order to prepare the sector for Brexit. However, Defra has now confirmed that the EU Withdrawal Act would allow farmers to be paid after the UK’s exit from the EU.

The CLA warned that the Bill’s progress had been put on hold to prevent it being hijacked by MPs supporting a second referendum or a permanent customs union with the EU.

Less favoured area loans offered to Scottish farmers

Farmers and crofters in less favoured areas are being sent loan offers by the Scottish Government as part of its National Less Favoured Area Support Scheme.

Over 10,600 eligible farmers will be given the opportunity to apply for interest-free advances on 90% of their European Union LFASS funding, reported The Scottish Farmer.

Cabinet Secretary for the rural economy, Fergus Ewing, stated that the Rural Payments system should be able to deliver the core payments on time, but due to other issues facing hill farmers this season, the loans have been continued to provide farmers with more support.

Mr Ewing said: “With the on-going uncertainty surrounding whether we will leave the EU at the end of March with a deal in place, it is vital that we provide as much financial support and stability as possible to those operating in our most remote and rural areas.”

Ensus plant to resume ethanol production 

The Ensus plant in Wilton, Teeside is to resume ethanol production again after halting production in October due to difficult market conditions. 

Production will resume at the beginning March but for the plant to continue to operate full-time there would need to be development in the local British market for alternative fuels.

Foremost, this would mean a speedy introduction of the Premium E10, with 10 volume percent of ethanol – something that has been overdue for years, according to parent company, CropEnergies.

In a statement the firm said: “Furthermore, the questions related to Brexit regarding customs for imports and exports to and from the United Kingdom need to be clarified immediately. The future customs regulations are of existential importance for the production site Wilton.”

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