The Rural Bulletin: 10 August 2017

New planning tax could cost farmers £1000s

The farming industry has fought back against a new tax on buildings that is set to cost farmers thousands of pounds and prevent farm development. 

The Local Infrastructure Tariff (LIT) is proposed to replace the existing Community Infrastructure Levy (CIL), which imposes a tax on development for local infrastructure. Farmers are likely to have to pay for agricultural buildings, however the CLA, CAAV, TFA and NFU have called for a zero-rate levy to be applied. 

The organisations have written to housing and planning minister Alok Sharma explaining that levying such a tax on farm buildings would be unfair given that farmers pay for their own infrastructure, and would restrict rural economic growth.

HS2 landowners may have to repay stewardship income

Farmers with land in agri-environment schemes who are affected by the HS2 rail link between London and Birmingham have a window of just two weeks to claim force majeure rights - or they may have to repay money they have received. 

Land taken by compulsory purchase for HS2 no longer qualifies for agri-environment schemes, meaning that agreement holders cannot comply with the five or 10-year commitment required by the scheme. In these cases, money paid out will be recovered by Natural England. However, for agreements taken out before 23 February 2017, landowners will be able to claim force majeure rights – providing they apply to Natural England within two weeks of receiving the compulsory purchase order.

Lack of dry spells leads to wet grain in stores

Continued wet weather has increased concerns over declining wheat quality, triggering a lot of farmers to harvest grain wet.. At 16-17%, wheat moisture levels are high in Gloucestershire, and Hagbergs are struggling to get above 180 further north in Lincolnshire, according to local merchants. 

Winter barley harvest is almost complete in Scotland and activity has picked up in Lincolnshire, with many growers now starting to cut spring barley. Harvest results, however, remain a mixed picture across the country.

Northern Irish farmers set to receive BPS advance

Farmers in Northern Ireland are set to receive an advance on money due under the Basic Payment Scheme for the second year running, due to an increase in the number of farmers submitting applications online.

The percentage of the advance has dropped to 50% of the value of the claim, in comparison to the 70% paid out in 2016, and payments will be issued from 16 October 2017.