The future for farming: UK Government publishes proposals for a post-Brexit agricultural policy

Defra proposes to replace the Common Agricultural Policy with a new system that “pays public money for public goods”

Environmental land management, “underpinned by natural capital principles,” will be the cornerstone of future agricultural policy in England

March 21st 2018

Following the publication of its 25 year plan for the environment, the UK Government is now seeking views on proposals for the development of a new agricultural policy. [1] The ten-week consultation period opened on 27th February and will close on 8th May 2018. On the GOV.UK website, Defra (the Department for the Environment, Food & Rural Affairs) says: “Leaving the European Union and the Common Agricultural Policy will give us the chance for reform. We want to know your thoughts on the future of agricultural policy in England.” [2] The proposals are set out in a consultation document titled Health and Harmony: the future for food, farming and the environment in a Green Brexit. Supplementary information includes an annex on stakeholder proposals, an annex on Countryside Stewardship options, and an evidence compendium, which provides “a detailed assessment of the current state of agriculture in the UK to underpin the proposals laid out in the consultation paper.” The evidence compendium contains detailed statistics on farm economics and accounts, food production, and environmental land management. [3]

“The case for change”

In his foreword to the consultation document, Michael Gove, Secretary of State for the Environment, says:

“For more than forty years, the EU’s Common Agricultural Policy (CAP) has decided how we farm our land, the food we grow and rear, and the state of the natural environment. Over that period, the environment has deteriorated, productivity has been held back, and public health has been compromised… The environmental damage we have suffered while inside the CAP has been significant. Soil health has deteriorated. Farmland bird numbers have dropped. Precious habitats have been eroded. And at the same time a system of subsidy skewed towards those with the biggest landholdings has kept land prices and rents high, prevented new talent coming into farming, and held back innovation.”

Chapter One of the document makes the case for change. It explains that the CAP involves three types of payments to farmers: Direct Payments, comprising a Young Farmers Scheme and a Basic Payment Scheme with a ‘greening’ component; price support for food producers; and rural development schemes which include agri-environmental measures. [4] Direct Payments have been reformed several times and were previously linked to production but are now largely based on the size of agricultural land that a farmer owns, as measured by the number of hectares. Defra says that of all the different types of farming, grazing livestock is the sector that is most dependent on Direct Payments, sheep farming in particular: “Those sectors in which a high proportion of farmers currently depend on Direct Payments just to break even are often located in the most remote, wild and beautiful parts of the UK… For example, the distinctive character of the Lake District landscape has been shaped through long association with sheep farming, one of the sectors currently most dependent on Direct Payments.”

The document concedes that the CAP has produced some environmental improvements, but it also says that the overall positive impact has been limited. In making the case for change, Defra says that the CAP has not been effective enough at reversing environmental damage caused by agricultural practices which have increased negative pressures on the environment through pollution and practices that have led to habitat and species loss. The Executive Summary (p.6) states:

“The CAP introduced some of the world’s first agri-environment schemes, making progress towards improving our environment. Significant reforms have helped to shift the CAP away from the ‘butter mountains’ and ‘wine lakes’ of the 1980s. Decoupling Direct Payments from production has reduced some of the incentives to produce in an environmentally-harmful way. Despite this, the CAP remains flawed. Even though we have some of the most innovative farmers in the world, land-based subsidies can undermine incentives for widespread productivity improvement and are bad value for taxpayers. Efforts to enhance our environment have also been limited by the bureaucratic structure of the CAP. It has imposed unnecessary regulatory burdens and failed to reward some public goods adequately, such as measures to improve water quality and soil health.”

A period of transition

About a third of the 64-page consultation document is taken up with the Common Agricultural Policy and its impact, and on the transitional arrangements that will come into place following the UK’s anticipated departure from the EU. In a section titled “Moving away from the Common Agricultural Policy in England,” there are chapters on “Reform within the CAP,” “An agricultural transition,” and “A successful future for farming.” Each chapter concludes with a number of questions for consultation. Chapter Four (“a successful future”) also includes sections on “Farming excellence and profitability,” “Agricultural technology and research,” and “Labour: a skilled workforce.”

In summary, the Government is proposing to continue with the Direct Payments system for a limited period in England, but will gradually reduce payments starting with those who receive the most under the current system. While reducing Direct Payments, it will also introduce a new system of payments based on environmental land management, which will replace the current Countryside Stewardship scheme. The current system of Direct Payments will eventually be phased out completely. The consultation is seeking views on how the phasing out of Direct Payments can best be achieved, and discusses several possibilities based on different financial arrangements, including the possibility that farmers may want to quit farming altogether. Meanwhile, the Government says it will maintain the current level of funding for agriculture across the whole of the UK until the end of the current parliament. The Executive Summary (p.7) states:

“We will formally leave the European Union in March 2019. The government anticipates that we will agree an implementation period for the whole country with the EU lasting for around another two years. Once we have the freedom to move away from the CAP, there will be an ‘agricultural transition’ period in England… In England, Direct Payments will continue during the agricultural transition… We want our future policy to provide an enabling environment for farmers to improve their productivity and add value to their products, so they can become more profitable and competitive. We therefore propose to further reduce and phase out Direct Payments in England completely by the end of the ‘agricultural transition’ period, which will last a number of years beyond the implementation period.”

Defra is proposing to make some changes to how the CAP is administered within the implementation period. Chapter Two of the document says that complying with the CAP regulations “presents a challenge to farmers and land managers, policy makers and delivery agencies. The administration of the Basic Payment scheme and Countryside Stewardship scheme can restrict access through complicated application systems and burdensome evidence requirements.” Defra is proposing to simplify the current system to make it easier for farmers to apply for Basic Payments and for Countryside Stewardship funds, and is seeking views on how this simplification can best be achieved. One question presents four options for simplification of the current arrangements under the CAP, and respondents are asked to indicate the three that are most appealing. A second question asks: “How can we improve the delivery of the current Countryside Stewardship scheme and increase uptake by farmers and land managers to help achieve valuable environmental outcomes?”

On the issue of Direct Payments, having discussed the possibilities based on different financial arrangements, the consultation document asks four questions, as follows:

• “What is the best way of applying reductions to Direct Payments?” Respondents are asked for their preference from three possibilities: a) applying progressive reductions, with higher percentage reductions applied to amounts in higher payment bands (respondents are also asked to provide views on the payment bands and percentage reductions that should be applied); b) applying a cap to the largest payments; and c) other.
• “What conditions should be attached to Direct Payments during the ‘agricultural transition’?” Respondents are asked to indicate their preferences from a list of four options.
• “What are the factors that should drive the profile for reducing Direct Payments during the ‘agricultural transition’?”
• “How long should the ‘agricultural transition’ period be?”

Research and innovation: Investing in skills and technology

Looking towards the future, the document stresses the need for farming to embrace new technology and invest in skills, which it says will enable farmers to be more competitive. Defra says “there is a huge opportunity for UK agriculture to improve its competitiveness – developing the next generation of food and farming technology, adopting the latest agronomic techniques, reducing the impact of pests and diseases, investing in skills and equipment, and collaborating with other farmers and processors.” The consultation document asks four questions on skills and capital investment:

• “How can we improve the take-up of knowledge and advice by farmers and land managers?” Respondents are asked to rank their top three preferences from a list of six options.
• “What are the main barriers to new capital investment that can boost profitability and improve animal and plant health on-farm?” Respondents are asked to rank their top three issues from a list of seven.
• “What are the most effective ways to support new entrants and encourage more young people into a career in farming and land management?”
• “Does existing tenancy law present barriers to new entrants, productivity and investment?”

On agricultural innovation, the document includes a case study of work at Harper Adams University in Shropshire where, in 2017, a team of researchers successfully grew a crop of barley “using only autonomous vehicles and drones and without a human setting foot in the field.” The case study reports: “The Hands Free Hectare project was a major step in revolutionising how we feed the world whilst helping to protect the environment. To limit damage to the soil for future harvests, and increase efficiency, the team employed a small modified tractor and combine equipped with cameras, sensors and GPS systems. Drones monitored the field, while a robot scout collected plant samples for inspection.”

The Government says it wants to pioneer new approaches to crop protection and encourage more commercial research to improve plant breeding and agronomic techniques: “New approaches, such as vertical farming, can harness the combined power of robotics, photonics, artificial intelligence and smart energy management systems, as well as plant biotechnology.” Respondents are asked three questions on research and innovation, as follows:

• “What are the priority research topics that industry and government should focus on to drive improvements in productivity and resource efficiency?” Respondents are asked to rank in order of importance the top three topics from a list of seven.
• “How can industry and government put farmers in the driving seat to ensure that agricultural R&D delivers what they need?” Respondents are asked to rank in order of importance the top three options from a list of five.
• “What are the main barriers to adopting new technology and ideas on-farm, and how can we overcome them?”

As well as new technology, the Government also stresses the need to invest in skills. Three questions seek the views of respondents on this topic:

• “What are the priority skills gaps across UK agriculture?” Respondents are asked to rank in order of importance the top three options from a list of seven.
• “What can industry do to help make agriculture and land management a great career choice?”
• “How can government support industry to build the resilience of the agricultural sector to meet labour demand?”

“Farming is crucial to achieving the goals of the 25 Year Environment Plan”

As for future agricultural policy, Defra says that the CAP will be replaced with a new system that “pays public money for public goods,” whilst the proposed system of environmental land management will be underpinned by natural capital principles (the term “underpinned” is used several times in the consultation paper). [5] The Executive Summary (p.8) states:

“From the end of the agricultural transition, a new environmental land management system will be the cornerstone of our agricultural policy in England. The system will help us to deliver our manifesto commitment to be the first generation to leave the environment in a better state than we inherited it. Farming is crucial to achieving the goals set out in our recently published 25 Year Environment Plan. A new environmental land management system will help us to preserve the investment in our countryside that has already been made and delivered by farmers. It will consist of a new scheme that pays providers for delivering environmentally beneficial outcomes, and will provide support for farmers and land managers as we move towards a more effective application of the ‘polluter pays’ principle. Our new environmental land management system will be underpinned by natural capital principles, so that the benefits the natural environment provides for people and wildlife are properly valued and used to inform decisions on future land management. The new system aims to deliver benefits such as improved air, water and soil quality; increased biodiversity; climate change mitigation and adaptation; and cultural benefits that improve our mental and physical well-being, while protecting our historic environment.”

Implementing the new policy

The rest of the document is titled “Implementing our new agricultural policy in England,” with a further section titled “The framework for our new agricultural policy.” There are eight chapters on implementing the new policy, under the following headings:

• Public money for public goods;
• Enhancing our environment;
• Fulfilling our responsibility to animals;
• Supporting rural communities and remote farming;
• Changing regulatory culture;
• Risk management and resilience;
• Protecting crop, tree, plant and bee health; and
• Ensuring fairness in the supply chain.

The Government’s aspirations for the future of farming are summarised in the Executive Summary (p.6):

“We will incentivise methods of farming that create new habitats for wildlife, increase biodiversity, reduce flood risk, better mitigate climate change, and improve air quality by reducing agricultural emissions. We will achieve this by ensuring that public money is spent on public goods, such as restoring peat bog and measures which sequester carbon from the atmosphere; protecting dry stone walls and other iconic aspects of our heritage; and reducing disease through new initiatives that better monitor animal health and welfare.”

“Public money for public goods”

Chapter Five describes the sort of public goods that the future policy will support. These are: environmental improvements and protection; better animal and plant health and better animal welfare; improvements to productivity and competitiveness; “preserving rural resilience, traditional farming and landscapes in the uplands;” and enhancements to public access to the countryside. With future generations in mind, the document says that protecting and enhancing the environment “could be considered the pre-eminent public good.” The Government wants to see improvements to soil health through better land management practices; improvements to water quality; better air quality, with the emphasis on reducing ammonia emissions [6]; increased biodiversity; climate change mitigation [7]; and “enhanced beauty, heritage, and engagement with the natural environment.” Respondents to the consultation are asked to rank in order of importance their top three of these six environmental outcomes.

The Government also wants to set high standards for animal health and welfare, and improvements in biosecurity to protect “crops, trees, plants and bees.” On improvements to productivity, the document stresses again the importance of innovation. Defra says that innovations – “such as technology, data science, gene-editing, improved tracking and traceability of livestock, or new plant biosecurity measures” – can increase productivity, help to safeguard the public goods of animal and human health, and “ensure we better protect the environment.”

Hill farming is singled out as needing particular support under the new regime, as it is the sector that is most dependent on Direct Payments under the current system. The Executive Summary (pp.7-8) states:

“We recognise that some sectors may find it more difficult than others to adapt – for example, those located in the most remote, wild and beautiful parts of England. We recognise the environmental and cultural value of our rural landscapes and traditional ways of life, including areas such as the uplands. The uplands have the potential to benefit from new environmental land management schemes, given the nature of their landscapes and the many public goods that they deliver, such as biodiversity, flood risk mitigation, and carbon sequestration. We will explore possible options on how we can best support such areas.”

Respondents to the consultation are asked to rank in order of importance their top three public goods that the Government should support. There are six options: world-class animal welfare; high animal health standards; protection of crops etc.; improved productivity; the preservation of upland landscapes; and public access to the countryside. Respondents are also asked if there are any other public goods that the Government should support.

Environmental outcomes

Chapter Six (“Enhancing our environment”) provides more detail of what a new environmental land management system could involve: “A new environmental land management system, underpinned by natural capital principles, would contribute to delivering against many of the key outcomes set out in the 25 Year Environment Plan and the Clean Growth Strategy. These include: clean air; clean and plentiful water; thriving plants and wildlife; reduced risk of harm from environmental hazards such as flooding and drought; using resources from nature more sustainably and efficiently; enhanced beauty, heritage and engagement with the natural environment; and mitigating and adapting to climate change.” The document says that a new environmental land management system could involve some or all of the following: new environmental land management schemes, such as support for wetland creation, woodland creation, or peatland restoration; funding for collaborative projects; capital grants; a ‘user friendly’ design to improve administration of the scheme; and innovative funding and support mechanisms.

Several case studies are presented which illustrate the sort of environmental improvements that have already been achieved under the current system [8], and the chapter concludes with further questions for consultation. The first question lists eleven outcomes (such as species recovery, soil quality, and cultural heritage), and asks respondents to select which outcomes “would be best achieved by incentivising action across a number of farms or other land parcels in a future environmental land management system.” Three further questions are as follows:

• “What role should outcome-based payments have in a new environmental land management system?”
• “How can an approach to a new environmental land management system be developed that balances national and local priorities for environmental outcomes?”
• “How can farmers and land managers work together or with third parties to deliver environmental outcomes?”

Animal welfare and animal health

Chapter Seven of the document, titled “Fulfilling our responsibility to animals,” is devoted to animal health and welfare. Defra says that the UK has led the way “in making significant welfare advances by banning the use of close confinement sow stalls for pigs and the use of veal crates back in the 1990s. In addition to our plans to make CCTV in slaughterhouses in England compulsory, we also propose to take early steps to control the export of live animals for slaughter as we leave the EU.” The consultation document says that animal welfare is one of the public goods that the Government could support in the future:

“During the agricultural transition, we could pilot schemes that offer targeted payments to farmers who deliver higher welfare outcomes in sectors where animal welfare largely remains at the legislative minimum. Payments could also be made to farmers who trial a new approach or technology which could improve welfare outcomes but which is not an industry standard.”

On animal health, the Government is proposing to work with industry “to develop an ambitious plan to tackle endemic disease and drive up animal health standards. A clear vision and programme of partnership action will help us to tackle non-statutory endemic disease and health conditions in the form of an Animal Health Pathway.” A further proposal is to provide targeted support for priority disease control and health schemes, “learning lessons from the Bovine TB programme in England and schemes elsewhere in the UK and overseas.” Respondents are asked three questions on the topic of animal welfare and animal health:

• “Should government set further standards to ensure greater consistency and understanding of welfare information at the point of purchase?” Respondents are asked to indicate a single preference from five options.
• “What type of action do you feel is most likely to have the biggest impact on improving animal health on farms?” Respondents are asked to rank three out of ten choices in order of importance.
• “How can the government best support industry to develop an ambitious plan to tackle endemic diseases and drive up animal health standards?”

Hill farming and rural businesses

As mentioned above, hill farming is singled out as needing particular support under the new regime, as it is the sector that is most dependent on Direct Payments under the current system. Chapter Eight of the document says that places like the Lake District, now a World Heritage Site, represent a significant part of our heritage, “bringing a wealth of environmental, archaeological and recreational value.” The particular problems faced by hill farmers are explained as follows:

“Since 1975, hill farming has traditionally been supported through financial payments to Less Favoured Areas. In England, Less Favoured Areas are divided into two groups, with the more challenging areas classified as Severely Disadvantaged Areas. These tend to be upland areas. The majority of farms in Severely Disadvantaged Areas (but not all) are grazing livestock businesses with sheep or cattle, although dairy farms and forestry are also important in some areas. Farming activity in these areas is more restricted than in lowland areas due to poor soil fertility and steep hill slopes. Heather moorland dominates the landscape, which is of poor nutritional value to livestock, requiring a larger area of land to produce the same amount of livestock than lowland areas. These limitations mean most upland farms have fewer opportunities to improve their productivity than lowland farms. Compared to lowland farms, farms within the Severely Disadvantaged Areas have less opportunity to diversify. Where they have diversified, they have a lower income from diversified enterprises. Agri-environment schemes also tend to make a greater contribution to average income than lowland farms.”

Defra says that many upland areas have the potential to benefit from new environmental land management schemes, and can encourage biodiversity, protect water quality, and store carbon. Producing high-quality food and diversification into areas such as energy generation, tourism, or commercial forestry, are mentioned as the sort of opportunities that leaving the EU could provide. However, “we recognise that these will be defined by the surrounding landscape and by investment potential.” The Government says that a clear vision for the uplands will be an important part of its agricultural policy, “and we want to explore what this should be.” The Government also says it wants to support rural businesses by measures, for example, to improve broadband connectivity which, in agriculture, “can support precision farming, including environmental sensing systems.” Respondents are asked three questions on upland areas and rural businesses:

• “How should farming, land management, and rural communities continue to be supported to deliver environmental, social, and cultural benefits in the uplands?”
• “There are a number of challenges facing rural communities and businesses. Please rank your top three options by order of importance.” The eight options include broadband connectivity, affordable housing, and transport connectivity.
• “With reference to the way you have ranked your answer to the previous question, what should government do to address the challenges faced by rural communities and businesses post-Brexit?”

“Changing regulatory culture”

Defra says that farmers are currently required to comply with a broad range of legislation, covering environmental protection and animal health and welfare. The range includes rules that prevent the over-abstraction of water sources and animal traceability requirements designed to prevent the spread of disease. However, Defra also says that the current system puts excessive burdens on farmers and can be very rigid in its application. For instance, it says that an incomplete record or the loss of one cattle ear tag can sometimes lead to substantial reductions in payments. As part of a future agricultural policy, Defra says it wants to make regulation less disproportionately punitive and rigid, without relaxing standards:

“There is scope to raise regulatory standards in some areas to maintain and enhance standards. In others, we can look at moving away from disproportionate enforcement that can heavily penalise some farmers for minor errors. We will enable a new regulatory culture in which standards are upheld and their enforcement is less disproportionately punitive and rigid in its application, without weakening our standards. We have considered various inspection and enforcement methods, which could include greater use of remote sensing and risk-based inspection, and advice courses and civil sanctions to enforce regulations.”

The Government says it will be conducting a comprehensive review of the current inspections regime, which will investigate “how inspections can be removed, reduced or improved to lessen the burden on farmers while maintaining and enhancing our animal, environmental, and plant health standards.” Respondents to the consultation are asked three questions on regulation:

• “How can we improve inspections for environmental, animal health, and welfare standards?” Respondents are asked to indicate their preferred options from a list of six.
• “Which parts of the regulatory baseline could be improved, and how?”
• “How can we deliver a more targeted and proportionate enforcement system?”

“Risk management and resilience”

Three chapters of the consultation document deal in turn with risk management; protecting crop, tree, plant and bee health; and ensuring fairness in the supply chain. On risk management and resilience, Defra says that “the best way of improving resilience in the farming sector is to support increases in farm productivity. Profitable farms are more resilient with readier access to capital. Our immediate focus, therefore, will be on improving productivity and profitability so farm businesses can be more self-reliant and invest for the lean years as other sectors do.” However, it also says that fewer than one in five farmers currently buy agricultural insurance. The Government says it is reluctant to subsidise the cost of risk-management products as this can distort the market. Instead, it recommends buying into innovative new commercial products such as a form of insurance known as index insurance, which “differs from standard insurance by triggering payouts based on an agreed-upon index or measurement being met, rather than by actual losses suffered by the insured party. Index insurances typically require less farm-specific data than other insurances and so are easier to administer.” Respondents are asked three questions on this topic:

• “What factors most affect farm businesses’ decisions on whether to buy agricultural insurance?” Respondents are asked to rank in order of importance their top three options from a list of seven.
• “What additional skills, data and tools would help better manage volatility in agricultural production and revenues for (a) farm businesses and (b) insurance providers?”
• “How can current arrangements for managing market crises and providing crisis support be improved?”

“Protecting crop, tree, plant, and bee health”

Defra says that farmers must be able to protect their crops whilst people must be protected from the risks posed by pesticides, both to themselves and the environment. As part of a future agricultural policy, the Government is proposing an “integrated pest management” approach:

“Strong regulation of pesticides is essential to limit the risks, but this should be supplemented by integrated pest management. This means using all the available tools to protect crops, with the least possible use of pesticides. Steps that can be taken include crop rotation, the use of biopesticides, and encouraging natural predators. There is the potential for the greater use of plant breeding techniques and making better use of genetics and the resources held in gene banks to ensure their natural resilience to pests and diseases. By making integrated pest management central to our approach to crop protection, the government can encourage wider investment in research and development.”

Respondents are asked for their views on three questions:

• “Where there are insufficient commercial drivers, how far do you agree or disagree that government should play a role in supporting: a) industry, woodland owners and others to respond collaboratively and swiftly to outbreaks of priority pests and diseases in trees; b) landscape recovery following pest and disease outbreaks, and the development of more resilient trees; and c) the development of a biosecure supply chain across the forestry, horticulture and beekeeping sectors.”
• “Where there are insufficient commercial drivers, what role should government play in: a) supporting industry, woodland owners and others to respond collaboratively and swiftly to outbreaks of priority pests and diseases in trees; and b) promoting landscape recovery following pest and disease outbreaks, and the development of more resilient trees.”
• “What support, if any, can the government offer to promote the development of a biosecure supply chain across the forestry, horticulture and beekeeping sectors?”

“Ensuring fairness in the supply chain”

Defra says that most farmers are comparatively small-scale sellers who deal with a smaller number of comparatively large-scale processors and retailers. It recommends that farmers come together in the form of agricultural cooperatives: collaborative organisation, it says, will enable them to access new markets and reduce risks, and also provide them with more bargaining power:

“In some sectors, farmers can give themselves greater power to negotiate contracts and market their produce by coming together in Producer Organisations. We propose to maintain the special status of Producer Organisations, including derogations from competition rules. Collective decision-making is not the traditional model for UK farmers, but the modern supply chain means attitudes have to change. Farmers could benefit from recognising how much more strength they can achieve through cooperation.”

Respondents are asked for their views on three questions concerning collaboration and the food supply chain:

• “How can we improve transparency and relationships across the food supply chain?” Respondents are asked to rank in order of importance their top three options from a list of four. The options include the promotion of Producer Organisations, the introduction of statutory codes of conduct, and improvements to the provision of data.
• “What are the biggest barriers to collaboration amongst farmers?”
• “What are the most important benefits that collaboration between farmers and other parts of the supply chain can bring? How could government help to enable this?”

Devolved government and a common framework

The final section of the consultation document is titled “The framework for our new agricultural policy.” There are three chapters that deal in turn with devolution, international trade, and a proposal to present parliament with an Agriculture Bill. Because of devolved powers, the new agricultural policy will only apply to England. In the Executive Summary, however, the consultation document says that the Government’s vision of the future for agriculture is a vision that could work for the whole of the UK, “but we recognise that devolution provides each administration with the powers to decide its own priorities.” For instance, on the phasing out of Direct Payments in England and its gradual replacement with funding for environmental land management schemes, Defra says that the devolved administrations will have the flexibility to target support in a way that best suits their circumstances. This raises the question of how much flexibility will the devolved powers have, and whether England will end up with a completely different system of rules and regulations for agriculture compared to the rest of the UK. This issue is discussed in Chapter Thirteen, titled “Devolution: maintaining cohesion and flexibility,” which recognises the need for some sort of common framework across the UK. It states:

“Leaving the European Union will be an important step in the devolution of agriculture. Under the existing constitutional settlements, agriculture is devolved in Scotland, Wales and Northern Ireland. However, many of the rules in these areas are currently set at the EU level, although some discretion is allowed in Direct Payments to farmers; and each administration has a rural development programme that they deliver (such as agri-environment schemes and rural economic growth). The devolved administrations and the UK government are working together to determine where common frameworks need to be established in some areas that are currently governed by EU law, but are otherwise within areas of competence of the devolved administrations or legislatures (as agreed by the Joint Ministerial Committee (EU Negotiations)).”

Defra says that the Joint Ministerial Committee for EU Negotiations has agreed three principles regarding common frameworks. The first is that common frameworks will be established where they are necessary (for instance, among other reasons, in order to ensure compliance with international obligations). The second is that “frameworks will respect the devolution settlements and the democratic accountability of the devolved legislatures.” The third is that “frameworks will ensure recognition of the economic and social linkages between Northern Ireland and Ireland and that Northern Ireland will be the only part of the UK that shares a land frontier with the EU. They will also adhere to the Belfast (Good Friday) Agreement.”

Respondents are asked for their views on two questions regarding devolution. The first asks, “With reference to the principles set out above, what are the agriculture and land management policy areas where a common approach across the UK is necessary?” The second asks: “What are the likely impacts on cross-border farms if each administration can tailor its own agriculture and land management policy?” The discussion of common frameworks suggests that “cross-border farms” means farms that straddle the borders between England and Wales or between England and Scotland. The problems that might arise for farms that straddle the border between the North and South of Ireland are not discussed.

International trade following Brexit

Chapter Fourteen discusses the opportunities for new trade agreements post-Brexit and the kinds of agreements that could be negotiated. Defra says that the EU is the UK’s biggest trading partner for agricultural products, “so our future relationship with the EU 27 is of vital importance.” The chapter continues:

“The government is committed to securing a deep and special partnership with the EU, including a bold and ambitious economic partnership. The UK wants to secure the freest trade possible in goods and services between the UK and the EU. Ensuring as frictionless trade as possible for our agricultural sectors is particularly important where much of the produce is perishable and time is critical. The government is committed to securing continuity in the effect of existing EU Free Trade Agreements and other EU preferential arrangements. Through membership of the EU, the UK is currently party to around 40 international trade agreements covering over 65 countries… In the future, the UK will be in a position to independently exercise its existing rights as a World Trade Organization (WTO) member and will continue to be subject to the full obligations of WTO membership. WTO agreements could represent a framework for our future agriculture policy.”

The chapter concludes with three questions for respondents:

• “How far do you agree or disagree with the broad priorities set out in the trade chapter?”
• “How can government and industry work together to open up new markets?”
• “How can we best protect and promote our brand, remaining global leaders in environmental protection, food safety, and in standards of production and animal welfare?”

An Agriculture Bill

The document concludes with the proposal to introduce an Agriculture Bill which will signal the UK’s departure from the Common Agricultural Policy. Chapter Fifteen says that the Agriculture Bill will be designed to meet the policy ambition set out in the consultation paper and could provide the Government with the legislative power to do any of the following:

1.) To continue making payments to farmers and land managers, with the power to amend eligibility criteria for payments.
2.) To strip out unnecessary bureaucracy and strengthen the delivery landscape.
3.) To create new schemes for one or more of the following purposes:
• promoting and increasing agricultural productivity and resilience
• preserving, protecting, and enhancing the environment
• providing support to rural communities
• animal and plant health and animal welfare
• public access
4.) To establish a new basic compliance or inspection regime.
5.) To take emergency measures to provide aid in extreme events.
6.) To retain UK-wide frameworks where we need commonality.
7.) To provide for continuity during the ‘agricultural transition’ period for some elements of the current CAP.

The final two questions in the consultation are concerned with the proposed legislation: 1) “How far do you agree with the proposed powers of the Agriculture Bill?” and 2) “What other measures might we need in the Agriculture Bill to achieve our objectives?”

The conclusion of the Executive Summary states: “We should all have an interest in the landscape around us: it must sustain us now and be held in trust for future generations. We welcome all views on our policy proposals.” Respondents have until the 8th of May 2018 to submit their views.

Acknowledgement

Photograph: Pasture, Skelton, with Carrock Fell in the background. Near Low Braithwaite, Cumbria. © Copyright Andrew Smith and licensed for reuse under this Creative Commons Licence. Health and Harmony: the future for food, farming and the environment in a Green Brexit says that “the distinctive character of the Lake District landscape has been shaped through long association with sheep farming, one of the sectors currently most dependent on Direct Payments.” The Government says that hill farmers and upland areas have the potential to benefit from new environmental land management schemes under the proposed agricultural policy for England.

Notes

[1] The plan was published on the 11th January 2018. See the ENA article: “UK Government publishes its 25 year plan for the environment”. The 25 year plan only applies to England.

[2] See the GOV.UK web page “The future for food, farming and the environment”.

[3] Health and Harmony: the future for food, farming and the environment in a Green Brexit is a PDF document available from the GOV.UK website which you can download by clicking here. The Future Farming and Environment Evidence Compendium is another PDF document which you can download from the GOV.UK website by clicking here. The annex on stakeholder proposals and the annex on Countryside Stewardship options are both available from [2] above. Note: Quotations from the consultation document have been slightly modified in certain places to correct grammatical errors in the original.

[4] Agri-environment schemes are now known as environmental land management schemes. The current environmental land management scheme is the Countryside Stewardship scheme. Defra says the Countryside Stewardship scheme supports a range of environmental benefits, including: slowing the decline in wildlife populations; tree planting; improving water quality; and providing more high-quality recreational opportunities. In conceding that the CAP has made some environmental improvements, Defra says “there is evidence that land in publicly funded agri-environment schemes can deliver benefits which outweigh the payments made.” The successes delivered by agri-environment schemes in England over the last five years include: “280,000km of maintenance, management and restoration of hedgerows, ditches and stonewalls; creating nesting and food resources to increase breeding populations of nationally scarce farmland birds and pollinators such as cirl buntings, stone curlews, and the marsh fritillary butterfly; and 19,000 hectares of planted areas providing pollen and nectar sources for pollinators (Higher Level Scheme management for pollinators can significantly increase the size of wild bumblebee populations).” In addition, a footnote says that a 2012 study on farmland bird population growth rates showed positive effects related to the management of winter food resources for a number of seed-eating species. The consultation document also includes a case study on the Hedgerows and Boundaries Grant, which is “a standalone scheme under Countryside Stewardship and is a popular approach with farmers and stakeholders. Applicants select from a range of investments such as hedgerow laying, coppicing, and restoration of dry stone walls. They create habitat and feeding areas for birds, insects and small mammals, as well as adding to the character of the local landscape. These works can have a lasting legacy for our countryside. This simple grant offer is competitive, but the scoring is easy to follow and has been agreed with stakeholders. In 2016, the first year of the grant, we funded 728 agreements with a value of £3 million. This resulted in the restoration of 45,897m of stone walls and 177,539m of hedges.”

[5] On the concept of natural capital, see the ENA article: “Assessing the Value of ‘Natural Capital'”.

[6] The consultation document states: “When ammonia is released into the air, it reacts with nitrogen oxides and sulphur dioxide and forms secondary particulate matter, which has a significant impact on human health. Most notably, ammonia contributes to smog in urban areas. In addition, when deposited on land, ammonia can cause acidification or overload soils and watercourses with nitrogen, leading to biodiversity loss in sensitive habitats.” Evidence cited in the accompanying Future Farming and Environment Evidence Compendium suggests that ammonia emissions attributable to farming constitute 83% of the UK total. In Chapter Six of the consultation paper (“Enhancing our environment”), Defra says that “we can reduce the harmful contribution agriculture makes to ammonia emissions and air quality through, for instance, encouraging the use of low emission slurry spreading equipment or supporting investment in slurry covers.” For recent research on the impact of air pollution on human health, see the ENA article: “Recent Research – The impact of air pollution on human health”.

[7] The consultation document states: “Nitrous oxide and methane greenhouse gas emissions from agriculture have fallen by around 15% since 1990, and agriculture currently contributes 10% of UK emissions. Whilst it remains incredibly important that we continue to reduce carbon emissions from the farming sector, environmental land management could play a pivotal role in responding to climate change by increasing the ability of farmland and the countryside to sequester carbon, thereby enhancing the benefits and value of our natural resources.” In Chapter Six of the consultation paper (“Enhancing our environment”), Defra says that incentivising practices that involve carbon sequestration and greenhouse gas reduction would help to tackle climate change and also improve biodiversity: “This could be achieved through support for landscape scale restoration projects, hedgerow creation and habitat management, and by continuing to support woodlands and forestry.”

[8] The case studies include tree planting and other measures to improve soil health in Nottinghamshire; selective planting to support ground-nesting farmland birds and pollinating insects in West Norfolk; wet grassland restoration in Devon; an innovative slurry-spreading system that reduces ammonia emissions in Suffolk; peat restoration in Cumbria; the creation of a new ‘National Forest’ in the Midlands; and the protection of the small-scale industrial remains of a lead mine and lime kiln in Lancashire. For the details, see pp.38-41 of the consultation document (note [3] above). See also note [4] above.

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