Environmental Land Management Update
As Farmers and Landowners see the Basic Payment decreasing, more interest is now being shown in the proposed environmental schemes available.
At the tail end of 2022, The Rock Review was issued to investigate how tenant farmers could be better supported to ensure that there is a more resilient agricultural sector in the long-term.
In January of this year, the Department for Environment, Food & Rural Affairs (DEFRA) published an update on the Environmental Land Management Scheme (ELMS). This included additional standards in the Sustainable Farming Incentive (SFI) with clarity on the now evolving Countryside Stewardship (CS) Scheme and the announcement of additional rounds of the larger Landscape Recovery (LR) Scheme which will open later in the year.
Six additional standards for SFI will be introduced in summer 2023:
- Hedgerow Standard
- Integrated Pest Management Standard
- Nutrient Management Standard
- Arable and Horticultural Land Standard
- Improved Grass Land Standard
- Low Input Grass Land Standard
These new Standards all sit alongside the Arable and Horticultural Soils Improved Grassland and Moorland Standard, which were launched last year (2022). Altogether, this means that the SFI is now a scheme which looks more attractive for farmers to participate in.
It denotes a significant move away from the CAP Structured Agreements to a flexible (pick and mix) approach.
The aim of the updates to the ELMS is that this will allow farmers to build agreements which suit their business and farm type.
What is the ELMS?
The ELMS was introduced to provide farmers, agricultural tenants and landowners with incentives for ‘improving their natural capital’. Various incentives under the ELMS promote different aspects of sustainable farming and local nature recovery, prompting farmers to also diversify farm income.
Sustainable Farming Incentive (SFI)
For those handling farmland they do not own, the SFI has been created as a more flexible agreement which only lasts for a period of 3 years.
Furthermore, Landlord consent is not required when the farmer expects to have management control for the duration of the scheme. There is also the ability to leave agreements early or to remove land without penalty if that management control is lost during the agreement period. This is particularly important for farmers who are farming land purely on a licensed arrangement or Short Term (2 year) FBT.
All those who are entering into such schemes, however, should contact the Landowner prior to setting up the scheme as to ensure that the terms of their current Licence or Tenancy Agreement do not prohibit entering into an Agri Environmental Scheme.
There is, of course, the issue that certain schemes may not override Tenancy Agreements and Landlord consent may be required. Rather than end up entering into expensive litigation, it is important to have the Licence or Tenancy Agreement reviewed purely to ensure that the proposed scheme applied for by the agricultural Tenant does not require the Landlord’s consent.
Countryside Stewardship Scheme
When DEFRA published its updates, they also provided some additional information about the evolving Countryside Stewardship Scheme. This follows the announcement made at the end of last year by DEFRA.
The second tier of ELMS will now be a Countryside Stewardship Plus type-scheme and the Countryside Stewardship Plus Scheme will differ from the SFI as it will deal with a wider range of targeted specific actions (the whole aim being to contribute towards the governments legally binding environmental and climate goals).
Furthermore, the SFI Application design has moved away from form filling to a more intuitive and responsive process which mirrors other government services such as applying for a passport or car tax. It is anticipated that by next year the application process for both schemes will be more streamlined, removing the need for agent assistance.
However, for those without access to online services, assistance to apply will be offered by the Rural Payments Agency (RPA).
How our Agriculture Team can help
For anyone who is contemplating going down the route of making an application for any of the new incentives and schemes, it is important to seek legal advice to ensure that any current Agreements do not preclude such applications.
At Butcher & Barlow, our Top Tier Legal 500 Agriculture and Rural Affairs Team have substantial experience in advising on all aspects of agricultural law, including in relation to the ELMS, general diversification and sustainable farming.
We work closely with you to establish your current circumstances, your short and long-term objectives, and what practical steps need to be taken to ensure that you are in the strongest possible position.
Speak to our Agriculture and Rural Affairs solicitors today
To speak to a member of our agricultural law team today, please make an online enquiry, or call us on +44 (0)1606 334 309 at our Gadbrook Park office.
