The Rural Bulletin: 11th May 2018

A summary of the latest news and issues affecting rural landowners and businesses brought to you by Knight Frank.
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Categories: Agriculture

Derogation granted for 2018 three-crop rule

EU Farm Commissioner, Phil Hogan, has agreed to a derogation for the UK from the three-crop requirements following this year’s extreme weather. 

Under the rule, farmers with more than 30ha are required to grow at least three different crops, but this has been particularly difficult to adhere to due to the heavy rain and snow through much of the main sowing period this year.

While formal approval from the EU Commission is still pending, in a statement last week Mr Hogan agreed to the UK’s request for EU rules to be relaxed for 2018.

Scottish farmers and crofters urged to prioritise Single Application Forms

Farmers should prioritise completing 2018 Single Application Forms before the 15 May deadline, according to NFU Scotland.

The Scottish Government has confirmed that it has already received nearly 10,000 online SAF submissions. However, a further 7,000-8,000 applications are yet to be submitted. The Union has warned farmers than unlike previous years, there is no likelihood of Europe granting an extension to the application period this year.

Jonnie Hall, NFU Scotland’s director of policy said: “I appreciate that farmers and crofters are stretched right now and playing catch up because of the poor spring weather. However, for the vast majority of farm businesses, completing the SAF can be the most important day’s work in the year.” 

Farm productivity hits new high 

British farming productivity in 2017 rose to a record high following a sharp increase in crop and livestock outputs, according to the latest figures from Defra.

Total Income from Farming (Tiff) in 2017 was 41% higher than in 2016, a rise of £1,683 million to £5,743 million. Driving this was a 12% rise in crop output (to £9,508m) on the back of increases in both prices and production for cereals and industrial crops. As well as this, meat livestock outputs increased by 7% due to price increases, while a 24% rise in the value of livestock products was driven by a higher milk price. 

Removal of direct payments must be fair for all farms, says NFU

The removal of direct payments must be fair for all farms, regardless of size, rather than targeting large farms first, says the NFU.

In its response to Defra’s Health and Harmony consultation the NFU said: “Future policy and support should be fair and equitable to all active farm businesses, irrespective of size or system.”

The Government should also provide enough time and certainty for farm businesses to plan their future – as well as opportunities for them to adapt and invest, it added.