The Rural Bulletin: 8th November 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

RPA announces 2018 BPS entitlements values

The Rural Payments Agency has announced the 2018 Basic Payment Scheme entitlement value and greening rates which can now be used to estimate 2018 BPS at a gross level, says a report by the NFU.

The 2018 rate, including the greening element, will be:

  • Non-SDA (severely disadvantaged areas) land: £231.7/ha (£93.77/acre)
  • SDA land: £229.93/ha (£93.05/acre)
  • Moorland: £62.70/ha (£25.37/acre)

The RPA published these values on Tuesday (6 Nov). The exchange rate for this year’s payments is €1 = £0.89281.

Farmers should receive payments from 3 December, but those in Northern Ireland have been receiving advanced payments since 16 October. In Scotland and Wales farmers have been able to apply for BPS loans to mitigate the effects of adverse weather earlier in the year.

10-year stewardship deal needed post-Brexit

A 10-year stewardship scheme will be needed after Brexit to enable farmers to deliver Michael Gove’s vision for the countryside, according to Neil Parish MP, chairman of the House of Commons Environment and Rural Affairs committee.

Speaking at the East of England Farming Conference on Thursday (1 Nov), Mr Parish was reported by Farmers Weekly to highlight that  plans to replace direct payments with new land management stewardships would turn the entire agricultural support system upside down. 

“There is not enough agriculture in the Agricultural Bill as far as I’m concerned,” he said. “There is not enough about food.”

Mr Parish, who is currently scrutinising the Government’s post-Brexit plans for agriculture said that farmers need to have to at least a 10-year contract for a good stewardship scheme to make a difference to the outcome on that land. “Those [contracts] are absolutely fundamental.”

Urgent action needed on tenancy framework

The Tenant Farmers Association (TFA) has called on the Government to urgently make legislative and fiscal framework changes to the parameters in which agricultural tenancies operate. 

According to the TFA, at least one third of the agricultural area of England and Wales is farmed by those who rent their land and too often farm tenants are operating under restrictive agreements or on short lengths of term with overpriced rent.

According to George Dunn, TFA chief executive, a clear commitment to legislation from government and a firm steer from the Treasury that it will seriously look at the fiscal changes is needed. “This is a must if we are to set the right economic framework for long-term, sustainable and productive farm tenancies.”

Post Brexit trade must prioritise Europe

Trade with the European Union needs to be prioritised above any free trade agreements with Australia, New Zealand and the US, warned NFU Scotland in response to government consultations on trade negotiations. Trade agreements with countries outside the EU present few opportunities and could undermine UK standards, it added.

NFU Scotland President, Andrew McCornick, stated that Brexit was about taking back control. “The Government has cited Brexit as a clear opportunity to highlight the UK’s strong environmental and animal health credentials of our food production.  However, this would be an empty gesture if the Government allowed increased imports of foods from countries where we are unable to directly legislate any changes to production standards.

“NFUS has consistently argued that the best post-Brexit market outcome for Scottish growers, farmers and crofters was continued membership of the European single market to ensure frictionless trade with key markets.”

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