AGRICULTURAL TRANSITION AND BREXIT TRADE DEAL - Farm Cornwall
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AGRICULTURAL TRANSITION AND BREXIT TRADE DEAL
BASICS OF AGRICULTURAL TRANSITION A phasing out of Basic Payment Scheme over 7 years A shift away from area payments to environmental payments – ELMs – Environmental Land Management Scheme Grant aid funding as in the Countryside Productivity Scheme A retirement and incomers scheme A slurry grant Scheme
BASIC PAYMENT PHASE OUT
BASIC PAYMENT RATES 2021-24
CONTRIBUTION OF BPS TO PROFIT BY FARM TYPE
POTENTIAL CHANGES TO BPS THAT WILL HAPPEN DEPENDING ON DECISIONS YOU MAKE ? Retirement Scheme- Should you choose to opt for the retirement scheme with no plan for succession, the monies allocated for you within the retirement scheme will be paid out and the land “de-linked” for future area payments In 2024/25 the ELMS scheme will commence and the farmer will have the option to “de-link” from the BPS scheme, potentially taking the BPS in the remaining years then continue with ELMS only. 2027 will be the last payment. All information can only be given until 2024 as that is the UK parliament termination date. bic.adhb.org.uk
COUNTRYSIDE STEWARDSHIP SCHEMES Farmers can enter a new scheme up until 2023/4 All current (those that will run into 2024) and new schemes (2021-2023 start dates) can be transferred into the new ELMS scheme – component 1 Sustainable Farming Initiative from 2024. If you wish ? If your current scheme is transferred into ELMs then you will need to opt of the remaining years of BPS
ENVIRONMENTAL LAND MANAGEMENT SCHEMES- ELMS Three component parts 1. Sustainable Farming Initiative 2. Local Nature Recovery 3. Landscape Recovery There will be a county wide ELMS convenor for component 2 and 3. The role will be strategic and work with stakeholders, farmers and national team. Their role will be to encourage the growth and management of the schemes within the county
SUSTAINABLE FARMING INITIATIVE – COMPONENT 1 Base component level Available to all farms On an individual basis only May be tiered upper and lower levels within this one component
LOCAL NATURE RECOVERY – COMPONENT 2 Available only to farmers where they group together. For example form around a catchment. Groups may form around for reasons of flooding or erosion It would require a facilitator to pull it together – which could be a farmer. This will be easier to construct groups around naturally defined regional areas like river catchments, peninsulas, hill or defined AONB/National Park areas. Eg in Cornwall Lizard Peninsula, Penwith Moors, Camel Valley More difficult where those areas are less defined . Eg Cornwall – Bude area, Liskeard area, St Austell and Newquay Pilot areas will be selected in 2022
LANDSCAPE RECOVERY – COMPONENT 3 Like component 2 this will require farmers coming together in groups or collectives and will require a facilitator Likely these areas, much like HLS, will be selected by Natural England – not confirmed 10 areas to be selected for pilot areas in 2022 Potential areas within Cornwall could be Bodmin Moor for example
PAYMENT LEVELS FOR ELMS Payment levels have not been determined yet Like CSS they will be paid per option They are trialling options in various areas that will look at the payment made to the farmer compared to the cost of implementing that option Therefore differing from the Countryside Stewardship Scheme which is income foregone
LUMP SUM EXIT SCHEME
This scheme is currently is under consultation
Launched in November 2022
May also be part of a new entrant scheme
Issues to consider – size retirement pot, tax implications, housing
Larger payments to be capped
Farm BPS total sum
size paid in 5% 20% 35% 50% 60% 75% 90% Total from 2022
Farm Type 2020 2021 2022 2023 2024 2025 2026 2027 2028
350
Medium Farm acres 30000 28500 24000 19500 15000 10000 7500 3000 137500 79000
120
Small Farm acres 10000 9500 8000 6500 5000 4000 2500 1000 46500 27000
20% 35% 50% 65% 75% 85% 95%
1000
Large Farm acres 80000 70500 58500 46500 34500 20000 12000 4000 326000 175500OTHER MEASURES WITHIN TRANSITION PAPER Slurry investment Scheme Farm Resilience Scheme – there is an acceptance that these changes will have a serious effect upon sectors that are heavily reliant upon BPS. The most obvious of these is the lowland mixed beef, sheep and cereal farm of which there about 1400 farms in Cornwall or a third of the farming sector for the county. Each county will vary but this sector along side upland beef and sheep will be adversely affected by the removal of the BPS scheme. As such DEFRA has put together a fund to help farmers through advice, training and support to navigate a way through. Farm investment fund. Our understanding is this is being ramped up to increase the level of investment on farms and will go beyond the current Countryside Productivity Scheme
BREXIT TRADE DEAL No tariff to trade being exported or imported There will be sanitary checks to food, livestock products and plant material We start January 2021 as a level playing field as variation thereafter will effect that balance Agreement reviewed every 5yrs A commitment to maintain or enhance labour or environmental standards There will be import and export administration charges of up to 8% No export of live animals at present by sea Trade to Northern Ireland is effectively a trade with EU as Northern Ireland is stuck in the middle
STANDARDS – ENVIRONMENTAL AND LABOUR We start from a level point if we lower standards then a tariff or retaliatory action would be taken . Eg if UK chose to reintroduce Neonicotinoid use in Oilseed Rape and Sugar Beet production that would be seen as lowering of standards. If the EU chose to ban the use of Glyphosphate then they have raised theirs but we remain at the starting level – no tariff or retaliatory action Organic Standards will continue to be recognised until the end of 2023 for export
WILL COSTS RISE ? UK has third lowest food cost to consumers of major economies There will be no importation of chlorinated chicken and hormone beef However trade agreements with other Commonwealth countries and South American Countries could lead to importations of low cost meat as those economies are more dominated by agricultural products than EU is. Access to labour will be a problem as only 30000, migrant workers currently allowed when it has been 80000 plus
COST RISES AND REDUCTIONS WITHIN THE NEW UK/EU
TRADE POLICY
Wheat 2.3%
Barley -2.0%
Oilseed rape -2.0%
Potatoes 1.8%
Milk 2.6%
Beef 4.3%
Sheep -5.0%
Pigs 3.4%PROBLEMS Increased sanitary checks are causing border difficulties particularly with fresh produce No export of Seed potatoes to EU or Northern Ireland Nothern Ireland sheep on tack in Scotland need to tested for scrapie before returning Potential importation of critical inputs – seed, sprays, spare parts Getting paper work in order before product leaves the farm Covid test for drivers
WAY FORWARD Build own our UK labour force?? We have been lazy exporters – need to look to new markets less concentration on UK?. Added value not commodity PGI status – Cornish Pasties, West Country beef and lamb Research and development needs to step up
THANK YOU AND QUESTIONS Prepared by Edward Richardson Farm Cornwall 07775667825 edward@farmcornwall.co.uk cwww.farmcornwall.co.uk
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