Government payment to farmers who protect and enhance the environment

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The Government’s Environmental Land Management schemes will see farmers receive increased payments for protecting and enhancing nature and delivering sustainable food production.

Speaking at the Oxford Farming Conference, farming minister, Mark Spencer, announced more money for farmers and landowners through both the Countryside Stewardship and the Sustainable Farming Incentive schemes. Defra say that this will provide support and drive uptake to the industry at a challenging time for farmers. A range of actions, which farmers could be paid for, will be published soon.

Payments

The changes mean farmers could receive up to a further £1,000 per year for taking nature-friendly action through the Sustainable Farming Incentive (SFI). This new Management Payment will be made for the first 50 hectares of farm (£20/ha) in an SFI agreement, to cover the administrative costs of participation and to attract smaller businesses – many of whom are tenant farmers – who are currently under-represented in the scheme. SFI is already paying farmers to improve soil and moorlands, and an expanded set of standards for 2023 will be published shortly.

In addition, farmers with a Countryside Stewardship (CS) agreement, of which there are now 30,000 across England, will see an average increase of 10% to their revenue payment rates – covering ongoing activity such as habitat management. Defra is also updating capital payment rates, which cover one-off projects such as hedgerow creation, with an average increase of 48%.

Meanwhile, capital and annual maintenance payments for the England Woodland Creation Offer (EWCO) and Tree Health Pilot (THP) will also be updated this year, helping to incentivise farmers to incorporate more trees as a valuable natural resource on farms.

Impact

These changes will mean more farmers are contributing to the COP15 aim of halting biodiversity by 2030 as meeting the UK’s legally binding environment targets.

Mr Spencer said: “As custodians of more than 70% of our countryside, the nation is relying on its farmers to protect our landscapes as well as produce the high-quality food we are known for, and we are increasing payment rates to ensure farmers are not out of pocket for doing the right thing by the environment.

“By increasing the investment in these schemes, I want farmers to see this stacks up for business – whatever the size of your holding.”

The increased payments recognise the rising input costs and other pressures which are being felt across the sector.

Response

In response to Defra’s announcement, Jonathan Armitage, head of farming at Strutt & Parker, has said that whilst he welcomed the increase in payments, concerns are still ongoing. He said: “Improving the environment shouldn’t be left to the few people who can afford to do it, so an increase in payment rates is a step in the right direction. However, it seems unlikely that a 10% increase in CSS management payments or the extra £1,000 on offer through the SFI will deliver a step change in uptake given the costs of delivery.

“The increases in capital payment rates under CSS are more significant, which may encourage more standalone capital grant applications. The hedgerow creation payment, for example, has almost doubled from £11.60 per metre to £22.97 per metre.

“We also note that Defra has again decided not to increase payment rates for Environmental Stewardship agreements, which seems unfair to those stuck in old ELS/HLS agreements.”

 

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