Land Business Update | Week Commencing 30th September

Welcome to our update on key land management, farming, planning and energy issues.

Farming

The impact of a ‘No Deal’ Brexit on farming

It remains unclear whether the UK will leave the EU without ‘a deal’ on 31st October 2019, or at a later date, if it is not possible to renegotiate the withdrawal agreement agreed by the previous May government. Please download our paper which considers the effects of a ‘No Deal’ Brexit in four main subjects – trade arrangements; agricultural policy and support; labour; and regulation. The paper makes suggestions on what food and farming businesses could do now and in the medium-term. It also includes our assessment of how farm profits in England might change by 2028 due to Brexit and the changes in farm support proposed.

Download our poster on the implications of the net zero commitment on land use

This poster summarises the recommendations of the Committee on Climate Change’s report, Land Use: Reducing emissions and preparing for climate change. A number of its recommendations are very challenging for the industry and would lead to significant structural change. However, we feel that this is a significant report given the CCC’s role as independent advisor to the government and the increasing recognition that there is a climate and biodiversity crisis that needs to be addressed very quickly.

European grain harvest estimated to be 8% higher than in 2018

The wheat harvest, part of the overall grain harvest, has been estimated at 143.3mt, up 11% from 128.8mt produced last year. Yields in the UK and France have been higher than previously expected, according to Coceral. In a separate forecast, the International Grains Council estimates the world wheat crop at an all-time high, and the EU grain crop at a four-year high.

EU hopeful of agreeing CAP reform proposals for 2021-2027 by Christmas

Both the Finnish presidency and the outgoing EU Farm Commissioner are hopeful of agreeing the main details of the CAP reform package but note that it is dependent on agreeing the EU budget for the period (called the Multi-annual Financial Framework) and on the outcome of Brexit. Recent discussions include how to encourage carbon sequestration in soils, which has reinforced calls from some Member States that they have enough flexibility to design plans to suit their national conditions (called Strategic Plans).

£20m funding available through the UKRI Transforming Food Production Challenge

The fund, which is being offered by a government-funded organisation called UK Research and Innovation, is offering up to £20 million towards development of food production systems that have the potential to improve sustainability and productivity. Previous funding has supported fruit picking robots and a scanner that can assess whether potatoes are ready to harvest. UKRI wants ‘large-scale ambitious and integrated projects’. Applications must be submitted by 20 January 2020 and must be for a minimum of £1m. A second competition, called Science into Technology and Practice, aims to strengthen ties between farmers, researchers and businesses to develop approaches to improve productivity. It opens for application from 28 October.

Energy

Labour plans to build 37 new offshore wind farms to power 57m homes

The windfarms would be 51% public owned with the profits used pay for climate change policies and support struggling coastal communities. Criticising the fact that most of the profits from North Sea Oil have gone to private companies, Labour said that it would learn from countries like Norway, which has the world’s largest sovereign wealth fund, and invests the profits for future generations. This is part of the party’s plan for the UK to reach zero carbon emissions by 2030.

Environment

How Germany plans to reduce its contribution to climate change

The German government’s Climate Action Plan aims to cut greenhouse gas emissions by 55% by 2030. The plans include a CO2 pricing system for transport and heating from 2021, coupled with a national emissions trading system. The system has already been criticised by environmental groups for setting the carbon price too low, at €10/t in 2021 rising to €35/t in 2025. The government responded by saying that it must ‘bring the people along with us’. A new emissions limit has also been set for agriculture, with cuts in emissions expected from lower nitrogen surpluses, more organic farming and lower emissions from livestock farming. Measures also include sustainable forestry management and reductions in food waste. The German government also recognised that its previous plan, set in 2007 to cut emissions by 40% by 2020 compared with 1990 levels, would not be achieved but it said that lessons had been learned.

Planning

Scottish proposal to remove need for planning permission for developments that address climate change

The Scottish Government is considering a change to planning rules so that developments like local renewable energy and electric vehicle charging are automatically granted permission. S&P comment: we would strongly support this proposal, so long as issues such as visual impact and supporting evidence are treated with a light-touch but also equitably (for both the applicant and the local community).

Property

National Housing Federation says 1 in 7 people in England are affected by inadequate housing

The NHF, which represents housing associations, says that the need for social housing, which it puts at 8.4m people, is almost double the number on the Government’s waiting list. This is based on its assessment of how many people are hit by different aspects of the housing crisis. It says that 3.6m people are living in an overcrowded home, 2.5m are unable to afford their rent or mortgage and that another 2.5m adults are living with other people because they can’t afford to move out. The NHF says the country needs 340,000 new homes every year, including 145,000 social homes, which it is asking the government to build by investing £12.8bn every year for the next decade.

Rural economy

Review of landscapes, led by Julian Glover, has published its final report

The review says that the current system of National Parks and Areas of Outstanding National Beauty (AONBs) is fragmented, sometimes marginalised and often misunderstood – but should have a clear national mission to reverse environmental decline, assisted by 1,000 new rangers. It recommends bringing them together as part of one family of national landscapes, served by a shared National Landscapes Service (NLS) which will help them develop a new way of working to meet new challenges. It suggests making National Park boards and governance more representative, and also a new National Park in the Chilterns. On AONBs, it says they should have increased funding, governance reform, new shared purposes with National Parks, and a greater voice on development; it also recommends that they are renamed ‘National Landscapes’. It also proposes a wider range of non‑designated systems of landscape protection.