Defra limits some SFI actions
On 25 March, Defra announced a cap on the amount of land that can be taken out of food production after it became apparent that some applications had entered 80% or more of their land into SFI actions. From now on, farmers can only put a maximum of 25% of their land into six of the nine actions in the current SFI offer that take land out of food production. The six actions focus on improved grassland, winter bird food, and wildflower mixes. More detail can be found on the government website, gov.uk.
Taxation of ecosystem services
In response to concerns about the tax treatment of land put into environmental schemes, the government launched a consultation last year on how, or if, APR should apply to land not used for food production. This is seen as a critical factor in encouraging the adoption of, and attracting private investment in, biodiverse, habitat-friendly practices. Currently APR can only be applied to land and property that is owned and used for agricultural purposes for at least two years (seven years if tenanted). The government has announced that it will:
- Extend the scope of APR from 6 April 2025 to land managed under a recognised environmental agreement, providing it was in agricultural use for at least two years immediately before the change in land use.
- Create a joint Treasury / HMRC working group to work with the sector to come up with solutions where current law or guidance is not sufficiently clear on the taxation of ecosystem service markets.
Rises to wage and statutory rates 2024/2025
From 1 April 2024:
- National Living Wage: £11.44 per hour for those aged 21 and over. This is increasing from £10.42 and £10.18 for those aged 23 and over and those aged 21-22, respectively, as workers aged 21 and over will be entitled to the National Living Wage from 1 April 2024.
- National Minimum Wage rates:
- £8.60 per hour (from £7.49) for those aged 18 – 20
- £6.40 per hour (from £5.28) for those aged 16 - 17 and apprentices
Statutory benefit payments will increase as follows from 8 April 2024:
- Statutory maternity, paternity, adoption, shared parental, and parental bereavement pay will increase to £184.03 (from £172.48) per week (or 90% of the employee’s average weekly earnings, whichever is lower). The lower earnings limited to qualify for these payments remains at £123.
- Maternity allowance (which those not qualifying for Maternity Pay may be able to rely on) also increases to maximum of £184.03 (from £172.48) per week (or 90% of the employee’s average weekly earnings, whichever is lower).
- Standard statutory sick pay (“SSP”) rises to £116.75 (from £109.40). The lower earnings limit to qualify for SSP remains at £123.
Protection of hedgerows
Following a government consultation ending in December 2023, the government will introduce new legislation to protect and maintain hedgerows. These will replicate the former cross-compliance regulations but in a fairer and more simplified form. The rules will include:
- Maintaining the cutting ban period from 1 March – 31 August
- Maintaining a 2-metre buffer zone (with current exemptions)
- Introducing enforcement sanctions (which will be subject to further consultation) to include criminal charges for repeat or serial offenders.
Biodiversity Net Gain update
It is now mandatory for the majority of developers (with some exemptions) to deliver a biodiversity net gain of 10%. Developers can replace biodiversity loss (+10%) onsite if that is practical; use a combination of onsite and offsite replacement either using other land they own or buy biodiversity units on the open market; or buy biodiversity credits from the government (billed as a last resort). Now the requirement is legally binding, farmers can plan on how to maximise ecosystem service markets in order to maximise revenue. However, bearing in mind that this is a very immature market, potential entrants should be aware of the risks as we outlined in our Autumn 2023 edition of Law & Land.
Farming Recovery Fund: flooding support
Defra has finally opened its promised Farming Recovery Fund, designed to support farmers whose land suffered uninsurable flood damage by Storm Henk in the New Year. The RPA is contacting eligible farmers directly to guide them through the claim process under which they can claim grants between £500 and £25,000 for land parcels affected by the flooding (Defra has recently removed the 150m limit after an outcry). Warwickshire is one of the local authority areas where the Flood Recovery Framework, under which this grant scheme sits, has been activated due to the high level of flooding on the rivers Avon and Leam. For more information about eligibility and the support available, visit the Defra website here.
Future Farming Resilience Fund
Originally launched in 2022 to help farmers navigate the transition from the BPS to ELMS, the final round of funding, amounting to £32m, has now been allocated. Defra has appointed 17 different providers to deliver free advice and support to farmers in receipt of BPS on how to adapt their business plans in the face of reduced direct payments. The scheme is due to expire in March 2025 so if you haven’t taken advantage yet, this might be a good opportunity to do so. Even if you have already received advice in a previous round you can still participate in this final round, however you cannot change advisers once you have selected who you want to work with. You can find more information on the government website along with details of those providers offering advice.
Poultry licensing
To help combat the spread of avian flu, the government intends to introduce mandatory registration for all keepers of poultry (and other birds). Previously, those with fewer than 50 birds were encouraged to register their birds voluntarily. Mandatory registration will be introduced in two phases: registration from late summer / early autumn; and annual updates 12 months later.
