03 October 2019
Adopting an Irish model of Income Tax relief in the UK could boost farmland lettings and increase agricultural productivity by over £100m.
According to a review of data from the Irish Revenue by the Central Association of Agricultural Valuers (CAAV), the area of let land in Ireland rose to cover 7% of farmland in 2017, compared to just 2% in 2011. This followed an increase in Income Tax relief introduced in 2015 on farmland let for more than five years, explains Jeremy Moody, secretary and adviser to the CAAV. “This has had a profound effect on encouraging the letting of land and if adopted in the UK could be very beneficial.”
The increased relief starts at €18,000 (£16,000) per year for a five-to-seven-year tenancy, going up to €40,000 (£35,500) for 15-year leases.*
As a result, around 450,000 acres were newly let at arm’s length for more than five years from 2015 to 2017. “By the end of 2017 a country with no tenancy system for over a century had created 10,000 landlords,” says Mr Moody.
Initial modelling of the same relief for the UK suggests that if a further 4% of farmland in Great Britain and 15% in Northern Ireland were let in this way, the productivity gain could top £100m, explains Mr Moody. “Ireland has seen a higher proportion of farmland let for five years or more between 2015 and 2017 than England, Scotland and Wales have under all new forms of tenancy. Ireland now has 7% of its farmland let for such periods compared to about 5% in Great Britain under FBTs and limited duration tenancies, and none in Northern Ireland. There’s much greater potential for land to be let across the UK, it just needs the right encouragement.”
Increasing access to land for proficient farmers is one key to answering the UK’s agricultural productivity challenge, highlights Mr Moody. “Both Ireland and the UK have poor performance when it comes to agricultural productivity growth – averaging just 1% a year for many years. As shown in the Horizon** report, had we kept pace with the US since 2000, the contribution of UK farming to the rural economy would have been £4.3bn higher by 2013.
“If the UK had achieved this, it would have almost doubled the Total Income From Farming, which was £4.7bn in 2018,” he says.
Moving forward, land mobility should be an important component in achieving Defra’s targets to increase the growth of UK agriculture, adds Mr Moody. “The availability of land for productive and proficient farmers who will adopt new technologies and practices needs to be improved. Adopting an Income Tax relief policy similar to that of Ireland could be the key to making this happen.”
CAAV Review Paper: TAXATION, Agricultural Productivity and Land Occupation
02 October 2019
The Government has announced proposals to introduce a ban on long journeys of live animals being transported for slaughter and to create a new forest in Northumberland.
There is due to be a public consultation on minimising live animal journeys "in due course", following recommendations made by the Farm Animal Welfare Committee (renamed the Animal Welfare Committee with effect from 1st October 2019).
The new Great Northumberland Forest should see the creation of three new forests in Northumberland, with up to one million trees planted between 2020 and 2024.
Further details of the proposals are available on the GOV.UK website.
01 October 2019
Scottish Basic Payment Scheme (BPS) 2019 loan payments should begin to arrive in bank accounts from 4th October 2019, as confirmed in this Scottish Government news release. These National Basic Payment Support Scheme payments should be for 95% of the estimated BPS 2019 and greening payment value and will be issued to over 13,450 Scottish BPS claimants. Loan offer letters should have been received during September and it is still possible to accept a loan scheme offer. Further information is available on the Scottish Government's Rural Payments and Services website.
23 September 2019
A major independent review commissioned by DEFRA and led by Julian Glover has called for radical shakeup of the running of National Parks and Areas of Outstanding Natural Beauty in England. Further information is available on the GOV.UK website. DEFRA will now consider the recommendations made in the review.
20 September 2019
Farmers in parts of North Yorkshire and Wainfleet, Lincolnshire affected by flooding over the summer can now apply to the Farming Recovery Fund for grants of between £500 and £25,000 for a range of farm restoration work, including rebuilding dry stone walls, re-cultivating productive land and replacing damaged gates. Further details on how to apply are available on the GOV.UK website.
19 September 2019
The National Trust, the Wildlife Trusts and the RSPB have said that at least £2.9 billion per year is needed to support nature-friendly farming in the UK post-Brexit; just under the current CAP UK budget of £3.2 billion.
The charities said:
"For decades, farmers have struggled within the CAP’s food and farming system that delivers little profit for their produce and few incentives to deliver positive outcomes for the environment. Once we leave the EU and these payments stop, alternative policies will need to be put in place in each of the four UK countries.
"The revised figure published today provides justification for re-investing the current annual UK CAP budget to help farmers and land managers to restore nature and tackle climate change on their land, securing a sustainable future for farming and helping the UK Government and devolved administrations to achieve their own environmental ambitions."
16 September 2019
The Government is arranging Brexit Business Readiness Events across the UK to help you prepare, starting Monday 16 September. Join us at a free event in your area to meet government advisers and to find out what actions your business needs to take to prepare.
The events will combine a keynote address, interactive support, advice stands and in-depth sessions led by subject matter experts. They will provide you with specific business-focused advice and help.
Register to attend an event at: https://registration.livegroup.co.uk/brexitbusinessreadinessevents/
Further dates and locations will be announced as they are confirmed.
You can also view a typical event agenda and some Frequently Asked Questions at the address above.
09 September 2019
Following recommendations made in an independent review led by Lord Bew which was looking at what factors should be used to determine the distribution of Common Agricultural Policy (CAP) 'convergence' funding, the Government has confirmed it will allocate £56.59m of new funding. This should address concerns around the formula used to distribute this 'convergence' funding across the UK so that it rewards land that previously received less CAP funding per hectare than the EU average. The agriculture funding for 2020-2022 should therefore be increased in Wales and Scotland, with Scotland receiving approximately £51.4m. Further details are available on the GOV.UK website.
29 August 2019
We have been told that emails continue to circulate which claim to be from the CAAV, asking members to verify their details. PLEASE DO NOT RESPOND TO THESE EMAILS - they are not from the CAAV. Please ignore and delete them.
Best Practice in Compulsory Purchase and Compensation
(Members Only)
27 August 2019
The CAAV's Kate Russell will chair a series of seminars on Best Practice in Compulsory Purchase and Compensation this autumn in Leeds, Bristol, Birmingham, London and Manchester. CAAV members are entitled to a discount when booking before 9th September 2019 by entering the discount code CAAV820. Further information can be found at https://cptevents.co.uk/event/best-practice-in-compulsory-purchase-and-compensation-1
27 August 2019
There appear to be fake emails circulating which purport to be from the CAAV, asking members to validate their details for our database. These emails were not sent by the CAAV and members are advised not to respond to it. We recommend that members ignore the request and delete the email.
21 August 2019
The Government has announced an independently-led review of HS2 to review whether and how the scheme should proceed. The review is expected to report in autumn 2019 in order to inform the "Notice to Proceed" decision for Phase 1, which is to be made by the end of the year.
Further details are available on the GOV.UK website.
19 August 2019
As part of a wider commitment to achieving a carbon neutral water industry by 2030, English water companies have announced plans to plant 11 million trees over 6,000 hectares across England. Further information is available on the Water UK website.
12 August 2019
The Prince's Countryside Fund has announced £50,000 of emergency funding to assist farmers and rural communities affected by the recent flooding in Reeth and Arkengarthdale, North Yorkshire. The funding is being provided via The Addington Fund. Further information is available on the Prince's Countryside Fund website. The Addington Fund is also working with Forage Aid to assist farmers whose livestock have been affected and are in need of forage and/or bedding.
12 August 2019
£5.25m of emergency government funding has been made available to assist local communities and businesses impacted by the recent flooding at Whaley Bridge. Further information is available on the GOV.UK website.
09 August 2019
With Ministerial responsibilities now being clarified following Boris Johnson's appointment as Prime Minister, the Department for Transport has confirmed that responsibility for HS2 has returned to Paul Maynard, MP for Blackpool North and Cleveleys, who returns to a role he held previously.
05 August 2019
The fourth national round of funding for the Countryside Stewardship Facilitation Fund has opened for applications today. An additional £2.5 million fund has been made available for groups of farmers and landowners to apply for financial support to work together as a facilitation group to deliver landscape-scale environmental improvements over a three year period. Further information can be found on the GOV.UK website.
31 July 2019
Following the announcement made in June, the RPA has confirmed that the Treasury-funded payments for outstanding Countryside Stewardship and Environmental Stewardship annual revenue claims 2015-2018 have now been completed. For further information, please see GOV.UK.
27 July 2019
George Eustice has been reappointed as a DEFRA Minister. Having been a DEFRA Minister since May 2015, he resigned earlier this year over concerns relating to Brexit. Mr. Eustice replaces Robert Goodwill. Further information is available on the GOV.UK website.
26 July 2019
Prime Minister Boris Johnson has made a statement in the House of Commons on the priorities for the government. The statement can be viewed on the GOV.UK website.