Farmers need to ensure their agri-environment agreement renewals are in place well before the cut-off date at the end of the year, says farm business consultancy Strutt & Parker.

Uncertainty over the 2014-2020 EU Budget proposals means that it is unlikely that environmental stewardship (ES) agreements can start after the end of 2013 and potentially not before January 2016.

The current CAP budget runs only until December 31, 2013, which means the existing Rural Development Programme for England (RDPE) - Pillar 2 - will also end on this date. ES agreements under the next programme are not expected to start until January 1, 2016.

James Thomas, of the farming department in Strutt & Parker’s Cambridge office, said: “More than 13,000 Entry Level Stewardship (ELS), 400 Organic ELS, 1,300 Countryside Stewardship and 1,400 Environmentally Sensitive Area (ESA) agreements will expire during this period of transition between the end of the current programme in December 2013 and January 1, 2016. We await clarification from DEFRA as to what will happen during this period.

“Funds for existing ES agreements have been ring-fenced and so will continue for the five or ten-year period already agreed.”

Mr Thomas said: “In order to fall within the current RDPE scheme, ELS applications must be submitted three months before the desired start date so that all necessary checks can be processed. This makes September 1, 2013 the latest date of submission for a start date of December 1, 2013. No agreements under the existing scheme will commence after this date.

“We are encouraging clients with existing ELS agreements which are due to expire later in 2013 to renew in time for the deadline although, with continuing uncertainty as to the inclusion of ES areas as part of the Ecological Focus Area put forward in CAP reform proposals, any renewal should be carefully thought through. Should ES areas not be taken into account as part of greening, agreement holders may still be able to use ELS options to satisfy greening requirements, even if this means that their payment is scaled back to avoid any element of double funding.

“Farmers with agreements due to expire after the end of 2013 may wish to bring forward their renewal, especially those with greater areas of grassland and other environmental features which will increase the viability of an agreement. It must be noted that any new agreement will be governed by the new rulings introduced as part of the Making Environmental Stewardship More Effective (MESME) project.”

He added: “Holdings targeted for potential HLS agreements have already been approached for the 2013 HLS programme. Natural England is not seeking any additional new cases to add.”

The budget deadlines also extend to the Energy Crops Scheme for which any applications for potential agreements must be submitted by August 31, 2013 to go live by the December 31, 2013.

For advice and further information please contact Mr Thomas in Strutt & Parker’s Cambridge office on 01223 459500.