Land Business Update | Week commencing 25th February 2019

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

Property

Mandatory five-year electrical installation checks to be introduced in England

Landlords and agents will be given six months to familiarise themselves with the new legislation before it comes into force on private rented housing. In ‘year one’ (we don’t know when this starts) all new tenancies will be affected and all existing tenancies will have to comply from year two onwards. Properties that already have a valid electrical installation condition report (EICR) will not need to be replace it until five years have passed since it was issued. Anyone commissioning a check must make sure that the check is done by someone competent and with current qualifications.

Farming

Farmer confidence at lowest since 2010, according to NFU survey

Farmers’ confidence about the next 1-3 years is at the lowest level since the NFU started its survey in 2010 due to concerns about input prices, regulation and the availability of workers. Over half of the respondents said they had a negative economic outlook. Farmers likelihood of investing in their farms has fallen but those who are investing are diversifying and investing in staff and energy efficiency, but cutting back on machinery and land investment. Please call Will Gemmill if you would like to discuss long-term strategies for your business.

Brexit: Irish farmers seek compensation package if market prices collapse post-Brexit

The Irish agriculture minister is said to have agreed an exceptional aid package with the EU if beef and dairy prices fall significantly in the event of a no deal Brexit. A similar package was agreed when Russia banned European farm products in 2016.

Health and safety: Strutt & Parker become members of the Farm Safety Partnership

The Partnership, which is an initiative between the HSE and farming unions, has two initiatives underway, one of which is on transport, which has four key messages: always drive legally and safely; follow safe stop; make yours a safe yard; and wear your seat belt on every trip. Please contact Rob Gazely if you would like to discuss farm and estate health and safety.

RABI gives almost 50% increase in support to working families

The number of farmers calling for help from the Royal Agricultural Benevolent Institution (RABI), a welfare charity which offers financial support to farmers in hardship, was higher in 2018 than in 2017, with the charity reporting that it did more to support working families. Many of the farmers were affected by the weather – the cold in the spring and extreme heat in the summer. The charity made 1,831 visits in 2018 and, as well as providing over £2m in grants, helped farmers and farm workers of all ages claim around £494,000 in state benefits.

Farming and Environment

Countryside Stewardship for 2020 agreement starts launched

There are new manuals for the 2019 offer, which includes higher tier, mid-tier, wildlife offers, and the hedgerow and boundaries grants. The budget for the 2020 agreements is as originally planned. Also, the woodland grants for writing management plans, tree health and new woodland creation are now open all year around although the Forestry Commission recommends submitting applications as early as possible in the year so that all paperwork is completed well in advance of the next planting season.

Farming and Food

Brexit: main agri-food chain organisations call on the EU to put emergency plans in place

The groups asked the EU to develop “time-limited unilateral contingency measures” for the food chain to reduce the impact of an “immediate and harsh” no deal Brexit. They have called for a package of measures: an emergency budget; market management tools, like storage aids; and contingency plans in relation to customs, labelling, food safety and transport.

Environment

Prospect union says Natural England is at crisis point

The union has published a report that says that the environmental body is suffering from low morale and an inability to carry out its basic functions following cuts to its budget from £242m in 2009-10 to £100m for 2017-18, and a linked cut in staff numbers from 2,500 to an estimated 1,500. This has weakened the protection of many of the country’s most valuable wildlife sites and lead some to question the Government’s commitment to improving the environment.

Forestry

Scotland: two reviews to make Forestry Grant Scheme easier and more accessible to all

The Scottish Government is reviewing the current process for forestry grant applications in order to streamline and simplify them. It is also reviewing the Scheme to enable more small landowners to apply to it more easily. S&P comment: this is a positive move as our experience is that the application process for forestry grants (although especially in England) is putting off good applications. The new Scottish Woodland Strategy has increased the target for woodland planting to 15,000 hectares a year from 2024/5 onwards.

Rural economy

Scotland: next phase of Scottish Growth Scheme now available for SMEs

The Scottish Government is making £100m available to Scottish small and medium-sized businesses. It includes a loans scheme, with loans from £250,000 to £2 million and up to £5 million in exceptional circumstances. It also includes smaller loans of up to £25,000, debt or loan finance of up to £100,000, and equity investment in deals of up to £2 million. The Scheme has invested £106 million in 82 companies since its launch in 2017.