On 26th January 2023, the government published updated details on its plans for the growth and rollout of its Environmental Land Management Schemes (ELMS). After some confusion towards the end of 2022 regarding whether the initiative was going to continue, Defra says there are schemes and grants available for everyone and that the process is now much more straightforward, flexible and workable.
ELMS payments replace the EU’s common agricultural policy (CAP) and represent the biggest overhaul of farming policy in England for 40 years. ELMS have been introduced to enable the UK to meet its commitments towards reducing the release of carbon into the atmosphere, reducing global warming, and protecting the environment.
To help achieve this, there is an emphasis on changing farming practices. When ELMS was announced, Thérèse Coffey, Environment Secretary, said farmers are at the heart of the economy, producing food but also being custodians of the land it comes from. She added: “These two roles go hand-in-hand, and we are speeding up the roll out of our farming schemes so that everyone can be financially supported as they protect the planet while producing food more sustainably”.
The transition from CAP to ELMS
The difference between ELMS and its predecessor, CAP, is that Defra is planning to completely phase out area-based payments. The Basic Payment Scheme (BPS) will end after 2023, although farmers will receive delinked payments based on the amount they previously received under BPS. These will decrease year-on-year from 2024 to 2027.
Under ELMS, funding will be distributed as payments for farming practices and actions that are designed to lead to the production of environmental goods and services.
Farmers and land managers will have a menu of actions to choose from, as Defra has acknowledged that all farm settings are unique. This means those signing up to the schemes will be able to mix and match actions across their land and it’s hoped this flexibility will contribute to increasing uptake.
Defra has set a target to have at least 70,000 agreements in its schemes by 2028, covering 70% of agricultural land. Three key aspects of the policy designed to contribute to this are:
Flexibility – to encourage farmers and land managers to get involved, who may not have previously entered into agreements that required comprehensive whole-farm planning.
Availability – the new scheme will be open to land managers as well as farmers, so those who aren’t producing food can still sign up for ELMS payments.
Accessibility – tenant farmers don’t require landlord consent to sign up to ELMS agreements.
The three Environmental Land Management Schemes
There are three schemes to reward environmental land management: The Sustainable Farming Incentive; Countryside Stewardship; and Land Recovery.
The Sustainable Farming Incentive (SFI)
This incentive pays farmers and landowners to carry out farming activities in a more environmentally sustainable way, enabling them to produce food alongside environmental goods and services. It will focus on soil health and reducing the use of fertilisers and insecticides.
In June last year, the SFI was launched with three standards: arable and horticultural soils; improved grassland soils; and moorland soils. Six new standards will be introduced throughout 2023, which are: nutrient management; integrated pest management; hedgerows; arable and horticultural land; improved grassland; low input grassland.
It is hoped that many of the actions the government will pay for will help farmers reduce their costs, improve efficiency, and improve the natural environment. SFI agreements last for three years, and tenant farmers don’t need landlord consent to take part. It is also possible to leave the scheme early, with no penalty, if, for example, a tenant farmer unexpectedly loses management control of the land they’d entered into the scheme.
Countryside Stewardship (CS)
This scheme rewards farmers for action they take to support climate change adaption and to help nature – from restoring wildlife habitats, to mitigating flood risks, peatland restoration, and creating or enhancing woodland. The government is also introducing Countryside Stewardship Plus, which will reward farmers for taking coordinated action, working with neighbouring farms and landowners.
As the CS scheme evolves, around 30 additional actions will be made available to farmers by the end of 2024. The government also intends to offer SFI and CS in a single, integrated service, enabling farmers and landowners to select a combination of actions from both schemes, so they’re tailored to work best for each individual set-up.
Landscape Recovery
Landscape Recovery funds bespoke, longer-term, larger-scale projects that aim to enhance the natural environment and deliver significant benefits. In the summer of 2022, Defra announced 22 projects chosen for the first round of the scheme, which represented hundreds of farmers and landowners working together to deliver a range of environmental benefits across farmland and rural landscapes.
These projects are helping to improve water quality, boost biodiversity, reduce flood risk, and helping the government reach net zero. Current LS projects include the restoration of 700km of rivers to provide habitats for over 260 species including otters, water voles, pine martens and great crested newts.
Defra will open applications for further rounds of LR later this spring, and again in 2024. The focus of the next round will be on net zero, protected sites and habitat creation, and it plans to take on up to 25 new projects, depending on the quality of applications.
What next?
The six new SFI standards are expected to open to applications this summer, while the window is still open for those who wish to apply to the existing three standards – arable and horticultural soils; improved grassland soils; and moorland.
The Countryside Stewardship application window for higher tier grants opened on February 7th and the mid tear application window will open in March.
For advice and guidance on applications, please contact engain at enquiries@engain.com or call 01225 459564.