The Rural Bulletin: 2 November 2017

£40m grant funding for the Countryside Productivity Scheme

In a week that saw an 0.25% interest rate hike, the government has made £40m available to fund the next stage of the Countryside Productivity Scheme, announced by Defra secretary Michael Gove this week. Farmers looking to improve productivity or add value to their farm businesses with the purchase of new technology are now able to apply for supporting grants under the scheme.

The minimum grant on offer is £35,000. However, to be eligible applicants must have at least £50,000 to invest themselves – meaning the total investment must be worth at least £85,000

Eligible projects include: Wave-length specific LED lighting to aid crop growth, robotic equipment and precision slurry equipment. Applications must be made online by 3 December.

English farms dependent on subsidies

The latest Farm Business Income figures from Defra have highlighted just how reliant farms are on support payments. In 2016/17 only general cropping, horticulture, pig, dairy and specialist poultry farms made a positive return.

The average income for cereal farmers was £43,000 – up 22% year-on-year. However, after deducting support payments, including BPS and agri-environment income, this equated to a loss of £14,300. Similarly, without subsidy income lowland grazing livestock farms would have lost £8,700 during the year.

New obligations on trustees

Trustees must be aware of new obligations on the back of increased compliance and due diligence. This includes the Common Reporting Standard, where trustees have to identify the settlor, beneficiaries and people people exercising ultimate control over their trusts, ascertain their tax residency and make the appropriate reporting to HMRC. According to a report by Burges Salmon, trustees must also register information with HMRC’s Trusts Register by 31 January each year. 

TFA welcomes new RSA commission

The Tenant Farmers Association has welcomed the launch of a new RSA Commission set up to encourage public engagement to establish a mandate for change for food, farming and the environment ahead of Brexit.

“Some of the biggest ramifications of Brexit will be upon food, farming and the countryside,” said George Dunn, chief executive at TFA. “What this new Commission will do is ensure we hear UK citizens articulating what is important to them and how this should be reflected in policy and practice in the post Brexit era.”

Farmers warned to be aware of waste scams

The Environment Agency is warning farmers about a new waste scam. Recent cases in the West Midlands have seen farmers tricked into using animal bedding containing waste plasterboard and gypsum – leaving them facing fines of up to £6,000 to have it legally removed. With criminals increasingly looking to dump illegal waste in fields and empty warehouses, farmers should be aware of the risk.