Does Countryside Stewardship still have something to offer?
Countryside Stewardship has grown in popularity but should more land managers be considering the scheme.
8 minutes to read
As English farmers experience the third year of the tapering of the Basic Payment Scheme (BPS) payments towards their potential cessation by 2027, most are seeking other sources to fill or mitigate the drop in income. With BPS funding being redirected into Defra's Environmental Land Management (ELM) schemes, is the Countryside Stewardship scheme (CS) a feasible option to fill the gap left behind by BPS?
This is the second in a series of three articles exploring the Sustainable Farming Incentive (SFI) and Countryside Stewardship (CS) schemes. The first article looked at whether SFI is now a feasible income option, and the third article considers the option of 'stacking' SFI and CS options.
Changes are afoot with CS next year and will be reported on once known. In the meantime, we look at CS in its current form.
Introduction
CS is an established scheme that has evolved over several years and has provided financial incentives to farmers and land managers to deliver environmental benefits. In contrast to the SFI which includes relatively light touch actions, CS aims to be a more extensive offer and in the case of its Higher Tier element, fund the management of more complex environments.
In 2023 Defra announced that CS will replace Local Nature Recovery under the ELM portfolio of schemes due to its recent application popularity. We look at why CS is worth serious consideration and a client example of how CS could be used to fill the BPS income hole.
Why is Countryside Stewardship worth engaging with?
The scheme faced some criticism in its early days, but changes have been made, and the attractiveness of the payment rates has seen it grow in popularity from under 9,000 agreements in 2018 to over 33,000 in 2023. So, what are the reasons for applying to CS?
- Flexibility – the pick and mix structure allows land managers to select the actions that may fit in with existing practice and rotation or are easy to adjust to and incorporate changes.
- Range of options – CS offers over 250 grants to choose from.
- Higher payment rates – payment rates have now been updated and are higher in many instances.
- Longer agreements – 5-year agreements for guaranteed medium-term income
- Stacking of options – it's possible to combine with other schemes' options such as SFI and Environmental Stewardship.
- Access to capital grants – in contrast to SFI, CS provides capital grants to support specific environmental improvements.
- Straightforward application – an online application process and an application window.
What does Countryside Stewardship consist of?
At the moment, CS can be broken down into five main elements that provide either annual payments or one-off grants.
- Higher Tier: These are five or 10-year agreements designed for the most environmentally important sites. They offer the highest level of financial support and can be more complex to implement. Competitive application process.
- Mid Tier: Five-year agreements include actions designed for a wider range of sites and land types. They offer a good balance of environmental benefits and financial support. Non-competitive application process.
- Wildlife Offers: These actions are a simpler set of options designed to help improve wildlife in four different farming types: arable; lowland grazing; mixed farming and the uplands.
- Woodland support: To help manage and protect woodland.
- Capital Grants: For specific environmental works on land, covering hedgerows, trees, orchards and to improve air and water quality. Capital items include activities such as fencing installation and tree planting.
What's coming down the line with CS – more options
Defra has promised further options to be rolled out in 2024. Details are due to be published later in 2023 but should include actions that support natural flood management, creating more areas of scrub and reducing nitrogen inputs in groundwater. The latest list of CS grant options can be found on the Defra website here.
But Defra has also hinted atr further ongoing system enhancements such as aiming to offer farmers more flexibility in the timing and management of their agreements. These improvements will grant tenant farmers improved access to Higher Tier options, introduce Countryside Stewardship Plus for targeted conservation efforts, promote local collaboration for enhanced outcomes, and experiment with innovative payment methods, like results-based payments, to encourage responsible land management.
What are the most popular options and grants?
Defra says many of the most popular revenue options focus on improving biodiversity and might be worth considering for many farms.
- Option GS2 is one of the most prevalent and involves the management of permanent grassland with very low inputs outside severely disadvantaged areas (SDAs)
- Management of hedgerows in option BE3 is also a common choice that aims to increase blossom availability for invertebrates and food for overwintering birds
- Around 44,000 ha in England are currently under option AB9 which provides winter bird food
- Buffer strips are a common site around cultivated land, and option SW1 involves implementing 4 to 6-metre strips providing habitat and corridors for wildlife
- Option AB8 allows payment for creating flower-rich margins and plots for invertebrates, wild pollinators, and farmland birds
- One of the easiest to implement and popular choices is option GS1 which pays to take small areas out of management on grassland.
But capital grants are also commonly included in CS agreements. Apparently, 64% of Mid Tier and Higher Tier revenue contain at least one capital item. The most popular items are:
- Fencing (CS Option FG1) and sheep netting (CS Option FG2)
- Items linked to preventing diffuse water pollution, such as concrete yard renewal (CS Option RP15) and roofing (CS Option RP28)
- Items to create and restore hedgerows, such as planting new hedges (CS Option BN11), hedgerow gapping up (CS Option BN7) and hedgerow coppicing (CS Option BN6)
- Stone wall restoration (CS Option BN12, along with supplements BN13, BN14, BN15), which is important to conserve traditional landscapes, notably in the uplands.
- Major preparatory works for priority habitats and species (CS Option FM2) for Higher Tier agreements.
How can CS options be used?
The plethora of options under CS can mean a daunting task in deciding which may be most suitable for your circumstances.
Every farm and estate is different and will lend itself to its own unique selection of CS options. To help stimulate ideas around possible management option selections from the offers available, we have provided an example based on a mixed farming client.
A Countryside Stewardship options selection example
So, how can the selection of CS options be used in a mixed farming situation? Agri-consultant Sally Britton shares a client example that turned a 320 ha unprofitable business into a viable farm.
Mixed farming client
Previously the client had been receiving around £8,500 annual payment under CS. But a re-evaluation by Sally led to more options being able to be included and nearly £20,000 annual income from CS secured, plus a number of capital grants.
Options selected for the client
"The benefit of the options selected for this client has been that they haven't needed to change their farming system. It provides a good blend of arable and grassland-related options for this mixed farm. But at the same time, the actions fit with the aspirations and ambitions of the client," says Sally.
Alongside the management options, capital grants that Sally identified included new fencing, hedges, a concrete yard, a new track, and pipework to new water troughs. All in all, the total capital grant payment came to nearly £249,000. "The capital grant options selected for this client will significantly improve the infrastructure of the farm and how it operates, which will go some way to help the viability of the business," adds Sally.
Next steps
• When can you apply for Countryside Stewardship?
Capital grant claims are open all year until there is no more funding available. Applications for 2024 Higher and Mid Tier agreements are now closed.
There is the possibility of changes to the application process in 2024 to apply for 2025 agreements, moving from fixed windows to a rolling application window similar to SFI.
But if the previous process continues then it is expected that Higher Tier claims will open in February and end in April 2024. While with the Mid Tier and Wildlife offers, the window is expected to open in March and end in September 2024.
• How do you make an application?
Applications are made through the Rural Payments Agency online portal, which has been made simpler and quicker than in previous rounds.
It is important to check your digital maps on the RPA service before starting an application.
Countryside Stewardship applications applicable to water and air options and grants will need approval from Catchment Sensitive Farming before submitting to the RPA. It is recommended this is done ten weeks in advance. So, start early on your application.
• When are scheme payments paid?
CS payments have historically been paid between December and June, with the majority receiving it in December. At the time of writing, it is expected this timescale will continue.
Conclusion
Similarly, to SFI 2023, CS has also seen its offer improve. The appeal of its grants and options will vary widely from farm to farm. It is not as light-touch as with the SFI, and the agreements are longer – Mid Tier is five years and up to ten years in the case of some Higher Tier agreements. Therefore, it requires greater commitment and input. But don’t look at CS in isolation. Consider how SFI could sit alongside the CS or how the nature-based markets (carbon credits etc) could get you more from your natural capital. However, before selecting any option, firstly be clear on what you are looking to achieve.
How can Knight Frank consultants help with your CS application?
• Help understand the jargon and breadth of CS
• Provide advice on the optimal mix of options for your situation
• Give practical advice about the integration of the CS options into your farming system
• Guidance on how other schemes and grants can segway into CS
Photo by Mark Topliff