More than £158m will be shared by over 15,600 farms across Wales as Basic Payment Scheme (BPS) 2023 advance payments are made today, Welsh rural affairs minister Lesley Griffiths has announced.

As a result over 96% of claimants will see a BPS advance payment worth approximately 70% of their estimated claim value.

This year, for the first time, Rural Payments Wales (RPW) will be making BPS advance payments during a payment window.

The new payment window will run until 15th December. Farm businesses not receiving an advance payment tomorrow, but whose claim is subsequently validated before 15th December, will receive the advance payment.

Full and remaining balance BPS 2023 payments will be made from 15th December 2023, subject to full validation of the BPS claim.

It is expected all but the most complex BPS claims will be fully validated, and payments made before the end of the payment window on 30th June 2024.

“Major boost for farm cash flows”

NFU Cymru president Aled Jones commented: “This support will be a major boost for the cash flow of more than 15,600 Welsh farmers, along with the allied industries who rely on farmers for so much of their income.”

With the level of ‘agri-inflation’ running around 40% higher in 2023 than 2020, and output prices not keeping pace with input prices, the news is particularly welcome.

“Through the successive crises of the global pandemic and the Ukraine war, Welsh farming has remained committed to food production and providing consumers with safe, high quality, affordable food. Welsh Government’s role in providing stability and certainty to farmers through the BPS has been crucial to this,” Aled Jones added.

“The continuation of this stability payment is as important now as it has ever been and why it is crucial that stability measures remain as a key part of the long-term agricultural policy framework in Wales. The Sustainable Farming Scheme must maintain at least the same level of stability, for all farm sectors and types, as that currently provided by the BPS.”

He welcomed the maintenance of the BPS budget for 2023 and stressed the importance of continuing this into 2024.

“It is important to recognise that the budgets for agriculture remain at levels established a decade ago and, in that time, have not been adjusted for inflation. Taking account of inflation and using the Bank of England inflation calculator, the BPS should increase by £79 million from £238m to £317m just to stand still.”

Mr Jones concluded by noting that some businesses will not receive the advance payment today, but welcomed changes by the RPW that mean some of these businesses will not have to wait until 15^th December.

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Ministers in Scotland are seeking urgent clarity from the UK Government that it will not undermine high standards of food safety and animal welfare in order to secure a trade deal with the US.

They also asked for reassurance that the Scottish Government will be fully included in the UK Government’s activities relating to trading arrangements with the US – after media reports appeared to leave ministers blindsided.

Rural affairs minister Mairi Gougeon said: “The interests of Scottish agriculture, and other sectors, must not be traded away in order to secure a quick deal with the US, or any country.”

Mairi Gougeon and Scottish trade minister Richard Lochhead wrote an open letter to the UK Government, after media reports suggested the possibility of a ‘foundational trade partnership’ with the US, which covers topics such as digital trade, labour protections and agriculture.

“Acute concern to farmers”

‘It is particularly concerning that we are only hearing of this now from the media, and while the implications of this arrangement are not yet clear, the media reports will most certainly be of acute concern to our farming communities and so we have decided to write to you jointly about this issue,’ the Scottish ministers said.

They acknowledged the benefits of building relationships with the US and highlighted examples of the Scottish Government’s cooperation and engagement on UK free trade agreements.

With this in mind, they added: ‘We would be extremely disappointed if it transpired that the UK Government had been working on plans to deepen the trading relationship with the United States without any indication, advance notification, nor involvement of Scottish Ministers, leaving us to learn of this purported development through the media.’

Warning over compromise on standards

But it is the practical effects of such an agreement on Scottish farming and food interests which has the ministers most concerned.

Whilst the US is an important destination for our food and drink produce, it would be ‘entirely counterproductive’ to undermine Scotland’s high standards and lose market access elsewhere, in order to secure a trade deal with the US, they wrote.

‘More specifically, we have concerns around any potential impact this may have on vital UK-EU trade, and potential increased cost for business directly and through increased scrutiny from our EU partners.’

Calls for reassurance to farmers and ministers

Based on media reports, which have created considerable concern in the farming sector, the deal appears to fall short of a free trade agreement, it could be viewed as a bridging step to one, they argued.

Ministers warned of ‘significant changes to consumer protections, production standards and the profitability of our vital agricultural sector if any trade deal enables US agri-food imports produced to lower standards to be imported into the UK’.

Specifically, any relaxing of the UK’s opposition to hormone-treated beef, GM crops and chlorine-washed chicken would be ‘completely unacceptable’.

The ministers concluded by urging the UK Government to alleviate concerns in the farming sector by reiterating its opposition to any derogation of food safety and standards and animal welfare standards. They also asked for a commitment to involve Scottish ministers and officials in its plans for trading with the US.

Responding to the letter in a statement, a UK Government spokesperson said: “The UK and US are rapidly expanding the work we do together across the full spectrum of our economic, technological, commercial and trade relations through the Atlantic Declaration. Discussions with the US on next steps under this first-of-its-kind agreement are ongoing.”

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Guy Singh-Watson, founder of Riverford Organic, launched the campaign to call for fairer treatment for farmers. © James Walker

A petition urging the ‘Big Six’ supermarkets to adopt fairer practices, warning that the British farming industry is “on its knees” has received nearly 60,000 signatures.

It has gained support from a range of public figures including Dragon’s Den star Deborah Meaden, chef Rick Stein, musician Marcus Mumford and conservationist Ray Mears.

If the #GetFairAboutFarming petition hits 100,000 signatures it will have to be debated in parliament.

Launched by organic fruit and veg box company, Riverford, it calls for the Government to amend the Grocery Supply Code of Practice (GSCP) to require retailers, without exception, to:

• Buy what they agreed to buy
• Pay what they agreed to pay
• Pay on time.

An open letter was sent to the CEOs of Tesco, Sainsbury’s, Asda, Morrisons, Aldi and Lidl just over two weeks ago asking them to treat farmers fairly – however, there has been a “deafening silence” from the Big Six.

The campaign comes after research by Riverford revealed 49% of fruit and veg farmers fear closure within 12 months – with supermarket buying behaviour a leading cause.

Natalie Bennett, the former Leader of the Green Party, also backed the campaign, saying in the House of Lords: “Farmers suffer major economic loss and a huge amount of food is wasted because supermarkets order food and then refuse to take it and to put it on the shelves and it rots in the fields.”

“Sixty metric tonnes of potatoes just…. wasted”

Arable farmer Joe* ceased selling to supermarkets five years ago, after spending £25,000 on growing an agreed crop, which the buyer then decided they didn’t want.

“And that was it,” he says. “Sixty metric tonnes of potatoes just … wasted.”

Joe, who produces mainly potatoes and onions on his organic mixed 300-hectare farm in the East of England, is determined to never grow for supermarkets again and sells to Riverford instead.

“They’ll squash you to keep the prices down,” he says. “You just don’t know how much to expect in terms of income, and at times you end up taking huge financial hits and wasting so much food. We need a fairer, shorter, and more transparent food chain.”

Arable farmer Joe (not his real name) spent £25,000 growing potatoes for a supermarket, before being told they didn’t want them anymore. © Stu Everitt

Despite initially having a rosier relationship with supermarkets, in his third year, Joe planted crops in March and when August came the packer was happy with them and they were harvested – but the supermarket was then unsure if they would take them, so they went into store, Joe explains.

“With organic potatoes, you will get problems the longer you store them and I was getting nervous. Then the packer finally admitted that Tesco had de-listed them – they said a new person had joined their team and that potato variety has been wiped off the system.

“It turned out they were de-listed before they were even harvested and nobody had told me. It cost £25k to grow these and they just said ‘we’re not having them’ and that was that.”

He added: “In a ‘bad’ year – when there is plentiful supply – they will find 101 reasons why they don’t want the crop but then when they’re struggling they will have anything. It’s very uneven – and it’s all on their terms. If you have a big growing size and you’re important to them, you’re OK. But if you are small or medium-sized farm then you’re not and all the risk is on you.”

Joe believes supermarkets won’t change until consumers move away from them. “We need to bang the drum and get people to change the way they buy.”

An urgent issue

Guy Singh-Watson, founder of Riverford Organic said the support for the campaign has been “very encouraging” – but none of the Big Six supermarkets has responded.

“From the backing of our open letter by industry experts, chefs, MPs, and fellow farmers, to the 50,000 members of the British public who have signed our petition, it is abundantly clear that this is an urgent issue which needs to be addressed.

“However, the silence from supermarkets is deafening. British agriculture is on its knees, with research showing that many farmers attribute their fear of closure to the behaviour of supermarkets. And yet not one of the ‘Big Six’ has responded to our calls for better business practices, to safeguard the future of fruit and veg farmers in this country.”

He concluded: “The supermarkets must act now. This marks a critical moment where we can take a stand against harmful practices, and create a better, fairer future for British food and farming.”

Sign the petition here: petition.parliament.uk/petitions/643216.

*Name changed to protect anonymity

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Phase 2 of the planned high-speed rail line, which would have connected Birmingham to Manchester through Staffordshire and Cheshire, was officially cancelled by Rishi Sunak at the Conservative Party Conference this week.

The government is expected to offer former landowners the first chance to repurchase the land they were forced to sell, according to property consultancy Fisher German, which advised many landowners affected by the proposed Phase 2 route.

Safeguarding protections restricting development along Phase 2a – between Birmingham and Crewe – are expected to be lifted within weeks, while restrictions on land along Phase 2b between Crewe and Manchester is likely to expire next summer.

Get on the front foot

Hugh Maxfield, partner at Fisher German’s Knutsford office, who worked with several clients whose land was needed for Phase 2 to go ahead, is advising landowners to get on the front foot.

“Landowners who were forced to sell up along the planned Phase 2 route due to compulsory purchase orders may now be wondering if they have any recourse to reacquire their land and property.

“While detailed guidance has not yet been published by the government, HS2 has confirmed that ‘any property that is no longer required for HS2 will be sold and a programme is being developed to do this’.

“In practice, we expect this will mean that Crichel Down Rules will apply. This means the original landowners should have first refusal to buy back their land from the government so long as it hasn’t materially changed.

“However, the legal small print is complex, and we would urge any landowner wishing to buy their land back to seek advice.”

Factors to consider

Associate partner James Boddington explained: “There are many different factors to consider, such as individual lease-holding arrangements, whether all of the land can be purchased if certain parts have had material changes, and whether the current value of the land has increased or decreased.

“We would encourage former landowners to have assessed their situation as thoroughly as possible before committing to a decision.”

“Significant distress”

HS2 was originally planned to connect London to Manchester and Leeds via Birmingham. The Leeds connection was scrapped in 2021, meaning the original London to Birmingham plan is the only section of the line going ahead after the Government’s announcement.

The disruption has caused upheaval for not only landowners but contractors too.

James added: “We understand that the compulsory purchase process and the Government’s subsequent cancellation of Phase 2 has caused significant distress to some of our clients.

“We would encourage anyone struggling from this point of view to contact the Farming Community Network, a charity which supports farmers and associated contractors with their mental health.”

The Farming Community Network can be reached by calling 0300 0111 999 or by visiting www.fcn.org.uk

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The Canadian Cattle Association, Canadian Meat Council and National Cattle Feeders’ Association have launched a campaign calling for a ‘fair deal’ with the UK.

According to the organisations, Canadian meat – which can be produced with the use of growth hormones – is ‘currently severely disadvantaged’ in the interim agreement with the UK.

The UK officially signed an agreement to join the CPTPP in July, joining 11 other member states in the Indo-Pacific trade group which includes Canada, Japan, Malaysia, Mexico, New Zealand and Singapore.

Canadian cattle groups are seeking to delay the partnership as technical, non-tariff trade barriers have resulted in Canada being unable to access the UK market, while the UK has ‘unfettered access’ to the Canadian market. 

The main stumbling block is the UK’s full acceptable of Canada’s food safety system, according to a statement from the three groups. 

The ‘Say No to a Bad Deal’ campaign is calling for ‘fair trade that includes the UK accepting Canada’s full food safety system so that the beef and pork can have viable access to the UK market’.

Alternatively, they are asking parliament to ensure producers and processors are compensated for damages and losses.

Canada’s beef and pork industry is urging producers, packers and supporters of the sector to join the campaign and voice their concerns to Canadian parliament.

“Trade is essential to the long-term sustainability of the beef sector and Canada needs and deserves fair and reciprocal access to the UK,” said Will Lowe, chair of the National Cattle Feeders’ Association. 

Commenting on the CPTPP trade deal in March this year, NFU president Minette Batters said it could provide some good opportunities – and compared to the controversial deals with Australia and New Zealand, the government had negotiated a “far more considered and balanced outcome”. 

Commenting on food standards she added: “It is an absolute red line for us that food produced using practices that are illegal here – for instance, the use of hormones in beef and pork production and chemical washes for carcases – should not be allowed on our market.”

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The first female president of the NFU, Ms Batters is now in her third term, having secured 75% of the vote in the 2022 election. 

She served as deputy president from 2014-2018, before being elected president in February 2018. She was previously a county chair, Wiltshire’s NFU Council delegate and also a regional board chair for the south west.

Commenting on her decision to step down as president in February 2024, she said: “The decision to step down has been really tough to make but after 10 years at the top of the organisation it is time for someone else to take the lead.

“It has been an extraordinary time for British farming. From the impact of Brexit, the Covid pandemic and most recently the cost of living crisis, which was exacerbated by the war in Ukraine, and the resulting impact of record inflation for the agriculture sector. There has not been a playbook in history for the events that have unfolded.

“I have given it my all and there’s a huge job still to be done. I remain determined to deliver what’s needed for our members.”

Ms Batters runs a tenanted family farm in Wiltshire. The mixed farming business includes a 100-cow continental cross suckler herd, as well as sheep and arable.

Campaigning on the importance of British food and farming has been a key theme of her presidency. In 2020 she led a petition, signed by over 1 million people, calling on the government to back British farmers and prioritise food standards when negotiating trade deals.

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A series of u-turns on green policies were announced at No.10 Downing Street yesterday, creating a backlash from some Tory backbenchers and environmental groups.

However, the prime minister said he will still meet international commitments and hit net zero by 2025.

Among the changes was a delay to the ban on new boilers, which for homes not connected to the gas grid was due to take effect by 2026.

Campaigners had previously warned the move would force rural communities to make costly upgrades to electric alternatives.

Mr Sunak said the switch to heat pumps will only be required when the existing boiler is replaced, and not until 2035 – and for those households for whom this will be most difficult, there will be an exemption so they never have to switch.

The Boiler Upgrade Scheme which gives people cash grants to replace their boiler, will be increased by 50% to £7,500.

Mr Sunak also scrapped plans that would have required some property owners to make expensive upgrades by 2025 to make their homes easier to heat.

He also ruled out ‘heavy-handed’ measures including:

• Taxes on eating meat
• New taxes to discourage flying
• Sorting rubbish into seven different bins
• Compulsory car sharing
• Expensive insulation upgrades.

Other measures include lifting the ban on onshore wind, investing in four new clusters to capture and store carbon from the atmosphere and building new nuclear power stations.

There are also plans to introduce reforms to improve grid infrastructure. The first-come-first served approach to grid connections will shift to ensure those ready first will connect first.

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With unusually high rainfall in July and August following a prolonged dry spell in June, harvesting grains and forage has been “a tense ordeal” for many this year, the National Sheep Association has said.

Chief executive Phil Stocker noted that the availability and quality of forage, bedding and catch crops is starting to creep into the minds of livestock producers.

Coupled with this, the ongoing conflict in Ukraine, global economic conditions, access to vaccines and continued inflation in input prices – alongside pressure from retailers to try to limit food inflation – is making its mark on the industry.

NSA is asking the government and the public to work even harder to support British produce.

“There is a crunch point here that could affect long term food security and sustainability, and NSA wishes to encourage members to start planning for what could be a long winter – and the wider supply chain to support our farmers,” Mr Stocker said.

He added: “I cannot stress enough the importance of consumers being able to access high quality, affordable British food that is also beneficial to our countryside and farming communities.

“Sheep and goat meat imports from New Zealand to the EU jumped by 18% year-on-year in the first four months of 2023, according to new figures. NSA is keen to see retailers across the board, along with government, champion British food.”

British lamb needs the support of the government and supply chains to ensure it maintains domestic market share in light of recent free trade agreements, he continued.

“We potentially have a mountain to climb this winter. The agricultural industry is combating a period of extreme and unprecedented volatility within the marketplace, supply chains and input costs – so now is the time to champion British.”

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Farmers applying for Countryside Stewardship Mid Tier agreements will now have until 15^th September after the deadline was extended due to farmer feedback.

Technical issues which were experienced by a small number of farmers when submitting applications have now been resolved, Defra said.

The Rural Payments Agency is working with affected applications and agents, with actions being taken to resolve issues as quickly as possible and systems being put in place to assist farmers with the process.

Defra secretary of state Thérèse Coffey said: “It is important that we listen to farmers who are key custodians of the countryside.

“Having met many farmers across the country this summer, and recognising the poor weather has made harvesting much more challenging, I think it right we extend the application window for Countryside Stewardship this year to make sure that those who want to apply for this scheme can – building on the great success we have had with this scheme to date.”

There are 32,000 Countryside Stewardship agreements already in place across England for 2023, a 94% increase in uptake since 2020, according to Defra.

Additional investment has been put into online systems to increase capacity, the department added. Improvements such as greater flexibility over when farmers can apply and how they manage their agreements are also in motion.  

Other recent evolutions to Countryside Stewardship include:

• The removal of the limit on the value of capital items in the water or air quality, hedgerow and boundary, or natural flood management priorities;
• A broadened offer to support natural flood management, create more areas of scrub, and reduce nitrogen inputs in groundwater;
• The removal of the need for farmers to request an application pack before starting their application, automatic checks to enable applications to be processed quicker, and an annual declaration; and
• An average increase of 10% for revenue payment rates and 48% for capital payment rates.

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Stock photo for illustration only.

The proposed ban on new oil burners has been described as a ‘rural Ulez’ by former environment secretary George Eustice in a Daily Telegraph article.

The ban is set to affect 1.7 million mostly rural households that are not connected to the gas grid, and would come in at least a decade before similar restrictions on other homes, according to the Countryside Alliance.

Mr Eustice said air-source heat pumps would cost four times more than a new boiler and urged the government to look at expanding the supply of renewable liquid fuels.

‘For just a couple of hundred pounds, an existing kerosene boiler can be converted to run on hydrotreated vegetable oil made from waste cooking oil or vegetable waste. Facilitating that switch would reduce carbon emissions by 88%, far faster than the current approach could and at a fraction of the cost,’ he wrote.

The Countryside Alliance has warned that many older homes commonly found in rural areas are ill-suited to heat pumps, which require thorough insulation to work efficiently. Some homeowners have also been told they would have to replace their radiators to accommodate the heating devices.

Mr Eustice has drafted an amendment to the Energy Bill, which is said to have the backing of at least a dozen Tory MPs, introducing effective subsidies on such oil.

Sir Geoffrey Cox, the former attorney general, said the 2026 cut-off date has left rural households with an “extremely invidious choice”.

“They don’t have an alternative in which they yet which they currently have any confidence,” he said. “Those of us who live in small rural communities are going to be plunged disadvantageously and prematurely into making a decision like this in two and a half years.”

Countryside Alliance public affairs director James Legge said in a statement: “We recognise the need to move away from fossil fuels in all its uses, but the Government must recognise the disproportionate impact this transition will have in rural areas.

“The Government needs to work with rural communities, rather than imposing change from Whitehall, to deliver affordable alternatives and the infrastructure needed to support increasing dependence on electricity, especially as we move to electric vehicles as well.”

Mr Legge warned that the current infrastructure cannot support the increase in demand that the proposed changes will bring. Alternatives to existing oil boilers often require substantial up front capital investment and may not be suitable for some properties.

Confidence in the alternatives is also important, he concluded, calling for the increasing use of alternative fuels as part of the mix when moving away from oil boilers.

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