AGRICULTURE BILL – NOTICES OF AMENDMENTS
On 23.1.2019 Parliament issued some Notices of Amendments to the Agriculture Bill which is still progressing through the consultation period prior to the 3rd reading, and notable highlights are:
1. A clause that would prevent the Government from entering into trade agreements that allow food imports that do not meet the UK’s environmental, animal welfare and food safety standards;
2. An amendment to the description the purposes for which the Secretary of State can offer financial assistance to now include:
“(aa) “supporting agriculture and horticulture businesses in enabling public access to healthy food that is farmed sustainably, including food produced through whole farm agroecological systems.”
3. A clause that clearly defines for the legislation what “agriculture” is, with the notable addition of a clause including the production of food, stating:
Agriculture shall be undertaken in accordance with the principles of:
- Increasing production and productivity;
- Achieving security of food supply, and
- Providing consumers with food at reasonable prices with a fair price for the farmer.
4. A further clause that protects food security and ensures its affordability for the population, which makes it specifically the duty of the Secretary of State to ensure that there is enough home-grown food produced in the UK in case it experiences “tensions” with trading partners.
5. A clause designed to limit the disposal of county farms by local authorities to ensure they provide opportunities for persons to be farmers on their own account, to extend access to farming, and to educate and experience environmental land practices.
6. Further clauses to assist the UK in meeting its net-zero greenhouse gas emissions targets for agriculture by 2050 at the latest.
It is gratifying to now see food production at least being mentioned under the “public goods” section. There are many other amendments covering various matters including improving the oversight of Parliament as to the costs of the Bill and the reporting requirements of the Secretary of State. To read the proposed new clauses in full, please go to https://publications.parliament.uk/pa/bills/cbill/2017-2019/0292/amend/agriculture_rm_rep_0123.1-7.html
UK ENTITLEMENT TRADING UPDATE
ENGLAND
Since Christmas, the UK entitlement market has remained reasonably quiet, however interest is building and we are continuing to get expressions of interest from fairly large buyers, as well as the usual mid-small buyers, and also from some businesses who can claim again now the active farmer restrictions and negative list have been removed. The most recent sales agreed were at £150 plus VAT for a large lot for Non-SDA, and £200 plus VAT for SDA.
The RPA online transfer facility has now gone live, and so sales agreed can be completed within a week, subject to both parties dealing with their paperwork promptly, and the transfer being processed correctly by the RPA computer. The deadline for submitting an entitlement transfer application is 15th May.
SCOTLAND
The market is beginning to warm up, with the much earlier deadline of 2nd April for SGRPID to receive the paper transfer forms. Region 1 entitlements are trading at around 0.9 to 1 x face value including greening (£190-220 plus VAT/ha), Region 2 with a similar multiplier (£30-35 plus VAT/ha) and Region 3 (£11-13 plus VAT/ha).
The RPID has confirmed in writing that, although the 30% siphon will be applied to the BPS element of any entitlements transferred, and confirmation letters will show this reduction, sometime before the 2019 claims are processed all entitlements for each region will be converted to the appropriate Flat Rate, so in effect the siphon will be cancelled.
Please see here the article on how the BPS payments work in Scotland for further information.
WALES
As yet trade is quiet for Welsh entitlements, which are all classified as the same region, and which also will be paid at a Flat Rate in 2019, however interest is expected to rise shortly. The deadline for submitting a transfer application in Wales is 30th April.
If you are interested in buying or selling entitlements for 2019, please contact Julia Clark.