Farming in the Uplands - ARCHIVE: Defra

Ev 76 Environment, Food and Rural Affairs Committee: Evidence
Single Payment Rates in the Uplands
41. For the purposes of receiving the single payment, England is divided into three regions: English
moorland within the Severely Disadvantaged Areas (SDA); English SDA non-moorland; and, English non-
SDA. Upland SDAs are disadvantaged relative to non-SDA land in due to a number of factors: higher
altitude, harsher climate with a shorter growing season, low soil fertility, diYcult topography, and
remoteness.
42. When the Single Payment Scheme was introduced in 2005, and following consultation with the
farming industry, it was decided that, in order to limit the redistributive eVects of the new scheme, the SPS
funding within each of the three regions would be kept broadly the same as existed under the old productionlinked
subsidy schemes. Moorland farms, typically having lower production levels than lowland farms,
previously received lower subsidy payments, which the current per hectare payment rate reflects.
43. The 2009 rates per hectare of Single Payment for the three regions are:
— ƒ190.47 for non-SDA.
— ƒ156.09 for upland SDA, other than moorland.
— ƒ27.37 for upland SDA moorland.
Agri-environment Schemes
44. Agri-environment schemes provide funding to farmers and land managers to farm their land in a way
which is sensitive to the environment. Agri-environment scheme payments are based on income forgone and
costs of undertaking an activity, as allowed under EU and WTO rules. Until 2005, these were targeted at
specific areas or landscape types considered to be of high conservation value, largely through
Environmentally Sensitive Areas (ESAs) or the Countryside Stewardship Scheme (CSS). Significant areas
(over 400,000ha) of the uplands are still participating in ESA and CSS agreements which gradually expire
until 2014. The transition of land under these expiring agreements to Environmental Stewardship (ES) will
be key to retaining the environmental benefits and maintaining income levels. At the end of August 2010
national figures suggest that 88% of land under expiring ESA and CS agreements had been transferred to
ES. The 2009 Uplands Farm Practices Survey suggested that more than 80% of upland farmers with ESA
or CS agreements would be interested in joining another agri-environment scheme.
45. Environmental Stewardship (ES) was introduced in March 2005, providing funding to farmers and
land managers throughout England who deliver eVective environmental management on their land. There
are two levels of management:
Entry Level Stewardship (ELS) and Organic Entry Level Stewardship (OELS) aims to encourage
the majority of farmers in England to participate in an agri-environment scheme with a range of
simple but eVective low cost management options. More recently, a specific uplands strand—
Uplands ELS—has been launched, with further details below.
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Uplands Entry Level Stewardship (Upland ELS)
46. The most recently introduced strand of Environmental Stewardship is the new, uplands-focussed,
Uplands Entry Level Stewardship. Launched earlier in 2010, the first agreements commenced on 1 July.
Uplands ELS is the successor scheme to the Hill Farm Allowance (HFA), which was paid to beef and sheep
farmers in England’s uplands to compensate them for the additional costs of farming in disadvantaged
areas. In 2004, the Government held a review of uplands support, and in 2006 announced the intention to
incorporate such support into Environmental Stewardship, with the aim explicitly linking payments to
upland farmers with delivery of public benefits, whilst recognising the significant level of such benefits
provided by upland farmers. The aim is to secure widespread benefits by encouraging large numbers of
upland farmers with land in the SDA to deliver simple yet eVective environmental management. In order
to smooth the transition for upland farmers from the compensatory support of the HFA to Environmental
Stewardship, the HFA was extended into 2010.
47. Uplands ELS is aimed at maintaining and improving the biodiversity, natural resources, landscape
and historical value of England’s uplands, and to contribute to climate change mitigation and adaptation,
by supporting the land management practices which deliver these benefits. It recognises the vital role of
upland farmers in maintaining some of the most iconic areas of England, and better targets public funding
towards the delivery of environmental and landscape benefits, and is available to all upland farmers
(including dairy farmers and those with very small holdings, who were ineligible for HFA).
48. Uplands ELS provides a standard payment every year for five years. Famers have to carry out certain
land management requirements and can then choose from over 70 options for farmers, including grassland
management, mixed stocking and restoring farm structures such as barns and stone walls. Payments are
made at £62/ha, or £23/ha for parcels 15ha or larger above the moorland line. These payments are made at
the same rate no matter the size of the holdings: a change from the system under HFA where payments were
degressive above a threshold of 350ha.