Agriculture, farm diversification and rural economy - Wiltshire Council

Topic7 PaperSALISBURY DISTRICTLDFCreating SustainableCommunitiesAgriculture, farm diversification and rural economyJune 2007

INTRODUCTIONSalisbury district is a predominantly rural district and therefore the prosperity of the rural areais important.Changes in agriculture over recent decades have resulted in a decline in farm-related jobs,and an increase in the stock of land and buildings that are no longer required for agriculturalpurposes. Since 2003/04 the average farm income has fallen from £24,700 to £17,500 in2005/06 (source defra, http://statistics.defra.gov.uk/esg/quick/agri.asp, accessed 26/03/2007)this is a trend that has been occurring for several years. The structure and type of farm hasalso changed. At the same time there are increasing environmental demands following onfrom legislative and policy commitments and public expectation, which will potentially makethe role of farmers and growers more challenging and complex. Simultaneously, the recentCommon Agricultural Policy reform requires farmers to become more self reliant and marketfocused rather than subsidy based upon farm production. It has therefore becomeincreasingly important for farmers to be able to diversify their economic base in order tosupplement their incomes and ensure the continued survival of farms and land management.1. ISSUES FACING SALISBURY DISTRICTSince 1990 within Salisbury district both the number of full time farmers and the number ofholdings that have been farmed have reduced in number, conversely the number of part timefarmers and holdings farmed has increased 1 .Number of farmers and holdings farmed in Salisbury District1000928 928800600400552 555598472446332 31443349165920001990 1995 2000 2005YearSource: DefraFull Time (holdings)Agricultural CensusFull Time (number) Part Time (holdings) Part Time (number)At the same time the number of small farms and the very largest has increased whilst thoseof medium size have declined. However it should be noted that the data from and including2000 includes minor holdings and therefore it would be expected that the number of smallfarms would increase.1 Defra Agricultural Census: data relates to main and minor holdings – from and including 2000, Data relates tomain holdings only – pre 2000.

Size of farms (number)450400

scheme replaces the previous Countryside Stewardship Schemes and EnvironmentallySensitive Areas.Although the schemes represent a stream of income that is available to farmers, the recentCommon Agricultural Policy reform simultaneously, requires farmers to become more selfreliant and market focused rather than subsidy based upon farm production. There is alsocontinuing uncertainty surrounding the future direction of the European Union CommonAgricultural Policy that altogether trigger an additional need to support the rural and farmingeconomy.Salisbury is also in a fortunate position to have a flat racing horse racing facility locatedbetween Salisbury and Wilton as well as holding many point to point races on Larkhill(Salisbury Plain). This can assist the rural economy, and the needs of horse training,breeding and livery businesses together with commercial horse riding stables, should beencouraged as part of farm diversification enterprises. However these need to be achievedwhilst maintaining environmental quality and countryside character. Please also see topicpaper 9 – Employment land, the economy, agriculture and farm diversification.

2. THE NATIONAL AND REGIONAL POLICY FRAMEWORKNational GuidancePlanning Policy Statement 7 (PPS7) Sustainable Development in Rural AreasIdentifies the following issues that should be addressed:• Need to develop competitive, diverse and thriving rural enterprise that provides a rangeof jobs and underpins strong economiesAgriculture and farming• Need to promote sustainable, diverse and adaptable agriculture sectors where farmingachieves high environmental standards, minimising impact on natural resources, andmanages valued landscapes and biodiversity, contributes both directly and indirectly torural economic diversity; is itself competitive and profitable, and provides high qualityproduces that the public wants.• Recognise the important and varied roles of agriculture, including the maintenance andmanagement of the countryside and most of our valued landscapes. Supportdevelopment proposals that will enable farming and farmers to:‣ Become more competitive, sustainable and environmentally friendly‣ Adapt to new and changing markets‣ Comply with changing legislation and associated guidance‣ Diversify into new agricultural opportunities (e.g. renewable energy crops) or‣ Broaden their operations to ‘add value’ to their primary produce• Recognise that diversification into non-agricultural activities is vital to the continuingviability of many farm enterprises:‣ Set out criteria to be applied to planning applications for farm diversificationprojects‣ Be supportive of well-conceived farm diversification schemes for businesspurposes that contribute to sustainable development objectives and help tosustain the agricultural enterprise, and are consistent in their scale and their rurallocation.• Encourage the re-use or replacement to of existing buildings where feasible and haveregard to the amenity of nearby residents or other rural businesses that may be affectedby new types of on-farm development.• PPS7 suggests that LPAs should provide policies to protect specific areas of the best andmost versatile agricultural land from speculative developmentForestry• Manage existing woods and forests sustainably• Encourage the continued expansion of woodland areas to provide more benefits forsociety and the environment• The planning system is the principal means for regulating the rate at which land istransferred from woodlands to other rural and urban uses.Commercial equestrian activity• Recognise that horse riding and other equestrian activities are popular forms ofrecreation in the countryside that can fit in well with farming activities and help to diversifyrural economies.• Horse training and breeding businesses play an important economic role. Local planningauthorities should set out policies for supporting equine enterprises that maintainenvironmental quality and countryside character.• These policies should provide for a range of suitably located recreational and leisurefacilities and, where appropriate, for the needs of training and breeding businesses.• They should also facilitate the re-use of farm buildings for small-scale horse enterprisesthat provide a useful form of farm diversification.http://www.communities.gov.uk/pub/825/PlanningPolicyStatement7SustainableDevelopmentinRuralAreas_id1143825.pdf

Water Resources for the Future (2001) Environment AgencyAgriculture must focus on using available water to best effect.http://www.environment-agency.gov.uk/subjects/waterres/137651/?version=1&lang=_eEngland Forestry Strategy (1999) has two main aims that are the sustainable managementof existing woods and forests; and a continued steady expansion of woodland area toprovide more benefits for society and the environment.http://www.forestry.gov.uk/efsRegional GuidanceThe Draft Regional Spatial Strategy for the South West 2006-2026Businesses in rural areas now and in the foreseeable future are likely to have littleconnection with the land-based industries but should be supported where they secure jobsfor local people and improve the viability of rural communities. The Rural DevelopmentRegulation is likely to encourage greater diversification away from agricultural activity, and anincreased desire on the part of farmers to diversify their capital assets. Encouragementshould be had for the development of small businesses in the ‘market towns’ and smallersettlements throughout the region. Small businesses in rural areas should be based insustainable and accessible locations to avoid pressures on local environments and roads.The draft RSS recognises that the region is characterised by farmland, woodland andforestry alongside being a place to live, work and enjoy and identifies that as changes toagricultural policy and industry takes place less land is likely to be used primarily for foodproduction. Therefore the RSS identifies that local authorities should promote an integratedapproach to land management by developing area=specific packages that achieve multiplebenefits, reinforce and enhance the specific natural and cultural features or local areas.The RSS further identifies that the Best and Most Versatile Agricultural land should beprotected for food production, as they are the most flexible in terms of food production.

Best and Most VersatileAgricultural LandWith respect to commercial forestry the RSS identifies that the wider economic use ofwoodlands and forest should be promoted for example with respect to wood fuelhttp://www.southwest-ra.gov.uk/nqcontent.cfm?a_id=836Regional Woodland and Forestry FrameworkOur woods and forests make a significant contribution to the region’s economy, of over£500m per annum forestry should directly contribute to renewable energy and increase thecontribution of woodfuel to renewable energy supplies in the South West, measured byinstalled capacity.http://www.forestry.gov.uk/sw-rff

3. LINKING IT TOGETHER – WHAT DO OTHER LOCAL STRATEGIES SAY?South West Biodiversity Implementation PlanRequires the provision of enhanced conditions for the maintenance and return of biodiversityto arable land and improved grassland.http://www.swbiodiversity.org.uk/Regional/swbippage.htmThe Delivery Plan for Sustainable Farming and Food industry in the South West 2004Relevant objectives from the delivery plan are to;• Reduce rural inequalities and supporting viable livelihoods, particularly by improvingaccess to relevant schemes and initiatives;• Increased viability of local and regional food and farming businesses.• Create more opportunities for farmers to supplement their incomes from agri-environmentschemes geared to the region’s needs and opportunities.• Encourage farmers and food companies to develop renewable energy on their land or intheir buildings.• Encourage District Councils to encourage renewable energy developments• Identify localised agricultural and food waste-to-energy solutions, particularly centralisedanaerobic digestion.• Alternative uses to be found for farm buildings, such as leisure, offices and workshops.• Farmers to diversify into alternative crops, and tourism & leisure activities• Maintaining our countryside industries: farming, fishing, forestryhttp://www.gos.gov.uk/gosw/envrural/farmandfood/

5. LEARNING FROM EXPERIENCEa) How do our existing policies perform?The following policies from within the existing Local Plan address a wide rang of issuesrelated to community and cultural activities. While many have proved to be effective, theywill need to be thoroughly reviewed as part of the LDF process.Policy Purpose CommentC19 Protects the best and mostversatile agricultural landA similar policy needs to be carried forward tobe in conformity with PPS7 and the draft RSSC20 Allows development which is A similar policy should be carried through.essential to the needs ofagriculture, forestry andhorticulture subject to criteriawhich include thedevelopment would beinappropriate in an urbanarea, it is directly related to aholding and measures areincluded to prevent pollution,over-abstraction anddegradation of water coursesand groundwater sourcesC21 Permits farm diversification A similar policy should be carried through that ismore positive.The following policies will be reviewed under other topic paper areas:G3 (water environment) (Topic Paper 12)E19 (employment sites in the countryside) (Topic Paper 9)E21 (new employment sites in the countryside) (Topic Paper 9)E20 (change of use to employment use in countryside) (Topic Paper 9)C2 (Limited development to that which would benefit the local economy or the environment)(Topic Paper 9)C4 (Prevents development that would harm the AONB) – (Topic Paper 5)C9 (prevents the loss of woodland, encourages planting of indigenous species) (Topic Paper5)C22 (promotes change of use of buildings to employment first) (Topic Paper 9)b) What are others doing to tackle similar problems?A short benchmarking exercise was undertaken to understand how some other localauthorities have dealt with retailing within their Core Strategies. This was achieved througha random internet search.Maldon - have suggested a range of options from continuing their current policies ofrestricting diversification to encouraging rural farm scale business clusters to allow clusterssubject to criteria, or the ability to suggest another option. This appears in Genericdevelopment issues and options. Within the same paper the first section is ‘Strategic Issuesand Options’ which is preceded by a spatial portrait of the area. This section deals withissues such as restricting out-commuting, increasing skills of the workforce, increasingaccess to the wider community, making public transport more attractive, and establishing theretail hierarchy.Suffolk coastal - have proposed a ‘preferred’ option and then proposed other alternativeoptions. They have further asked if there are any further options that should be pursued.

East Cambridgeshire - have put together a three page summary for economic developmentwhich explains the background to the district and the policy requirements, It then has threepolicy options which are associated with employment sites and whether they should besustained, the protection of employment sites and the degree that farmers should be able todiversify to.Bradford metropolitan - have used the Topic paper approach, this goes through theeconomic trends, the policy guidance, the employment land supply, the location ofemployment, protection of existing employment sites, and rural diversification. There arethen questions throughout the topic paper asking consultees to comment…..

6. KEY ISSUES AND SPATIAL PATTERNSPPS7 encourages planning authorities to support a wide range of economic activity in ruralareas at an appropriate scale in sustainable locations through identifying suitable sites forfuture economic development and through identifying criteria by which economicdevelopment would be permitted together with extensions to premises.PPS7 also identifies the need to promote a competitive, sustainable, diverse and adaptableagricultural sector which achieves high environmental standards, minimising impact onnatural resources, managers valued landscapes and biodiversity and contributes directly andindirectly to rural economic diversity. The best and most versatile agricultural land shouldalso be protected. PPS7 also encourages both farm and non-farm diversification for farmers.Commercial equestrian activity is also encouraged, together with the sustainablemanagement of existing woods and forestry and the re-use or replacement of existingbuildings.The RSS further encourages the development of small businesses in the smaller settlementsand in rural areas in sustainable locations that meet organic growth and rural investment.The RSS also recognises that changes to the Common Agricultural Policy (CAP) willencourage greater diversification away from agricultural activities.The Structure plan seeks to provide scope to existing employers moving into Wiltshire tocreate sufficient high quality jobs for the growing population. A strong and diverse ruraleconomy should also be maintained.Salisbury district is pre-dominantly rural, and a large proportion of the population lives andworks in the rural parts of the district. Maintaining an employment base within the rural areais important because the farming industry is changing and because we need to reduce theamount of rural to urban community to work. At the same time the best and most versatileagricultural land should be protected to ensure it is available for food production. The councilwill ensure this is achieved.By supporting existing and creating small-scale businesses in the countryside, people wholive in the countryside would have a greater range of opportunities to work near to home andshould result in a more competitive, thriving, diverse rural enterprises. A fine balance needsto be struck between reducing rural to urban commuting, whilst also not encouraging theurban population to commute to new employers in the countryside. For this reason, the sizeof businesses in the countryside generally needs to be small scale.In some situations, it may be appropriate to allow farmers to diversify by developing smallscale businesses on their land that are either related to farming or unrelated to agriculturesuch as holiday cottages or small scale offices and the conversion of redundant buildings tocommercial re-use. Local food producers should also be supported.Rural businesses as well as urban ones need to become more environmentally friendly.Therefore farmers in the process of food production should ensure that water is used to besteffect. Farmers should also be encouraged to develop renewable energy on their landwhether this is for example bio mass production or food to waste energy solutions, althoughthis could have a landscape implication.Being predominantly rural equestrian activity also can make an important contribution to thelocal economy, especially with the presence of Salisbury Racecourse in the district. Supportshould therefore be provided towards the needs of horse training, breeding and liverybusinesses and other commercial equine enterprises in the countryside.Should the council promote positively farm diversification to enable farmers to diversity toincrease their incomes, should this be related to their farming business or unrelated?

Should farmers be able to re-use redundant farm buildings for commercial enterprise / farmdiversification schemes.Should small-scale business development in the countryside be supported?Should the small- scale business development in rural areas be focussed in or near localservice centres?Should the council encourage farmers to develop renewable energy on their land?Should the importance that commercial equestrian activity makes to the rural economy berecognised? Which aspects need to be supported?Should local food production companies also be supported?Should farmers be encouraged to use water to best effect?Forestry and WoodlandPPS7, the England Forestry Strategy and the Regional Woodland and Forestry Frameworktry to ensure that existing woods and forests are managed sustainably. PPS7 and theEngland Forestry Strategy would like to see the expansion of forests in order for benefits forsociety and the environment to be provided. At the regional level the RSS and the RegionalWoodland and Forestry Framework encourages a wider economic use for woodlands.

7. OPTIONSBased on the issues identified and the policy framework in place, this section draws together options. The tables below represent a long list of options whichmay site more comfortably within either the core strategy or a more specific DPD. The impacts identified are compared against the sustainability criteria in theAppendix of this topic paperAgriculture and equestrianOptionNo.Nature of the Option Key Drivers Positive Impacts Negative Impacts Viability ofproceeding with theoption?1 Should the council promotepositively farm diversification toenable farmers to diversity toincrease their incomes, should thisbe related to their farmingbusiness or unrelated.2 Should small scale businessdevelopment in the countryside besupported?3 Protect the best and most versatileagricultural land4 Should farmers be able to re-useredundant farm buildings forcommercial enterprise / farmdiversification schemes?5 Do not promote farmdiversification nor support smallbusinesses.6 Should the council encouragefarmers to develop renewableenergy crops on their land?7 Do not encourage renewableenergy crops.8 Should the importance thatcommercial equestrian activitymakes to the rural economy berecognised?PPS7, RSS, Deliveryplan for sustainablefarming, Pitton andFarley Parish PlanPPS7, Mere andSouthern communityplan.PPS7 and RSSMere and southerncommunity plan.Helps to support farmincomes to enablecontinued foodproductions.Rural areas becomemore sustainable.The best quality landis preserved foragriculturalproduction.Ensures thatredundant farmbuildings are re-used.Some diversificationschemes could bevery successful butnot be in accessiblelocations.May involve a smallincrease in car use.May prevent landbeing developed instrategicallybeneficial directions.Some farm buildingsmay not be suitablefor other uses or maybe in inaccessiblelocations.None Few Farm incomes andthe rural economicwith diminishPPS7, regionalwoodland andforestry framework.Mere and southerncommunity plan.NonePPS7.Meet renewableenergy targets.There would be littlechange in thelandscape.Equestrian activitycan help provideprosperous ruraleconomies.It is not only horselivery, breed andThe traditionallandscape of thedistrict could changedue to the changingcrops.Renewable energytargets are not met.Equestrian activity isa niche area and therural economy needsvariation to provide athriving ruraleconomy.Fair / goodFairGoodFair/good.PoorFair / GoodPoorFairHow will success bemeasuredIncreased number offarms with successfuldiversificationschemes andincreasing farmincomesContinued existenceof small businessesin rural areas.Amount of bestquality agriculturalland lost todevelopment.Successful re-use offarm buildings.Decline of the ruraleconomy.Amount of landfarmed for biomassproduction.No change torenewable energycrop production.The continuedprosperity of theindustry.Where is the optionbest pursued?Core strategy andGeneral DevelopmentDPDCore strategy.Core Strategy andGeneral DevelopmentDPD.Core Strategy andGeneral DevelopmentDPDsDo not pursue.Core Strategy andGeneral DevelopmentDPD.Do not pursue.Core Strategy andGeneral DevelopmentDPD.

OptionNo.Nature of the Option Key Drivers Positive Impacts Negative Impacts Viability ofproceeding with theoption?training that needssupport, it isfurthermore horseriding schools /enterprises for leisure9 Support not only farmers but alsolocal food production businesses.10 Ensure agriculture uses water tobest effect.11 Do not encourage agriculture touse water to best effect.Commercial ForestryOptionNo.The delivery plan forSustainable Farmingand Food industry inthe South West 2004Water Resources forthe Future (2001)Environment Agencythat need support.To ensure that notonly food is grown butto support thefarmers through theability to have localfood production andprocessing facilities.Should maintain ofthe quality andquantity of the waterenvironment.Food processing thatis not relevant to thelocal agriculturaleconomy may notsupport local farmers.May limit agriculturalprocesses.None Few Water resourcesbecome more scarce.Nature of the Option Key Drivers Positive Impacts Negative Impacts Viability ofproceeding with theoption?12 Ensure existing woods and forestsare managed sustainably.13 Expand forestry to provide benefitsfor society and the environment14 Encourage a wider economic usefor woodland15 Do not encourage commercialforestry.PPS7, EnglandForestry Strategy,Regional woodlandand forestryframeworkPPS7, EnglandForestry Strategy.RSS, RegionalWoodland andForestry FrameworkNone.Ensure that forestryand woods aresustained into thefuture.Forestry can providebenefits to healththrough recreationand to theenvironment.Benefits to the ruraleconomy and theenvironment throughthe promotion of saywood fuel production.Forests are notintensively managed.Increased forestationcould cause changesto the landscapeWoodlands that arenot managed couldbe destroyed.FairGoodHow will success bemeasuredSuccessful foodproduction businessin the district.Water quality andquantity.Where is the optionbest pursued?General DevelopmentDPD.Core Strategy andGeneral DevelopmentDPD.Poor N/A Do not pusue.Fair / goodFair / goodFair / GoodHow will success bemeasuredMaintenance ofwoodland andforestry.Increase in hectaresof land covered byforestry.Increase in economiccontribution forestrymakes to the localeconomy.Where is the optionbest pursued?Core Strategy.Core StrategyCore Strategy.Poor N/A Do not pursue.

8. INITIAL CONSULTATIONCopy sent to Cllr Draper. Contacts provided at NFU for actual consultation exercise.Copy sent to:Wiltshire Rural Regeneration Partnership – no response received.Wiltshire Rural Regeneration Partnership – no response received.Wiltshire Market Towns Partnership – no response received.

9.0 BIOBLIOGRAPHYEngland Forestry Strategy (1999)http://www.forestry.gov.uk/efsLocal Community Plans (Parish, Ward and Market Town Plans)http://www.salisbury.gov.uk/living/your-community/community-planning/community-strategyPlanning Policy Statement 7 (PPS7) Sustainable Development in Rural Areashttp://www.communities.gov.uk/pub/825/PlanningPolicyStatement7SustainableDevelopmentinRuralAreas_id1143825.pdfRegional Woodland and Forestry Frameworkhttp://www.forestry.gov.uk/sw-rffSalisbury District Council - 2005-2009 Community Strategyhttp://www.salisbury.gov.uk/living/your-community/community-planning/community-strategySouth West Biodiversity Implementation Planhttp://www.swbiodiversity.org.uk/Regional/swbippage.htmThe Delivery Plan for Sustainable Farming and Food industry in the South West 2004http://www.gos.gov.uk/gosw/envrural/farmandfood/The Draft Regional Spatial Strategy for the South West 2006-2026http://www.southwest-ra.gov.uk/nqcontent.cfm?a_id=836Water Resources for the Future (2001) Environment Agencyhttp://www.environment-agency.gov.uk/subjects/waterres/137651/?version=1&lang=_e

Salisbury District CouncilPlanning Office, 61 Wyndham Road,Salisbury, Wiltshire SP1 3AH.tel: 01722 434362fax: 01722 434247email: forwardplanning@salisbury.gov.ukweb: www.salisbury.gov.ukPrinted on paper containing 80% post consumer waste. This information canbe made available in other formats, upon request.We try to ensure that the information contained in this publication is accurate at the time ofgoing to press and while every effort has been made to ensure accuracy Salisbury DistrictCouncil cannot guarantee it and does not accept any liability for any error or omission.PURN: