HEALTH AND HARMONY: THE FUTURE FOR FOOD, FARMING AND THE ENVIRONMENT IN A GREEN BREXIT

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1 AGENDA ITEM 11 HEALTH AND HARMONY: THE FUTURE FOR FOOD, FARMING AND THE ENVIRONMENT IN A GREEN BREXIT Summary: To make the Board aware of the Government s Health and Harmony consultation; update the Board on the Farming and Rural Development in the Cotswolds proposal; and highlight the opportunity for an environmental land management scheme pilot. Recommendations: (a) That the Board agrees for the Executive Committee to sign off the Board s response to the Government s consultation on Health and Harmony: the future for food, farming and the environment in a Green Brexit; (b) that the Farming and Rural Development in the Cotswolds AONB proposal be noted and endorsed; (c) that the Board supports the proposal that the Cotswolds AONB is an ideal location to pilot and develop the future environmental land management scheme and promotes the AONB as a pilot area. Officer Ref: Mark Connelly, Land Management Officer ( ) Background 1. Following hot on the heels of the 25 year environment plan 1, the Government has published its consultation seeking comment on the future shape of agricultural policy and concomitant environmental land management scheme following Brexit and leaving the Common Agriculture Policy (CAP). The consultation document, Health and Harmony: the future for food, farming and the environment in a Green Brexit, and appendices are on the Defra website: Health and Harmony consultation 2. In particular, the consultation seeks views on: Options for how to gradually phase out direct payments, starting with the largest landowners, whilst developing a new environmental land management scheme. The range of public goods that could qualify for government funding under the new schemes, such as high animal welfare standards, wildlife protection, public access, and new technologies. 1 A green Future: Our 25 Year Plan to Improve the Environment

2 Measures to move away from heavy handed enforcement which penalises farmers for minor errors, including a more efficient inspection regime to uphold important environmental and animal welfare standards. New business models and incentives for industry to invest in innovation and new technologies to increase their profitability. 3. The resulting new agriculture policy and environmental land management scheme will have an impact on the Cotswolds AONB, its landscape, economy and potentially on delivering the purposes of designation. Consequently this is a key consultation for the Board. Most of the consultation is directly relevant to the Board but three sections are outside of the Board s remit for which no response is proposed - animal welfare, devolution and international trade. 4. The consultation was published on 27 th February two weeks prior to the deadline for Board papers. It was not possible to draft a response to the consultation in that time. It is proposed, therefore, that the response to the consultation from the Board is agreed by the Executive Committee on 22 nd April. The consultation deadline is 8 th May. 5. The consultation document confirms the reduction and removal of direct payments to farmers and that farmers will be paid for public goods and services such as carbon sequestration, flood management and protecting dry stone walls and other iconic aspects of our heritage. The consultation seeks feedback on the time period and method of reducing and removing direct payments. 6. It is clear from the consultation that from 2022 there will be a new environmental land management system underpinned by payment of public money for providing public goods which: Preserves investment already made and delivered by farmers Pays providers for delivering environmentally beneficial outcomes Moves towards a more effective application of polluter pays Is underpinned by the natural capital principle Encourages collaboration at a landscape or catchment level Encourages innovative approaches Aims to deliver benefits such as: o Improved air, water and soil quality o Increased biodiversity o Climate change mitigation and adaptation o Cultural benefits that improve mental and physical wellbeing o Protects the historic environment. 7. The direction of travel in the 25 year plan and the Health and Harmony consultation fit well with the draft Cotswolds AONB Management Plan and could achieve much to conserve and enhance the AONB and promote its understanding and enjoyment. The Board, however, should not be complacent. There is a particular focus within Health and Harmony on the uplands, the beauty of the upland landscape and the many public goods

3 worthy of public money. Whilst there are particular challenges to farming and landscape management in the uplands, does this signal a shift away from the more productive lowland landscapes? 8. The consultation is at a national level and only makes one reference to place specific management. The Board has identified the need for a scheme tailored for the Cotswolds and needs to promote this approach in the consultation response and encourage others to do so in theirs. 9. The new Cotswolds AONB Management Plan and the Board s proposal for Farming and Rural Development after Brexit will form the basis for drafting the consultation response. Initial thoughts on answers to the consultation questions are being sought from the Conserving and Managing Sub- Committee and Board members who farm. Farming and Rural Development in the Cotswolds AONB 10. The development of a proposal for the Cotswolds started in the autumn of 2016 when the first draft of the Management Plan was being developed. The Current draft Management Plan has the ambition for: The local design and delivery of a Cotswolds package of agri-environment payments for public goods and services and rural development support This is supported and expanded upon by a number of policies throughout the draft plan particularly Policy RLMP 1: Future agri-environment, land management and rural development support mechanisms are designed specifically for the Cotswolds AONB and to deliver public goods and services, informed by the Cotswolds AONB Management \Plan and supporting guidance and advice. The resulting scheme(s) are managed locally to ensure effective local delivery. 11. Initial and developing ideas have been presented, discussed and further developed over the past year starting with the Post Brexit Farming Conference held at the Royal Agricultural University and the Cotswolds Farming Forum in March and April Whilst the Board was developing initial ideas, the National Parks developed a proposal along very similar lines. The National Parks proposal for a FARM and FARM Plus agri-environment scheme fits entirely with the Board s thinking. Therefore the Board adopted this approach to develop a consistent approach to the Parks and Conservation Boards but added a stronger and integrated rural development component based on its direct experience of delivering and being the Accountable Body for LEADER in the Cotswolds. 13. To aid discussion, and following an offer from the 2017 Farming Forum, a working group of Farmers chaired by Lord Bathurst met on 11 th July and 2 nd November. The meetings concluded that:

4 There is support for a Cotswold agri-environment scheme designed and delivered locally and supported by advisers working with the farmers delivering the scheme on the ground The proposal - Farming and Rural Development in the Cotswolds AONB - was along the right lines and chimed well with other proposals, coalescing around a set of common strands Need to show that the proposed scheme will deliver government priorities such as flood management and soils The scheme needs to be an enabler, not an enforcer and demonstrates it supports landscape, biodiversity etc. and good quality food production and provides value for money The case needs to be made for the Cotswolds as a landscape and that it needs a different approach Local people will need to understand and support the scheme. A third meeting of the farming working group due to be held on 1 st March was cancelled due to the severe weather. A new meeting date has been set for 10 th April. 14. The process of developing the proposal to date has involved: Draft Management Plan Presentation to Post Brexit Farming Conference - 17 th March 2017 Cotswolds Farming Forum - 27 th April 2017 National Parks proposal finalised Farming Working Group - 11 th July 2017 Discussion at Executive Committee - 20 th July 2017 Initial proposal sent to Lord Gardiner Brief outline in presentation to local MPs Presentation of proposal to Board - 5 th October Participation in NAAONB National Agriculture Sub-group Proposal discussed with Andrew Sells, Chairman of Natural England - 23 rd October 2017 Second Farming Working Group - 2 nd November 2017 Conserving and Managing Sub-Committee - 15 th January 2018 Board Executive Committee - 25 th January Attached as Appendix A is the current proposal for a single menu of agrienvironment and rural development grants delivered locally, informed by local evidence and investing in the special qualities of the protected landscape The Board s proposal matches well with the Government s aspirations and direction of travel in the 25 year plan to improve the Environment published on 11 th January. 16. The National Association for AONBs (NAAONB) was silent on the subject of farming after Brexit until shortly after the annual conference in July 2017 when a letter was sent to Lord Gardiner proposing that AONB Management Plans are used to help direct delivery of agri-environment and rural development support payments within AONBs. A version of the NAAONB proposal is on Defra s Health and Harmony consultation webpage (as part of Appendix A -

5 Stakeholder Proposals), along with proposals from the National Parks, CLA, NFU, wildlife trusts etc. 17. Whilst the focus of the NAAONB is the use of AONB Management Plans to direct future agri-environment delivery, it is evident from comments that some other AONBs are also promoting local design and delivery. A Cotswolds pilot scheme? 18. Defra are looking to test the new environmental land management scheme or elements of it from 2020/2021. During 2018/19 Defra intend to engage with stakeholders to test proposals for future universal scheme design and work with a range of different groups to help co-design the future scheme and identify key questions a pilot will need to answer. Defra staff leading future scheme design have been contacted, putting the Cotswolds AONB forward as an ideal location for a pilot with a copy of the Farming and Rural Development proposal. The case for the Cotswolds as an ideal location for pilot will need to be developed further by the end of March. 19. There will be stiff competition for scheme pilots. The Board therefore needs to make use of opportunities to promote the Cotswolds AONB as an ideal location with a unique proposal that combines environment with rural development. Supporting Paper(s): Appendix A - Farming and Rural Development in the Cotswolds AONB