Economics of Washland Creation Joe Morris Cranfield University at Silsoe Silsoe, Bedford, UK

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1 Economics of Washland Creation Joe Morris Cranfield University at Silsoe Silsoe, Bedford, UK

2 Contents Context Potential Benefits Technical Feasibility and Costs Environmental Benefits Agricultural Economics Administrative Options Conclusion

3 Flood Storage Options Feasibility of Washland/Flood Storage Schemes Technical and hydraulic aspects Environmental aspects Social, economic and institutional aspects

4 OBJECTIVES OF MANAGED FLOOD STORAGE Reduction of severity of flooding elsewhere Habitat enhancement Improved sustainability of associated agriculture Improved water quality Flood Management

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10 Framework for Appraisal Flood Defence Recreation Tourism Farming Washland/ Flood Storage Options Environment Institutions and Funding Social and Community Infrastructure Communications

11 PRACTICAL ASPECTS OF MANAGED FLOOD STORAGE Easy to fill Easy to empty Cheap to construct and operate Free of infrastructure/built property Scope for habitat enhancement Will make a difference

12 With and Without Washland /Flood Storage 0ptions Future with - Future without = Difference Water Regime Water Regime Water Regime Land Use, Farming Incomes Land Use, Farming Incomes Land Use, Farming Incomes Environmental Quality Environmental Quality Environmental Quality

13 Flood Defence for Agriculture Removal of excess water Flooding above ground Flooding below ground: water logging season Output duration frequency depth Costs Value-added, Income Land use

14 Environmental Objectives Enhance environmental and ecological value: wintering wildfowl, breeding waders fish and aquatic fauna rare invertebrates aquatic vegetation and species rich grassland small mammals wetland landscapes

15 Ground Water levels for Environment Maximum ground water levels Date 1-Jan 5-Feb 0 11-Mar 15-Apr 20-May 24-Jun 29-Jul Water table depth (cm) Wildfowl 140 Wildfowl ma Ma Peat conservation Dec Grazing Breeding waders Nov Grazing Hay cut Oct Iinvertebrates Flood meadow 40 2-Sep Minimum ground water levels

16 Impact on Agricultural Economics Flood damage? Switch to extensive farming? Financial impacts on farm incomes: incentives/compensation? Economic impacts? net of subsidies?

17 Flood Costs /ha/year for a single flood event Land use Winter Impr Grass T1 T2 washland Arable Summer

18 /ha flood damage Winter Flood Damage Costs ( /ha) on Improved Grassland by Duration and Depth of Flooding mm 150mm 400mm 750mm < weeks duration

19 Grassland Management Options: Financial Returns Dairy based system /h a S to c k in g r a t e L u /h a G ross M a r g in F ix e d C o s ts N et M a r g in GM reduction 350/ha Im p roved T ie r 1 W a s h la n d Net Margin Reduction 140/ha

20 Environmentally Sensitive Area Scheme: eg Somerset L&M Tier Feature /ha/year 1 Permanent grassland 125 1A Extensive grassland Wet grassland Raised water levels 430 Public access Water level 170 supplement 80

21 Economic Prices : Reductions to allow for subsidies (DEFRA) Commodity Cereals Oil seeds Peas/beans Beef Sheep Quota products Temp loss 22% 29% 35% 33% 12% Treat as wheat Perm loss 25% 25% 25% 33% 12% As wheat

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23 Grassland Management Options: Economic Returns for Beef and Sheep Systems Excluding subsidies /ha Improved Tier 1 Washland Fixed Costs Net Margin Stocking rate (lu/ha) Gross Margin GM reduction 120/ha Net Margin increase 170/ha

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25 Main Options for Land Management Questions Who owns? Who manages? Who pays and how? Options Criteria Land Purchase Effectiveness? Flood Storage Easement Efficiency Equity? Annual Payments Risk? Leaseback Wise Use?

26 Futures? CAP/Rural Development Regulation Water Framework Directive Flood Defence Strategic and Funding Reviews New Roles for Land and Water Management and Flood Defence Joined-up Governance

27 Acknowledgements Cranfield Colleagues Environment Agency Parrett Consortium Wet Fens for the Future RSPB, English Nature RRC

28 Criteria for Assessment Effectiveness: will they do the job intended and make a difference? Practical balance of flood, farming and environmental management Basis for support to farmers Are they practical, easy to understand, put into action and to operate reliably?

29 Criteria for Assessment Efficiency: Are the options the best, most cost effective way of meeting the objectives? do the options give best value for money for the farmer, the funding agency, the tax payer?

30 Criteria for Assessment Equity and distribution of impacts: Are the options fair, equitable and obvious in their impact on those who are affected? Are the proposed approaches acceptable to the major interested parties? Are the incentives for participation appropriate?

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