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Farming

Welcome evidence of longer farm tenancies

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TFA Chief Executive: George Dunn

THE TENANT FARMS ASSOCIATION has welcomed a report from the Central Association of Agricultural Valuers (CAAV) indicating that there has been a significant improvement in the average length of Farm Business Tenancies (FBTs) in England and Wales.

Since the introduction of FBTs in 1995 the TFA has been concerned that average lengths of term have ranged between only 3 to 4 years. As a result the TFA launched the FBT10+ campaign in 2015, the 20th anniversary of the introduction of the new legislation, to argue that farm tenancies had been too short for too long and that urgent change was necessary.

The short-term nature of agricultural tenancies has held back progression, investment, sustainable land use and productivity on farms. With much higher demand for land than supply, landlords can offer short-terms, for high rents at very little risk whilst at the same time pocketing generous and unconstrained tax benefits which the TFA argues must be addressed.

TFA Chief Executive George Dunn said: “It is encouraging to see from the CAAV report that the average length of all FBTs has increased to 4.5 years and that excluding lettings of less than a year, the average was six years. This is a step in the right direction towards the goal of seeing average lengths of term in excess of 10 years and clearly the TFA’s campaign has had an impact in encouraging more sustainable tenancy lengths being brought forward. However still more needs to be done to encourage the landlord sector to offer the longer terms that we need to see.”

“The new Government must grasp the nettle to introduce measures to change the fiscal environment within which rural landlords make decisions about letting land to encourage longer term FBTs. The tenanted sector cannot begin to consider issues of resilience and sustainability in the post Brexit environment with average lengths of term on new FBTs of under 10 years,” said Mr Dunn.

The TFA is arguing for the following measures to be in the new Government’s first Budget:

(a) Restricting the generous, 100% Agricultural Property Relief from Inheritance Tax (currently available to all agricultural landlords, regardless of the length of time for which they let land) only to those landlords prepared to let farmland for 10 years or more (excluding rotationally let land on short terms for vegetable and other high value crops).

(b) Clamping down on those land owners who, through schemes promoted by agents and accountants, are using share farming, contract farming, share partnerships and grazing licences as thin veneers of trading activity and as vehicles for aggressive tax avoidance where they take no risk in the business, have little, if any, entrepreneurial input and lack any management control.

(c) Offering landlords prepared to let farm land for 10 years or more the ability to declare their income as if it was trading income for taxation purposes.

(d) Reforming Stamp Duty Land Tax to end the discrimination against longer farm tenancies.

“The TFA is pleased to see that the Government has reconvened the Tenancy Reform Industry Group and this must be a key element for it to consider alongside other important measures to provide a sustainable framework for the tenanted sector of agriculture in the post Brexit era,” said Mr Dunn.

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Farming

Local farmer sentenced for animal welfare offences

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ON JULY 10, Dylan Williams of Neuaddlwyd Uchaf, Neuaddlwyd, Ciliau Aeron appeared before magistrates at Aberystwyth Justice Centre and was sentenced for animal by-products and animal welfare offences.

Mr Williams, 47, had previously appeared at the Aberystwyth Magistrates Court where he entered pleas of guilty to the four offences brought before the court by Ceredigion County Council.

On 11 April 2018, 47 sheep carcasses in various states of decomposition were found on Mr Williams’ land, and these were accessible to live sheep and their young lambs. This formed the basis of the offence brought under The Animal By-Products Regulations which requires carcasses to be disposed of without undue delay, due to the risk to animal and public health.

The majority of the flock inspected on the day were seen with severe wool loss and irritated skin which are signs of sheep scab. Sheep scab is a debilitating condition which can lead to weight loss and thickened skin with scabs due to the intense, uncomfortable itching caused by the condition.

There were three separate offences under the Animal Welfare Act 2006, two of which were for causing unnecessary suffering to two ewes. One ewe was suffering from severe weakness due to scab infestation. Another ewe was found unconscious on the land with her intestines protruding from her flank, likely due to predation as she had also suffered from scab over a prolonged period.

Another offence related to Mr Williams’ failure to ensure the welfare needs of his flock were met by his failure to properly inspect the flock and to manage and treat the sheep scab effectively.

Magistrates sentenced Mr Williams to a community order with a requirement that he carried out 250 hours of unpaid work in the community, he was also ordered to pay the investigation and legal costs of the council which amounted to £1648.

Alun Williams, Ceredigion County Council’s Corporate Lead Officer with responsibility for Policy and Performance said, “The council is deeply saddened that yet another serious animal health offence has been committed within the county. It is to the credit of our staff that they have undertaken a successful prosecution of this case.

Our animal welfare officers and our legal team had no option but to carry the prosecution due to the seriousness of the offences committed. I would urge individual farmers who are facing difficulties in caring for their stock to seek advice from the County Council and the Farming Unions.”

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Farming

Aeron Valley farmers thinking creatively for their future

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A RESEARCH STUDY called Pweru’r Dyffryn delivered by Gweithgor Dyffryn Aeron cyf is looking into the feasibility of powering businesses and households in the Aeron Valley.

The study is looking into creating a community body to develop local renewable energy sources which would aim to create a source of income for powering the economy of mid Ceredigion. The study is also looking into creating a sustainable source of income to develop the local economy of the Aeron Valley.

The feasibility study is funded through Welsh Government Rural Communities – Rural Development Programme 2014-2020. This is funded by the European Agricultural Fund for Rural Development and the Welsh Government.

The concept of Pweru’r Dyffryn (Powering the Valley) was developed by the Gweithgor Dyffryn Aeron cyf. Many members of the Gweithgor are young farmers in the area. They want to not only secure a way of life and affordable energy, but also invest in their future.

The farmers of Dyffryn Aeron first set up the community cooperative company Gweithgor Dyffryn Aeron cyf in response to the closure of dairy factories in the valley. The Gweithgor helped a local company to re-open the site of one factory as a centre of local employment.

Through this they found that energy costs were high in the area and could threaten the long term sustainability of businesses in the area.

Euros Lewis is a Director of Gweithgor Dyffryn Aeron cyf and is Pweru’r Dyffryn’s Project Manager. He said: “Responding creatively is the way forward and that’s what these young farmers have done.”

From here the concept of Pweru’r Dyffryn was developed, which began with local consultations across the whole of the Aeron Valley. It asked local communities what form of renewable energy they did and didn’t want to see developed in the area and how would they want revenue from any potential scheme to be spent. The purpose of the consultations were to develop a model that will meet the needs and potential of the local communities first and foremost.

The feasibility scheme received LEADER support through the Cynnal y Cardi Local Action Group, which is administered by Ceredigion County Council.

The next step for Gweithgor Dyffryn Aeron cyf is the publication of a comprehensive report of the local consultation and its findings for future potential developments. The consultation’s early findings include that large scale wind turbines would not be welcome, while there is support for further research as to the potential of waterways and solar power for the generation of local, sustainable energy.

The development of the scheme will be long-term with challenges along the way but Euros Lewis believes to change the lives of the local people and to develop the local economy ‘that the basic principle is to act for ourselves and this is what we are doing.’

Councillor Rhodri Evans is Ceredigion County Council’s Cabinet member with responsibility for Economy and Regeneration. He said: “It’s very encouraging to see rural society in Ceredigion ambitiously looking to the future. Cynnal y Cardi supports them closely and I’m sure they wil see success in the future.”

All ideas are welcome on a rolling basis and project officers are at hand to assist you. The closing dates in 2019 for submission of expressions of interest are 9 September and 11 November. All submissions are welcome in Welsh or English.

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Farming

Farming faces zero carbon challenge

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AN AMBITIOUS new target to reduce greenhouse gas emissions to zero by 2050 will lead to significant changes in farming practices over the coming decades, according to a leading agri-environment specialist.

Professor Iain Donnison, Head of the Institute of Biological, Environmental & Rural Sciences (IBERS) at Aberystwyth University, was responding to the publication of ‘Net Zero: The UK’s contribution to stopping global warming’ published by the UK Government Committee on Climate Change.

Professor Donnison is an expert on agriculture and land use, which feature in the report in terms of targets for one-fifth of agricultural land to be used for forestry, bioenergy crops and peatland restoration.

According to Professor Donnison, such a reduction is very ambitious but achievable in Wales and the wider UK. “Land use can positively contribute towards achieving the net zero targets, but there are challenges in relation to emissions from agriculture especially associated with red meat and dairy,” said Professor Donnison.

“In IBERS we are already working on how to make livestock agriculture less carbon intensive and developing new diversification options for the farming of carbon. For example, net zero targets could provide significant diversification opportunities for both farmers and industries that make use of biomass and wood for the production of energy, materials including in construction and for wider environmental benefits.”

Professor Donnison added: “The report gives a clear message regarding the importance of the task and the role that the UK can play to compensate for past emissions and to help play a leadership role in creating a greener future.

“The report says it seeks to be based on current technologies that can be deployed and achievable targets. One-fifth of agricultural land is a very ambitious target but I believe that through the approaches proposed it is achievable (e.g. for bioenergy crops it fits in with published targets for the UK). This is based on the knowledge and technologies we have now regarding how to do this, and because right now in the UK we are developing a new agricultural policy that looks beyond the common agriculture policy (CAP). For example, the 25-year Environment plan published by Defra envisages payment for public goods which could provide a policy mechanism to help ensure that the appropriate approaches are implemented in the appropriate places.

“The scale of the change, however, should not be underestimated, although agriculture is a sector that has previously successfully responded to challenges such as for increased food production. The additional challenge will be to ensure that we deliver all the benefits we wish to see from land: food, carbon and greenhouse gas (GHG) management and wider environmental benefits, whilst managing the challenge of the impacts of climate change.

“The link is made between healthy diets with less red meat consumption and future reductions in greenhouse gas emissions from agriculture. This reflects that agriculture will likely go through significant change over the coming decades as a result of changes in consumer diets.

“Net Zero targets, however, could provide significant diversification opportunities for both farmers and industries that make use of biomass and wood for the production of energy, materials including in construction and for wider environmental benefits.”

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