Farming in the Uplands - Environment, Food and Rural Affairs Committee Contents


Supplementary written evidence from English National Park Authorities Association

  Thank you for your letter requesting further information following the presentation of oral evidence to the Select Committee on 10 November 2010. I have set out our response with each of your questions and have also included some additional evidence on local needs affordable housing in National Parks as this was an item that the Select Committee asked about at the hearings.

1.   The press has reported that the Government is considering selling off National Nature Reserves. Will this affect land within National Parks, and what impact might this have on hill farmers?

  The first point to make is that not all National Nature Reserves (NNRs) are owned by Natural England. In the case of Exmoor National Park, for example, one NNR is owned by the National Trust and the two others by Exmoor National Park Authority, while in the North York Moors National Park, one is owned privately and another by Scarborough Borough Council. None of these will be affected by any sale.

  Of those NNRs that are owned by Natural England, it is difficult to generalise about the impact of any sale or disposal as a lot will depend on the current arrangements for managing these areas and the eventual owner/tenant of the land. However, the example of Ingleborough NNR in Yorkshire Dales National Park suggests that in some cases hill farmers might benefit.

  Ingleborough NNR covers 1,014 ha and has five or six graziers. At the current time, some of the graziers on the NNR have insufficient term of tenancy to enable them to enter Environmental Stewardship (ES). This is because land owned by Government departments, executive agencies and NDPBs is ineligible for ES unless the grazier has sufficient tenure for the term of the agreement. In addition, the grazier is ineligible if the work required as part of the ES agreement is already required as part of the tenancy with the public body. This has become a more significant issue since the launch of UELS to replace HFA as it means that graziers on the NNR cannot claim UELS when they used to be able to claim HFA. Therefore, transfer of the NNR to another owner, who is not a public body, may have benefits to the graziers, unless that owner chooses to claim the ES payments themselves, or decides to farm the land themselves rather than the current graziers.

2.   You described a Lake District tourist tax scheme—could you provide more detail on this and the other voluntary schemes used in other Parks?

  Examples of a number of tourism contribution schemes that operate in National Parks are set out in Appendix 1. These are all voluntary contribution schemes and not tax schemes. There are no powers that would allow any "tourism tax" to be levied and, in effect, visitors to National Parks, other upland areas and the wider countryside already contribute to the management of these areas through general taxation.

  In the majority of cases the experience of running visitor contribution programmes is that they do serve to raise public awareness of conservation objectives but do not provide substantial financial returns when account is taken of the costs of running the schemes.

3.   Your evidence expressed a preference to develop a new approach to CAP payments, rather than broadening income foregone. What specific ideas do you have for this, bearing in mind the WTO regulations on payments under environmental programmes?

  Firstly, we do feel that there will continue to be the need to include the consideration of income forgone when asking for some management options. If the payment offered does not make business sense then farmers will not adopt them unless the payments recognise that cost. However, in other cases we believe that greater consideration needs to be given to an incentive scheme that recognises public benefits or services delivered.

  Examples might include payments from water companies to improve resource protection where there is an economic "driver" for environmental management. However, that will not apply everywhere and we do recognise the complexity of placing a financial value on some of the less tangible benefits.

  This need not necessarily be insurmountable. We understand that the EU regulations already allow for the cost of delivery to be included in payment calculations and we believe that more use could be made of this provision. We haven't seen the Environmental Stewardship (ES) payment calculations but assume that the approach is already incorporated in some of the ES measures. For example, if a feature is valued, such as a drystone wall, it is acknowledged that there is a cost for its maintenance. The payment reflects that cost and is a positive reward for the farmer's effort. It also incorporates the concept of reward for results rather than following prescriptions, which we believe we could apply in other circumstances. For example, farmers might receive a reward based on the condition of SSSI habitat that they manage with a higher payment for more favourable condition.

4.   How does the implementation of UELS affect National Parks Authorities' ability to fulfil their statutory objective to conserve and enhance the environment?

  We consider that the UELS is valuable in assisting with our ability to deliver the conservation purpose of National Park designation. It usefully extends the ELS options and helps to protect valuable features and habitats. It is also of value in supporting the retention of cattle grazing in the hills.

  However, there is still a "gap" between the provisions available in the combined ELS and UELS compared to those available in Higher Level Stewardship (HLS). Currently, ELS and UELS do not make provision for capital grants for specific works or more detailed habitat management where there is existing environmental value but not sufficient to enable a farmer to enter into a full Higher Level Stewardship agreement. An example is provided by those farms on Exmoor that used to participate in the Environmentally Sensitive Areas (ESA) scheme and who can make the transition to ELS and UELS but are unlikely to be able to join HLS. While in the ESA there were capital grants available for environmental management and landscape management schemes such as hedge restoration that will not be fundable at the same scale under ES.

  In addition, in many National Parks, National Park Authority officers are directly involved in delivering advice to potential UELS applicants (on behalf of Natural England), which provides the opportunity to raise awareness of the value of environmental assets that the farm contains and to signpost farmers to other schemes and opportunities.

5.   Do you think there is a case for rationalising public support to fewer uplands farmers in the most valued areas, given budgetary constraints?

 —  What criteria could be used to define these areas?

  We are of the view that there is a case for rationalising support in other parts of the country so that support was concentrated on upland farmers rather than seeking to support fewer upland farmers. Uplands in general, and National Parks in particular, have the highest value in terms of the combination of semi-natural habitats; historic environment; landscape and public access/visitors, so providing maximum value for money for the taxpayer.

  To sustain the public benefits that uplands provide requires an ability to support the wider farming economy and community across whole upland areas. For example, the more productive farmland alongside the semi-natural moor and heathland habitats together provides the variety and sense of a working and living landscapes that visitors most appreciate.

  The current Higher Level Stewardship schemes already provide an element of targeting and prioritisation and already means that some upland farms receive considerably more financial support than others. All farms in the uplands are subject to similar constraints on productivity and diversification opportunities compared to lowland farms, and sustaining farming communities in upland areas will continue to require financial support that recognises these constraints.

6.   Could you provide further evidence to support your assertion that headage payments led to overgrazing?

  Please see Appendix 2.

Local needs affordable housing

  During the oral evidence we received a number of questions regarding planning in National Parks and particularly the provision of affordable housing to help meet local need. All National Park Authorities give a high priority to enabling local needs housing provision within their planning policies. National Park Authorities have responded to indicate the numbers of local needs houses approved in their respective National Parks over the past four years as follows:


National Park
Number of affordable/local needs homes receiving planning consent from 2006-10
Exmoor62 since 1 January 2006 plus 15 awaiting completion of Section 106 agreements
Lake District227 since April 2005 plus 15 awaiting Section 106 agreements
North York Moors98 since April 2005
Northumberland1 since March 2009 plus 3 awaiting Section 106 agreements
Yorkshire Dales11 recent permissions plus 54 completions of homes approved before 2006



  Ultimately, planning policy is one of several factors that affect the provision of housing as reflected in the Commission for Rural Communities report "High ground, high potential" page 38, and all National Park Authorities take a proactive approach to working alongside Housing Authorities and Homes & Communities Agency to address local housing need.

November 2010

APPENDIX 1

VISITOR CONTRIBUTION SCHEMES IN NATIONAL PARKS

LAKE DISTRICT—NURTURE LAKELAND

  The following information is taken from the Nurture Lakeland website www.nurturelakeland.org.

  "Nurture Lakeland is charitable trust that operates a `Visitor Payback' scheme that encourages visitors to voluntarily support conservation by donating a very small amount of money via their bill or fees.

  The project operates by recruiting tourism related businesses to become members of Nurture Lakeland. The membership is made up of a large number of hotels and guest houses of all sizes, caravan parks, holiday cottage companies and a broad spread of tourism related businesses, such as design companies, transport companies and retailers. Once businesses are members of Nurture, they pledge to raise money for a chosen conservation project.

  A number of fundraising techniques are used including:

    Opt Out: Businesses, typically hotels, add a small amount, usually just £1 to the customer's bill. The customer then has the option to "opt out of this payment, by crossing it off or un-ticking the box. The English Lakes Hotels group has to date raised a total of £81,000 as a result of a £1 opt out on customers' bills.

    Match Funding: Some member businesses are also prepared to `match fund' the monies raised by opt out, and some even double this.

    Donations: Collection boxes are still used although they don't bring in large amounts. More successfully, Nurture Lakeland has recently started giving hotels donation envelopes which they put in guests rooms with their welcome pack.

    Sponsored products: Some organisations have identified a product they can sell where either all or part of the revenue is passed on to Nurture Lakeland.

    Benefits both ways: A small 10p levy on the price of the Ullswater Steamer's ticket has to date brought in £20,000 for conservation work around the Ullswater Lake. This has been used to fund path repair work on the popular Howtown to Glenridding trail. There is benefit both ways from this work; benefit to walkers, who have a well maintained path to walk on, benefit to Ullswater Steamers who receive good publicity for their support, and a great benefit to the conservation of the lakeshore of Ullswater itself."

  The website indicates that more than £1.5 million has been raised for conservation projects in the Lake District over the past ten years and that the scheme is the largest Visitor Payback scheme in Europe. However, we do not have information on the proportion of income that is received from visitor donations compared to grants and other sources, or how the income from visitors compares to the costs of running this element of the scheme.

EXMOOR NATIONAL PARK—CAREMOOR FOR EXMOOR

  In Exmoor National Park voluntary contributions are sought from visitors to contribute a range of conservation and access projects. Sources of funding include:

    — Proceeds from events: eg from participants at Exmoor National Park Authority guided walks and activities.

    — Percentage of ticket/entry fees such as Exmoor Challenge (organised by Rotary Club for Exmoor ); Lynmouth Harbour Boat Trips; Exmoor Explorer Mountain Bike Event (Team Zoyland); North Devon and Exmoor Walking festival.

    — Royalties from some publications.

    — Collection boxes.

  Typical annual income from the scheme is currently around £5,000.

NORTHUMBERLAND NATIONAL PARK—GOOD NATURE FUND

  The Good Nature Fund is currently managed through a semi-autonomous group called the Northumberland National Park Environment Association, see:

http://www.northumberlandnationalpark.org.uk/grantsandsupportgoodnaturefund.

  Contributions are gathered from a number of sources notably:

    — Donations from businesses.

    — Donations from % of profits from sales of publications, photographs, etc linked to NPA supported projects.

    — Donations made by visitors at our Centres.

    — Donations made by visitors using re-usable trail guides from village centres, eg Elsdon Village Trails.

  The Environment Association is responsible for allocating the funds, either to add value to other grant funded projects or for stand-alone projects. The mechanism for this allocation process is currently being reviewed by the Association. Once this is clarified and agreed, we will promote the scheme more widely. The value of donations currently held in the Environment Association account is around £4,500.

  As with other similar schemes, the benefit of this scheme is more about awareness and education, than generating income.

YORKSHIRE DALES—THREE PEAKS PROJECT

  The Three Peaks Project was launched in April 2009 and aims to ensure that the three Peaks (Ingleborough; Pen-y-ghent; Whernside) area, which is one of the most heavily-used rights of way networks in the country, is maintained and improved in the long term by:

    — generating a sustainable income to help pay for its management;

    — creating new opportunities for businesses, groups and visitors;

    — promoting understanding of the area's special qualities; and

    — encouraging people to help look after the area.

  The project gives users of the network the chance to support the area and the work of the Authority by raising money for it. This can be by:

    — asking participants in sponsored events like charity walks to donate part of their entry fee to the project;

    — providing merchandise to celebrate walking one, two or all of the peaks (whether in one go or over an extended period);

    — joining the Friends of the Three Peaks; and

    — building business and community interest in the area that will help support it.

  A number of major charities like the NSPCC and Heart Research UK are using the Three Peaks area to raise money for their causes this year and have already pledged their support for the project. They will be donating cash to be used directly in the upkeep of the Three Peaks path network.

  Three Peaks has raised £19,000 since summer 2009.

  Also worth noting is the visitor contribution scheme being operated by the Yorkshire Dales Millennium Trust. Further details are at: Yorkshire Dales Millennium Trust. The money raised goes to support environmental, economic and social projects in the Dales. "Donate to the Dales" generally raises £20,000-£30,000 per year from a combination of individual donations and corporate donations.

APPENDIX 2

FURTHER EVIDENCE REGARDING HEADAGE PAYMENTS AND OVERGRAZING

BACKGROUND

  The two headage support measures which significantly influenced livestock farming in the uplands between the mid 1970s and 2003 were the Hill Livestock Compensatory Allowance (HLCA) and the Sheep Annual Premium (SAP).

  The HLCA was introduced in 1976 with 25% of the funding from the European Agricultural Guidance and Guarantee Fund. The HLCA was not conceived as a production subsidy. Its purpose was to provide compensation for the additional costs of production in the hills, to keep farmers in the less favoured areas and to support the conservation of the countryside.1 However its method of delivery was as a payment per ewe. The HLCA did limit the number of stock for which support could be claimed, in the case of ewes this was to a maximum of six per hectare but this limit is clearly beyond the normally accepted environmental limit for moorland of two ewes per hectare.

  The SAP was introduced in 1981 as a payment per ewe. A limit on the number of sheep for which support could be claimed was introduced in 1989 and quotas introduced in 1993, using 1990 as the reference year.2 However the support had already significantly increased the trend towards higher stocking which was started by the introduction of the HLCA. Quotas effectively stabilised the overall ewe numbers but at a much higher level than in 1976 (see graph).

  The value of the combined HLCA and SAP payments increased significantly over time. For example, from £12.30 per ewe in 1989-90 to £43.50 in 1999-2000. This corresponded with a drop in value of the produce (breeding ewes, lambs and wool). By 1999-2000 the average gross margin (income after variable costs) per ewe on hill farms in Yorkshire was £23.70 compared with £31.90 in 1989-90.3 The economic viability of hill flocks had therefore largely become a factor of the numbers kept.

IMPACTS ON LIVESTOCK NUMBERS

  The importance of headage support to the overall economy of hill farming encouraged higher stocking rates and the rise in stock numbers is well documented. Indeed farmers accepted the need to "play the numbers game".4 The number of breeding ewes in Less Favoured Areas in England increased by around 35% between 1980 and 2000.5 Some areas saw significantly larger increases, such as a 55% increase in sheep numbers in the North Pennines between 1975 and 1994.6 This increase inevitably affected moorland rough grazing with the area of English and Welsh moorland rough grazing stocked at over two ewes to the hectare (the nominal sustainable limit) increasing from 27% in 1977 to 71% in 1989.7

  The link between economic viability and headage also led to changes in farming practice, such as an increase in out-wintering on hill areas which increased problems of overgrazing and localised poaching of the ground.8

GRAPH SHOWING CHANGE IN LIVESTOCK NUMBER


Source: Agricultural Census data taken from Table 18.2 "A hundred years of British Food & Farming" until 1983, and from each UK agriculture department from 1984 onwards

THE LINK TO OVERGRAZING

  Numerous reports and research documents draw a direct link between the economic pressure on farmers to keep more stock and overgrazing in the uplands. For example, see 5, 6, 8, 9, 10, and 14. MAFF developed a definition of overgrazing as:

    "the result of environmentally unsustainable livestock practice brought about through overstocking so that the growth, quality and species composition of vegetation is adversely affected".

  Controls were introduced between 1992 and 1994 as a result of concern about the effect of the schemes on grazing levels. 15 Subsidy payments became conditional on not contravening the overgrazing "rules" and contravention could lead to withholding subsidies. It is true that subsidies were withheld or reduced in only a limited number of cases, although the total number of cases investigated was much higher. By the end of 2005, 151 (92,400 ha) cases had been investigated with 64 (13,000 ha) still open. Sixty-three closed cases (45,000 ha) had gone into either the Countryside Stewardship Scheme or Environmentally Sensitive Area agreements, with additional ones in the Wildlife Enhancement Scheme. 16

  In 1993 the then Minister of Agriculture, John Gummer, launched proposals for a series of new environmental schemes. These included the Moorland Scheme which recognised:

    "a priority environmental concern for the livestock sector and for the uplands in particular is the need to extend the steps already taken to reduce overgrazing of important habitats, particularly moorland".11

  The levels of stocking in the uplands, driven by support based on headage, had led to the need for a national scheme aimed at reducing stock numbers.

TRENDS POST DECOUPLING

  The decoupling of support from livestock headage to area payment has resulted in a national decline in ewe numbers. In some areas this had led to a virtual de-stocking of some uplands and this is of concern. However, the availability of the Environmental Stewardship Schemes has meant that hill flocks and cattle have been retained in many areas and there is evidence that farmers consider that these schemes have been successful in addressing overgrazing and that heather is recovering. 12 This view is supported by more recent assessments of both upland SSSIs and the LFA generally. 13

  For the future it is important that the right mix and level of grazing is supported so as to deliver the range of goods and services for which the uplands are so important. Ultimately, the required stocking type and density to achieve ideal management will depend on the place. Local knowledge and flexibility are therefore important. Food production will continue to be important but so is water, carbon, wildlife, landscape etc. The challenge is to find ways that help to keep farmers on the hill, managing the land positively so that their management is both economically viable and environmentally sustainable.

REFERENCES  1  Council Directive EEC 75/268 28 April 1975.

  2  Defra Observatory Monitoring Framework. Indicator Date Sheet B12.

  3  Farming in Yorkshire 1989-90 and 1999-2000. Askham Bryan College of Agriculture.

  4  North West Upland Farming: A Brief History. www.cumbriahillfarming.org.uk, 2008.

  5  State of Nature: The Upland Challenge. p 52 Agriculture. English Nature, 2001.

  6  Andrew Moxey, David Parsisson, Paul Evans. Modelling the Effects of Agenda 2000 on the Farm Business. Centre for Rural Economy Research Report, 1999.

  7  D B A Thompson, A J MacDonald, J H Marsden, C A Galbraith. Upland Heather Moorland in Great Britain. Centre for Rural Economy Research Report, 1995.

  8  Environmental Impact of Land Management. Natural England Research Report NERR030. Chapter 8 Grazing Livestock in the Uplands.

  9  Sustainable Grazing in the English Uplands. English Nature 2004.

10  Determining Environmentally Sustainable and Economically Viable Grazing Systems for the Restoration and Maintenance of Heather Moorland in England and Wales. Defra Research Project Final Report BD1228, 31 March 2007.

11  Agriculture and England's Environment. MAFF, March 1993.

12  Economic and Environmental Impacts of Changes in Support Measures for the English Uplands. Final Report to Defra by Countryside and Community Research Institute and the Food and Environment Research Agency, October 2010.

13  Mapping Values: The Vital Nature of our Uplands. p 6 Food, Wood and Energy. Defra, 2007.

14  Developing Revised Methods to Assess Overgrazing on Moorland. The Moorland Appraisal Pilot Project (MAPP), Defra Rural Development Service, December 2003.

15  A Review of Overgrazing and Unsuitable Supplementary Feeding Cross-Compliance Controls in England. Public Consultation Paper, Defra, January 2003.

16  Grazing Management Annual Report January 2004 to December 2005. National Land and Grazing Management Team, January 2006.





 
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