Peterborough council will need to invest to support its tenant farmers

Further investment is required to remedy drainage and aging conditions at council-owned rural estates and tenant farms, a meeting has heard.

Peterborough City Council has a rural estate extending to approximately 3000 acres of agricultural land which is let to twenty tenants on long term Agricultural Holdings Act Tenancies, and both short- and long-term Farm Business Tenancies. The annual rent roll is currently £378,386.96.

Members of the Growth, Environment and Resources Scrutiny Committee at their online meeting (10 November) were told by Felicity Paddick, Rural Estate Manager: “Following the poor weather that was evidenced at the end of 2019, and again at the start of 2020, there were some significant issues with high levels of water laying across the estates owned by the council.

“Many of the tenants reported that some water was lying in areas that they had not previously witnessed, despite the tenants being proactive in maintaining the land to a high level, and this therefore had a negative impact on potential yields for harvest 2020.

“Quotes have been requested for a drainage survey to take place across the whole of the estate to identify the main issues.

“Additionally, condition surveys have been requested for the whole of the estate to identify works required on the existing buildings including houses, bungalows, grain stores and general-purpose buildings.

“This will enable a five-year programme of works to be collated and monitored.

“Two new grain stores have now been erected, one at Thorney and the other at Willow Drove, Newborough, with a third currently awaiting planning permission at Speechley’s Drove, Newborough, with a fourth grain store is to be submitted for planning for the 2021/22 financial year.

“Following the decision of the UK to leave the EU, the UK will no longer have the benefit of the EU’s Common Agricultural Policy (CAP).

“The Basic Payment Scheme (BPS) is the biggest of the EUs rural grants to help the farming industry under the CAP. The Agricultural Bill 2019-21 provides the legislative framework for the replacement of agricultural support schemes and it provides a range of powers to implement new approaches to farm payments and land management with the Bill  due for consideration of amendments.

“However, there is still some uncertainty within the industry on how schemes will work and benefit the farming industry.

“It is understood that the Environmental Land Management (ELM) scheme will replace BPS but there is currently a lack of detail and it is making business planning very difficult.

“It is likely that profitability will become more variable between farms as the transition to the new scheme takes place.”

Cllr Kim Aitken asked: “In respect of Brexit and C-19 you’ve mentioned the BPS, but there is also the Countryside Stewardship Scheme (CS) and Environmental Stewardship Scheme (ES) to name two land management schemes, both developed by DEFRA, the Rural Payments Agency (RPA), the Forestry Commission and Natural England to help farmers and land managers to protect wildlife, create new habitats and reduce flood risk.

“As far as the new ELM scheme is concerned, I do understand that the RPA are progressing that quite heavily and do have a project up and running.

“So, unless I’ve misread your report, you are almost saying that farmers might be without money – is that what you’re saying? Certainly, I don’t think that’ll be the case, but I may have misunderstood your point.”

Ms Paddick replied: “Yes, that is my understanding. I’ve done quite a lot of research on this subject recently to see what is actually taking place.

“I’ve been speaking to a lot of the tenants as well and unfortunately no one is fully briefed yet as to exactly how ELM is going to replace it – we are aware of some trials starting in late 2021, up to 2024, with BPS being phased-out between 2021 and 2027.

“We do in fact have a tenant farmer who’s going to be one of sixty-six such farmers who will be trialling.

“It will be very interesting to see how Peterborough City Council can work with him to achieve what requirements are needed there around this ELM program.”

Cllr Aitken came back: “I think that we’re a long way off having this ELM program in place, and certainly having no BPS, ES or CS schemes we’ve got a bit of time.

“Certainly, the RPA are only at the earliest stages at the moment, so I’m not surprised that nobody knows what’s going on as yet because even people working there aren’t fully aware.”

Cllr Ikra Yasin asked: “The rent reviews that took place in 2018, brought us in-line with other geographic local authorities’ estates in the East of England, and I just wanted to confirm that is still the case?”

Ms Paddick responded: “The majority of our rents are in-line with market rents. Some of the estates in our ownership have been served notices – about five of them – that they will need to bring their rents up to market value by October 2021.”

Cllr Yasin came back, asking: “The report indicates that further investment is required to remedy drainage and aging conditions at council-owned rural estates and tenant farms, and I would like to know what strain that will put on our annual budget?”

Ms Paddick replied: “I would like to look into the possibility of implementing a condition survey across the whole estate, and there could indeed be some financial implications that would arise out of that.

“However, there’s also the potential to spread that over a five-year program, in which case it wouldn’t have as much impact on the annual budget”.

Members acknowledged the detail in the report and looked forward to more updates at the next meeting on January 13, 2021.