Since the 1st of October 2017, Red Tractor Assurance have updated all of their Farm Standards. Some of the new policies include: BEEF AND LAMB

• For farm to farm sales, animals under statutory withdrawal periods for medicines must be accompanied by a withdrawal period declaration.

• A farm biosecurity plan must be created, implemented and updated in relation to health and performance reviews.

• Silage must be stored to minimise the risk of contamination and pollution, especially in field stores.

• Year-round tethering of cattle is not permitted

• Environmental protection has little change but has now been made more appropriate for livestock farmers and spilt into two sections.

• A farm map should be created to show farm buildings, fields, watercourses and high pollution areas

• As well as keeping water supplies clean, members must ensure that troughs are kept clean.

• Permanent baiting must not be routinely undertaken and bait should only be sited where evidence shows it to be continuously effective. A site survey and risk assessment of watercourses and non-target species population species should be carried out and recorded.

Post

The Wellington

BPS - Euro Exchange Rate Set

The Euro-Pound exchange rate has been set for the 2017 BPS payment. The exchange rate was set at the end of September and the weak pound has proven to be a bonus to land owners and farmers.

The exchange rate for 2017 is €1 = £0.89470 This is in comparison to €1 = £0.85228 in 2016 and €1 = £0.73129 in 2015.

The change in the exchange rate will see an increase in the payment level made to claimants with a payment increase of 5% from 2016 and an increase of 22% from 2015.

Payment for the 2017 claim year is anticipated to be in the region of £91/acre.

Farm Assurance Standards - What’s Changed?

COMBINABLE CROPS AND SUGAR BEET

• Irrigation of combinable crops or sugar beet should ensure water used does not contaminate crops, and avoids excessive use of water.

• Temporary holding of grain is now only permitted in exceptional circumstances and for the maximum of five days unless a derogation has been sought. Grain must be kept on concrete or impervious base and covered when not being worked.

• Metaldehyde should only be used in a manner that reduces the risk to water, birds and small mammals.

• Permanent baiting must not be routinely undertaken and bait should only be sited where evidence shows they are continuously effective. A site survey and risk assessment of watercourses and non -target species population species should be carried out and recorded.

Autumn 2017

The Farm Office, Millridge Farm, Parsons Lane, Hartlebury,

Worcestershire, DY11 7YQ

Page 2

BPS: Greening

The EU has announced a number of changes to the greening rules which come into force as of 1

st January 2018 meaning that they have had to be considered in 2017

autumn cropping. The main changes are detailed below (full details at GOV.uk website).

• A complete ban on the use of Plant Protection Products on Ecological Focus Area (EFA) Fallow Land, EFA Catch and Cover Crops, and EFA Nitrogen-fixing Crops is introduced. The ban applies from the time of sowing the crop, even if this is before 1 January 2018, to harvesting. The ban also applies to seed dressings.

• As part of crop diversification, you can declare an area as ‘mixed crops’ that contains small areas of different crops grown next to each other. Individually these would otherwise be too small to claim (these are areas less than 0.01ha) but can be claimed as one ‘mixed crop’ area.

• The EFA option for hedges is extended in definition to include trees in a line. The EFA value will remain the same - each metre of length equals 10 square metres of area for EFA (as long as if you claim this option you have management responsibility for both sides of the hedge and/or line of trees)

• The EFA buffer strips option is extended in definition to include field margins as well as buffer strips. In addition to buffer strips adjacent or parallel with a watercourse, you can also claim field margins towards your EFA. The minimum width of 1 metre remains. The EFA value of field margins will be the same as EFA buffer strips - every metre in length equals 9 square metres of area for EFA.

• EFA catch crops must be maintained for a minimum of 8 weeks starting on 20 August 2018 and must be retained until at least 14 October 2018. The period for EFA cover crops remains at 1 October to 15 January of the following year.

• If you claim EFA nitrogen-fixing crops, in addition to pure stands of a nitrogen-fixing crop you will be allowed to use :

-mixtures of different nitrogen-fixing crop species; or -mixtures of nitrogen fixing crops and other crops, as long as over 50% is nitrogen-

fixing crops. (If you sow your 2018 EFA nitrogen-fixing crops in autumn 2017, this more flexible

rule applies.)

Should you require any assistance with your greening calculations please do not hesitate to contact us.

Grassland derogation for livestock manure in an NVZ area:

You must apply between 2 October and 29 December 2017. If you have a current derogation, this will finish at the end of December 2017 and you must reapply for 2018. You can only apply for a derogation if at least 80% of the agricultural area of your holding is grass.

For more information or advice, please contact Georgie.

Severn Trent Environmental Protection Scheme 2018 (STEPS):

STEPS provides grants of up to £5000 to farmers for infrastructure investments and management changes to aid the protection of our environment.

Do you qualify?

Check if your farm falls within the priority catchment area by emailing your local STW Agricultural Advisor: farming4water@severntrent.co.uk

The STEPS application period will open on the 1st January 2018 and will close on 16th March 2018.

Planning: Does your land have development potential?Shropshire Council are currently reviewing their Local Plan - there is an opportunity to put forward settlements for inclusion into the plan as ‘Community Clusters’ and ‘Community Hubs’. This means that future development in some sustainable settlements may be more likely to be acceptable. So what do you do next?

• Make representations to the Council about this consultation

• Local landowners can put forward settlements for development in the future

• The time frame for the Local Plan is ‘longer term’ but Shropshire Council need to hear your opinions, to stand a better chance of future development.

• If settlements are not put forward to the Council, then they cannot be considered

• This current consultation runs until Friday 22nd

December 2017.

Page 3

New Grant Funding Available

Farmers and food processors looking to invest more than £87,500 in projects to improve their productivity could be eligible for grant funding of over £35,000 (maximum 40% of project costs) under the latest round of the Countryside Productivity Scheme, which the government have recently announced. Examples of eligible projects could include milk processing, grading and packing, and innovative agricultural technology.

Detailed applications can be submitted NOW, and up until the 3rd

December 2018.

If you have a project in mind then don’t delay making a start; contact us today for more information.

Cross Compliance - Are You Up To Date?

1 October You can burn heather, rough grass, bracken, gorse or vaccinium on land in upland areas from this date. (GAEC* 6)

1 October Start of closed period for applying organic manure with a high readily available nitrogen content (for example, slurry, poultry manures or liquid digested sewage sludge) to tillage land on soils that are not shallow or sandy. (SMR** 1)

1 October Ecological Focus Areas (EFA) catch crops must be retained until at least this date. (Basic Payment Scheme (BPS): rules for 2017)

1 October EFA cover crops must be established by this date (and retained until at least 15 January 2018). (Basic Payment Scheme: rules for 2017)

15 October Start of closed period for applying organic manure with a high, readily available nitrogen content (for example, slurry, poultry manures or liquid digested sewage sludge) to grassland on soils that are not shallow or sandy. (SMR 1)

31 October If you hold a summer water abstraction licence (authorising abstraction wholly within the months of April to October), the Environment Agency will make actual abstraction return forms available to you from 31 October. You then have 28 days to send your readings to the Environment Agency. (GAEC 2)

1 November You can burn heather, rough grass, bracken, gorse or vaccinium on land, other than in upland areas, from this date. (GAEC 6)

30 November If you have a two-part tariff agreement for your water abstraction licence, expect to receive your second part charge after 30 November. (GAEC 2)

1 December You need to carry out your annual inventory of sheep and goats. (SMR 8)

1 December BPS 2017 payment window opens. (Basic Payment Scheme: rules for 2017)

31 December Official end of the BPS 2017 scheme year. (Basic Payment Scheme: rules for 2017)

COMPETITIVE CROSS COMPLIANCE PACKAGE

Moule & Co can offer a full range of cross compliance needs in one adaptable farm package

• Don’t risk leaving your paperwork any longer.

• You could be inspected without notice.

• Typical penalties are between 3-15%

Our cross compliance package on average costs £250-500 If you would like any informal advice or for a quote please call Georgie on 01299 250184

*GAEC = Good Agricultural and Environmental Condition ** SMR = Statutory Management Requirement

Page 4

Partnership Agreements

How they can help your farm, your family and your business to run smoothly with Tom Devey; Partner in the Agricultural & Rural Services team at law firm FBC Manby Bowdler

Top Tips

5 Step Strategy for Diversification Planning:

• Conception. Look for case studies and ideas from a range of sources. The enterprise you choose should match your skill set, and choose a venture you are passionate about – the development process will always challenge your initial enthusiasm.

• Feasibility. Spend plenty of time planning your enterprise. Carry out a basic SWOT analysis – what are the strengths, weaknesses, opportunities and threatsDo a financial feasibility – what capital is required? what is your forecast income and running costs? What effect will it have on your existing business?

• Premises. Will you need planning permission? Is it achievable? Will you need to rent premises? If so, how much is it likely to cost and what will your lease terms be?

• Finances. Do a basic business plan – ‘google’ business plan and follow one. If you need to apply for a loan or finance it will need to be reasonably robust. Search to see if any grants are available.

• Implementation. If after all of your research and planning you are still enthused and excited by your business plan, then go for it! Always be planning the next step i.e what your marketing strategy is for the next three months or what your growth plan for the next three years is.

All of these things are quite achievable so don’t be put off your project by thinking there’s too much to think about. Just work through them methodically and logically and have confidence in yourself.

At Moule and Co, your project becomes our project. Our reputation rides on a successful and sustainable outcome for you. Let us help you through the process as closely as you require, from initial feasibility appraisals to detailed cash flows and budgets for financial backing - we will go that extra mile to help make your new venture a roaring success.

If you don’t have a formal partnership agreement in place, your farming business would be regulated by the Partnership Act 1890. Put simply, it regards every partner as equal and when one person retires or dies, the partnership has to be dissolved and all the assets have to be sold and shared out.

That’s not ideal if you want the family business to continue under the stewardship of a younger generation, for instance. Problems can also occur if a partner becomes incapacitated and unable to deal with their affairs. This can lead to bank accounts being frozen, which would cause significant issues if contractors need to be paid or livestock need to be fed.

A written partnership agreement sets out who the partners are, what their roles are, what their share is, and how future capital should be treated.

Most importantly, if one partner wants to retire, it includes an option for the others to take on their share of the business. It can stipulate important information such as how much that is worth and how any payments will be made.

A partnership agreement can also confirm what occupancy arrangements are in place, which is especially useful for a farming family where one of the

partners might live in a property on the farm but other partners live elsewhere.

If you set up a formal agreement, it’s possible to have separate capital accounts prepared for land that is owned by the partnership. This allows it to be brought onto the balance sheet, which not only increases the value of your business but allows you to claim 100 percent Business Property Relief from inheritance tax.

Partnership agreements can also set out how decisions can been made so partners can vote in accordance with their share of capital. This means that if a one partner has a far bigger share of the capital, they can have a greater influence in the decision-making.

They can also cover more straightforward issues such as who your accountants and bankers are. Any agreement should always be regularly reviewed to take into account the changing nature of any business or family through death, retirement, or divorce.

For further information please contact Tom on 01743 284157 or t.devey@fbcmb.co.uk and quote Moule & Co.

Melanie Holt melanie@mouleandco.co.uk

07508 798635

The Shropshire Team

If you would like any further information about any of these articles or you would like to know what other services Moule & Co can offer you, please contact our Shropshire Team:

Angela Cantrill angela@mouleandco.co.uk

07813 293311