Nov 2003 EDITION
Guides of Good Practice
Agri-environment Schemes
FEDERATION OF CUMBRIAN COMMONERS
AGRI–ENVIRONMENT GUIDE OF GOOD PRACTICE
1. Guiding Principles of Agri-Environment Schemes
2. Is an Agri – Environment Scheme right for us?
3. Applying for a Scheme
Annexes
1. Information Checklist
2. Preparing a Commons Association Internal Agreement
3. Managing Agri – Environment Schemes and Adapting to changing circumstances.
4. Negotiating with Defra
5. Model Agreements
Case Study
1. Guiding Principles of Agri-Environment Schemes
Primary Rule: Allow enough time for negotiations
A. Agri-environment schemes pay money for improving the environment through reducing sheep numbers. Payments are currently based on the income lost as a result of the drop in stock numbers plus an incentive to participate.
B. Most schemes have a menu of prescriptions; assess the costs and benefits of each option. There are possibilities of upgrading in some schemes so if circumstances change discuss options with RDS.
C. In negotiations involve all Commoners if at all possible; if not then assess the risk of non-signatories upsetting the agreement.
D. If relevant also include cattle and pony Rights in the calculations of present and future stocking densities.
E. Be flexible – commoners have a range of farming objectives, a flexible approach may break a stalemate.
F. Look closely at the implications of the agreement on flock management, including heafing, encroachment, feeding and numbers of twin bearing ewes.
G. Make sure enough off-wintering is available if required
H. For tenant Commoners ensure landlord-tenant issues are discussed; ask if your landlord’s flock can reduce so tenant’s capital is maintained.
I. Have a watertight internal agreement between Commoners so if problems arise an agreed method of resolution exists.
J. The internal agreement should use a formula to divide up payments rather than fixing set payment levels then if payment levels alter changes are easily made.
K. Maximise benefits by approaching English Nature or the Owner of the Common to see if they will top up payments.
L. Seek advice on the implications of any scheme for IACS and forage area calculations.
2. Is an Agri – Environment Scheme right for our common?
Commons can receive payments in exchange for changes in farming practice that benefit the environment. Time spent in assessing the implications of an agreement on individual Commoners makes drawing up an Agreement easier as everyone will then understand how the Agri-environment scheme will impact their business. Successful applications tend to be those where an RDS officer has been involved from the outset so misunderstandings and misconceptions can be avoided so contact RDS at the start.
Below is a list of factors for discussion:
1. Current stocking levels – find out exactly what drop in livestock numbers will be required for the management prescriptions required. Remember if there are cattle or ponies on the common these need to be taken into account when calculating the livestock density. The information in the attached checklist will be needed to accompany any application.
2. Structure of the graziers –
a) How many graziers are there?
b) How many farmers use common rights on their IACS form but do not turn any sheep on to the fell?
c) How many Commoners are there who do not use their Common Rights?
3. What financial compensation will we receive? – Calculate how much money would be received per livestock unit (usually sheep) to be taken off the fell. Compared this with the gross margin / profits from one sheep, is the scheme profitable. Some of the monies received may need to be reserved to pay non-active Commoners and for administrative expenses.
4. Neighbouring commons – if your common is not fenced from other commons it is important to consider the stocking densities on those commons.
A map showing heaf boundaries both between commons and among graziers may be useful for preparing an application.
5. Handling non - graziers – The Common Rights of non-users are the same as the common rights of the active graziers so they must be considered in applying for a scheme. This includes those who do not use their rights at all and those who do not actively use them but do claim notional forage area on their IACS form.
The two options are:
a) Pay non-users a nominal payment per Right (£1-£5 per year); in return they guarantee that they will abide with the terms of the Agri - Environment Scheme and not use their Rights for the duration of the agreement. It is preferable to have all owners of rights signing up to the agreement.
b) No payments are made to non-graziers and the graziers all agree to reduce their numbers in proportion to the number of rights they hold in order to maintain the required stocking density if the some non-users activate their rights. For this option an assessment by the active graziers needs to be made of the likely risks of any of the non-active rights holders exercising their right during the lifetime of the Agreement.
The possibility of undergrazing may need to be considered and whether non-graziers would need to bear liability for any sanctions from Defra as a result.
6. Off Wintering –Agri - Environment Schemes offer additional payments for off wintering sheep. The payment is either a rate per ha or a payment per ewe per week off-wintered. Check when the sheep have to be off wintered, what percentage have to be off wintered and whether hoggs also have to be off wintered? Aside from the financial implications consider the practicalities of off wintering; will your sheep come back in much better condition and are they more likely to have twins if off wintered? Can you find sufficient off wintering ground?
7. Are you Under Pressure to Sign Up? – English Nature, Defra and / or the Landowner of the Common approach some Commons to enter an Agri-environment Agreements. No Common is obliged to enter an agreement but there may be additional incentives if you are being approached. Always ask what is available, options include:
a) Purchase of Common Rights
b) Top up payments
c) Payments for shepherding
8. Should we wait for the New Schemes?
In Cumbria applications will be considered for CSS and ESA Schemes between January and March 2004, then the schemes will close.
Two new schemes will be launched, the Entry Level Scheme (ELS) which will offer payments for farmers to offer simple environmental management and maintenance of existing features and the Higher Tier Scheme which will aim to manage and enhance specific habitats and features on farmland. The Higher Scheme will be available for Commons, the Entry Level Scheme may not be.
If you are ready to apply now and the current schemes suit your Common then apply in 2004 as you will receive the payments a year earlier than waiting for the new scheme.
3. Applying for a Scheme
1 Where do we start? -
a Contact your local committee member of the Federation of Cumbrian Commoners or the Administrator – Kit Nicholson (Tel.: 015242 76395).
b The Rural Development Service (RDS) based in Penrith manages Defra’s Agri-environment schemes, telephone number 01768 860700. They will provide you with the current prescriptions relevant to your Common.
c If your common is an area designated for nature conservation interest there may be additional funds available..
2 Have a Commoners’ meeting – Collect the base line information on the checklist and call a commoners’ meeting to discuss the options and implications. It may be worthwhile having an advisor present and a representative from the Rural Development Service.
3 Set your objectives – make the schemes work for you, unless the schemes provide benefits to the commoners then people will not be keen on complying with the scheme prescriptions. Set out the Commoners’ objectives, these may vary among commoners. For instance those nearing retirement with no immediate successors might be keen to reduce numbers so to relieve the pressure on labour. Alternatively those with a young family may not be so keen to reduce numbers.
4 Be Flexible - While it is usual to divide the reductions in stock numbers required equally according to the number of rights held by the graziers this need not be the case. If one grazier wishes to remove all their sheep and another none or only a small number then an arrangement can be worked out and the money divided up accordingly.
5 Use an Independent Person for Negotiations between commoners and with Defra and other interested parties. The advantage of this is that feelings can often run high between commoners who have different objectives and different ways of managing the fell. An independent person will be able to look at each person’s interests separately and mediate a solution. It is important that whomever you use is experienced in the details of Agri – Environment Schemes and with working with commoners so they will be able to provide good advice. Cumbria Farm Link the Rural Enterprise Agency, Redhills may be able to assist 01768 891400.
6 Allow plenty of time - negotiations always take longer than you anticipate. Many Agri – Environment Schemes have deadlines. It is advisable to allow at least six months and perhaps a year to negotiate an agri-environment scheme. Considerable amounts of data will need to be collected and many decisions made before an application can be made.
7 Upland Survey – in the current schemes the Countryside Stewardship Scheme requires the detailed Upland Survey. Information on the vegetation of the fell and detailed stock calendars will be required for the application. Vegetation assessments are best undertaken in the summer and a professional Ecologist may be required to do this. This is not currently required for ESA applications but may be required for the new Higher Tier Scheme.
8 What can go wrong?
i. Non - graziers will not sign – this is discussed under number 1.
ii. Graziers cannot agree – this is a very common situation whereby graziers have different objectives with regard their stock numbers. If a pro rata reduction according to common rights can not be agreed then be flexible and look at alternatives whereby the money is divided up per sheep removed and those who remove more sheep are paid accordingly.
iii. Cattle and pony rights are not included. Any cattle and ponies grazed will contribute to the overall stocking density. Check whether cattle and pony rights are convertible into sheep rights. There may also be cattle rights and pony rights that are not officially convertible but in practice have been converted for many years. Due to the difficulties taking legal action it is advisable to consider early on how these will be handled.
iv. Encroachment from neighbouring commons. Encourage neighbouring commons to make an application so they will be considered at the same time and entry into the scheme is possible.
v. Double registrations – some people have rights registered on two commons – make sure you include all common rights which can graze on your common.
Annex 1: Checklist
This is base line data useful to collate before applying for an agri-environment scheme.
1. No. Common Rights Actively Used
Winter / Sheep / Cattle / Ponies / TotalSummer / Sheep / Cattle / Ponies / Total
2. No. Common Rights only put on IACS form
Sheep / Cattle / Ponies / Total3. No Rights not Used
Sheep / Cattle / Ponies / Total4. Away wintering:
a) Do Commoners currently off winter? If so when?
b) Do Commoners want to off - winter? If so when?
5. What are our neighbours doing – do we need collaboration?
6. How much money would the Commons Association receive per year?
7. How much money would be paid per ewe taken off the Common?
Annex 2: Commons Association Internal Agreement
1. An agreement between commoners is necessary to protect all commoners and in particular the committee members who signed the agri–environment scheme documents. Circumstances can change; people die and farms are sold. A robust legal document that can deal with these situations is essential. The agreement will make clear to the commoners what the sanctions are if they breach the terms of the Agreement and how the Association will divide the money up.
2. There are Solicitors and Land Agents who specialise in Commons and will be able to use a pro forma to reduce the costs of preparing an agreement, they will be able to advise on clauses needed.
3. The document should address the following issues:
- Non – graziers
- Live register
- Stocking Levels (Monthly calender for each grazier)
- Payment schedules
- Contingencies
- Binding Successor in Title
- Dispute – resolution mechanisms
- Gathers in event of breaches
- Sanctions / penalties
4. Include a stocking calender so everyone is aware of their stocking levels throughout the year. Ensure each grazier signs by their stocking restrictions to provide protection for the commons officers.
Annex 3: Managing the agreement and adapting to changing circumstances
The following list provides guidance on the issues a commons committee should be aware of with regard to the operation of agri-environment agreements. It is not exhaustive.
· Hold annual meetings to allow problems to be aired– more often if necessary
· Appoint a treasurer to apportion payments or use an agent; many commons use Land Agents
· Ensure there is a kitty for audit fees, agent fees and any possible contingencies.
· Beware of changes to Agri – Environment payment levels
· Keep track of opportunities to upgrade your agreement if circumstances change
· Note the date of any break clauses and activate if necessary
· Decide in advance what to do if a non–grazier starts grazing and implement the measures if necessary so you do not risk breaching the agreement.
· The CAP reform will result in single farm payments for which the notional forage area allocated for rights will be required. Look to maximize the area allocated per right by creating a live register.