McCartneys News

Stewardship / Environmental Schemes for 2005

1st July 2004

CAP MTR - Environmental Stewardship (ES)
From 2005, Defra will be introducing Environmental Stewardship (ES) which will replace the existing arrangements for agri-environment schemes (Countryside Stewardship, ESAs and Organic Farming). ES will be comprised of three components:-
1) Entry Level Stewardship
2) Organic Entry Level Stewardship
3) Higher Level Stewardship

The requirements under these schemes will be in addition to any requirements under cross-compliance, although some elements of the schemes may also fulfil crosscompliance. As agri-environment schemes they are separate from the Single Farm Payment. The details proposed for the ES have to be approved by the European Commission and this approval is not expected to be forthcoming until the Autumn of 2004. Details may also be subject to further amendment following the announcement of the outcome of the cross-compliance consultation (some detail of which we hope will be forthcoming in mid-July) as well as the introduction of the Single Farm Payment Scheme in 2005. Guidance booklets and application forms are not currently available and are unlikely to be so until early in 2005 when the Scheme is launched.

Entry Level Stewardship (ELS)
What is the Entry Level Stewardship Scheme (ELS)?
The design of the ELS is being tested on different representative farm types in four areas of England as part for a Pilot Entry Level Scheme:-
1) Upland farming - North East (Barnard Castle)
2) Arable farming & cropping - East Midlands (Market Deeping)
3) Mixed farming - South East (Mortimer)
4) Grassland - South West (Tiverton).
This Pilot Entry Level Scheme commenced February 2003 and will run for five years. Feedback should allow for Defra to start to make any amendments and improvements necessary prior to its general introduction to all farmers which is anticipated for 2005. ELS will be open to all farmers and landowners in England with guaranteed acceptance provided the requirements of the scheme are met. Agreements will be for a five year period.
What sort of management options will be available under ELS?
ELS will require the farmer to select a programme of environmental management options as part of a whole farm scheme (to include woodland) and each option selected will be worth a quantity of points per hectare/ per metre/ per unit. For a farm to qualify for ELS a total target number of points must be attained (which is directly related to the size of the holding) which will be made up of all the points collected from the environmental management options selected. Most farmers will have a points target of 30 per hectare which should result in a payment of £30 per hectare per year. It is proposed that this points target be lower for extensively grazed upland farms where 15 points is likely to be the target with a corresponding payment of £15 per hectare per year. Grants will not be available for capital works under ELS.
Examples of options which may be available (although some may be included within the requirements for cross-compliance) may be found on page 20 of Defra's Pilot Scheme. but include such items as hedgerow management, buffer strips, arable options (conservation headland, over-wintered stubbles, etc.), grassland management.
Is it the same as or part of cross-compliance? No, the requirements of cross compliance are a completely separate entity and ELS points will not serve to mitigate any penalties under cross-compliance. However, farmers may feel that receiving a potential payment of £30 per hectare per annum to carry out environmental management options which may also adhere to cross-compliance requirements is a worthwhile plan of action in order to receive the additional payment.
How/When do I apply?
Guidance booklets and application forms are unlikely to be ready until early 2005 when the Defra hopes to launch the scheme. This will also apply to OELS and HLS (see below).
Organic Entry Level Stewardship (OELS)
This scheme will be similar to ELS with organic management options. OELS will be open to all organic farmers in England whose land is already fully organic and who are not currently receiving payments for conversion under the Organic Farming Scheme, or farmers wishing to enter their land into organic conversion as specified below. Payments will again be £30 per hectare per annum for carrying out the management options as a whole farm scheme, with a points scoring system like ELS, but there will be an additional payment of £30 per hectare to acknowledge the enhanced environmental benefits organic farming provides - therefore successful applicants under ELS will receive £60 per hectare per annum, although this is again subject to European Commission approval.
Farmers wishing to convert their land to organic will have two options open to them:-
1) Organic conversion of improved land for which they will receive a payment of
£175 per hectare per annum (two year conversion period)
2) Organic conversion of established top fruit orchards (this excludes cider apples) with a payment of £600 per hectare per annum (three year conversion period).
No payments will be available for organic conversion of unimproved land, however farmers will be able to apply for a combined ELS/OELS agreement. In addition, as with ELS, no payments will be available for capital works.
Agreements will again be for five years and provided the applicant has registered the land as being in organic conversion with a recognised organic inspection body prior to applying to the scheme and meets the other scheme requirements, acceptance is guaranteed.
Higher Level Stewardship (HLS)
The HLS Scheme will aim to concentrate on more complex types of management and will incorporate a broad range of management options based upon the existing Countryside Stewardship Scheme and ESAs. Unlike ELS and OELS, capital works grants will be available under HLS. The agreements will be much more individually tailored with applicants being required to prepare a Farm Environment Plan which identifies environmental features requiring particular management. Generally, farmers will need to already be in the ELS prior to applying to HLS. This combined ELS/HLS agreement will last for ten years.
Unlike ELS and OELS, acceptance is not guaranteed. Each application will be assessed on a competitive basis to evaluate which ones best meet the scheme criteria and objectives.
Effects of ES on existing agri-environment schemes Countryside Stewardship Scheme & ESAs, etc.
If a farmer/ landowner is already receiving payments under schemes such as Countryside Stewardship (CSS), ESAs, etc., it may be possible for an application to be made to enter the Environmental Stewardship Scheme. However, it is likely that any land forming part of an existing agri-environment scheme agreement would have to be excluded from an ELS application in order to avoid double payment situations. Further information regarding transitional arrangements for existing agreement holders should be available towards the end of 2004. New applications to the CSS and ESAs have closed with effect from 2004.
Organic Farming Scheme
Following the launch of OELS, it is proposed that the Organic Farming Scheme will be closed for new applications, however existing agreements will continue and there should be the opportunity for existing OFS Agreement holders to transfer to OELS once their conversion period has been completed.

For Further details on these schemes contact :
McCartneys Rural Professional Department Tel: 01588 672385

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