Defra announces steps to help farmers with spiralling costs

Today’s announcements include updated information and guidance on the Sustainable Farming Incentive (SFI), Farming Rules for Water and the future use of urea fertiliser.

NFU president Minette Batters commented: “Farmers are experiencing unprecedented costs when buying fertiliser, alongside tightening supplies, and it’s critical that government put in place measures to mitigate some of these effects.”

Many of the measures are positive for farmers, she added – particularly around the industry-led regulation of urea; the updated guidance on the Farming Rules for Water, which will allow autumn manure spreading; and the extension of Defra’s Market Monitoring Group to understand trends in the market.

Ban on solid urea fertilisers avoided

Environment secretary George Eustice said changes to the use of urea fertiliser will be delayed by at least a year to help farmers manage costs and allow more time to adapt in light of the global rise in gas prices, which has led to pressures on the supply of ammonium nitrate fertilisers.

A consultation on restrictions was launch a year ago to reduce ammonia pollution in the air. When restrictions are introduced, these will include the use of ammonia inhibitors rather than a total ban.

“Through the involvement of Red Tractor, the industry has avoided the proposed outright ban on urea fertiliser which means that farmers and growers will continue to have the flexibility to use the right product at the right time,” said NFU deputy president Tom Bradshaw.

“Today’s announcement means farmers and growers can keep using a vital product, to help grow sustainable climate-friendly food, while at the same time significantly cutting ammonia emissions in line with government and industry ambitions.”

AIC’s chief executive Robert Sheasby welcomed the news of a self-regulation approach to the use of solid urea fertilisers: “We believe working together across the industry to deliver greater Nitrogen Use Efficiency for all nitrogen fertilisers is the best route forward. By utilising existing farm assurance structures farmers will be able to retain the use of solid urea, providing flexibility to use the right product at the right time to minimise environmental impact, whilst ensuring healthy plant growth and a competitive fertiliser sector.”

From 1st April next year, Red Tractor will issue new environmental standards for all farmers in England requiring them to use protected fertilisers at the times of year when the risks of ammonia emissions are at their highest. Farmers will need to start to plan their fertiliser orders to meet the new standards which will be implemented from October 2023, AIC said.

A commitment has been made with Government that by 2024–2025, all farmers in England will be able to meet the new requirements and all fertiliser containing urea will have to be protected against ammonia emissions if spread after 1st April each year. This will apply unless ammonia mitigation has been achieved by incorporating the fertilisers into the soil or with sufficient irrigation, as signed off by a registered FACTS-qualified professional.

Updated information on the SFI

Commenting on the additional information about the Sustainable Farming Incentive, Mrs Batters said the NFU supports the move to a rolling application window, as it will offer farmers and growers flexibility to apply at a time that suits their business.

“This also needs to be matched by certainty over when agreements will start once an application has been submitted.”

Mark Tufnell, president of the Country Land and Business Association, added: “The announcement of payment rates for the Sustainable Farming Incentive, and additional guidance on the compatibility of the scheme with Countryside Stewardship, goes some way to explaining to farmers the impact of the agricultural transition on their own businesses.”

However, while the offer will be suitable for some farms, there are still not viable options for all, Mrs Batters added, and there are concerns about varying approaches to support across the UK.

“It’s essential for all farmers who wish to enter these new schemes that payment rates properly recognise the public goods they will be delivering. With such huge uncertainty I remain extremely concerned that farmers in England are facing a very different approach to the rest of the UK. With farmers in England receiving less direct support, the government must ensure new ways of farmers and growers managing their risk and volatility.”

Interpretation of Farming Rules for Water

Revised and statutory guidance has been published on how farmers should limit the use of slurry and other farmyard manure at certain times of year. The government says this will provide clarity on how slurry and other manures during autumn and winter to meet agronomic needs.

Farmers will also be supported through new slurry storage grants as of this year, helping to meet the Farming Rules for Water and reducing dependence on artificial fertilisers by storing organic nutrients until needed or for onward processing.

Commenting on new guidance Mr Bradshaw said it provides clarity for farmers and growers who have had significant concerns for some time about how the regulations are being interpreted.

“Over the past year the NFU has played an important role bringing together the farming industry, Environment Agency and Defra to agree that organic manures can be spread in the autumn, so crops are receiving the vital nutrients they require. This new guidance will enable farm businesses to plan with confidence and importantly, drive improvements that benefit soil and plant health as well as water quality.”

Challenging times

An industry fertiliser roundtable, meeting for the first time this week, will be chaired by farming minister, Victoria Prentis to continue work on these issues, identify solutions and better understand the impact of current pressures on farmers. Defra is also extending the membership of its longstanding Market Monitoring Group, which involves industry expertise to understand trends in markets.

Announcing the new measures today Mr Eustice commented: “The significant rise in the cost of fertiliser is a reminder that we need to reduce our dependence on manufacturing processes dependent on gas. Many of the challenges we face in agriculture will require a fusion of new technology with conventional principles of good farm husbandry. The measures we have announced today are not the whole solution but will help farmers manage their nitrogen needs in the year ahead.”