W Midlands Rural Development Programme

March 2008 Stakeholders event

Welcome

First stakeholders event Important functions for this group Welcome engagement and interest Main purpose of event is

- WM RDPE is Open for business

- Particular focus on the Socio-economic programme

- Demonstrate desire of NE, FC and AWM to work together on the respective programmes

To cover

Agreed approach

The challenges we face

How the programme will respond

How to get involved in projects

Partner engagement in programme governance

Likely projects

Our agreed approach Regional Implementation Plan Agreed with Defra and regional

partners

6 year £53m programme;

Targeting led by Regional Economic Strategy; Action Plans based on most relevant Clusters

- Environmental Technologies, Food & Drink, Tourism & Leisure;

- Livestock Action Plan (Ministerial direction);

Strategic investments (large multi-business projects) Based on collaboration; responding to Action Plans

LEADER programme focussed on Social/community activity – LAA/LSP links;

Strategic Objectives

Develop diverse, competitive and sustainable rural businesses that are better connected to their marketsCapitalise on low carbon opportunitiesMaximise cultural offer and natural assetsInvest in high value skills and employability of the rural workforceDevelop more sustainable rural communities

Cross cutting themesEnvironmental Economy Collaboration Supply chain developmentReconnection with markets Modernisation Knowledge transfer Meeting market specification Training and skills ICT Innovative products and services

Rural Development Programme in the WM- Axes 1 & 3

Food and Drink Environmental Technologies

TourismLivestock Communities/Leader

Sustainable tourismEnvironmentalimprovementsFood tourisme- tourism

Skills, training and knowledge transferSupply chain developmentCompetitivenessTrade and consumer awareness

Places to meet, ‘recreate’ and communicateInclusive and participative governanceDevelop and maintain voluntary groups and activitiesPositive culture of enterprise and economic purposeAccess to ‘fit for purpose’ housing

Knowledge transferEfficient productionImprove livestock qualityPromote best practicePromote understanding of EnvironmentalLegislationAnimal health and welfare

Environmental goods and servicesSupport innovationNew marketsNetworkingTraining and SkillsSites and premises

Vision“By 2013 rural businesses in the West Midlands will be more sustainable, competitive and better connected to their markets, active management will have improved the rural environment and rural communities will have a better quality of life.”

ELS and HLS

Natural England uses Environmental Stewardship (ES) to deliver its national Agri-Environment schemes under Axis 2 of the RDPE – a £2.9B programme over 6 years.

Entry to ES is at two levels; each with an Organic supplement

ENTRY LEVEL SCHEME (ELS) Available to all land managers Applications assessed by central Incentive Scheme Services teams ( Worcester)

HIGHER LEVEL SCHEME (HLS) Spatial approach to targeting and prioritisation: to maximise environmental and

other public benefits such as Natural Resource Protection, Access, Historic Environment.

Each application worked through between applicant and Natural England’s county adviser.

Initial regional targeting (from August 2007) to be replaced by a national analysis later in 2008. This will also be used to inform the spatial promotion of ELS options.

ES in the West Midlands

In the West Midlands :

Most Agreements continue to be those made under the ‘Legacy ‘ Schemes of Countryside Stewardship (CSS) and Environmentally Sensitive Areas e.g.ESAs on Cannock Chase and the Shropshire Hills

As these10-year Legacy Scheme Agreements come to an end, they will be assessed for rolling forward into ELS or HLS

In 2006-07 the Agri-Environment budget to cover all schemes for the West Midlands was some £37M

The West Midlands has had a very high take-up of agreements; just under 70% of agricultural land is under agreement; over 50% under an ELS Agreement and we now have over 500 HLS agreements.

English Woodland Grant Scheme (EWGS)

• EWGS is part of the Defra family of environmental support and is operated by the Forestry Commission

• Part of the suite of support for land management funded under RDPE Axis 2

• Purpose is to develop co-ordinated delivery of public benefits from England’s Woodlands

• Applications for grants must deliver a range of key targets

EWGS Funding

• EWGS offers a range of six grant types, falling into two broad categories:

• Stewardship of Woodlands• Creation of Woodlands

• Funding is allocated annually to regions and set out in a Grants Prospectus

• The EWGS budget for the West Midlands is currently in the order of £1.7million annually

www.adas.co.uk

Impact of CAP reformsand forecast trends in

the West MidlandsMartin Wilkinson

Principal Farm Business Consultant

CAP reforms

CAP reforms de-coupled subsidy from production

Crops and livestock produced at market rates

Farmers do not need to produce to receive subsidy

Flat rate payment received – some basic environmental obligations

Land-based Economy

Rural land base 950,000 hectares (70%)

Land based sector GVA £952 million (1.2%)

128,000 ha of protected countryside

Employment 46,700 people (2%)

Food and Drink Industry employs 36,500

26,000 holdings, (15,000 (58%) over 5 ha)

West Midlands Farm Types

Dairy Sector 196,000 cows (15% of National Herd) 2,269 holdings (15% region (over 5ha)) Average herd 87 cows (England 87) Diverse milk processing market Variable market access across region Cross border trading

Issues Health / Bio security Market lead assurance schemes Legislation Seasonality of supply

Dairy Sector –Future

Regional herd reduction (18%)

Fewer producers, increased herd size

Reduced rate of yield increase

Continued rationalisation of buyers

Local / sustainable supply chains

Beef and Sheep sector

100,000 beef herd (12%) 350,000 finishing cattle (14%) 1,060,000, breeding sheep (15%)

1995 2004 2006 LFA holdings 1094 1388 1593 Well served by markets / abattoirs

Issues Health / Bio security Market lead assurance schemes Legislation Low Profitability Loss of livestock markets

Beef and Sheep sector - future

8% - 15% reduction in beef

West Midlands 23% reduction in beef (ADAS Farmer’s Voice)

Sheep 3% - 6% reduction

Decline in Livestock Markets

Arable Sector 3,150 arable holdings (12%) 220,000ha cereals (23%of region) 100,000 ha other arable Some post farm gate processing

Issues Cost of production Legislation/regulation Water supply Extreme weather Bio-fuels

Wheat –cost of production

0

20

40

60

80

100

120

£/t

on

ne

Finance 3 4 2

Rent 7 7 6

Other costs 10 7 5

Property costs 7 4 3

Power & machinery costs 41 32 25

Labour and Drawings 19 15 9

Variable costs 35 28 24

Bottom third Average Top third

Arable Sector - future

Simplification of rotation

Fewer farmers, similar area

Restructuring post farm gate (e.g. potatoes)

Field scale vegetables

Horticulture 1,268 horticultural holdings (14%) 15,344 ha of horticultural crops (10%) 7.26 ha (9.18 ha) CAP impact ?

Issues Labour Planning Extreme weather Climate change agenda

Pig & Poultry

214 pig holdings (10%) 744 poultry holdings (12%)

20,800 breeding pigs (5%) 3,300,000 layers (11%)

Issues Legislation/regulation Planning Labour/skills Competitiveness Climate change/extreme weather

Pig & Poultry - Future

Pigs - outdoor production

Broiler directive - stocking density

Cages – fewer birds

Competitiveness

Diversification

6,600 holdings diversified / off farm income

37% of businesses have diversified (50%)

9% of farm income from diversification

Tourism

£1,145 million

8.36 million visitors

6% farm house B & B

Niche “sustainable” tourism

Non food crops

5% farmers grow Non Food Crops (ADAS Farmer’s Voice)

Greater interest but market focussed

Summary CAP reform – exposure to market

Competitiveness Efficiency Beef Sheep sector

External issues Bio-security Climate change / extreme weather Legislation Blue & Green services

Forestry in the West Midlands

• Total woodland area of 100,000ha - 8% of the region’s land

• 65% of woodland area is ancient (25% ASNW)

• Woodland area highly fragmented and in variety of public and private ownership

• 35,000 employees across the whole industry

• 3,470 businesses - many micro and SME, often in rural areas

• Value of timber and non-timber related benefits to the region c. £0.7 billion

• less than 50% of annual increment utilised

• Woodland a key component of greenspace and environmental infrastructure

• Benefits from woodlands extend across economic, social and environmental agendas

Priorities for EWGS in the Region

• Protecting and enhancing ancient and native woodlands

• Bringing SSSI Woodlands into favourable condition

• Increasing and enhancing public access and recreation in woodlands

• Delivering HAP/SAP targets

• Improving the environment of disadvantaged communities

• Creating new woodlands to:

• Help deliver green infrastructure strategies• link and extend ancient and native woodlands• regenerate derelict and disused land

RDPE Axes 1&3 provides opportunities to link with EWGS under Axis 2 to develop support for appropriate aspects of the forestry industry

Priorities are linked to delivery of the Regional Forestry Framework and include:

HLS Primary Objectives- Wildlife ConservationHLS Primary Objectives- Wildlife Conservation

Neatherstead Farm, Warwickshire

Wetland creation

Arable Options

‘The Big Three!’

Breeding Curlew and Lapwing

Also seen snipe, Yellow Hammer, 800 Linnets, Tree sparrow, grey partridge

HLS Primary Objectives- Maintenance and enhancement of landscape quality & character

HLS Primary Objectives- Maintenance and enhancement of landscape quality & character

The Wall, Nr Newport

Restoration of Wetlands on Weald Moors

Arable reversion to extensive grassland

Hedgerow restoration

Primary Objectives-Promotion of Public Access & UnderstandingPrimary Objectives-Promotion of Public Access & Understanding

Greenacres Farm, Nr ShifnalEducational AccessOrganic Vegetable growerSchool groups, up to 70 childrenVisitor Centre, cooks food Around 40-50 visits per year

River Teme Catchment

Shrops, Herefs and Worcs

HLS Capital Payments for Stock Exclusion

Riverside Buffering

Arable reversion

HLS Primary Objectives - Natural Resource ProtectionHLS Primary Objectives - Natural Resource Protection

Priorities

The Rural Development Programme for England is overseen by Defra as part of the European Agricultural Fund for Rural Development.

Within RDPE, the Strategic Priorities for Axis 2 are to “Improve the Environment and the Countryside” by:-

i. Conserving Biodiversityii. Enhancing Landscape Character and Qualityiii. Protecting the Historic Environmentiv. Promoting Public Access and Understandingv. Protecting Natural Resources (including contributing to Climate

Change Mitigation)

The Regional Implementation Plan (RIP) for the RDPE in the West Midlands intends to deliver benefits across the region and Natural England will work with delivery partners to ensure that wherever possible, our Axis 2 investments will help to capitalise on the value of our high quality natural environment.

Priorities

In the RDPE 2008-13 for the West Midlands, our focus is on:-

Biodiversity • On Sites of Special Scientific Interest (SSSIs) and elsewhere, we are using ES to improve UK and

England target Habitats and Species; such as Upland Heath and Farmland Birds

Landscape • Aligning our HLS delivery to achieve landscape objectives in the region’s most iconic

landscapes such as in AONBs.

Historic Environment • Achieving the protection of sites and monuments at risk, through our targeted schemes.

Public access and Understanding • Including Permissive Access as part of HLS Agreements and encouraging educational visits;

including through work with the Year of Farming and Food programme.

Natural Resource Protection • Our ES resources support actions to reduce soil and nutrient runoff from farmland in our most

sensitive river catchments ( the rivers Wye, Lugg, Teme; and the Shropshire Meres and Mosses)

Climate Change Mitigation • Using the Climate Change Adaptation project in our Shropshire Hills Landscape Character Area,

we are testing how advice and resources might be better targeted to land managers in the future; and how different land management practices might contribute to Climate Change mitigation.

Strategic Objectives

Develop diverse, competitive and sustainable rural businesses that are better connected to their marketsCapitalise on low carbon opportunitiesMaximise cultural offer and natural assetsInvest in high value skills and employability of the rural workforceDevelop more sustainable rural communities

Cross cutting themesEnvironmental Economy Collaboration Supply chain developmentReconnection with markets Modernisation Knowledge transfer Meeting market specification Training and skills ICT Innovative products and services

Rural Development Programme in the WM- Axes 1 & 3

Food and Drink Environmental Technologies

TourismLivestock Communities/Leader

Sustainable tourismEnvironmentalimprovementsFood tourisme- tourism

Skills, training and knowledge transferSupply chain developmentCompetitivenessTrade and consumer awareness

Places to meet, ‘recreate’ and communicateInclusive and participative governanceDevelop and maintain voluntary groups and activitiesPositive culture of enterprise and economic purposeAccess to ‘fit for purpose’ housing

Knowledge transferEfficient productionImprove livestock qualityPromote best practicePromote understanding of EnvironmentalLegislationAnimal health and welfare

Environmental goods and servicesSupport innovationNew marketsNetworkingTraining and SkillsSites and premises

Vision“By 2013 rural businesses in the West Midlands will be more sustainable, competitive and better connected to their markets, active management will have improved the rural environment and rural communities will have a better quality of life.”

Budget allocations - annual

£9m per annum

- £3m – Livestock sector

- £1.9m – Environmental Technologies

- £1.9m – Food and Drink

- £0.7m - Tourism

- £1.4m - Leader (Social and community)

Early projects

Farming Focus – a regional approach to land based training ACORNS – small diversification grants for young farmers Bioenergy West Midlands Heartwoods and Biomass supply chains Non-food crop market development Red meat export development Disease surveillance Strategic investment in supply chains – e.g., strategic

cutting plants On-line promotion of rural tourism attractions

How to get involved Project ideas

- Businesses are encouraged to respond to Action Plans

- Use appropriate support, particularly Hubs & RDPE Team

The Hub role

- bring businesses together and facilitate collaborations;

- Flag up opportunities, working closely with RDPE Team;

- Engagement of LSP and Business Link with programme.

- Through Hub engagement, participating businesses should be better aware of routes to Skills, finance, business support, access to the knowledge base

Appraisal and approval by AWM

Funding route map

AWMAction Plans

Land based

businessesHubs

Facilitate collaboration

RDPE Team

Engagement of key support, e.g., Business Link, Knowledge base, etc..

Governance

AWM

COGs

•Forward look•Market connections•Wider engagement

•Strategic fit•Transparency

•Programme Overview•Receive quarterly

reports

•Annual review of Action Plan

•Nominate RPDE Partners Group

members

•Accountability & management•Payments (RPA until 10/08)

•Reporting

Stakeholders Group

Partners Group

Q&A

Further information Axis 1 & 3 – RDPE &

LEADER approach http://www.advantage

wm.co.uk/working-with-us/rural-development-programme-for-england.aspx

Axis 2 – Natural England http://www.naturalengland.org.uk/planning/grants-funding/default.htm

Axis 2 – Forestry Commission http://www.forestry.gov.uk/forestry/infd-6dccen

Name Sector Contact details

Ian BakerHead of Rural Renaissance

Head of Team ianbaker@advantagewm.co.uk07919 168 238

Ian EdwardsPartnerships Team Leader

Leader ianedwards@advantagewm.co.uk07917 810 469

Jamie InglisRural DevelopmentPolicy Manager

Livestock jamieinglis@advantagewm.co.uk 07824 542559

Bob GregsonRural DevelopmentManager

Food & Drink bobgregson@advantagewm.co.uk 07887 508490

Jo JuryRural DevelopmentManager

Tourism jojury@advantagewm.co.uk 07894 621066

Simon West Rural DevelopmentManager

Environmental Technologies

simonwest@advantagewm.co.uk 07769 881346

Ross EvansRural DevelopmentManager

Livestock rossevans@advtantagewm.co.uk

07894 621067

Hub contacts

Herefordshire Rural Hub Cathy Meredith Co-ordinatorHolme Lacy CampusOffice 01432 870033Mobile 07970 181628meredithc@hct.ac.uk

Staffordshire Rural Hub Frances Beatty Co-ordinatorOffice 01889 508784Mobile 07877 896466frances.beatty@googlemail.com

Shropshire Rural Hub Victoria Jones Co-ordinatorWalford & North Shropshire CollegeOffice 01939 262106Mobile 07967 438516shropsruralhub@wnsc.ac.uk

Warwickshire Rural Hub Carrie Robbins Co-ordinatorStoneleigh ParkOffice 02476 858242Mobile 0771 3418451carrie@rase.org.uk

Worcestershire Rural Hub Pauline Yardley Co-ordinator YFC Centre, HawfordOffice 01905 622 940Mobile 079809 17339

pyardley@vcoll.ac.uk