Defra UK; RDPE - Q&A: Section H

For 2007, we estimate that expenditure will be broadly similar to last year, at around £27 million. (The mechanics of the HFA are such that an estimate has to be made in advance of the claims being processed).

In 2008 and 2009 geographic coverage of the HFA scheme will reduce through removal of the 'Disadvantaged Areas'. We currently estimate this will reduce the total HFA spend by £3-£4 million/year. This money will be retained within the Rural Development Programme for England and will be used to boost the funds available under Environmental Stewardship (including in the uplands).

Uplands support will be fully integrated into Environmental Stewardship from 2010. After careful consideration of consultation responses, and taking into account the need for effective planning and implementation, the Government is minded to replace the Hill Farm Allowance with a specific uplands strand of Entry Level Stewardship by 2010.

Uplands Entry Level Stewardship will enable us to recognise the key role of upland farmers in delivering many of our environmental and landscape objectives, whilst also enabling us to better target the funding towards the delivery of public benefits. Like ELS, this new uplands strand would be open to all eligible farmers, and would offer a higher payment than ELS to reflect the higher costs of farming in these areas.

To ensure fullest environmental benefit, further scoping work is needed with Natural England and stakeholders. There will then be a further consultation on the final scheme design prior to implementation.

A link to the consultation which closed in May 2006 can be found on the following web page http://www.defra.gov.uk/rural/uplands/support.htm

As already announced, specific uplands support will be fully integrated into Environmental Stewardship by 2010. It will not therefore have a separate budget and funding will be drawn from the £3 billion allocated to agri-environment schemes in this programme.

Farming has played a key role in shaping the upland landscape, which is internationally recognised for its biodiversity and as a highly valued part of our national heritage.
England’s uplands contain a high proportion of designations, such as Sites of Special Scientific Interest (SSSI), National Parks and Areas of Outstanding Natural Beauty (AONB).
The Government remains committed to rewarding upland farmers for the environmental and landscape benefits they provide.

Hill Farm Allowance provides dedicated support to beef and sheep producers who farm in upland areas, in recognition of the difficulties that farmers face in these regions and the vital support they play in maintaining the landscape and rural communities of the hills.

For 2007, the Hill Farm Allowance will continue to be paid to approximately 10, 000 upland farmers in England’s “Less Favoured Areas”, which covers 17% of all English agricultural land. From 2008, eligibility for the Hill Farm Allowance will be focused on those farming in the “Severely Disadvantaged Areas” (SDA), by removing the “Disadvantaged Areas” (DA) from the scheme. In comparison to the SDA, land in the DA is generally higher grade agricultural land, is more accessible, and producers have more options to maximise the potential of the land.

In addition, the Single Payment Scheme will, over time, tend to favour farmers in the DA in comparison to the SDA (since the DA is subsumed within the lowland for the purpose of defining SPS regions and therefore receives a higher flat rate payment than the SDA).

Page last modified: 7 February, 2008
Page published: 21 July, 2005

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