The English Environmental Stewardship Entry Level Scheme ELS

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The English Environmental Stewardship Entry Level
Scheme (ELS)

• Dr. Stephen Chaplin, Natural England
• mailtostephen.chaplin_at_naturalengland.org.uk

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Background

• Environmental Stewardship (ES) - new
  agri-environment scheme launched in mid-2005,
  scheme operating for nearly 3 years.
• Replaced previous English agri-environment
  schemes.
• Has entry-level (ELS) and higher-level (HLS)
  elements focus here on ELS component.
  Entry-level also has an organic strand.
• ELS Payment for public goods based on income
  foregone. Currently funded through the RDPE
  mainly under Article 39 of 1698/2005
• Just completed a review to
• Check that ES is delivering its stated objectives
• Ensure that it delivers good value for money
• Take account of emerging new policy priorities

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ELS and HLS Compared
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Environmental Stewardship in the wider context

Environmental benefit complexity
HLS
Environmental Stewardship (NE)
ELS/OELS
Single Payment Scheme (RPA)
Good Agricultural and Environmental Condition
(GAEC) as a cross-compliance condition of Single
Payment Scheme
Number of agreements
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ELS How it works

• Over 60 options to choose from divided into
  groups
• Boundary Management
• Trees and Woodland
• Historic and Landscape Features
• Buffer strips and field margins
• Arable Land
• Range of crop types
• Soil Protection
• Lowland Grassland
• Uplands

• Each management option has a points allocation
  (per ha/per m) based on the income foregone
  calculation, for example
• Each farm is given a total points target based on
  30 points per hectare.
• They then have a free choice from the list of
  options to achieve their target.

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Scheme Effectiveness

• Overall the ELS scheme has
• High level of uptake - ELS currently 4,394,466 ha
  (51 agricultural land)
• Good set of generic options, that are widely
  accessible geographically/by farm type etc where
  the relevant feature/management practice exists.
  
• Option egs.
• Evidence from initial evaluation suggests most
  options are delivering the environmental benefits
  that were intended, but limited additionality in
  some cases.

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Scheme Targeting

• ELS is largely untargeted geographically (unlike
  HLS). Geographically specific guidance is
  provided to try and influence option choice, but
  not requirement of the scheme.
• This has resulted in
• Significant sectoral (and associated
  geographical) variations in level of ELS
  Agreement Uptake.
• Low uptake of certain options.
• A significant proportion of agreement holders are
  choosing a very limited number of options,
  resulting in imbalanced agreements (particularly
  balance between field boundary and in-field
  options, but also balance across scheme
  objectives)
• The choice of options often doesnt match well
  with the identified priority options for a given
  area
• More detail on subsequent slides.

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Sectoral (and associated geographical) variations
in level of ELS Agreement Uptake

• Particularly Important because
• UELS predicated on ELS membership low level of
  uptake in uplands
• Classic Scheme Renewals often in uplands
• Commodity prices potential impact on high
  uptake areas

Geographical Variations in ELS uptake (by JCA)
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Balance of options within ELS agreements

• Analysis shows that many ELS agreements are
  focused around a very limited number of options
• The 6 most popular options in the scheme
  (including the compulsory FER) account for 49 of
  all points scored. The 20 most popular options
  account for 90 of all the points scored within
  the scheme. The remaining 42 options account for
  only 10 of the points scored within the scheme.
• 15 of all ELS agreements score more than 70 of
  their points from lowland grassland options, with
  9 scoring over 90 of their points from this
  option group.
• 6 of all ELS agreements score 70 or more of
  their points from boundary options.
• Combining boundary and lowland grassland options
  together - 40 of all ELS agreements score more
  than 70 of their points from boundary and
  lowland grassland options alone, including almost
  20 who score in excess of 90 of their points
  from these two option groups.
• Following ELS option maps adjacent farms in the
  same JCA.

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What would the effect be on the effectiveness of
ELS and HLS if there was no SPS (1)?

• Recent modelling work of CAP Reform scenarios
  based on English farm business survey data (FADN)
  suggested the following
• Many positive environmental consequences
• However, significant changes to farming systems
  eg rotation simplification, livestock
  extensification and associated implications
  especially for landscape that would require
  additional interventions through the schemes (ELS
  higher intensity, HLS higher coverage)
• Also significant risk of land out of production
  both in uplands and lowlands although lowlands
  could see reintroduction of extensive livestock.

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What would the effect be on the effectiveness of
ELS and HLS if there was no SPS (2)?

• Scenario A Baseline (to 2015), incorporates
  know policy changes.
• Scenario B Removal of decoupled support.
• Scenario C Removal of tariff barriers and other
  trade restrictions
• Scenario D B and C together.
• Reform scenario B would increase the cost of ELS
  agreements in SDA areas (by 2.1) and would
  decrease the cost (by 0.3) in non-SDA areas.
  Also, the unit cost of most HLS options would
  increase (by 1-9). While the prices of many farm
  commodities is predicted to increase, the loss of
  the Single Payment would lead to extensive
  restructuring and a significant increase in land
  out of agriculture, with a resulting increase in
  the need for targeted HLS uptake.
• Reform scenario C would reduce the cost of ELS
  agreements in SDA and non-SDA areas (by up to
  3.3) and also the unit cost of most HLS options
  (by 1-13). Retention of the Single Payment
  limits the extent of restructuring with the
  increase in land out of agriculture less than
  under Scenario B. However, the overall impact is
  expected to be an increase in the Pillar II
  budget requirement.
• Reform scenario D would reduce the cost of ELS
  agreements in SDA and non-SDA areas (by
  1.2-4.5) and also the unit cost of most HLS
  options (by 1-36). Loss of the Single Payment
  and lower commodity prices will lead to
  substantial restructuring with a significant
  increase in land out of agriculture (15 in the
  lowlands and perhaps more in the LFA). As such,
  the overall impact is expected to be a
  significant increase in the Pillar II budget,
  despite the lower unit cost of options.

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Looking to the EU Budget Review How appropriate
is EU wide funding for AES?
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Looking to the EU Budget Review How appropriate
is EU wide funding for AES?
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Future Development of ELS

• Changes to ELS options (revised options,
  prescriptions and new options) to improve option
  effectiveness.
• about 25 changes to make existing options and
  prescriptions more demanding
• about 20 changes to make existing options and
  prescriptions more flexible and
• develop and introduce a number of new options.
• Develop and pilot an ELS capital works proposal
• A full scheme payment review is required.
• The existing geographical targeting guidance for
  ELS should be reviewed to explore ways that it
  can be made more effective.
• Develop a significantly enhanced, geographically
  differentiated, programme of advice to support
  ELS delivery.
• Develop, test and implement a geographically
  differentiated single-split list approach based
  on a minimum specified proportion of agreement
  points coming from 1 or more options on the list.
  

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3 recommendations for other MS

• Low intensity high uptake schemes such as ELS
  have considerable potential to deliver benefits
  over large areas.
• Schemes of this type have to strike a difficult
  balance between the complexity of management
  options/prescriptions required to achieve
  demonstrable environmental outcomes and secure
  high levels of scheme uptake.
• Ensure that you have a comprehensive monitoring
  strategy in place, based on extensive agreement
  level research, to demonstrate that intended
  environmental outcomes are being achieved.

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More information

• Scheme booklets can be found at
  http//www.defra.gov.uk/erdp/schemes/els/handbook/
  default.htm
• mailtostephen.chaplin_at_naturalengland.org.uk

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How it works (3)

• Associated with each option is a management
  prescription
• Applicants draw their selected options on a base
  map that is provided as part of the application
  process and this forms the agreement.

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ELS Agreements Example, Nr Bridlington, East
Yorkshire. Holderness JCA.
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