FLOGGING NATURE What price nature? - WordPress.com · FLOGGING NATURE What price nature? harles...

Charles CowapMBA MRICS FAAV

FLOGGING NATUREWhat price nature?

Charles Cowap

@charlescowap

Agricultural Law Association

11 October 2018


BREXIT

This Photo by Unknown Author is licensed under CC BY-SA

International Trade

Public Goods

Agricultural Support

Labour mobility

European Trade Terms

Ecosystem Services

Natural Capital

Tax Reform

Biggest Opportunity since 1947

http://commons.wikimedia.org/wiki/File:Waves_lajolla.jpg

https://creativecommons.org/licenses/by-sa/3.0/


Which of these are ecosystem services?

Ecosystem Services

1. Growing food and timber

2. The water cycle

3. Pollination by bees and insects

4. The carbon cycle

5. Rural recreation

6. Inspiration for poetry about daffodils and meadows


Perrot-Maitre, D. (2006) The Vittel payments for ecosystem services: a “perfect” PES case? International Institute for Environment and Development, London, UK


Stanlow Oil Refinery


Gowy Meadows


Holnicote Estate – National Trust

• Leaky sluices

• Low profile mounds

• New barn for a tenant farmer

• Restoration of woodland water bodies

• Early Experience

– Positive

– Maize and Organic Swedes



What value water and carbon from Devon’s Culm Grasslands?

A project for Devon Wildlife Trust


Total Economic Value

• Use and Non Use Values

• Direct market valuations

– Transaction evidence

– Production cost

– Replacement cost

– ‘Avoidance’ costs


In the absence of market evidence

• Revealed Preference Methods (RPM) v Stated Preference Methods

• RPM includes

– Travel cost methods (TCM)

– Hedonic Pricing

– USE values only → not existence, bequest and altruism values


Stated preference methods

• Contingent Valuation Methods (CVM)

– Willingness to Pay (WTP)

– Willingness to Accept (WTA)

• Deliberative approaches

– Choice modelling

– Group valuations


Direct v Indirect Value studies

• Direct

– Methods already outlined

• Indirect

– Benefit (or value) transfer

– Various databases: EVRI, TEEB, NEA


DCF: Discounting Future Cash Flows

Total NPV + Worthwhile

Total NPV –Not

worthwhile

Choice of Discount Rates?


Headline Figures

• Loss of water and carbon value from 1900 Culm converted to IMG: £32.3 million

• Potential value of DWT restoration work for carbon and water: £9.139 million

• Remaining Culm area water and carbon value: £35.46 million - £9 million more than if it had been lost to IMG.

Charles CowapMBA MRICS FAAVContext: Exmoor example

Exmoor

R Barle

R Exe

Wimbleball Resr & R Haddeo

ExebridgePumping Station

Replenishment PumpingApprox 5 miles, lifting water from 120 to 240 m AOD

CO 2



Questions for consideration• Contractual aspects

• Land tenure

• Effects on other interested parties

• Practical farming considerations

• Animal welfare and health

• Public liability

• Relationship other schemes

• Other business considerations

• Maintenance obligations

• Tax

• Impact on value

• Security/risk

Charles CowapMBA MRICS FAAVFinancial evaluation

Extra costs, eg• Access time to more difficult

ground• Vet and med bills• Insurance• Feed• Machinery costs (if contracting

to be offered)

Costs saved• Eg some livestock purchases

Lost Revenue• Eg some livestock LWG or

sales

Extra Revenue eg• PES income• Contracting opportunities for

SWW

+ Balance: financially worthwhile• Consider capital and tax

implications

Balance positive: not financially worthwhile


New land management and valuation requirements are emerging

New markets

New challenges to professional practice

New environmental, social and economic opportunities and challenges

Charles CowapMBA MRICS FAAVNew Ways with Land

NATURAL CAPITAL

PROVISIONING SERVICESFoodFibreEnergyTimber

REGULATING SERVICESCarbon cycleWater cycle

SUPPORTING SERVICESPollinationSoil Formation

CULTURAL SERVICESRecreationInspirationCreativityReflection

EXISTING MARKETS

PUBLIC SUPPORT

NEW MARKETSPESBiodiversity offsettingCarbonConservation covenants

Charles CowapMBA MRICS FAAVSo what?

► Land Use and development decisions

► Client advice

► Competition with traditional valuation and appraisal approaches

► Extending our knowledge and skills base

► Opportunities to build on existing experience and skills

► Who will be first to broker a commercial ecosystem service deal with Network Rail or another buyer to protect vital infrastructure or other interests?

► Or have you done it already?


NATURAL CAPITAL COMMITTEE


Workbook: How to do it

Natural Capital Committee 2017


25 Year Environment Plan

NCC Advised:

• One ha of nature reserve per 1,000 people

• Two ha of natural greenspace within 300 m of every home

• Twenty ha of greenspace within 2 km of every home

• Farm funding limited to public goods and high welfare standards

• 250,000 ha of woodland by 2040


#25YEP

• An environmental net gain principle for development, housing and infrastructure;

• A new Environmental Land Management system;

• New farming rules for water;

• More efficient fertiliser use;

• Crop protection while reducing pesticide impacts;

• Better information on soil health

• Peatland restoration and an end to the use of peat in horticulture by 2030;

• Larger scale woodland creation and the appointment of a national Tree Champion;

• More use of natural flood management;

• More sustainable drainage systems;

• Flood risk properties to be made more resilient;

• Opportunities for the reintroduction of native species;

• Improved biosecurity to protect and conserve nature;

• Potentially more National Parks and AONBs;

• New approaches to water abstraction, greater efficiency in water use, less personal use of water;

• Environmental therapies through mental health services;

• More green infrastructure and more trees in towns and cities;

• 2019 Year of Green Action;

• Reducing food supply chain emissions and waste;

• Improved management of ‘residual’ waste and wastewater;

• Fly tipping crackdown;

• Reduced chemical contamination in water.


Charles CowapMBA MRICS FAAVGove’s Command Paper:

Health and Harmony• More travel in the same direction?• Simpler stewardship• Polluter pays: a higher bar?• Cap on individual [CAP] payments• Ill defined transitional period• What WILL the farmer and farm of the future look like?• Much hangs on AI, robotics, ‘quality’ and de-regulation –

from Don Curry to Glenys Stacey• Ill defined on new entrants and opportunities• Labour issue – undeveloped?• Agriculture Act 1947 defined good husbandry and good

estate management – do we need new definitions for 2019 and beyond?


The Agriculture Bill 2018

• Financial Assistance Powers

• Financial support after leaving EU

– Direct payments

– Other financial support: fruit and veg producer organisations, rural development support

• Collecting and sharing data

• Intervention in agricultural markets

• Marketing Standards and Carcass classification


• Producer organisations and fairness in the supply chain

• WTO Agreement on Agriculture

• Devolved provisions for Wales and Northern Ireland

• Agricultural transitional period: 7 years starting 2021, or longer


1 Secretary of State’s powers to give financial assistance(1) The Secretary of State may give financial assistance for or in connection with any ofthe following purposes—

(a) managing land or water in a way that protects or improves the environment;(b) supporting public access to and enjoyment of the countryside, farmland orwoodland and better understanding of the environment;(c) managing land or water in a way that maintains, restores or enhances culturalheritage or natural heritage;(d) mitigating or adapting to climate change;(e) preventing, reducing or protecting from environmental hazards;(f) protecting or improving the health or welfare of livestock;(g) protecting or improving the health of plants.

(2) The Secretary of State may also give financial assistance for or in connection with the purpose of starting, or improving the productivity of, an agricultural, horticultural or forestry activity.


Public money for public goods

Payments for Ecosystem services

Natural Capital

Rewilding


See: https://www.gov.uk/government/publications/the-future-for-food-farming-and-the-environment-policy-statement-2018?utm_source=bd6c9594-1121-4806-9b35-05d4c9b0d3eb&utm_medium=email&utm_campaign=govuk-notifications&utm_content=immediate (14.9.2018)

https://www.gov.uk/government/publications/the-future-for-food-farming-and-the-environment-policy-statement-2018?utm_source=bd6c9594-1121-4806-9b35-05d4c9b0d3eb&utm_medium=email&utm_campaign=govuk-notifications&utm_content=immediate



A few other factors in the mix• Political: global, right v left, protectionism• Economic: post Brexit trade, scalable natural

capital investment ….• Social: later retirement, haves v have nots,

housing• Technical: 5G, connectivity, www of things,

productivity paradox, AI, robotics, big data• Environmental: Public £ for Public Goods, Polluter

pays – setting the bar, private investment, CSR• Legal: personal data, citizen rights, CP and

infrastructure, Telecoms Code


Q&A, Discussion

How would you like your money to be spent on public goods in the rural economy?

What would be best for rural economy, society and environment?

What will your clients need of you?


Contact DetailsIn-house CPD programmes, professional-technical updates, organisational

consultancy, and more:

[email protected] 07947 706505Twitter: @charlescowapBlog: http://charlescowap.wordpress.com/Slideshare: http://www.slideshare.net/cdcowapEventbrite: https://bit.ly/2ye7Ail - for #RuBrief online seminars etc

Translating new knowledge for rural professional practice

http://charlescowap.wordpress.com/

http://www.slideshare.net/cdcowap

https://bit.ly/2ye7Ail

Date post:	11-Jun-2020
Category:	Documents
Upload:	others
View:	2 times
Download:	0 times

FLOGGING NATURE What price nature? - WordPress.com · FLOGGING NATURE What price nature? harles...

Documents