BNG ongoing costs

[Agric]

Anyone that's started down the road of using some land for BNG unit creation?
The initial selling price of the units looks attractive but I'm trying to get some idea on what the ongoing costs and management restrictions are?
Putting in a mixture of Other Neutral Grassland and Lowland Meadow looks like the best option to retain some form of farming on the land, albeit very low input.

 

[onesiedale]

It all depends on the agreed management plan for the specific site.
If there are changes to be made to the site, say introduction of species, or removal of species, then these are easily budgeted for as per project plan.
The biggest thing is ensuring that the correct monitoring is carried out in the timely manner prescribed. Soil, plant life, bird life etc.
As the numbers being bandied about are so high, there must be some accounting method that will allow 30 years of management fees to be budgeted and not taxed all in one hit at the beginning.

 

[Grass And Grain]

Anyone that's started down the road of using some land for BNG unit creation?
The initial selling price of the units looks attractive but I'm trying to get some idea on what the ongoing costs and management restrictions are?
Putting in a mixture of Other Neutral Grassland and Lowland Meadow looks like the best option to retain some form of farming on the land, albeit very low input.

I can sort of guestimate my costs for maintaining the habitat (although inflation is always a concern).

Are there ongoing inspection costs as well?

Different companies have different models. Speaking with one yesterday who pay a lump sum at beginning. Tax issue, but at least you've got the cash safe in the bank.

Environment Bank (are they called), they seem to want to pay annually. What if the pay annually model, company don't pay, but you're stuck with 30 years of agreement? Needs to be a clause, don't pay, take it away.

 

[topground]

What are the chances of the contract being honoured when the developer goes bust, particularly if there have been changes to the farming practice that have had both a start up cost and remedial cost?

 

[steveR]

I can sort of guestimate my costs for maintaining the habitat (although inflation is always a concern).

Are there ongoing inspection costs as well?

Different companies have different models. Speaking with one yesterday who pay a lump sum at beginning. Tax issue, but at least you've got the cash safe in the bank.

Environment Bank (are they called), they seem to want to pay annually. What if the pay annually model, company don't pay, but you're stuck with 30 years of agreement? Needs to be a clause, don't pay, take it away.

I said this at Groundswell and had a rather dismissive response from the Body looking at setting up deals.

The problem is that they seem to have locked the Agreements in with the Planning approval with Councils involved. Needs a good Contracts Solicitor to scrutinise these agreements on the landowners behalf, IMO.

 

[steveR]

What are the chances of the contract being honoured when the developer goes bust, particularly if there have been changes to the farming practice that have had both a start up cost and remedial cost?

Again..... avoid bloody trees, else you will in effect, never see your land back. Mind the EIA legislation will probably knacker you anyway!

 

[Grass And Grain]

Again..... avoid bloody trees, else you will in effect, never see your land back. Mind the EIA legislation will probably knacker you anyway!

Bought the field which runs up to our house last year. It's horrible wet clay, winter waterloggs.

Was lucky last year and got 4t of wheat off it, but it's now sat fallow.

I'd love to have tree spinnies, ponds, habitat etc to look out over from the house, but it's an expensive luxury. Welcome BNG .

Only bought the field because wanted control over it. If I can get my money back + some profit, and get a nice wildlife habitat and view, them I'm a very happy farmer. So looming at 10 acres of BNG for it. Win win

Just got to identify the best company to go with.

Really I ought to be setting up in the BNG business myself, but got plenty on with other things!

 

[Grass And Grain]

Biggest concern is ragwort, thistles and docks.

 

[onesiedale]

Biggest concern is ragwort, thistles and docks.

They will go with time - just a natural succession

 

[steveR]

Bought the field which runs up to our house last year. It's horrible wet clay, winter waterloggs.

Was lucky last year and got 4t of wheat off it, but it's now sat fallow.

I'd love to have tree spinnies, ponds, habitat etc to look out over from the house, but it's an expensive luxury. Welcome BNG .

Only bought the field because wanted control over it. If I can get my money back + some profit, and get a nice wildlife habitat and view, them I'm a very happy farmer. So looming at 10 acres of BNG for it. Win win

Just got to identify the best company to go with.

Really I ought to be setting up in the BNG business myself, but got plenty on with other things!

Winner.... all being well! Best of luck with the project, and keep us posted. I will be really interested in how you get on.

Had a sniff for a BNG site here, but I reckon it has too far much potential for houses, down the line.

 

[steveR]

Biggest concern is ragwort, thistles and docks.

Weedwiper or spot spray with a knapsack

 

[steveR]

They will go with time - just a natural succession

I am dreading what will blow over out boundary fence from the recently planted STW woodland..... Looking at a lot of rubbish already waiting to blow onto my grassland. Bad enough with tree guards being blown about the place!

 

[snarling bee]

We are looking at BNG
I think it needs to be more than double ag value of the land to make it worthwhile. On going costs and assessments, 30 year commitment, tax treatment undecided (could be 40% or even 45%) and you will never see the land back.

 

[Nearly]

@Coximus

 

[Grass And Grain]

We are looking at BNG
I think it needs to be more than double ag value of the land to make it worthwhile. On going costs and assessments, 30 year commitment, tax treatment undecided (could be 40% or even 45%) and you will never see the land back.

Yes, I think it needs to be double+ of ag values, probably 3×. A lump sum payment will be heavily taxed, or is it CGT? Our accountant was saying with Option Fees you are selling part of the asset value of your land, therefore it's CGT, so only 20% tax (or is it 18%, depending on length of ownership, can't remember??).

Then there's 30 years of ongoing management with inflationary costs.

Would we need separate planning permission if creating pond and wetland areas? Or would this be done in the BNG process? Anyone know?

 

[onesiedale]

Would we need separate planning permission if creating pond and wetland areas? Or would this be done in the BNG process? Anyone know?

good question that, but the management plans are co-ordinated and approved by the local planning authority. - it's not up to you to specify a pond/wetland, you will be'told'

If an agent advised you to apply for pp then I would suspect they are out of their depth before it even starts.

The local councils have had this forced on them from UK gov. policy. They are under-resourced and are also new to it all.
If you can demonstrate with confidence, that you can help them meet their biodiversity targets then you could be in the driving seat, or at least in abetter position on contracts.

As I see it from the farm I am involved with, the biggest source of professional help is coming from the ecologist.
Good baseline studies are what is needed , and the sooner you crack on with them the sooner you will be in a position to understand what type of units and how many you will have available.

 

[Grass And Grain]

good question that, but the management plans are co-ordinated and approved by the local planning authority. - it's not up to you to specify a pond/wetland, you will be'told'

If an agent advised you to apply for pp then I would suspect they are out of their depth before it even starts.

The local councils have had this forced on them from UK gov. policy. They are under-resourced and are also new to it all.
If you can demonstrate with confidence, that you can help them meet their biodiversity targets then you could be in the driving seat, or at least in abetter position on contracts.

As I see it from the farm I am involved with, the biggest source of professional help is coming from the ecologist.
Good baseline studies are what is needed , and the sooner you crack on with them the sooner you will be in a position to understand what type of units and how many you will have available.

Arable field. Although guess proximity to other features could be relevant.

Our local authority are in process of producing their Local Nature Recovery Strategy, which adds in an extra BNG multiplier if you're in LNRS designated area (15%??). Tricky, don't want rest of farm in it! So might steer well clear of being on LNRS radar.

 

[onesiedale]

Arable field. Although guess proximity to other features could be relevant.

Our local authority are in process of producing their Local Nature Recovery Strategy, which adds in an extra BNG multiplier if you're in LNRS designated area (15%??). Tricky, don't want rest of farm in it! So might steer well clear of being on LNRS radar.

get to know the managers at local wildlife trust. They will be all over this stuff, and I would imagine be keen to speak to other land managers with a listening ear to the realities of keeping farms productive too.
Local one here is even going out onto farms and talking through ideas and is actually talking sensibly.
obviously no commitment either way, but it is a case of building an understanding of how things may pan out.
It's a serious commitment when you sign over a 30 year plan! That bit has got to be right.