Wait before investing in NVZ infrastructure, warns Savills

Farmers with land in a Nitrate Vulnerable Zone should postpone large investments following a spate of successful appeals, says rural agent Savills. Thousands of farmers are facing massive expenditure to comply with stringent new NVZ regulations, but a series of appeal victories means some land is now being declassified.

"Around 800 farmers have appealed the designation of their land as an NVZ, with successful cases benefiting all farmers in the same catchment area," says Paul Smalley, Associate Director at Savills. "It only takes one successful appeal to potentially de-designate the entire catchment zone, so anyone who is considering making a large investment to comply with the new rules should wait until Defra publishes revised maps in the spring."

Defra expanded the NVZ areas with effect from 1 January 2009, to cover almost 70% of England’s agricultural land. Under the new regulations, farmers are restricted in the amount of manure and fertiliser they can apply to the land, and the timing of such applications. "Dairy farmers will be particularly badly affected, as many need to increase their slurry storage considerably to provide at least five months’ storage capacity.

"Some 75% of dairy farmers do not have enough storage to comply with the rules, which will cost an estimated average of £40,000-£60,000. That is a considerable investment, particularly given the dire state of the dairy industry in recent years."

Farmers who believed their land to be incorrectly classified had to appeal before 31 January, 2009. The appeals committee concluded most cases by the end of December, but the revised NVZ boundaries will not be available until the spring.

"Many producers facing this stringent and costly burden are, understandably, questioning their future in farming," says Mr Smalley. "However, the declassification of a number of NVZ areas – including some which have been designated since 1996 - could offer a lifeline to these producers. I would urge anyone who is in this situation to put any decision on hold until the revised maps are available."

Farmers must continue to comply with the NVZ regulations until the boundaries are clarified, but have until January 2012 to provide sufficient slurry storage space. "Although grants are not directly available to meet NVZ requirements, producers may benefit from Agricultural Resource Management Grants via the Rural Development Programme for England. For more information, speak to your local Savills’ office."