Diversifying Income: Life after milking – Lydia Clare

Unfortunately, over the past few years, IPMS have borne witness to the

challenges faced by dairy farmers who have succumbed to the ever-increasing financial pressures that come with being part of the dairy sector. If you happen to be a dairy farmer or ex dairy farmer situated within the designated catchment areas listed below and have either ceased dairy operations in the past 18 months or are contemplating such a step in the near future, an extraordinary opportunity awaits – one that could potentially transform your life!

 

The concept of Nutrient Neutrality has emerged as a compelling legal imperative within the framework of Habitat Regulations, which prospective developers embarking on a new project must adhere to, as nutrient pollution from new building development can damage the rare ecology of protected aquatic ecosystems. Where sites protected under the Habitat regulations already have unsustainable levels of nutrient pollution, all proposals for new development are now required to show that the new scheme will not increase pollution and must maintain 'nutrient neutral'. This is achieved through a process of offsetting the anticipated nutrient outputs of the new development scheme. One notable avenue for achieving this balance is through the cessation of older dairy yards, provided they were established prior to the SAFO regulations (pre-1991).

The cessation of a typical dairy yard is estimated to generate approximately 40 kilograms of phosphate, possibly higher with additional quantities of nitrates present, depending on the specific location. The market value of phosphate ranges from £50,000 to £65,000 per kilogram, whilst nitrate values hover between £2,500 to £3,000 per kilogram. The precise calculation of kgs saved is performed by a Hydrologist. It's worth noting that, regardless of whether you have already transitioned out of dairy farming or not, you may still qualify to capitalise on the kilograms of nutrients inadvertently conserved through the closure process.

For example, 40kg would generate you circa £2.2 million pounds for doing nothing other than closing your yard (which you may have already done).

Please be aware that you retain the ownership of the yard. You only have to commit to no longer keeping livestock within the yard. It is important to emphasize that this change does not extend to the fields. The funds gained from this transition could potentially be channelled into other types of business diversification. There are many innovative avenues that could be explored, including the potential of permitted development for farm buildings to create rental properties/sale, establishing holiday accommodations (milking the tourists instead of the cows), providing caravan storage services, engaging in contract work, or even contemplating the option of a complete sale.

The horizon of opportunities is vast and varied.

I am more than happy to assist in evaluating your situation, so if you would like to check your eligibility or have further questions, please email lydia@ipmsltd.co.uk and provide your postcode and redline boundary. I am presently engaged with a number of plc developers who are actively seeking nutrient credits (kilograms) and are prepared to offer a premium to expedite the approval of their development ventures.

So which regions find themselves grappling with nutrient pressure? A total of 27 areas within England, alongside substantial portions of Wales, have been directly impacted by the obligations of Nutrient Neutrality. These regions are home to more than 72 out of the UK's 333 Local Planning Authorities that are subject to Nutrient Neutrality requirements, effectively making consent for new development contingent upon demonstrating nutrient neutrality. Looking ahead, the scope of this issue is poised to more than double in the next five years, enveloping 65 regions and spanning over 140 Local Planning Authorities. The area’s most acutely affected by the challenges of Nutrient Neutrality are precisely those regions in the United Kingdom where ambitious development initiatives are most concentrated.

Please see below for catchment affected areas:

England

The River Tees catchment

The River Wensum and Norfolk Broads catchments

The Somerset Levels

The Solent

The Hampshire Avon catchment

The River Eden catchment

The Derwent and Bassenthwaite Lake catchment

The River Wye and Lugg catchment (Herefordshire)

The Poole Harbour catchment 

The River Stour and Stodmarsh catchment  

The River Wye catchment (Derbyshire)

The River Camel catchment 

 

Wales

The River Usk catchment

The River Dee catchment

The River Wye catchment 

The River Towy catchment

The River Cleddau catchment

The River Teifi catchment