The Cost of Greening December 15, 2014 12:00 am AHDB has tried to quantify the economic impact of the new Greening rules. The figures in the table below were presented by the Levy Board’s Head of Strategic Insight David Swales and look at the potential drop in gross margins as a result of EFA rules on arable units. The impact of livestock farms is likely to be lower due to exemptions for those with more than 75% grassland. The estimates have been revised as more detail of the reform has been made available, with the impact being far less severe than originally thought (particularly for livestock units). Impact on Gross Margins 5% reduction applied evenly across crops £33-41 per Hectare 5% reduction applied to the poorest areas £21-37 per Hectare If nitrogen fixing crops used £2-10 per Hectare The impact of the Crop Diversification rules varies significantly. Most farms (around 70%) are expected to already be compliant however more farms are likely to be impacts in areas such as the north of Scotland and East England. Around a third of farms will face a drop in gross margins, averaging around £7 per hectare. A small percentage will be impacted to the tune of more than £15,000, while around 10% will lose more than £3,000. These figures do not take account for the cost of learning to grow a new crop, changing block cropping practices or costs associated with additional transport or time requirements.
