Chapter 1: Key Events
Updated 20 February 2024
Government and policy
On the 7 January 2022, Defra announced at the Oxford Farming Conference that on average, Countryside Stewardship would increase by around 30% and also unveiled the next stages of plans to restore up to 300,000 hectares of habitat across England, sharing details on the Landscape Recovery programme.
On the 14 January 2022, Defra announced the extension of the second phase of the Future Farming Resilience Fund until September 2022.
On the 18 January 2022, the Farming in Protected Landscapes programme moved to a rolling application window and is now open. The programme was extended and closes for applications in 2024.
Applications opened for the Improving Farm Productivity grant on the 19 January 2022. This grant paid for some of the costs for either slurry treatment equipment or robotics and innovation equipment.
The application window for the first round of Landscape Recovery pilot projects opened on the 1 February. Landscape Recovery supports landowners and managers to take a large-scale, long-term approach to producing environmental and climate goods on their land.
Defra awarded 4,376 Farming Equipment and Technology Fund (FETF) Grant Funding Agreements (GFAs) totalling over £48.5 million on the 22 February 2022. The FETF provides investment towards specific items of equipment which will improve productivity and efficiency for farming, horticultural and forestry businesses.
On Wednesday 30 March 2022, Defra announced a new package of support for farmers ahead of the coming growing season. The package of measures covered:
- Changes to urea usage: a delay to the proposed changes in use of urea fertiliser to help farmers manage costs.
- Sustainable Farming Incentive 2022: further details were announced on guidance, including steps aimed at bringing about more sustainable fertiliser technologies.
- Farming Innovation Programme: a further £20.5 million in research and development (R&D) grants were made available to launch two new products aimed at boosting productivity.
- Farming Rules for Water: an update was provided to clarify the recent changes on manure spreading and use of fertilisers, which will be supported through new slurry storage grants.
On Tuesday 12 April 2022, Defra announced the opening of applications for the Lump Sum Exit Scheme to facilitate farmers with a voluntary planned exit from farming.
On the 9 May 2022, Defra changed the way we make Basic Payment Scheme (BPS) payments. Farmers with eligible applications now receive half of their payment in July, and the rest in December. Bringing forward half of 2022’s BPS payment gave farm businesses an advance injection of cash and helped farmers to make business decisions with more confidence.
The application window for expressions of interest for the Research Starter Projects Competition opened on 23 May 2022. The competition was designed to be an entry point to the innovation process for farmers, growers or foresters who have bold, ambitious, early-stage ideas for solving major problems.
The Farming Investment Fund: Adding Value grants opened for applications on the 9 June 2022. This £30 million fund offers grants focused on supporting farmers and growers to process, diversify and add value to their eligible agricultural products after they are harvested or reared.
The Sustainable Farming Incentive (SFI) opened for applications on the 30 June 2022. Through the SFI, farmers will be paid for looking after the natural environment in the course of their farming.
On 12 July 2022 Defra invited farmers, growers, foresters, businesses and researchers to apply for a share of £12.5 million to focus on the research and development of sustainable farm-based protein. The application window ran from 25 July until 21 September with projects expected to start from 1 April 2023.
Defra confirmed the opening of the final phase of free business advice to any farmer or land manager who receives BPS in England on 14 July 2023. Under the Future Farming Resilience Fund, the support opened in October and has been scaled up. £32 million was awarded to 17 organisations and will support up to 32,000 farmers and land managers.
Defra launched the England Woodland Creation Offer on 9 August 2022. Eligible farmers and land managers were invited to apply for a share of £25 million available this financial year to support woodland creation in England. Applications can be submitted at any time of the year and there is no deadline.
As part of the Farming Innovation Programme, on 22 August 2022, Defra announced that from 31 August Farmers, growers, foresters, businesses and researchers can apply for:
- a share of £5.5 million to fund feasibility projects
- a share of £11 million to fund small research & development partnership projects
In September 2022, Defra put a new online service in place to make it easier for farmers to apply for the Sustainable Farming Incentive. The automated service lets you see which parts of your land are eligible for each SFI standard. This, in turn, makes it quicker for us to process applications.
Applications for the New Entrant Support Scheme pilot opened on 24 November 2022. The New Entrant Support Scheme aims to better support those who want to enter farming and develop land-based businesses.
The first round of the Slurry Infrastructure grants opened for applications on the 6 December 2022. The grant helps replace, build new or expand existing slurry stores to provide 6 months’ storage.
On the 16 December 2022, Defra announced that 45,000 visas for seasonal workers will be available to horticulture businesses in 2023 - an uplift of 15,000 compared to what was available to businesses at the start of 2022.
Key contextual factors
Global events
Coronavirus (COVID-19)
In 2022, the UK was still recovering from the coronavirus (COVID-19) pandemic, which had impacted a wide range of areas including markets, supply chains, worker shortages and prices.
Ukraine
Russia’s invasion of Ukraine had a significant impact on prices in the agricultural sector, in particular on cereals, oilseeds, fuel and energy, which saw rapid price increases due to global trade disruption. The individual chapters in this report provide more detail on how the invasion of Ukraine has impacted the agricultural sector.
Price volatility
2022 saw an exceptional year of price volatility, with prices for both agricultural inputs and agricultural commodities driven up by rising oil and energy costs, shortages of fertilisers and Carbon Dioxide as well as trade disruption amid the conflict in Ukraine. Overall, price increases across commodities more than offset the impact of high input prices and associated decreases in production in some sectors. Rising commodity prices meant high food price inflation, which further contributed to the national cost of living crisis.
Pig market disruption
The challenges faced by the pig industry in 2021 continued to impact on the sector through 2022. In 2021, COVID-19 caused disruption to CO₂ supplies, a temporary shortage of labour in the processing sector, the loss of exports to the Chinese market for some pig processors and oversupply on farms, resulting in an on-farm backlog by winter 2021. The effects of this continued into the first half of 2022, driving production gains. Q1 2022 had the highest recorded average clean pig carcase weight at 93.58 kg/head. The war in Ukraine has further disrupted the pig market with high feed and energy costs impacting further on the profitability of pig producers. As a result, there has been significant re-structuring in the sector and a 15% decrease in the size of the pig breeding herd by June 2022.
Labour shortages
The agricultural sector has been impacted by labour shortages, resulting in part from EU Exit and the COVID-19 pandemic. In 2022, Defra announced an Independent Review into Labour Shortages in the Food Supply Chain to consider the challenges facing food and farming businesses to recruit and retain labour. The report aimed to provide recommendations for industry and government to consider and was published on 30 June 2023.
Exchange rates
The relationship between the Pound and Euro has a key bearing on the fortunes of UK farming as the majority of UK exports of agricultural commodities are made to the Eurozone. A weaker pound increases the competitiveness of UK exports but increases the price of imports, including inputs such as fertilisers and pesticides. The pound weakened against the Euro in 2016 and has remained relatively stable since. In recent years, the pound strengthened slightly against the Euro in 2021 and early 2022, before weakening again later in 2022.
Weather
2022 was the warmest year on record for the UK (since 1884), with all months except December experiencing warmer than average weather. It was a dry year, with below average rainfall for all but the autumn months. However this wet weather was not enough to offset the previous dry months.
Winter
Overall the winter was the UK’s eighth mildest in a series since 1884, with a mixture of settled and wetter weather. January 2022 was a particularly dry month, with only half the average rainfall. England had its sunniest January since 1919, but it was notably cold at night in England and Wales. It was especially mild in Scotland where monthly mean temperatures were 0.8 °C above average. Towards the end of January it became milder and wetter, and February experienced frequent rain in most areas. There was a particularly stormy spell between 16th and 21st including storms Dudley, Eunice and Franklin. February was relatively mild and frost-free, especially in southern areas, ending up 1.5 °C above average overall.
Spring
Spring 2022 was warmer than average, by up to 1.0 °C in most areas. This was largely due to daytime temperatures in March and night-time temperatures in May being higher than average. Mean temperatures for March were 1.0 °C above the long-term average, with Scotland and Northern Ireland having their sunniest March since 1919. In April there were some cold nights and late frosts, but daytime temperatures were slightly higher (0.2 °C overall average for the month). May was mostly warm but cooled slightly towards the end of the month giving an overall temperature 1.2 °C above average. Overall, rainfall in March and April was below average for most of the UK. However, May was very wet in Scotland, and dry in some parts of England and Wales.
Summer
Summer 2022 was warm and dry, with all three summer months experiencing above average temperatures. This was particularly true in the Eastern counties of England where temperatures were nearly 2 °C above average. There were hot spells in each month, but on the 19 July a new UK record of 40.3 °C was set in Lincolnshire. All three months were generally sunnier than average, especially in England. Rainfall was below average in June, with only a few western counties in England exceeding the average. This gave a UK-wide figure of 76% of average rainfall. During July and August there was little rain in most areas, with only approximately half of average rainfall (54% and 56% of average, respectively).
Autumn
Autumn 2022 had higher average temperatures across all three months, and was the UK’s third warmest autumn since 1884, with 2006 and 2011 being the only warmer years. The weather was unsettled for most of the time, giving above-average rainfall. From mid-September the weather became unsettled and turned cooler. Rainfall in September was near average, though East Anglia, Lincolnshire and Scotland were drier. Overall temperatures were 0.5 °C above average. October was on the warm-side with temperatures 1.8 °C above average. The weather was drier along eastern coasts, but most other areas were wetter than average. November was mild with temperatures 1.8 °C above average, the third warmest on record. There were fewer frosts than normal, but it was a wet month, with some areas having double the average rainfall.
Animal Health
Avian influenza
In 2022 calendar year, there were 1446 incidents of highly pathogenic avian influenza (HPAI) H5N1 in the UK. The majority of cases were in wild birds (1207), with 177 cases in farmed birds, 50 in smallholder establishments, and 12 in captive birds in zoos or wildlife centres. In England there were 752 cases of HPAI H5N1 in wild birds, 162 in commercial poultry, 39 in smallholder establishments and 10 in other captive birds. Scotland reported 353 cases of H5N1 in wild birds, 11 in commercial poultry, 8 in smallholder establishments and 1 in captive birds. In Wales there were 69 cases of H5NI in wild birds, 4 in commercial poultry and 3 in smallholder establishments. In Northern Ireland there were 33 cases of H5N1 in wild birds and 1 in captive birds.
For the first time the HPAI H5N1 virus continued to circulate during the summer months and many cases were detected in colony breeding sea birds during the summer. Wild bird surveillance is not intended to provide an accurate account of each infected wild bird; it is based on findings of dead birds of target species and a triage system is used to test only a proportion of those reported, to provide actional intelligence and inform policy decisions. The numbers presented here are based on the calendar year and not the avian influenza season, which runs between October to September to coincide with the waterfowl migration season.
Bovine Tuberculosis (bTB)
England
The percentage of herds officially TB free in England was 95.5% at the end of 2022, a slight increase on 2021. Government strategy is driving for TB eradication by 2038. See the full set of the 2022 National Statistics for TB in cattle in GB.
The Bovine TB Partnership in England met six times in 2022 to continue the shared ownership, co-ordination and decision-making surrounding England’s 25 year bTB eradication strategy.
The first phase of field trials for a new cattle TB vaccine and allied skin test (DIVA -Detect Infected among Vaccinated Animals) were completed in 2022. The second phase is ongoing. If trials are successful, we will move closer to being able to vaccinate cattle against bTB.
A Defra-funded project in East Sussex that supports the farming community to deploy badger vaccinations completed its second year in 2022, with 562 badgers vaccinated over 256 km2. Defra launched a simplified licence for vaccinating badgers, alongside a smartphone reporting app, reducing the administrative burden.
In England a total of 2,434 badgers were vaccinated against TB in 2022, an increase of 55% from the 1,575 badgers vaccinated in 2021.
Natural England (NE) licensed eleven new badger TB control areas in 2022. This brought the total number of intensive culling areas in England to forty including one in the Low Risk Area. NE also licenced 10 new supplementary badger control areas bringing the total number of areas to 29.
In line with the transition away from culling towards wide scale badger vaccination, the 11 new intensive culling licences issued in 2022 were the last. As in 2021, new supplementary badger control licences were licensed for two years.
Wales
In Wales there were fewer new TB incidents in the High West TB Area in the 12 months to December 2022 compared to the previous period, in line with current trends observed for this TB Area. However, there were increases in the Intermediate North (2.3% increase) and High TB Area East (15.9% increase). The 12-month rolling average in new incidents has also increased to 16 and has been generally increasing since January 2022.
From 17 January 2022, the 3-year inconclusive reactor (IR) rule has been revoked. This rule stated that if there was a TB breakdown (with lesion and/or culture positive) on the holding within the past three years then the whole herd movement restrictions remain until the IR is re-tested.
From 17 January 2022 all new TB breakdowns across Wales, will be classified as Officially TB Free Status (OTF) Withdrawn. There are two exceptions, which will continue to be classified as OTF suspended (OTFS):
- OTF herds with one or more suspected slaughterhouse cases where culture results are still pending.
- Breakdown herds where non-homebred animals positive to Interferon-gamma and/ or IDEXX antibody testing only (i.e. no skin reactors) have been disclosed and disease has not been confirmed on culture results.
OTFS herds where the breakdown started prior to 15 November 2021 will remain OTFS unless any further skin test reactor is disclosed, or epidemiological risk factors apply.
To develop a clearer understanding of the escalating disease picture in North Wales, additional blood testing in farms in Wrexham, Clwyd Valley, Denbighshire, and the Pennal area in the Intermediate TB Area Mid, commenced in June 2021 and finished in April 2023. Alongside the skin test several ancillary tests such as the gamma test, the flexible extended gamma test and the IDEXX Antibody Test are used to improve the detection of bovine TB infected animals. No single test or combination of tests for bovine TB provides 100% test specificity or sensitivity. Other measures introduced in Wrexham, Clwyd Valley, Denbighshire and Pennal area in 2021 and continued into 2022 include:
- Interpretation being maintained at severe through the breakdown with an exit strategy.
- Additional contiguous tests.
- Action Plans for herd breakdowns recurrent and up to the 6-month test (provided not due to purchase).
- Cymorth Keep It Out visits for contiguous herds.
Scotland
In Scotland a public consultation was held between 9 May – 1 August 2022 to gather views on amendments to the Tuberculosis (Scotland) Order. Following this, a minor amendment was made under The Tuberculosis (Scotland) Amendment Order 2022 to introduce a requirement for permission to be sought from Scottish Ministers where samples are taken with the intention of testing them for TB. A full consolidation of Scotland’s TB legislation, including a number of changes, will also take place in 2023 to take forward the remaining changes identified as a result of the consultation.
Northern Ireland
In Northern Ireland, herd incidence for 2022 was 10.20% with animal incidence standing at 0.934%. Herd and animal incidence both rose over the past year (from 8.85% in 2021 for herd incidence and from 0.786% for animal incidence). This represents the highest herd incidence rate in Northern Ireland since the aftermath of the Foot and Mouth Disease which disrupted the bTB programme in the early 2000s.
These disappointing figures highlight the need for additional measures to tackle the disease and work has progressed on the implementation of the new bTB Eradication Strategy for Northern Ireland which was launched by former Minister Poots in March 2022. The Strategy is the product of several years’ work, including the 2016 recommendations of the TB Strategic Partnership Group and two subsequent public consultations. However, the proposed wildlife intervention has been the subject of a legal challenge from two environmental groups. A judicial review hearing took place in Belfast in November 2022 and, at the time of writing (May 2023), a decision is still awaited.
Note: More information on Bovine Tuberculosis can be found at the TB hub.