The National Farmers’ Union (NFU) is lobbying against price hikes for new environmental permits being proposed by the Environment Agency which could severely affect growers involved in on-farm composting, as well as those spreading materials such as compost on their land.

Under the proposed changes, current waste management activities that are carried out using chargeable, notifiable exemptions will be replaced by a new system of standard permits and see a huge jump in fees.

Changes will include a new permit for waste composting with charges of £1,590 per application and a £760 annual subsistence fee - which are currently free; a new permit for landspreading waste increasing from around £575 per application; a £434 renewal fee to £1,590 per application fee; a £760 annual subsistence fee; and a proposed fee of £1,590 and £1,540 for application and subsistence for new permits covering on-farm anaerobic digestion plants.

There are also proposed across the board increases in baseline charges by one per cent, as well as changes to the groundwater, water abstraction and radioactive substances charging regimes.

NFU deputy president Meurig Raymond said: “We have very strong concerns about the Environment Agency’s proposed charge, increases which will mean substantial changes and price hikes for many farmers and growers at a time when, like any industry, they can ill afford them.

“The NFU has responded to this consultation in the strongest terms. There is a real fear that small-scale, commercial on-farm composting units will not be able to sustain the increase in charges and this could ultimately drive them out of business. Charges for spreading beneficial materials, such as compost, could amount to thousands of pounds for some farmers. This goes completely against government policies which are supposed to be encouraging the addition of organic matter to farm soils.

“We are also deeply concerned that the proposed charges for a permit, which recognises the environmental benefit of treating sheep dip, do not reflect the Environment Agency’s commitment to provide a worthwhile financial incentive to farmers. In fact, those charges could discourage farmers from treating their dip in this way. The agency really needs to start looking at innovative ways to encourage better environmental solutions.

“Other stings in the tail include higher charges for on-farm anaerobic digestion plants, despite government claiming it is keen to encourage farmers to use on-farm inputs to reduce emissions and produce green, clean energy.

“It seems perverse that while we are being encouraged to do more for the environment in terms of waste management, the Environment Agency is seeking to increase the legislative burden and cost for farmers.”