STRATEGIC SCIENCE ADVISORY PANEL

SUBJECT: Defra RESEARCH IN SUSTAINABLE AGRICULTURE

MEETING: 15&16 JANUARY 2007

SUMMARY

This paper sets out:

• A description of Defra's activities in Sustainable Agriculture research

ACTION

The panel members are invited to:

• Note and discuss the role of Defra in Sustainable Agriculture research

Dr Sue Popple, Head of Sustainable Farming and Food Science Division, Defra, will give an oral presentation on Defra's Research on Sustainable Agriculture

Science & Analysis Group

December 2006

Defra RESEARCH IN SUSTAINABLE AGRICULTURE

Research on Sustainable Agriculture is funded by the Sustainable Farming and Food Science Directorate General. These science programmes contribute to the evidence base for policy development and encourage industry to innovate to meet the challenges it faces. The key objective is to improve the environmental performance of the food and farming industries and to achieve this within economically sustainable industries using minimum regulatory burdens in line with Defra's Sustainable Farming and Food Strategy.

There are 5 research programmes:

1. Agriculture and climate change (Annex A): A major aim of this programme is to support reductions in greenhouse gas emissions from agriculture, forestry and land management. Inventories of emissions of pollution gases from agriculture are needed to reflect the impact of changes in agricultural systems and practice so as to monitor the effects of policy interventions. Insight into the sources and fate of emissions are also needed to support and prioritise abatement measures. The programme will continue research on the impacts of climate change on agriculture, looking particularly at the impact of extreme events and on responses to policy interventions such as the Agri-Environment schemes. Additional research will provide a detailed picture of direct energy consumption in agriculture, the associated primary energy inputs, and resulting greenhouse gas emissions. This information will be used to target research to reduce reliance on non-renewable energy in the food chain. The sustainable development of the non-food uses of crops as feedstocks for both energy and industry use will also be supported

2. Water quality and use (agriculture) (Annex B): UK land management will need to comply with a range of new and existing EU and domestic legislation all of which aims to improve the quality of water (in rivers, lakes, ground water, transitional and coastal waters). In order to meet these targets, there is a need to tackle diffuse water pollution from agriculture. Water is a valuable and limited resource in the UK and there are growing pressures on water resources, especially in the South and East of England, from increasing domestic demand, additional housing development and agricultural demand. It is essential that agriculture and the food manufacturing industries use water more efficiently. The aim of this programme is to fund research to ensure that Defra can deliver on the UK's national and international environmental commitments for water quality with respect to the impact of agriculture, and develop tools to ensure that agriculture and the food industries use water efficiently.

3. Food chain meeting consumer needs (Annex C): This research programme addresses the need for the food chain industries to provide foods of high quality and safety and to be resource efficient by minimising waste. In these respects it covers the whole food chain, from primary production through to manufacturing and distribution. There are also cross cutting aspects of the programme which focus on understanding the environmental foot prints of food supply chains and the means by which these could be reduced. The programme envisages engagement with food and farming industry partners in collaborative research, such as LINK, and in knowledge transfer activities. Other elements of the programme seek to procure evidence needed to inform policy.

4. Sustainable farming systems and biodiversity (Annex D): The Sustainable Farming Systems and Biodiversity Programme is developing system-based approaches to farming and land management which will help the farming and food industry deliver Defra's desired outcomes for sustainable agriculture. Farm businesses increasingly need to take account of or comply with a wide range of policy instruments and targets alongside market, consumer and other economic considerations. However, there are often interactions and conflicts among the components of farming systems, requiring a proportionate and workable balance to address these pressures holistically. Overall, the research focuses on reducing the negative environmental footprint of agriculture and sustaining and enhancing the environment and biodiversity associated with farmland, while helping industry sectors become better able to manage their own risks. The programme covers organic farming and suitably integrated farming systems that can contribute to these aims.

5. Plant Health (Annex E): The primary aim of the Defra Plant Health Service is to prevent the introduction and spread of serious plant pests and diseases that threaten agricultural and horticultural industries and the rural environment in England and Wales. Imports of plants for planting, seeds, grain, fruit, cut flowers, vegetables and soil all pose significant risk pathways for the introduction of harmful pests and diseases. Individually, many of these organisms may not present a serious concern. However, at any given time, there will be a range of harmful organisms, including invasive plants, which will require statutory control because of their quarantine status. The negative impact of these organisms on crop production or the environment provides the justification for action to prevent or minimise the risk of introduction and spread in and around the country.

Annex F contains a summary of Defra's Evidence and Innovation needs to deliver policy objectives for Sustainable Farming and Food.

ANNEX A -AGRICULTURE AND CLIMATE CHANGE

Policy Drivers

This programme of research supports Defra's objectives to;

· reduce GHG emissions to 12.5% below 1990 levels and move towards a 20% reduction in carbon dioxide emissions by 2010,

· deliver a more customer-focused, competitive and sustainable farming and food industries,

· improve air quality by meeting the Air Quality Strategy targets

Many of the climate change drivers are set out in the agriculture, forestry and land use management chapter of the Climate Change Programme Review. The Food Industry Sustainability Strategy sets out corresponding commitments for the food industry, particularly with respect to energy use.

The non-food crops area is important to a wide range of Defra strategic priorities, brought together in the Strategy for Non-Food Crops and Uses. Work on bioenergy is currently driven by the Government's response to the Biomass Task Force.

Sub Programmes

AC01: Emissions from agriculture to air

This programme provides inventories of emissions of pollution gases from agriculture. Increasingly, these need to reflect the impact of changes in agricultural systems and practice so as to monitor the effects of policy interventions. Defra also needs insight into the sources and fate of emissions to support and prioritise abatement measures. These policy objectives point to a common research need: an understanding and quantification of nitrogen and carbon based pollution gas emissions from agriculture to air.

AC02: Mitigating nitrogen and carbon emissions to air

The aim of this research is to, a) support reductions in greenhouse gas emissions from agriculture, forestry and land management in line with current projections of a fall to a total of the equivalent of 13 M t C pa by 2020, and b) to ensure that ammonia emissions from UK agriculture fall to below 297 kt by 2010 (from 320 kt in 2000).

Policy options for ammonia and nitrous oxide revolve around raising the efficiency of nitrogen use in agriculture. This ranges from facilitating reductions in livestock numbers to reduce all livestock related emissions, options that raise the efficiency of the nitrogen cycle ranging from plant breeding for nitrogen acquisition, partitioning, and protein content and quality, the nitrogen fertilisation of crops animal nutrition, some engineering options to reduce or trap emissions from farms, and the development of farming and agricultural systems that are intrinsically more efficient with respect to the N cycle.

R&D related policy options for methane mitigation also include facilitating reductions in cattle and sheep numbers and modifications to diets. Manure and slurry from all species accounts for about 14% of methane emissions, so some engineering solutions applied to manures are relevant.

AC03: Climate change and adaptation in agriculture

This programme will continue research on some of the impacts of climate change on agriculture, looking particularly at the impact of extreme events and on responses to policy interventions such as the Agri-Environment schemes.

AC04: Energy in agriculture and food

Research in this sub programme will provide a detailed picture of direct energy consumption in the agriculture, the associated primary energy inputs, and resulting greenhouse gas emissions. This information will be used to target research investment to underpin innovation reducing reliance on non-renewable energy in the food chain. Research underpinning innovation will first seek to foster the reduction in energy inputs into agriculture. Subsequent research investment, informed by the analysis of energy consumption and renewable resources, will be aimed at underpinning relevant policy interventions (for example on the treatment of manures using anaerobic digestion to produce biogas).

NF04: Bioenergy

The overall objective is to enable the sustainable development of non-food crops as feedstocks for energy. To achieve this and deliver large energy and greenhouse gas benefits, on-farm production must be efficient based on high yielding crops delivering to the required quality standard. Complementing other funders, research on increasing the efficiency of primary production will be a priority. A targeted breeding and clone selection programme for willow, poplar and miscanthus underpinned with molecular marker and genomic research will be delivered to achieve this goal. The research work will extend up to the point where commercial exploitation of new planting material is possible (by 2012). Also complementing other funders, the research programme will also assess impacts on biodiversity, greenhouse gas mitigation, and on the rural economy.

NF05: Renewable materials

Supporting delivery of the Strategy for Non-Food Crops and Uses, the overall aim is to enable the sustainable development of the non-food use of crops as feedstocks for industry. Bridging basic research supported by Research Councils and industrial uptake, the programme will be market led, respond to a diverse range of scientific, market and environmental opportunities, emphasise the delivery of high value materials that support sustainable production and consumption.

ANNEX B - WATER QUALITY AND USE (AGRICULTURE)

Policy Drivers

This programme will contribute to a number of Defra Strategic Priorities including:

• Sustainable Consumption and Production - by reducing the impact of agriculture on the environment while enabling farming to remain competitive;
• Protecting the Countryside and Natural Resource Protection - by improving water quality;
• Sustainable Farming and Food - by ensuring farmers, growers and land managers have the tools to enable them to contribute to an environmentally and economically sustainable food supply chain.

The programme will also contribute to two of Defra's PSA targets:

• Care for our natural heritage, make the countryside attractive and enjoyable for all and preserve biological diversity, including maintaining SSSIs;
• Deliver more customer-focused, competitive and sustainable farming and food industries.

Sub Programmes

WQ01: Minimising the adverse impacts of UK agriculture on water quality

The aim of this programme is to fund research to ensure that Defra can deliver on the UK's national and international environmental commitments for water quality with respect to the impact of agriculture, while providing the tools to ensure the UK can maintain a sustainable farming sector. Current objectives for the programme are:

· To assess the contribution of land management in England and Wales to nutrient, soil and microbial loss to water at a national, catchment and field scale level;

· To mitigate transportation of pollutants into watercourses;

· To identify cost-effective mitigation approaches;

· To understand land manager behaviour;

· To develop management guidelines and policy instruments.

WU01: Optimising water use by UK agriculture and food production industries

The aim of this programme is to fund research which develops tools to ensure that agriculture and the food industries use water efficiently. Current objectives for the programme include:

• To provide information on water use in agriculture and food;
• To identify opportunities for water saving in agriculture and food;

· To understand land manager behaviour;

· To develop management guidelines and policy instruments.

ANNEX C - FOOD CHAIN MEETING CONSUMER NEEDS

Policy Drivers

As a result of CAP reform, virtually all direct financial support for the UK crop and horticultural sectors is now either decoupled from production, or has simply ended. The aim is that future cropping should be in response to market demand and consistent with the Government's broader sustainable development agenda through:

· minimising environmental impact, particularly in respect of resources like soil and water

· contributing to economic prosperity, especially in meeting consumer needs

· helping to underpin rural communities and providing a countryside for all to enjoy

Policy relating to the arable and horticultural sectors is therefore no longer concerned with absolute levels of supply, but more generally with contributing to all 5 of the Defra Strategic Priorities, and specifically to those outcomes which relate directly to delivering "more customer-focused, competitive and sustainable farming and food industries", as set out in PSA Target 5. These are articulated in more detail in the Sustainable Farming and Food Strategy and in the recently launched Food Industry Sustainability Strategy (FISS).

Sub Programmes

FO01: Efficient food manufacturing and distribution

This sub-programme is concerned with achieving a resource efficient food industry, covering manufacturing through to retail. It forms a key part of the implementation of FISS. The programme has linkages with sustainable consumption and production (SCP), and with other SFF programmes on energy and water use. It furthermore covers issues of security of food supply.

FO02: Waste reduction and recycling in the food chain.

This sub-programme is concerned with the need to minimise or recycle waste in the whole agri-food chain. There are linkages with SCP, with Waste Strategy and with Waste Management (agricultural waste). The development of this new and relatively small sub-programme will involve strong interaction across Defra.

FO03: Quality foods meeting consumer needs

This sub-programme concerns enhancement of the safety and quality (including nutritional quality) of food raw materials and products, from primary production through to the consumer. This is to take into account considerations on resource efficiency of FO01 and FO02. It responds directly to the Research Priorities Report.

ANNEX D - SUSTAINABLE FARMING SYSTEMS AND BIODIVERSITY

Policy Drivers

The Sustainable Farming Systems and Biodiversity Programme supports whole farm system-based approaches to farm production and land management to help deliver Defra's desired outcomes for sustainable agriculture. In responding or contributing to these, the farming industry has to consider individual policy instruments and targets not just in isolation but in relation to their wider or cumulative effects. The Programme contributes to all of the Defra Strategic Priorities and especially to "more customer-focused, competitive and sustainable farming and food industries".

Sub Programmes

The two current sub-programmes (Organic farming; Integrated farming systems) are designed to understand, develop and incorporate key practices into modern farming systems, enabling negative environmental impacts of production to be reduced or eliminated and addressing consumer needs, while maintaining the economic viability of the farm and farm businesses.

OF01:Organic farming

The organic sector has a high profile in the UK and there is an Organic Action Plan to develop organic food and farming. It is seen as an environmentally sound form of farming, reflecting sustainable food and farming objectives and helping to satisfy an increasing consumer demand for organic products. The R&D Programme is informed by stakeholder engagement and an expert R&D sub-committee of the Advisory Committee on Organic Standards. Key objectives include: information on agronomic performance and profitability; evaluation of the impact of organic farming on the environment; improved techniques to overcome main constraints; and underpinning development of organic standards and future policy.

IF01: Integrated farming systems

Integrated agricultural systems have the potential to contribute to a range of outcomes and have arguably been neglected in the past under sector specific programmes. Intuitively, adoption of a more holistic and sustainable approach should help deliver the desired objectives for farming but often there are interactions between various components of the system. Some can reinforce each other but others may conflict and affect the economic benefits that farmers and growers are primarily seeking through their crop or livestock management. For example, low-till approaches for field crops which are attractive in terms of energy and biodiversity could actually increase the risk of mycotoxin contamination and also have implications for nitrogen issues and weed control. Few of these system-related topics are likely to attract direct industry funding for the same reasons which resulted in their relative neglect under past sectoral programmes. There is often a limited range of evidence of the environmental benefits obtainable at farm level but there is considerable scope for new work which might later provide platforms for more specific industry-led follow-up. General priorities for 07/08 are an assessment of how far environmental benefits can be achieved by whole farm approaches as opposed to targeted measures and consideration of gaps that might need to be addressed more specifically.

ANNEX E - PLANT HEALTH

Policy Drivers

The work of Plant Health feeds primarily into two of Defra's objectives,

a) To promote sustainable, diverse, modern and adaptable farming throughout domestic and international actions.

b) To protect and improve the rural, urban, marine and global environment, and to lead integration of these with other policies across Government and internationally.

Plant Health research activity supports four policy areas.

· Exclusion of quarantine plant pests and diseases.

· Eradication and containment of plant pests and diseases.

· Trade facilitation

· Production of Pest Risk Assessments for the development of optimum policy

Sub Programmes

Exclusion of quarantine plant pests and diseases

The aim of this research programme is to a) develop sensitive and robust methods for the detection of quarantine organisms, including the development of appropriate technology for 'on-site' use, b) develop efficient, sensitive and specific methods of diagnosis of organisms of concern, and c) continually maintain and improve diagnostic capability including the development of diagnostic tools for 'on-site' use.

Eradication and containment of plant pests and diseases

This programme improves the understanding of specific quarantine pests and diseases as a basis for the development of optimal eradication or containment strategies. These strategies should contribute to the overall reduction in chemical inputs, include sustainable waste management practices and take account of production methods including organic systems. They should also take account of wider biodiversity issues. This programme will target organisms including those which affect commercial crops as well as environmental pests, including invasive plants, which threaten the native flora.

Trade facilitation

The aim of this programme is to assess key aspects of pest and disease biology and distribution to support the development and operation of Plant Health passporting, certification and marketing schemes.

Development of optimum policy

The aim of this research is to proactively assess the risks posed by the occurrence, movement and establishment potential of pests and diseases to estimate the impact of these organisms and their controls through the utilisation of pest and disease management science and a detailed information on crop production systems and environmental ecosystems. Continual development of the science of pest risk assessment will be undertaken to increasingly include economic, environmental and socio-economic analysis.

ANNEX F -SUSTAINABLE FARMING AND FOOD EVIDENCE AND INNOVATION NEEDS TO DELIVER POLICY OBJECTIVES

1 Summary of needs

Agricultural and food research and science programmes have been refocused to address wider Defra objectives, including climate change, water quality and sustainable consumption and production. Existing sector facing programmes are winding down, with funding transferring to the new programme areas: including agriculture and climate change; sustainable water management; sustainable farming systems; food chain meeting consumer needs; and plant health and bee health. These programmes will contribute to delivering the Sustainable Farming and Food Strategy (SFFS) and have been informed by the Research Priorities Group.

Work will continue on developing the key statistical outputs with European Partners with increased emphasis on meeting the new policy needs.

Science based Programme

Agriculture and Climate Change Programme

This will comprise six sub-programme areas as follows:

Emissions from agriculture to air

This research will revise, update and submit the annual UK inventories of ammonia and greenhouse gas emissions from agriculture, and assess the efficacy of existing and further abatement options. It will also quantify and help mitigate the role of agricultural ammonia as a precursor gas for PM2.5 and PM10 in the UK and improve our understanding of key sources of primary particles (dust) from agriculture.

Mitigating nitrogen and carbon emissions from agriculture to air

The overall policy objectives are to enable greenhouse gas emissions from agriculture, forestry and land management to fall to a total of the equivalent of 13 M t C per annum by 2020 and to ensure that ammonia emissions from UK agriculture fall to 297 kt by 2010 (from 320 kt in 2000).

Building on an extensive Defra and external R&D base, a wide range of scientific and technical outcomes are under consideration, including:

· Information on the costs of abatement options;

· the delivery of genetic improvements to livestock that facilitate a reduction in emissions from the livestock sector;

· the improvement of livestock diets to reduce nitrogen emissions;

· the further development of livestock buildings, slurry/manure handling practices, and other farm features to reduce emissions and/or transport of ammonia and methane;

· knowledge on how the impact of ammonia on ecosystems can be reduced through localised and spatial ammonia (NH3) emission reduction strategies, both at sub-national/regional levels and local levels;

· knowledge to support the development of a market based mechanism for mitigation of greenhouse gases from agriculture at the farm level; and

· clear policy delivery plans based on information on how and when the existing and planned research outputs translate into technical outcomes that further policy delivery.

Climate change and adaptation in agriculture

A continuation of research on the impacts of climate change on agriculture, looking particularly at the impacts on responses to policy interventions such as the Agri-Environment schemes. The national, regional and global level of the economic and trade implications of climate change will be investigated. The programme will also establish an innovation centre to lead and foster research partnerships with relevant UK farming and food interests, drawing on input from other relevant climate zones.

Energy in agriculture and food

This research will provide a detailed picture of direct energy consumption in agriculture, the associated primary energy inputs, and resulting greenhouse gas emissions. This information will be used to target research investment to underpin innovation, reducing reliance on non-renewable energy in the food chain. Research underpinning innovation will first seek to foster the reduction in energy inputs into agriculture. Subsequent research investment, informed by the analysis of energy consumption and renewable resources, will be aimed at underpinning relevant policy interventions (for example on the treatment of manures using anaerobic digestion to produce biogas).

Bio-energy

The overall objective is to enable the sustainable development of non-food crops as feedstocks for energy. To achieve this and deliver large energy and greenhouse gas benefits, on-farm production must be efficient based on high yielding crops delivering to the required quality standard. Complementing other funders, such as the DTI and BBSRC, research on increasing the efficiency of primary production will be a priority. A targeted breeding and clone selection programme for willow, poplar and miscanthus underpinned with molecular marker and genomic research will be delivered to achieve this goal. The research work will extend up to the point where commercial exploitation of new planting material is possible (by 2012). The research programme will also assess impacts on biodiversity, greenhouse gas mitigation, and on the rural economy.

Renewable materials

Supporting delivery of the strategy for Non-Food Crops and Uses, the overall aim is to enable the sustainable development of the non-food use of crops as feedstocks for industry. There will be an emphasis on advancing projects within LINK, bridging basic research supported by Research Councils and industrial uptake. This programme will be market led; respond to a diverse range of scientific, market and environmental opportunities; emphasise the delivery of high value materials that support sustainable production and consumption; and with the BBSRC, sponsor a dedicated LINK programme to facilitate the development of a competitive Non-Food Crops sector.

Sustainable Water Management

UK land management will need to comply with a range of new and existing EU and domestic legislation, all of which aims to improve the quality of water (in rivers, lakes, ground water, transitional and coastal waters). It is likely that, without intervention, current farming practices will not be permitted in the future because they are not compatible with good water quality. In addition, water is a valuable and limited resource in the UK and there are growing pressures on water resources, especially in the South and East of England, from increasing domestic demand, additional housing development and agriculture. It is essential that agriculture and the food manufacturing industries use water more efficiently. Research is needed to supply the evidence and data necessary for producing robust policies on water quality and use, and help meet the demanding targets set out in international agreements and EU legislation.

Water Quality

Research is needed to meet the following policy objectives:

· To assess the contribution of land management in England and Wales of nutrient, soil and microbial loss to water at a national, catchment and field scale level.

· To mitigate transportation of pollutants into watercourses.

· To identify cost-effective mitigation approaches.

· To understand land manager behaviour.

· To develop management guidelines and policy instruments.

Water Use

Research is needed to meet the following policy objectives:

· To provide information required by the Food Industry Sustainability Strategy.

· To provide information on water use in agriculture.

· To identify opportunities for water saving in agriculture.

· To understand land manager behaviour.

· To develop management guidelines and policy instruments.

Sustainable Farming Systems

Organic Farming

We will build on the existing organic R&D programme, taking into account recommendations of the report from the R&D Committee of the Advisory Committee on Organic Standards. The committee has identified strategic priorities for future organic farming and food research, under 11 key themes. In the first instance, the most important gaps in the programme, including those resulting from the completion of recent projects, and evidence underpinning the economic and environmental performance of the sector, are being addressed. Emphasis will then be given to improvement in options for growers compliant with organic principles, maintaining or raising standards and expanding markets. This includes new socio-economic research and consideration of adaptation to local conditions and markets.

Biodiversity, soils and landscape

Our current research in these areas (in some cases applying across all farming systems) is consolidating existing knowledge and identifying future needs, which will provide the evidence needs for policy and a basis for developing solutions to current or potential future problems. Future R&D will be based on the conclusions of scoping studies in progress, on the feasibility of using ecosystem-scale simulation models to predict impacts on biodiversity; use of soil biological indicators in relation to soil 'health' and function; and a desk study assessing recent past and current R&D on grassland ecology and provide guidance on increase its biodiversity value. There is increasing interest in the environmental footprint of new land management practices, particularly potential effects on biodiversity of new biomass crop. We are funding a supplementary project to the current joint Research Council RELU biomass project, particularly to extend knowledge of miscanthus. We are supporting the Countryside Survey 2007 to maximise relevance of data to future considerations of farmed land, field margins and boundaries. In the future, new work adding on to the Agricultural Change and Environment Observatory Programme to reinforce its value, with respect to future farming considerations, will be considered.

Integrated Farming Systems

The contribution of integrated approaches in farming systems to delivery of Defra policy outcomes is under discussion with a wide range of internal Defra and external interests. In particular, our research is seeking to enable cropping and livestock systems to adapt to existing and future market requirements; whilst keeping resource inputs as low as possible and ensuring that adverse effects on soils, water and air quality, biodiversity and landscape from agricultural activities are minimised and enhancements are made where feasible. Several scoping, pilot or short-term studies will provide the rationale for future R&D, or to stimulate co-funding with other Defra, SEERAD or BBSRC funders of strategic collaborative, including LINK, projects: e.g. a review of Defra's investment in genetic improvement of crops and livestock; computer-based decision support systems to inform on-farm decision making or assist Defra deliver its policies; crop protection, including the development of new and integrated approaches to reduce reliance on pesticides.

Food Chain Meeting Consumer Needs

The Strategy for Sustainable Farming and Food (SSFF) sets out how a profitable and internationally competitive agri-food industry could be achieved alongside a better environment, improved nutrition and prosperous communities. Under the auspices of the SSFF, the Research Priorities Group (RPG) identified specific research needs to enhance food safety and quality, including nutritional quality, and to improve resource use efficiency in the food chain.

The SSFF has been complemented by a Food Industry Sustainability Strategy (FISS), developed in consultation with stakeholders. This has identified priorities for action under three overlapping headings.

Evidence base

An improved evidence base will be developed regarding opportunities to improve the food industry's resource use efficiency and use of renewable energy. This will build on existing data sources to provide a detailed picture of direct energy consumption in the food chain, the associated primary energy consumption and resulting greenhouse gas emissions. This will provide direction for future research investment. Evidence will also be sought to improve the understanding of risks associated with mycotoxins in cereals. The opportunities for increasing small scale processing of high value regional foods will be assessed.

Science based innovation

Innovation will be stimulated by fostering strong networks between industry and the science base and supporting collaborative working, principally under two LINK programmes. Research is being targeted at improving the resource efficiency of processing and distribution of foods, and at improving the safety, quality and nutritional value of foods. Sound mechanisms will also be put in place for widespread dissemination of innovation and best practice.

In addition to the new programme on Food chain meeting consumer needs, research contributing to this strategic objective will also take place in three other new cross-cutting programmes within the sustainable food and farming programme, namely agriculture and climate change, sustainable water management and sustainable farming systems.

The programme as a whole makes significant contributions to the SCP agenda and to more efficient resource use (energy; water; waste).

Primarily evidence

· Studies to identify major areas where there is scope to reduce the amount of energy and water used in food manufacturing and retail, and to reduce the amount of waste.

· Investigation of the potential for new technologies and systems to reduce the energy requirements in the chilling and refrigeration in the food chain, and opportunities in use of renewable energy.

· A scoping study on barriers to more efficient small scale processing of regional foods.

· Studies to understand the causes of mycotoxins in cereals in order to support risk assessment and risk prevention

Primarily innovation

· Two food LINK programmes (Advanced Food Manufacturing; Food Quality and Innovation), under which industry funding for research is matched with public money. The science themes in these programmes range from more resource efficient manufacturing technologies and systems, to food materials science underpinning the production of healthier foods.

· Knowledge transfer projects, including under the Food Processing Knowledge Transfer Network, co-funded by the DTI and part of a UK wide scheme to bring together researchers and businesses around common sectors or technology themes.

Plant Health and Bee Health

The Plant Health and Bee Health Programme aims to: improve the understanding of existing and emerging pest threats; develop diagnostic methods for surveillance, detection and monitoring of risks; and improve contingency plans and management options.

Evidence and innovation support the following main areas of activity for England and Wales:

Exclusion of quarantine pests and pathogens

We will base surveillance activities on risk-based inspection programmes, pest interception data, trade pathway analysis, and the development and deployment of validated diagnostic protocols (both in the laboratory and on-site).

Eradication and containment of quarantine pests

· We will develop our understanding of the biology of specific quarantine pests and pathogens, as well as the development of specific chemical, cultural or policy-related control strategies, in order to develop appropriate and effective management strategies.

· We will also develop science-based contingency plans for key pests.

· We will also develop robust and effective surveying, sampling, diagnostic and environmentally sound approaches on waste management.

Development of optimal policy

· We will use a sound evidence base to develop Pest Risk Analyses (PRA) and Regulatory Impact Assessments in order to satisfy international standards and develop national and EU policy. We will also undertake 'lessons learnt' reviews following significant campaigns, and specific policy reviews on significant pests or pathogens as appropriate.

· We will base controls on proportionate PRAs. We will increasingly accommodate cost-benefit, socio-economic and environmental impact analyses, which are under-developed in the phytosanitary field, into PRA's, and also epidemiological modelling and the potential influences of climate change.

Statistical and Economic Programme

Key activities include:

· Running and developing the existing farm survey programme of the June survey and related farm surveys, which are important for this and other strategic themes. This includes the development of outputs to meet and increase our understanding of what is driving the trends. Key priorities include increased use of administrative data and getting more involved in its collection; the European survey programme for 2010 and beyond; and combining estimates from different data sources to increase the value of information.

· Improving coverage of the farm registers, and adding information on businesses structures, particularly by using the Inter-Departmental Business Register run by the Office for National Statistics.

· Development of micro data sources to analyse the tensions between the economic, environmental and social pillars of sustainability.

· Production each year of Agriculture in the United Kingdom statistical digest, which focuses on the estimates of farm incomes with underlying detail on commodity trends and their rural, social and environmental links.

· Further development of the environmental accounts for agriculture is required to assess the net impact of agriculture on the environment.

· Improved analysis of productivity and competitiveness, including assessments of regulatory impacts.

· Running the annual Farm Business Survey which collects a wide range of physical and financial data from farm businesses and the households which run them. These data are used to assess the individual and cumulative impact on farm businesses and farm households of CAP reform and new Regulations affecting them by farm type, size and region including both averages and estimates of population distributions. As such they are used both directly and indirectly by all four policy DGs. Data are published annually in the Farm Accounts Booklet and are available for farm benchmarking in Farm Business Benchmarking on-line. The data are also used to support a wide range of research undertaken for Defra by contractors and to support a wide range of independent academic research of interest to Defra.

· Maintaining and developing the range of statistics and indicators on sustainable farming and non-food crops (e.g. bio-fuels).

· Undertaking the Agricultural Change and Environment Observatory research programme, monitoring the impact of the 2003 CAP reform.

· Economics and statistical advice is required to ensure a strong and robust evidence base into the 2007 Comprehensive Zero Based Spending Review.

· Research to improve understanding of farmer motivations and response to policy and market change.

· Economic evaluation of key agri-environmental policies, in particular Environmental Stewardship.

· Development of evidence base on economic values of non-market costs and benefits associated with agriculture.

· Research on policy instruments to meet environmental priorities in agriculture including use of economic instruments.

2 Proposed actions to ensure Defra obtains maximum benefit from these activities

Programme management groups representing major policy interests across Defra will

oversee the strategic development of all the programmes in sustainable farming and food,

supported by sub-programme groups as necessary. For example, the Water Programme

Management Group is supported by a Water Working Group made up of around 25

stakeholders from across Defra. This structure ensures that those closest to specific policies

or interests can direct and influence the Programme Management Group.

Champions Groups will be set up under the auspices of FISS with representation from

stakeholders. These groups will have an important role in setting sector targets, some of

which will require further research to develop the evidence base.

Closer feed-in from R&D to SFFDG and other Defra policy branches.

Increased alignment of programmes with co-funders inside and outside Defra. For example,

preliminary discussions with the Environment Agency have already taken place with a view to

identifying a joint programme on water quality.

An annual meeting with stakeholders will be held as a further means to engage with external

stakeholders and encourage the delivery of policy. The first meeting will take place next

February.

Technology and knowledge transfer is an essential part of this programme. For this reason, a

strong social science programme is underway, contributing towards Defra-wide investment in

understanding and influencing positive behaviour change in farmers and rural land managers

LINK will be used as a mechanism to encourage wider involvement in the programmes. Each

of the LINK programmes is overseen by a Programme Management Committee to ensure that

the funded work is of an appropriately high scientific quality and has good prospects to make

a significant impact.

Programme management of the work through the Food Chain Analysis Group with Strategic

directions provided by the Defra Co-ordinating Committee for Statistics.

3 High level spending plans