Chapter 1: New Financial Assistance Powers Section 1: Secretary of State’s powers to give financial assistance
Section 1 provides the Secretary of State with the power to give financial assistance. Financial assistance may be given to beneficiaries including, but not limited to, farmers, foresters, or those responsible for the management of the land. Section 1 sets out a list of purposes for which, and in connection with which, the Secretary of State could provide such assistance in England.
	Subsection (1)(a) enables the Secretary of State to provide financial assistance for the delivery of environmental outcomes such as cleaner air, clean and plentiful water and thriving plants and wildlife by carrying out environmentally beneficial land and water management activities. It is intended to apply to land and to bodies of water such as ponds, lakes and rivers (excluding the sea) being managed to deliver environmental benefits. One example of how this subsection may be used is to improve air quality by creating financial incentives for the targeted planting of trees to help capture ammonia emissions and protect nearby sensitive habitats from damaging nitrogen deposition. This land management activity would contribute to the delivery of cleaner air and the protection of biodiversity.
	Subsection (1)(b) enables the Secretary of State to provide financial assistance to support public access to and enjoyment of the countryside, farmland and woodland. This subsection also enables the provision of financial assistance to support understanding about the environmental benefits that land can provide. This subsection may be used, for example, to incentivise foresters to provide facilities for educational visits for schools, supporting pupils to visit natural environments and learn about the environment. This would contribute to the delivery of societal benefits including that of engagement with the environment. It may also be used to give financial assistance to farmers and land managers to share information about agroecology.
	Subsection (1)(c) enables the Secretary of State to provide financial assistance for managing land or water in a way that maintains, restores or enhances cultural or natural heritage. This may include a building, monument, site, place, area or landscape identified as having a degree of significance due to its archaeological, architectural, artistic, historic or traditional interest. This subsection may be used to incentivise activities which conserve our cultural or natural heritage, which includes uplands and other landscapes. Funding could be used to support, for example, the maintenance of historic farm buildings, dry stone walls and conservation of limestone pavements. These all have intrinsic value as well as being resources for research, education, recreation and tourism. Funding under this subsection would contribute to the provision of societal benefits such as beauty, heritage and engagement with the environment.
	Subsection (1)(d) enables the Secretary of State to provide financial assistance for or in connection with managing land, water or livestock in such a way as to mitigate or adapt to the effects of climate change. This subsection may, for example, be used to mitigate the causes of climate change by incentivising peatland restoration to protect the existing carbon store and reduce emissions of carbon dioxide to the atmosphere.
	Subsection (1)(e) enables the Secretary of State to provide financial assistance for or in connection with managing land or water in such a way as to prevent, reduce or protect from hazards to, or caused by, the environment. This subsection, could, for example, be used to support actions that improve soil water infiltration and porosity to help mitigate against flooding.
	Subsection (1)(f) enables the Secretary of State to support action by farmers, vets and other organisations to improve animal health and welfare, reduce endemic disease and keep livestock well maintained and healthy. This subsection could, for example, be used to fund measures to encourage participation in animal health or disease control schemes or support the financing of testing for a particular disease. It could also be used to strengthen animal welfare outcomes, such as ensuring animals have access to materials that allow them to express their natural behaviours.
	Subsection (1)(g) enables the Secretary of State to provide financial assistance for measures to support the conservation and maintenance of UK native Genetic Resources relating to livestock or equines. These measures could, for example, be used to incentivise farmers to invest in rearing rare and native breeds or species, because these genetic resources may offer a way to sustainably increase food production and improve our capacity to adapt to climate change or the emergence of new animal or plant diseases by providing a breadth of genetic traits. These powers could also be used to incentivise existing gene banks to safeguard UK native and rare breed genetics or to provide on farm measures to manage disease risks amongst populations of rare breed livestock.
	Subsection (1)(h) enables the Secretary of State to provide financial assistance for measures which protect or improve the health of plants, including wild plants, agricultural and horticultural crops, trees and bushes. This could, for example, include support for measures across the forestry, horticultural and other sectors, which reduce the risk of the introduction and spread of harmful plant pests and disease.
	Subsection (1)(i) enables the Secretary of State to provide financial assistance for conserving plants grown or used in agricultural, horticultural or forestry activity. This includes conserving their wild relatives, or the genetic resources relating to any such plant. This could, for example, include support for measures to conserve and utilise crop wild relatives to improve our capacity to adapt to the emergence of new plant diseases, thereby increasing resilience and biosecurity across the agricultural, horticultural or forestry sectors.
	Subsection(1)(j) enables the Secretary of State to provide financial assistance for protecting or improving the quality of soil. This could include measures which support farmers with decision making and soil management to improve soil health, such as assistance for soil monitoring programmes and funding of necessary soil health research to provide baseline site-specific understanding of soil properties. This power could also be used to incentivise farmers to invest in practices which protect and enhance soil health.
	Subsection (2)(a) enables the Secretary of State to give financial assistance for starting, or improving the productivity of, agricultural, forestry, or horticultural activities (including the growing of flowers and non-food crops). This could be used, for instance, to enable a farmer to invest in equipment that would both increase productivity and deliver environmental benefits. For example, this could include giving a farmer a grant or loan to enable the purchase of precision application equipment for slurry. This equipment would allow the farmer to use slurry more effectively, reducing costs as well as reducing ammonia emissions.
	Subsection 2(b) enables the Secretary of State to give financial assistance to support the ancillary activities of selling, marketing, preparing, packaging, processing or distributing agricultural, horticultural or forestry products. These activities can be funded if they are, or will be, carried on by a producer (which is defined in subsection (5)) or by someone acting for the producer.
	Subsection (3) specifies that financial assistance under subsections (1) and (2) may only be given in relation to England.
	Subsection (4) places a duty on the Secretary of State, when framing any schemes under Section 1, to have regard to the need to encourage the production of food by producers in England, and its production by them in an environmentally sustainable way. This duty applies when the Secretary of State is making relevant decisions about the design of schemes under which financial assistance may be obtained under Section 1.
	Subsection (5) provides definitions for Section 1.
	Subsection (6) provides definitions for the Chapter.
	Provisions relating to the form in which assistance may be given, conditions that may be imposed, delegation of functions, and publication of information about financial assistance that has been given are set out in Section 2. Provisions in relation to checking, enforcing and monitoring financial assistance are set out in Section 3.