Understanding the New Forest’s Natural Capital And how its management provides public goods to the nation 1 1 Foreword This document is the work of the Forest Farming The Group has set out in this report how the New Group, which was formed shortly after the Forest, as a highly protected landscape and much Referendum in 2016 in order to help prepare the treasured national asset, provides a multitude of Forest’s farming businesses for the post Brexit public goods for the benefit of society. It gives an world. The sands have shifted much since then, invaluable evidence base from which to start the however one thing has become clear, and that is work of creating a replacement for the current the Government’s desire to replace the current EU system, that will be specially suited to the New system of financial support for agriculture with one Forest area. that is based on the core principle of 'public money Using this report, the Group will now begin for public goods', which is placed at the heart of its that work. 25 Year Environment Plan. We believe we can be an exemplar of that principle by putting natural capital at the core of our plans and decisions. Oliver Crosthwaite-Eyre Chairman Forest Farming Group Final report to the Forest Farming Group July 2019 2 3 Understanding the New Forest’s Natural Capital And how its management provides public goods to the nation voluntary bodies that own, rely on and care for this There is an agreed methodology for determining Executive summary area, have prepared this document to help shape Public goods from the the stock of natural capital assets, from which The New Forest is uniquely special, representing future schemes to conserve and enhance the public New Forest economists can estimate the value of the services the remarkable survival of an unenclosed lowland goods provided here. There is strong consensus from members of the provided. This involves measuring their extent (how landscape. It hosts wild species and traditional Forest Farming Group about the public goods much and where it is) and condition (what state it management practices at a scale that has long The Government has made clear that future support provided (Figure 1, left). These distinguish between is in) as well as how both extent and condition are disappeared from the rest of western Europe. This for farming and environmental land management public goods that are particularly characteristic changing over time. Figure 2 shows the classification gives the area global significance for its biodiversity, in the UK will be based on the principle of 'public of the New Forest "special qualities" and those used for natural capital assets in this study. cultural continuity, public appreciation, and yet, money for public goods' and that the concept that apply more universally but which are the vocational system of commoning by around of natural capital will be used to support and The location of these natural capital assets is not found in abundance in the New Forest "healthy 700 local people and the associated traditional incentivise the provision of public goods from restricted to the Open Forest (for instance back-up environment". management is fragile and depends on direct the countryside. This report demonstrates how grazing for commoners’ livestock is located in the this concept may be applied to the Crown Lands surrounding enclosed countryside). Furthermore, support and specially-developed agri-environment The New Forest’s natural agreements. Mindful that the largest of these and other commons in the New Forest, providing there is huge potential for enhancing public goods agreements is due to end in 2020 and the Basic evidence and a structure from which new capital assets on the Open Forest by improving the condition of Payments Scheme is to be phased out, the Forest programmes to sustain and enhance public goods this more widely dispersed natural capital. can be developed. Natural capital is defined as 'the parts of the natural Farming Group, representing the statutory and environment that produce value to people' (UK Natural Capital Committee). They are a combination of both natural and human resources. 1. The public goods provided by the New Forest Special Qualities Healthy Environment 2. Classification of natural capital used in this study Commoning and cultural heritage Clean water and air Natural Resources Human Resources Scenic beauty and tranquillity Mitigation of flooding Land Cover Features Access & Built Cultural Heathland and acid Rare and atypically Boundaries, livestock Governance, skills Thriving plants and wildlife Habitable climate grassland mosaic, abundant wildlife handling facilities, and knowledge, lawns, wood pasture, species, iconic species Open access land heritage and Access and recreation Healthy soils scrub, miles, statutory and breeds, grazing and routes, visitor landscape features, inclosures, enclosed livestock, water infrastructure, sensory elements (back-up) pasture bodies, soils commoners’ housing and perceptions, Public engagement and education Animal health volunteering 4 5 Stock 3. Matrix linking the New Forest's natural capital Natural capital assets assets to the public goods it provides to the nation Extent Condition Commoning & heritage cultural Scenic beauty & tranquillity &Thriving plants mammals Public access & recreation Public engagement & eductaion Clean air & water of Mitigation flooding climate Habitable soils Healthy Animal health Heathland & acid grassland mosaic 14,875 ha Key to symbols Lawns 2,800 ha Colour of circles indicate current Wood pasture, (A&O woodland) 6,817 ha Land condition of asset: Scrub 350 ha Conclusions cover We believe this to be one of the first local studies Good Valley mires 1,904 ha of natural capital to follow the policy direction set Weak Statutory inclosures 8,494 ha out in the Government’s 25 Year Environment Plan. Poor Enclosed (back up) grassland 5,000 ha Rare and atypically abundunt It shows how the established methodology can be Direction of arrows indicate wildlife species Various used at a fine landscape scale to categorise and Iconic species and breeds Various change of extent or condition resources Natural describe natural capital in a way that recognises Grazing lifestock Various No siginifcant change in recent local characteristics and management systems. If years Features Water bodies 1,000 ponds this can be done in a protected landscape as unique, Increase in recent years Soils Various complex and special as the New Forest, it should be Decline in recent years Boundaries 345 km applicable in all other English landscapes. Livestock handling facilities Various Squares indicate role of natural Access The study has found it essential to include an Open access land and routes 17,724 ha capital in delivering public goods & built assessment of both natural and human resources Visitor infrastructure Various Asset has a significant role in in order to properly describe how the New Forest’s delivering public goods Commoners’ housing N.A. natural capital assets deliver public goods. Asset may have a significant role, Governance and regulation N.A. depending on condition and The study has found that the extent and condition location. This may include the Skills and knowledge N.A. of most natural capital assets in the New Forest mitigation of negative impacts Heritage and landscape features Various that would occur if the asset was Cultural is good and either static or improving (see Figure not present in its current extent Human resources Traditional customs and events N.A. 3 opposite). Key reasons for these successes and condition. Sensory elements and perceptions N.A. include support for commoning from the Basic Volunteering N.A. Payments Scheme and Environmental Stewardship scheme. These have made this vocational practice sustainable, promoting both quality and quantity of grazing livestock. The agri-environment schemes have supported the restoration of commercial forestry inclosures to grazed heath and previously deepened or realigned watercourses to a more naturally functioning state. Factors responsible for declining extent or condition include the changing climate, intrusion and disturbance from human activities and economic pressures. We believe that this work shows the great value of public goods already provided by the survival of the New Forest landscape and joint working to enhance it. It provides an important baseline for exciting work that would be an exemplar of the principle of 'public money for public goods'. 6 7 MAP 1 Orientation During the next few years, the New Forest faces 1. Introduction fundamental decisions which will determine its The New Forest is uniquely special. It preserves ability to sustain and enhance its many benefits to society: an assemblage of wild species and traditional management practices that is of global • in 2020, the Environmental Stewardship significance. The New Forest’s survival as an agreement that has been specially created for the Crown Lands is due to end intact cultural landscape, with a system of common grazing that harks back to the very • following Brexit, the Government plans to phase out the Basic Payment Scheme that origins of settled farming in the British Isles, is underpins the Forest’s agricultural economy truly remarkable and reflects its location, geology,