North York Moors ELM Test and Trials: Development of an economic modelling tool

Countryside with hill, trees and wooden gate

The North York Moors Economic Modelling Tool project was the second of three ELM Tests and Trials which the North York Moors National Park Authority (the Authority) had committed to undertake on behalf of Defra for the development of the new ELM scheme. The aim was to develop and test a tool that models how attaching different payments for the delivery of a range of public goods would impact on the farming sectors active within the North York Moors National Park. The modelling tool is a means by which the Authority can demonstrate to Defra what a variation in payments will mean to farmers and land managers, assisting them in the financial modelling of future farm payments that consider the impact across all farm types. The model analyses, against baseline, the effects of the removal of Basic Payment Scheme (BPS) payments and the introduction of ELM  SFI and payments.  Different ELM payment rates were applied to assess their impact in terms of farm financial performance (both income and costs). A series of eight workshops involving farmers, land managers and stakeholders were held to help to validate the underlying data and assumptions.