Weekly rural property and business update

Commodity markets

As expected, the UK’s harvest has not been great. Wheat production could slip below 10 million tonnes compared with over 16 million tonnes last year. Yields so far are down by 10%, according to the latest figures from the AHDB. Prices, however, are unlikely to surge as might be expected during a period of chronic under production. Demand for grain-based products has slumped around the world due to Covid-19 meaning global stocks are in a healthier state compared with 2019. These are likely to be bolstered further with other grain-producing nations like Russia, the US and Canada expecting bumper wheat and corn harvests.

Planning reform part 1 – Too much or not enough?

While doing a bit of background reading last week I came across two controversial articles in the media that took a completely different view of the government’s recent planning White Paper, which promises to be the first proper overhaul of the planning system in 70 years.

The first, in The Economist magazine, lamented the Conservative’s reliance on older voters, whose generally more conservative views (go figure) it claims hamper the UK’s economic development. The White Paper’s continued protection of the Green Belt was a prime example of this, says the article, which would have liked to see more radical reform.

Veteran environmental campaigner George Monbiot unsurprisingly takes a different view. 

Writing in The Guardian under the headline: English landowners have stolen our rights. It is time to reclaim them, with the even more hyperbolic standfirst: Landed power, built on theft, slavery and colonial looting, crushes our freedoms. A new campaign seeks to decolonise the countryside, he claims that the reforms will make planning less democratic and make it harder for people to access the countryside.

For a more measured view, it’s worth reading the views of our rural planning expert Roland Brass in last week’s Rural Update. 

But with support payments for farming businesses shifting towards the “public goods for public money” model, it is hard not to see the demand for more public access to the countryside increasing.

Whatever your views, it is worth noting that England has one of the biggest networks of public footpaths and byways anywhere in the world. 

Get in touch with Roland to find out what the White Paper means for you or if you need help with any other planning matters 

Planning reform part 2 – Pop-up camping opportunities for landowners

In addition to the White Paper mentioned above, the government has already introduced more modest changes to the planning system to help boost the UK’s Covid-hit economy. These include an extension of existing permitted development rights.

Some of these could offer opportunities for rural landowners looking to develop income streams from tourism ventures and tap into the post-lockdown surge in demand for holiday accommodation.

Photo by Shell Robshaw-Bryan on Unsplash

In England, the government has doubled the planning permission exemption for temporary campsites from 28 to 56 days, with similar guidance in Wales and Scotland. 

Web portal Pitch-up.com claims since lockdown restrictions were eased it has added 200 new UK sites that have earned up to £10,000 within their first few days of operation.

It also says landowners have a bigger window of opportunity to benefit from campers this year with tens of millions of people planning to go away later than usual. 

Apparently double the number plan to holiday between September and December rather than in August. Not sure I’d like to spend my Christmas camping in the UK though!

For advice on rural tourism opportunities please contact our Rural Asset Management Team

Renewable energy – battery opportunities for landowners

The National Grid is actively looking for one to two-acre battery sites near substations, reports our head of renewables David Goatman.

“One result of the growth in the renewables sector is that the National Grid has to manage much more complex grid balancing because of generation variability. This in turn requires battery projects to be connected to grid at numerous locations across the UK that will provide balancing services. These battery projects require land as close as possible to sub-stations with capacity,” explains David.

"Rents of up to £1,500 per MWP for 50MWP systems* are being paid, he reports."

Other rural renewable opportunities worth considering include large solar sites (at least 80 acres) near substations with rents of up to £1,000/acre available on 25-year leases. There is also the potential to create floating solar sites on reservoirs, adds David.

*Schemes above 50MWP require a different planning process.

Please contact David for an assessment of the renewable potential of your property 

Forestry and woodland – Government announces new Woodland Carbon Guarantee auction

Defra has just announced the third round of auctions under its Woodland Carbon Guarantee scheme. 

Farmers and land managers across England are encouraged to apply for the Woodland Carbon Guarantee scheme by 11 October, ahead of the next auction, which will take place online between 26 October and 1 November.

The Woodland Carbon Guarantee is a Forestry Commission administered £50 million scheme that aims to help accelerate woodland planting rates and permanently remove carbon dioxide from the atmosphere. 

New tree planting projects are eligible for long-term payments for the amount of carbon a new woodland will store, providing new income for farmers and land managers. 

Following an online auction process, successful bidders will be offered the option to sell woodland carbon in the form of Woodland Carbon Units - a financial value given to each tonne of carbon stored - to the government over 35 years at a guaranteed price protected against inflation. 

The second auction, which closed in June 2020 and saw 27 contracts offered by the Forestry Commission, helped stimulate the creation of 1,517 hectares of new woodland specifically to help combat climate change, says Defra.

For more information on applying for the scheme or other forestry matters please get in touch with Edward Holloway.

And don’t forget to check out our forestry investment podcast which takes a wide-ranging look at the sector from a timber, climate change and environmental perspective with guests forester Andrew Bronwin and ecologist David Hetherington.

Farmland market update – deals being done, but stock levels still down

It’s been widely reported in the press, backed up figures from my own research colleagues, that the UK’s housing market has bounced back much more quickly and strongly from the Covid-19 lockdown than many predicted.

So I thought it would be worth checking in with our farmland experts to see how the agricultural property market has fared.

Talking to Will Matthews of our Farms & Estates team, three trends seems to have emerged.

First, demand for farmland remains robust with values staying firm; second, buyers are more cautious about making offers on farms or estates with a significant residential component; third, the market needs more stock.

Will’s final point is backed up the latest figures from the Farmers Weekly Land Tracker, which measures the amount of land advertised publicly. As of this week only 38,841 acres had been put up for sale, compared with almost 75,000 acres in 2018 – a drop of nearly 50%.

"A lot of potential vendors are still trying to work out in their own minds when the best time to sell would be,” points out Will. “Will the economy continue to bounce back, or will things slowdown next year? It’s a tough call.”

Judging by the interest in recently launched Ogbourne Down - 1,400 acres of rolling Wiltshire land with a modest farmhouse for sale at £15 million – going early could pay dividends. “We’ve had a lot of interest and conducted over 25 viewings,” says Will.

Another farm that is also attracting plenty of interest is the immaculate 260-acre Manor Farm at Meeth in Devon, guided at £5 million. With a new house and an extensive range of new farm buildings the current owners have created a model arable or livestock unit.

Demand is also strong in Scotland. Wester Aldie, a 267-acre mixed farm at Rumbling Bridge, near Perth, guided at offers over £1.35 million, has already gone under offer after being launched on 24 July.

Main Photo by K. Mitch Hodge on Unsplash