Scottish land reform, Net zero fail, Dutch discontent

The ongoing land-use tension that I have often referred to in this update is brought into sharp focus again this week. In Holland, farmers are protesting at new net-zero legislation they claim will hamper their ability to produce food. In Scotland, the government wants to exert more control over who owns land, partly it seems in response to recent corporate ESG-driven purchases. At the same time, the government in Westminster has been lambasted by an influential oversight group for not doing enough to help agriculture reduce its carbon emissions and encourage the public to eat less meat. Coherent policies that balance the need for sustainable food production with climate change mitigation are urgently needed.

Andrew Shirley, Head of Rural Research

In this week's update:

• Commodity markets – Outputs down, inputs up
• Scottish land reform – Further measures proposed
• The Rural Report 2022 – Watch this year’s launch webinar
• Net Zero – Climate committee lambasts ag progress
• Devon County Show – KF quizzes Defra Minister on SFI
• Overseas news – Dutch farmers clog roads and ports

Commodity markets – Outputs down, inputs up

The cost of agricultural inputs was up just over 25% in July, according to consultant Andersons’ Agflation Index. This was a drop on the record-braking figure of almost 31% seen in April, but still poses severe challenges for farmers. An arable farmer I spoke to recently could hardly bear to say how much he’d just paid for fertiliser for next year’s crop. Meanwhile, grain prices are falling. Despite the continued blockade of Black Sea ports, weaker demand and better harvest forecasts are putting pressure on values. If farmers have to sell early this harvest to offset input purchases, further momentum could be added to the bear rally.

Scottish land reform – further measures proposed

The Scottish government has just announced that it has opened a consultation on yet another land reform bill. Màiri McAllan, Minister for Environment and Land Reform, said: “The Bill will be ambitious. It will address long-standing concerns about the highly concentrated pattern of land ownership in rural areas of Scotland. At the same time, we want to ensure that our land is owned, managed, and used in ways that rise to the challenges of today: net zero, nature restoration, and a just transition.”

Proposals in the bill include:

• The introduction of a public interest test for transfers of large-scale landholdings
• A requirement on owners of large-scale holdings to give prior notice to community bodies of their intention to sell
• A requirement on those seeking land-based subsidies to have the land registered in the Land Register, to ensure transparency around who benefits from public funding

The consultation closes on 25 September.

The Rural Report 2022 – watch this year’s launch webinar

The launch webinar for this year’s edition of The Rural Report is now available to watch on demand. Please head to the report’s dedicated website where you can also request a copy of the report. Highlights include an interview with Jake Fiennes whose new book Land Healer has just been published.

Net Zero – climate committee lambasts ag progress

The latest progress report from the government’s Climate Change Committee slams the agricultural sector for not reducing carbon emissions quickly enough. It blames the government for not creating a long-term net-zero strategy, for not focusing on changing the UK’s dietary habits and for not hitting its tree-planting and peatland restoration targets. Ouch. You can read all the details from page 284 of the report.

Devon County Show – KF quizzes Defra Minister on SFI 

George Eustace, in attendance at the Devon County Show, was quizzed by Knight Frank’s John Williams at a CLA breakfast event. John asked the minister about the newly launched Sustainable Farming Incentive, which, according to the latest Knight Frank Rural Sentiment Survey, isn’t set to prove popular with landowners.

In response, Mr Eustace said the scheme was still being developed with new options, such as a hedgerow option, set to be introduced. A substantial increase in Countryside Stewardship applications was also behind the slow start, he said.

Overseas news – Dutch farmers clog roads and ports

Farmers in the Netherlands aren’t as well-known as their French counterparts for taking to the streets, but the country’s food producers did just that this week, blockading transport hubs and spreading manure by public buildings. The protests were in response to government plans to slash emissions of pollutants such as nitrogen oxide and ammonia by 50%. Holland is the world’s second-largest exporter of food and farmers feel they are being unfairly targeted as part of the country’s net-zero ambitions.

Image by AndrewDunsire from Pixabay