Covid 19 – Rural property and business update

Commodity prices
Markets remain generally steady. New season lambs saw a big fall, but this a seasonal occurrence as more supply comes on tap – prices are about 4% up on the same period in 2019.

Straw and hay prices, however, are marching up reports my colleague Tom Heathcote, who heads our Agri-Consultancy team. The recent period of extended dry weather means many stock farmers with light land are already having to provide supplementary feed for their animals due to poor grass growth, while arable farmers were hit by the wet autumn drilling conditions as well.

Tom points out that a switch to regenerative agriculture, where retaining soil carbon is a priority, helps land become more resistant to climatic variability. You can find out more in the 2020 edition of The Rural Report, due out next week.

Climate change
Livestock farmers are often fingered for their contribution to greenhouse gas emissions, but a new study suggests that grass-fed animals are receiving more than their fair share of the blame.

Experiments by the researchers at Rothamsted used a real-life farming system to look at nitrous dioxide emissions (more potent than carbon dioxide) from cattle grazed on white clover leys and found they were much lower than figures used by the Intergovernmental Panel on Climate Change (IPCC), which are based on more generalised data.

I’ve made it sound really simple, but a quick glance at the actual paper reveals it to be anything but. If complex biological science is your thing have a read. 

The Rothamsted results certainly don’t mean pasture-based livestock businesses shouldn’t worry about their emissions, but they do highlight that the climate change debate needs to be based on sound science and the best data, not averages.

Trade and food standards
With the June 30 deadline for requesting an extension to the Brexit transition period fast approaching, there are still calls for the government to ask for extra time to thrash out a free trade agreement. The Economist magazine this week claims fears that an extension will leave us liable for the cost of tackling Covid-19 by the EU and hamper trade negotiations with other countries are unfounded. The government, however, shows no sign of changing tack.

As the Agriculture Bill passes through the House of Lords, last week’s Cereals event, held virtually, was also used as a platform by farming bodies to press the government not to allow food into the UK produced to lower standards than required for farmers here. In a pre-recorded statement Defra minister Victoria Prentice pledged: “In all of our trade negotiations we will not compromise on our high environmental, animal welfare or food standards in any way.”

Meanwhile, it has now been revealed that regardless of whether the transition period ends with a trade deal or not, the UK has abandoned plans to impose full border checks on goods entering the UK via ports such as Dover for at least six months. The government hopes the EU will reciprocate, but an earlier agreement that covered freight movements in the event of a no-deal Brexit has lapsed, so there are fears that UK food producers and exporters could be put at a disadvantage.

Welsh woodland
The deadline for expressions of interest for Wales’ Glastir Woodland Creation scheme has been extended to 31 July. The scheme provides financial support for the capital investment required to create new woodland and the current window had been due to close in mid-June.

“It is encouraging for many farmers and landowners in Wales that the window for expressions of interest has been extended, as many have face additional pressures in current circumstances,” says my land management colleague Edward Holloway.

“Applicants should be wary, however, that expressions of interest will be rejected unless they are submitted by a registered Glastir Woodland Creation Planner, who will also be able to advise on the suitability of proposals,” adds Edward.

Our new Forestry service line can assist with this, so please do get in touch with Edward if you would like to find out more. 

The Rural Report – out this week
I’m very excited to be able to say that our flagship annual publication for rural property owners and their advisors is out this week. It’s packed full of ideas on how farms and estates can prosper in these challenging times, as well as thought-provoking opinion and insights. Please do email me if you’d like a copy.