Rural property and business update – 26 October

Commodity markets

Even though wheat prices continue to rise – feed wheat is now up 42% on the year - Nitrogen purchases are still 60% below the levels seen by this time 12 months ago, according to Farmers Weekly. 

As a consequence, some suppliers have dropped ammonium nitrate prices by up to £12/tonne in a bid to garner more orders. If no trade deal can be agreed with the EU before the end of the year imported fertiliser will be hit with a 6.5% tariff.

Seed potato growers are also becoming increasingly worried about the impact of no-deal. With no third-country phytosanitary contingency agreement in place, exports to the EU would effectively be barred from 1 January 2021. Shipping European growers’ orders before then would be a logistical nightmare.

Trade – Lords make final stand on Agriculture Bill amendments 

When I read the process whereby the House of Lords and Commons debate the final stages of a bill described as ping pong, I didn’t realise that it actually an official term. But a quick look at parliament’s website confirms that it really is.

So where are we now in the highly charged game of legislative table tennis revolving around the Agriculture Bill? Well, having been defeated by the Commons in its earlier bid to ensure all food imports meet the same welfare and environmental standards imposed on UK producers, the Lords is trying again.

On 20 October when the bill was sent back to the Lords they once again voted against the government, supporting an amendment on food standards put forward by Lord Grantchester. They also backed Lord Curry’s amendment spurned by the Commons that would beef up the role of the new Trade and Agriculture Commission to scrutinise international trade deals.

The next round of pig pong takes place in the Commons on 4 November, but given the government’s overwhelming majority it seems unlikely the amendments will be adopted and that the bill will go forward for royal assent.

Follow the progress of the bill through parliament

Trade part 2 – Let’s talk say UK and EU negotiators

Meanwhile, there seems to be a last ditch attempt to reach a breakthrough in the stalled Brexit trade negotiations that I reported on last week when Boris Johnson said he was prepared to walk away if the EU didn’t make more concessions.

His ultimate seems to have paid off. As reported in The Times on Friday (23 October), hundreds of civil servants are preparing to shuttle back and forth across the Channel under tight Covid restrictions this week to try and conclude a deal.

Business groups are also angry about perceived accusations from ministers that the country’s lack of preparedness for a no-deal Brexit is their fault. They argue that they have been given very little information to help them get ready.

Energy efficiency – Domestic landlords face new EPC target

Even though new EPC requirements for existing residential tenancies were only introduced this April, the government has just launched a new consultation that proposes to increase the minimum EPC for let properties to band C.

Kathryn Brown of our Rural Asset Management team has written a handy note with a few more details, including financial support, that may be of interest for the owners of let domestic properties.

Shooting – RSPB launches new policy document

Rural groups have reacted angrily to a new RSPB policy position on organised shooting. The charity is calling for driven grouse shooting to be licensed, with licences issued on the basis of minimum environmental standards. 

While the organisation says it does not take an ethical stand on shooting, it says it is worried about the impact on native flora of the mass release of reared pheasants and red-legged partridges. Again, if the issue cannot be resolved to its satisfaction in 18 months, further legislation will be called for. 

The impact of Covid-19 has already led many estates to review the structure of their shoots. If you would like advice on how to manage your shoot in the current climate please get in touch with Alastair Paul.

Read the RSPB’s review of gamebird shooting

Mental wellbeing – Social prescribing scheme launched

One of the most thought-provoking interviews in this year’s edition of The Rural Report was with Roy Cox, Estate Director at Blenheim, where we discussed how the estate was looking at alternative land uses to improve its own health and that of the local community.

“By joining the natural resources of our land with the health service, our woodlands, green spaces and fresh air can begin to be proscribed as the most natural of health solutions. Social prescribing – as it has become known – is increasingly a government policy,” Roy told me.

The government has now asked for applications for its new £4.3m social prescribing pilot project that will examine how to scale-up green social prescribing services in England to help improve mental health outcomes, reduce health inequalities and alleviate demand on the health and social care system.

It says: “Green prescribing could include support for walking and cycling groups, green gyms, and practical habitat management conservation tasks such as tree planting. For more vulnerable groups, it could include supported visits to local green space, activities such as gardening, and other outdoor activities to reduce isolation and loneliness.”

Knight Frank’s Rural Asset Management team is working with rural estates to create increasingly innovative long-term strategic plans that make the most of their natural capital. Contact Edward Dixon to find out more

Read my full interview with Roy about the Blenheim Estate’s plans for the future

Main photo by ben Schofield on Unsplash