The Knight Frank Rural Property and Business Update – 28 June

There’s a lot been going on relevant to farmers and other rural property owners this week, some of which, like the Climate Change Committee’s slating of the government’s efforts so far to hit Net Zero, could have long-term impacts for the countryside. But it was a Defra statement on the rationale behind its new commitment to crack down on hare coursing that caught my eye. You can read it below, but essentially it suggests that it wasn’t the well documented intimidation of landowners and the public, the damage to private property or the trespass that finally convinced the government to get tough, but the treatment of the hare itself. Perhaps the many thousands of farmers affected by fly tipping need to make the environmental case a little more strongly to encourage a similar stance.

Please do get in touch with me or my colleagues mentioned below if you’d like to discuss any of the issues covered. We’d love to hear from you

Andrew Shirley, Head of Rural Research

In this week’s update:

• Commodity markets – Lambs dips, but beef holds firm
• Climate change – Government not hitting targets, warns committee
• Rural entrepreneurs – Knight Frank interviewee receives MBE
• Agri-business – Farmer numbers set to tumble
• Rural issues 1 – Fly tipping huge issue, confirms EA
• Rural issues 2 – Hare coursing crackdown
• Protected areas – Government proposes new AONBs
• The Rural Report – Sign up to watch our ground-breaking video
• Overseas news – Glyphosate reprieve

Commodity markets – Lambs dips, but beef holds firm

According to AHDB data the number of lambs coming through GB auction markets rose by 8% for two consecutive weeks in the middle of June. This increase in supplying is putting downwards pressure on prices, although values are still 25% higher than 12 months ago. Price competitiveness relative to continental prices will also become increasingly important, says AHDB. “Around this time we typically start to shift to a net exporting position for sheep meat. British lamb prices have been at a premium to those in France in recent weeks.” Beef prices, meanwhile, rose slightly last week as processors competed for tighter supplies. The extension to the end of lockdown could also keep more demand in the UK during July than predicted.

Climate change – Government not hitting targets, warns committee

A new report from parliament’s influential Climate Change Committee has accused Boris Johnson of failing to back up his words with actions. Despite pledging that the UK will hit Net Zero by 2050, the committee says Johnson has failed to put in place the policies required to help achieve that goal.

The report’s findings matter to farmers because agriculture is seen as a significant contributor to greenhouse gas emissions, and cutting the UK’s meat and dairy consumption by 20% is often touted as one way to help the country hit its net zero targets.

So far the government has ruled out taxes as a way to encourage consumers to eat and drink less, but it may consider more radical measures if it comes under further pressure to adopt more ambitious strategies.

Rural entrepreneurs – Knight Frank interviewee receives MBE

Rural Report contributor Wilfred Emmanuel-Jones, better known to many as The Black Farmer, has just received the MBE for his contribution to the farming sector. You can read Wilfred’s thoughts on Brexit, fostering entrepreneurship and the lack of diversity in the food and farming sector in the latest edition of The Rural Report or by watching our special launch video where he talks to Knight Frank’s Edward Dixon.

Agri-business – Farmer numbers set to tumble after BPS hit

New predictions from farm business consultant Andersons suggest that the ongoing decline in farmer numbers could accelerate as the impact of removing the Basic Payment Scheme hits home. Producers will see their payments halved by 2024 and cut completely by 2028.

Andersons predicts that the number of fulltime farming businesses will drop 20% by 2030 to 42,300. This is double the rate of shedding seen since 2000.

“Farms and estates need to work out how the removal of BPS will hit them and start planning now,” points out our head of Agri-consultancy Tom Heathcote. “They may be able to replace some of it via the government’s new Environmental Land Management Scheme (Elms), but they can’t rely on just that, more radical solutions could be required.”

Rural issues 1 – Fly tipping huge issue, confirms EA

Over half of the respondents to an Environment Agency waste crime survey said large-scale flytipping had got worse over the past 12 months. An NFU survey found almost half of the respondents saying they had been victims of the crime during 2020.

The findings back up the results of Knight Frank’s latest Rural Sentiment Survey, which examines the big issues concerning rural estates and farms, including Brexit, workplace diversity and ESG. Fly tipping was reported as the most common issue to have affected the businesses of the respondents over the last year, just ahead of poor broadband and mobile connectivity.

Read the full findings of The Rural Sentiment Survey

Rural issues 2 – Hare coursing crackdown

Much to the relief of rural landowners the government seems to be taking hare coursing more seriously by announcing tougher penalties for those found partaking of the activity, and a new offence “going equipped” for hare coursing.

A government spokesperson said: “As we announced in the recent Plan for Animal Welfare we plan to bring forward legislation in this area.”

Protected areas – Government proposes new AONBs

As part of its commitment to boost biodiversity by protecting 30% of the UK by 2030, the Yorkshire Wolds and the Cheshire Sandstone Ridge have been put forward to be recognised as protected areas by the government, alongside extensions to the existing Surrey Hills and Chilterns protected areas.

All four areas will now be formally considered for AONB status by Natural England.

The CLA’s Deputy President Mark Tufnell said: “Our main concern is how the government’s commitment to designate additional protected landscapes will be taken forward.

This should not be to randomly satisfy a target, but done for the right reasons to protect our finest landscapes.”

The Rural Report – Sign up to watch our ground-breaking video

This year’s edition of The Rural Report, our unique publication for rural landowners and their advisors, launched last week. If you missed it, you can sign up to watch on demand at your leisure. It was a lot of fun making it and includes a thought provoking interview on diversity, with Wilfred Emmanuel-Jones AKA The Black Farmer. I think you’ll find it both entertaining and informative.

Sign up to watch The Rural Report launch video

Overseas news – Glyphosate reprieve

The controversial and widely used weed-control chemical glyphosate could have its EU licence renewed after a panel of countries – France, Sweden, Hungary and the Netherlands – concluded that it was not a danger to human health nor was it justified to label it as carcinogenic. Their report to the European Food Safety Authority will be followed by a public consultation this autumn and then a vote at the EU commission next year.

Photo by Mathias Elle on Unsplash