Gene editing, Scottish forests, reputation management

Not everybody will agree I’m sure, but it was good to see the government actually deliver a Brexit dividend last week in the midst of the fuel crisis. As somebody who studied crop technology at university it has always seemed disproportionate to me that gene editing is grouped together with the creation of genetically modified organisms in the eyes of EU regulators. Defra’s decision to allow the use of gene-editing in the UK is a welcome boost for the farming industry and hopefully the environment too, if it can help reduce chemical usage. But there will be sceptics, so the government needs to ensure it puts the right regulation in place to retain the trust of the public.

Do get in touch if we can help in any way.

Andrew Shirley, Head of Rural Research.

In this week’s update:

• Commodity markets – Fuel crisis hits farms
• Agri-technology – Gene editing gets the green light
• Rewilding – huge Scottish scheme launched
• Reputation management – Community impact matters for country estates
• The Rural Report – Sign up to watch our ground-breaking video
• Overseas news – Canada farmland values rise

Commodity markets – Fuel crisis hits farms

Red diesel prices jumped another 10% last week off the back of the UK’s filling-station furore and a 4% rise in the value of crude oil that broke the US$80/barrel mark for the first time in three years. Oil prices are 91% higher than they were this time last year. Analysts are split on the outlook for future price growth. Some say prices above US$80/barrel are unsustainable and will lead to demand destruction. Meanwhile, though, a number of options traders are making bets prices could go as high as US$200 a barrel if we have a very cold winter.

Agri-technology – Gene editing gets the green light

Defra announced last week that it plans to make it easier for technology firms to breed more productive and disease-resistance crops using gene-editing techniques. These do not involve the introduction of DNA from a different species, but speed up beneficial genetic changes that could occur through traditional plant-breeding processes.

Although not welcomed by some environmental groups the move is a welcome Brexit-dividend. Under EU rules, gene editing is prohibited along with the creation of more controversial genetically modified organisms (GMOs).

Defra Secretary George Eustice said: “Outside the EU, we are able to foster innovation to help grow plants that are stronger and more resilient to climate change. We will be working closely with farming and environmental groups to ensure that the right rules are in place.”

Rewilding – huge Scottish scheme launched

An ambitious 30-year partnership that aims to rewild a large swathe of the Scottish Highlands has just been officially launched. The Affric Highlands scheme, led by the Trees for Life charity in conjunction with Rewilding Europe, will cover around half a million acres from Loch Ness to the west coast.

The Affric project is the ninth area to be added to Rewilding Europe’s portfolio, which includes areas in Portugal, Swedish Lapland and the Carpathians in Romania.

Part of the funding for the scheme comes from a £2 million crowdfunding bond issued by Trees for Life via Triodos Bank UK. The nine-year bond, which will pay investors 6% gross interest per year and is available within the Innovative Finance ISA tax wrapper, sold out within 48 hours.

Reputation management – Community impact matters for landed estates

My first big post-lockdown event was chairing a panel on “investing with purpose” at Jersey Finance’s Private Wealth conference in London last week. One of my panellists, a reputational advisor, has published some interesting research on how the public perceives country estates and what credentials are important to encourage visitors and customers.

Apparently some landed properties are concerned that a lack of royal or deep historical connections put them at a permanent disadvantage when it came to launching product lines or doing overseas brand partnerships, but the research shows that estates can build a strong brand off the back of their sustainability and local impact credentials.

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 month with a video highlighting some of its key content around the topic of ESG. 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 – Canada farmland values rise

The value of Canadian farmland rose in the first half of 2021, according to the latest research from agricultural lender Farm Credit Canada (FCC). Strong commodity prices and low borrowing costs saw average values rise by almost 4% across the country, despite general economic uncertainty and drought conditions affecting many farms. Ontario was the top-performing province with six-month growth of 11.5%.