Rewilding boost, pig rescue plan, Scottish country houses

The government’s support for the embattled pig sector is welcome, but the wording of the press release announcing the measures and why they were needed is instructive. No mention of Brexit, which, while far from the being the only reason for the current supply chain problems, has certainly contributed, and a pointed challenge to the meat sector to “make long term investments in the UK domestic workforce to build a high-wage, high-skill economy, instead of relying on overseas labour”. A laudable aspiration, but adding costs to the supply chain will present the government with another problem – food price inflation, never a vote winner. Two conversations last week with a pig farmer and meat plant manager also suggest wages are not the problem. The UK workforce just doesn’t want to work with pigs or in abattoirs when there are so many other alternatives. Finding a long-term solution won’t be easy.

Do get in touch if we can help in any way

Andrew Shirley, Head of Rural Research

PS The Rural Update will be on holiday next week

In this week’s update:

• Commodity markets – Nitrogen in short supply
• Farmland market – Rewilding boosts values
• Scottish country houses – Prices surging
• Supply chain issues – Government announces pig plan
• The Rural Report – Sign up to watch our ground-breaking video
• Overseas news – A better life for US chickens?

Commodity markets – Nitrogen in short supply

Farm input costs continue to rise and will potentially wipe out the benefits of increased arable and livestock farm-gate prices. The gas price hike and a ban of fertiliser exports from China means prices for ammonium nitrate are approaching £700/t in some cases, according to a report in Farmers Weekly. Such price volatility may well boost interest in regenerative agriculture with its reduced dependence on artificial fertilisers. Find out more from my colleague Tom Heathcote.

Farmland market – Rewilding boosts values

The average value of farmland in England and Wales has hit levels not seen since the beginning of 2017, according to the latest results of the Knight Frank Farmland Index.

Prices for bare land rose almost 4% in the third quarter of 2021 to £7,320/acre. This marks a third consecutive quarter of growth and was the strongest quarterly performance since March 2014. The hike takes annual growth to 5%, the biggest 12-month jump since June 2015.

Limited supply and strong demand are supporting values. According to the Farmers Weekly Land Tracker, only 11% more land has been publicly advertised so far this year compared with 2020, which, due to Coivd-19 restrictions, itself saw the lowest number of acres put up for sale on record.

Demand is increasingly being driven by three factors: Rollover relief, rewilding or sustainability focused buyers and carbon investors. Farmers accounted for 39% of buyers, according to our index, compared with the 55% who were either lifestyle purchasers or investors.

Download the report for more facts and figures

Scottish country houses – prices surging

Annual price growth for Scotland’s country houses hit almost 6% in the third quarter of the year, according to the Knight Frank Prime Scottish Index, compiled by my colleague Chris Druce. The rise was the highest seen since 2008 with demand outstripping supply.

Supply chain issues – Government announces pig plan

At the end of last week the government announced a much-needed package of measures to support pig farmers who have been forced to cull and dispose of animals due to supply chain pressures.

As well as working with industry to introduce processing of animals on Saturdays and longer working days where possible, the government will fund a private storage aid scheme in England that will enable meat processors to store slaughtered pigs for 3-6 months so that they can be preserved safely.

Until 31 December up to 800 pork butchers will also be eligible to apply for visas from the existing allocation in the Seasonal Workers Pilot Scheme, allowing them to travel and work in the UK for a period of six months.

The Agriculture and Horticulture Development Board and Quality Meat Scotland have also announced a pork levy holiday.

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 – A better life for US chickens?

Readers who followed the passage of the Agriculture Bill thorough parliament will recall that critics felt it did little to protect UK farmers from cheaper imports produced to lower welfare standards. Chlorine-washed US chicken was often given as an example. This article provides a fascinating insight into the complex battle by American animal welfare groups to improve the production standards of the country’s most popular meat.

Photo by Kenneth Schipper Vera on Unsplash