The Rural Bulletin: 4th January, 2019

Andrew Shirley, Head of Rural Research, comments

"Happy New Year. Sadly, as you can read below, the Brexit debate starts 2019 just where it left off in 2018 – in a state of controversy and continued uncertainty. We can only hope the politicians grasp the mettle and sort out this mess sooner rather than later – rural businesses need some kind of target to aim for when making future plans.

"Those hoping exiting the EU will see a lightening of environmental restrictions may be disappointed if the government’s ban on Metaldehyde is anything to go by. The slug-control chemical has been reauthorised across much of Europe. Once again, the playing field tilts.

"Best wishes for 2019. If Knight Frank’s expanding team of rural asset managers can help with any of the challenges and opportunities that are sure to arise, please do get in touch".

NFU sets out no-deal Brexit impact

The NFU has laid out the impacts of a no-deal Brexit on GB farming, urging the Government to avoid a no-deal scenario and ensure the future Agriculture Bill is fit for purpose. Speaking at the Oxford Farming Conference, NFU president Minette Batters said leaving the EU without a deal would result in severe delays at ports - disrupting essential imports - as well as preventing the export of key agricultural products to the EU.

In addition, high tariffs could be imposed on exports at the same time as potential lowering of import tariffs to reduce the price – and production standards - of food. 

“We are less than 90 days away from Brexit and there is still enormous uncertainty about the future and how domestic food production fits into that,” said Mrs Batters. “What we need is clarity. A government that fails to deliver a Brexit that gets this right will fail us all.”

Scottish government publishes BPS timetable

Scottish farmers and crofters now have certainty on when they will receive their 2018 CAP payments, with Pillar 1 payments commencing in March and set to be largely completed by the end of June. Pillar 2 payments will start in April with the majority paid by the end of October.

“Many farmers are extremely reliant on these scheme payments and their timing, so the payment calendar will allow farmers and crofters to carefully plan for the year ahead,” said NFU Scotland president Andrew McCornick.

“The problems and high cost around securing feed, fodder and bedding in 2018 are well documented and this is going to be a very costly winter for many.  A clear, accurate timetable for payments will be valued by all those who benefit from these schemes.”

Metaldehyde ban hampers GB farmers 

Metaldehyde is to be banned across GB from spring 2020, which will have a huge impact on domestic farmers and growers. “Slugs are a significant pest for agricultural and horticultural crops which, if left unchecked, can cause considerable damage,” said Guy Smith, NFU deputy president.

“The AHDB has estimated that a lack of slug control products could cost UK crop production £100 million a year.” Although ferric phosphate is one alternative, it is more expensive and resistance could develop if used to the exclusion of other pesticide products. 

“These (metaldehyde) products have been reauthorised for use in 21 EU member states and this ban simply gifts a competitive advantage to farmers abroad who will export into our markets using crop protection materials banned in the UK.”

Government appoints first food waste champion

Defra has appointed its first ever Food Surplus and Waste Champion to help drive down unnecessary food waste in England. Philanthropist Ben Elliot, chair of the Quintessentially Foundation, has been tasked with setting an ambitious direction to cut food waste from all sources, which currently totals 10.2m tonnes a year across the UK. He will work with businesses and other stakeholders throughout the food chain to tackle waste from farm to fork.

The appointment follows the Government’s recently-launched Resources and Waste strategy, and will support its 25-year plan to eliminate food waste to landfill by 2030.

How can we help? Knight Frank's Rural Property Management team is on hand to advise on a wide range of private and institutional clients on the hugely diverse property assets that they own.