The right to roam

After taking a look at my own gas and electricity bills, my first thought for this part of the Rural Update this week was to wonder why, when energy firms are making record profits, a significant chunk of the UK’s electricity is now generated by renewables and natural gas prices are falling rapidly, businesses and homeowners are still being charged so much? Instead, though, I thought it was worth highlighting the likelihood that much more of the countryside will opened up for public access soon. If Labour wins the next General Election - and the polls suggest it’s more of a when than an if – it plans, as discussed below, to extend the right to roam. The plans seem to echo the Swedish concept of Allemansrätten that, subject to good behaviour, provides access to the vast majority of the countryside for people to walk, camp, swim and forage. With family ties to Sweden I’ve frequently enjoyed these rights, but would they work here? The huge difference in population density is a big factor, but what you don’t see in Scandinavia is the littering, fly tipping and irresponsible dog ownership farmers and landowners in the UK have to deal with all too frequently. With greater rights will need to come better education and, sadly, probably bigger fines and stricter enforcement.

Do get in touch if we can help you navigate through these interesting times. You can sign up to receive this weekly update direct to your email here

Andrew Shirley Head of Rural Research, Mark Topliff, Rural Research Associate

In this week’s update:

• Commodity markets – Beef and pork up, fertiliser down
• Scottish farm support – new detail not enough
• Right to roam 1 – Labour vision revealed
• Right to roam 2 – Wild camping clarity
• Tackle and technology – New grant details announced
• International news – FAO reveals global soil carbon stocks
• Knight Frank Research – Farmland 2022’s top-performing asset
• Knight Frank Research – Benchmark staff salaries report
• On the market – Kiwi orchard up for grabs

Commodity markets – Beef and pork up, fertiliser down

Beef and pork prices firmed further last week to hit new highs. A global shortage of cattle has seen processors competing for animals with deadweight prices up over 16% on the year. Deadweight pig prices also climbed off the back of higher EU demand, although many producers are still struggling to make money. Sliding gas prices are also feeding through into the fertiliser market. Natural gas futures closed at 135p/therm last Friday, a drop of over 80% on the record 800p/therm hit in July, but still around three times the long-term average.

According to AHDB, UK-produced Ammonium Nitrate averaged around £700/t in January - £141/t lower than the last time it was able to report monthly prices in July 2022, but still £55/t higher than January 2022. Twelve months on, we’ll be looking in more detail at what Russia’s invasion of Ukraine has meant for commodity prices next week.

Scottish farm support – new detail not enough

Further details of Scotland’s four-tier plan to support farmers, nature and the food chain following the UK’s departure from the EU have been announced. Speaking at NFU Scotland’s annual conference, Rural Affairs Secretary Mairi Gougeon shared details of the Scottish Government’s Agricultural Reform Route Map, which sets out the timescales for information and interaction with the agricultural industry. A Draft Agriculture Reform List of Measures also show the potential options currently being appraised by Scottish Government. However, the agricultural industry says there is still far too little clarity to allow producers to make long-term investments into their businesses and many could vote with their feet. There are also concerns that the resignation of Nicola Sturgeon as SNP leader may delay reforms further.

Right to roam 1 – Labour vision revealed

The public will have access to more areas of England and Wales if Labour comes to power, according to the party’s shadow Defra secretary. This would include increasing the area of woodlands, waterways and cliffs accessible to the public. In recent media interviews, Jim McMahon has said that his party is currently drawing up a bill that will allow “… the right to experience, the right to enjoy and the right to explore.” Meaning that people should be able to enjoy swimming, camping, climbing and birdwatching rather than simply walking, reports The Guardian. Currently, ‘access land’ is set in law through the Countryside Rights of Way Act (CroW) 2000, which defines the type of right-to-roam land open to the public in England and Wales.
In a separate move, The Green Party tabled an amendment to CroW last October that is due for a second reading next month. Green MP Caroline Lucas is behind the bill, which lays out changes to include any waterway physically capable of navigation and adjacent riverbanks, woodland and green belt land. Lucas says this would increase the right to roam area from 8% to around 30% of English and Welsh land.

Right to roam 2 – Wild camping clarity

Following an outcry after a recent High Court ruling (likely to be appealed) that a Dartmoor landowner was within his rights to ban wild camping, Dartmoor National Park Authority has reached an agreement with The Dartmoor Commons Owners’ Association on a permissive system that means backpack camping can continue in certain areas. Owners will, in return, receive an as-yet-to-be decided payment. An interactive map highlights where wild camping is permitted.

Tackle and technology – New grant details announced

More information on claiming from the next round of Defra’s Farming and Equipment Technology Fund, which is due to open next month, has just been published. The fund has been split into two groups: ‘productivity and slurry’ and ‘animal health and welfare.’ Grants from £1,000 to £25,000 will be available to help with the purchase of 201 bits of farming, horticultural and forestry equipment. Farmers can apply for cash from both groups, but the fund is competitive so not all applications will be successful. For more advice on grant schemes please contact our funding expert Henry Clemons.

International news – FAO reveals global soil carbon stocks

This is one for those with a hardcore interest in soil carbon, but the United Nation’s Food & Agriculture Organisation has just released a thought-provoking paper that, for the first time, estimates the total stocks of soil organic carbon sequestered in the world’s grasslands. It reports an annual uptake of 63.5 megatonnes of carbon in the year 2010 in grassland soils to a depth of 30cm, with unimproved systems storing slightly higher amounts than improved systems (33.8 vs 29.8 megatonnes). The paper also says that if the organic carbon content in the 0–30 cm depth layer of available grasslands increased by 0.3 percent after 20 years of the application of management practices that enhance carbon sequestration, 0.3 tonnes of carbon could be sequestered annually per hectare.

Knight Frank Research – Farmland 2022’s top-performing asset

As predicted, the latest results of the Knight Frank Farmland Index show that agricultural land as an investment beat inflation in 2022 and outperformed other asset classes, including mainstream house prices, luxury London house prices, the FTSE 100 share index and even gold. According to our index the average value of farmland rose by 13% over the year to hit over £21,000/ha, a record high. A shortage of supply and continued strong demand from a wide range of buyers underpinned the market. Download the full report for more facts and figures.

You can also hear some thoughts from my colleagues and me on the outlook for property markets in 2023 in the latest edition of Intelligence Talks, our research podcast.

Knight Frank Research - Benchmark staff salaries report

Just a reminder that the latest edition of the Knight Frank Estate Staff Salary Survey has recently been published. The report reveals the average salaries paid for a wide range of rural estate and farming roles and level of wage increases being offered by rural businesses. Also highlighted are the key employment issues facing the rural economy. Download your copy here or get in touch with Chris Terrett for more details.

On the market – Kiwi orchard up for grabs

The impact of Cyclone Gabrielle, which ripped through North Island last week, is set to make a severe dent in the food-producing capacity of New Zealand, according to our man on the ground Nick Hawken, who heads up the rural team at Knight Frank associate Bayley’s. The Hawkes Bay area was particularly hard hit, reports Nick. However, his team has still managed to launch a fantastic 31-hectare kiwi-farming opportunity near Ōpōtiki in the eastern Bay of Plenty. Guide price is NZ$21 million reflecting the profitability of kiwi production.