The Rural Bulletin: 19th July 2018

English and Scottish farmland values hold steady in 2018

English and Welsh farmland values remained steady in the second quarter of 2018, dipping slightly by 0.7% to average £7,175/acre, according to the latest Knight Frank Farmland Index report.

The decline comes after a small increase in Q1, highlighting the period of uncertainty farmland values are facing as the Brexit saga unfolds.

Over the past 12 months, farmland values have fallen by a total of 2%.

In contrast, Scottish farmland has held firm over the same period – increasing by 1% - to £4,285/acre as of June 2018.

Good arable land and hill land remained the strongest performers in Scotland, rising by 2% to £9,347/acre and £724/acre, respectively. The best arable land in sought after locations commanded premiums of up to 20%.

To see the full reports, visit: English Farmland Index Q2 2018  (English) and Scottish Farmland Index Q2 2018 (Scottish)

UK wheat futures rise due to weather concerns

UK feed wheat futures (Nov-18) closed at £171.70/t on Tuesday (17 July) – just £0.20/t below the contract high reached on 6 July 2018 as concerns over European and Black sea wheat continued due to the prolonged hot and dry weather. French and US feed wheat markets were similarly firm, closing at £167.47/t and £142.62/t in sterling terms.

Let land set for a major Brexit shake-up, says CAAV

The amount of land let in England and Wales remained static in 2017, but is set for a major shake-up after Brexit, according to the Central Association of Agricultural Valuers. 

Its 41st annual survey of let land showed that the amount of land changing hands remained at historic low levels of 951 units in the year to October 2017, with a small net increase of 2,478 acres to 73,199 acres (excluding tenancies coming up for regular renewal). 

Where there is a change of occupier, 15-30% of lettings are typically to new entrants. “The more letting opportunities there are, the more there are for both new entrants and progressing farmers to take,” said Jeremy Moody secretary and adviser to the CAAV. “Flexibility over the length of the tenancy can only encourage that.”

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Public urged to help reduce farm fires 

The NFU is urging the public to keep an eye out for farm fires, and for farmers to take extra precautions, in a bid to prevent further wildfires breaking out.

It is also calling for National Park authorities, local authorities and AONBs to mitigate the risks by strategically placing water bowsers and increasing wardens in areas where people regularly access the countryside.

NFU deputy president Guy Smith said: “With much of the country affected by this remarkable run of weather we’re seeing widespread tinderbox conditions.  That’s leading to a significant increase in the numbers of wild fires and that risk is only going to increase as crops ripen over the next two weeks.

“The NFU is urging everyone to act responsibly and avoid lighting fires and ensure cigarettes and barbecues are put out properly. 

“Farmers should also take extra precautions such as having fire extinguishers on all vehicles and putting firebreaks around fields as soon as they are harvested.”

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