UK farmland market: focus on food production
The current energy and commodity price spike exacerbated by the war in Ukraine has increased the focus of policy makers and investors on food production and self-sufficiency.
2 minutes to read
While the UK government is unlikely to divert too far from its current strategy of supporting farmers to deliver public goods like carbon sequestration or flood mitigation, rather than rearing crops and livestock, the allure of farmland as a safe-haven asset class during periods of high inflation is set to grow. This will tempt more investors, already attracted by the prospect of carbon-based income streams, to vie for the limited stock of land available for sale in the UK.
Agricultural land values are already on an upwards trajectory (+14% over the 12 months to the end of Q1 2022, according to The Knight Frank Farmland Index) and this momentum is likely to build over the rest of the year.
India’s recent decision to ban wheat exports just adds to the pressure on food production. Here are some sobering facts and figures from the likes of the FT, Economist and UN.
Food crisis in numbers
11.5 – Percentage of global vegetable oil market accounted for by Russia and Ukraine
25 – Countries that sourced over 30% of their fertiliser from Russia in 2021
26 – Countries currently restricting food exports, accounting for 15% of calories traded globally
28 – Percentage of world wheat exports accounted for by Russia and Ukraine
40 – Percentage of average sub-Saharan incomes spent on food
50 – Countries that depend on Russia or Ukraine or both for 30% of wheat imports
90 – Percentage of Ukraine grain exported by ship
500,000 – Tonnes of Ukrainian grain alleged to have been stolen by Russia
1 million+ – Number of possible global hunger deaths due to port blockades
20 million+ – Tonnes of Ukraine’s last harvest stuck in the country
193 million – Lives or livelihoods at immediate risk due to poor food access
400 million – People depending on Ukraine for food supplies
Read more or get in contact: Andrew Shirley, head of rural research
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