The Rural Bulletin: 12th October 2018

Farmland market eases, reveals Farmland Index Report

The average value of bare agricultural land in England and Wales dipped by 1.8% in the third quarter of 2018, according to Knight Frank’s Farmland Index. 

The fall means prices have dropped by 4% during the past 12 months and now average £7,045/acre. Uncertainty over Brexit and the political future of the UK means buyers remain extremely cautious, seeing no reason to rush into a purchase.

In contrast, good land still attracted strong bids, but lower quality parcels struggled to sell.

Andrew Shirley, head of rural research at Knight Frank said: “UK land also looks relatively cheap by European standards, especially given the weakness of Sterling. Its reputation as a long-term safe-haven for wealth in times of economic and political uncertainty could soon come to the fore again.”

Second Reading of the Agriculture Bill

The Agriculture Bill has passed its second reading in the House of Commons, which means it now goes to committee for further scrutiny.  

Commenting on the Bill, Edward Dixon from our Rural Asset Management department said: “The introduction of the agricultural bill will be the most significant change for the UK agricultural industry since the 2nd world war. Farmers and landowners will need to take a look at their business to ensure they are robust and ready for change. We are helping businesses prepare for change by providing external scrutiny and looking at new opportunities. We expect those to consider all options for their business and their assets to be in the best position.”

For further thoughts on the challenges and opportunities the Agriculture Bill presents, please see our latest blog.   

Click here for details of how you can have your say on the Agriculture Bill.  

Welsh benchmarking project offers farmers £1,000

Welsh farmers could receive £1,000 for taking part in a benchmarking project designed to give them a better understanding of the technical and financial performance of their business.

The £2.15m red meat benchmarking project is on offer to 2,000 livestock farmers in Wales and is funded through the Welsh government’s EU Transition Fund to help the sector prepare for Brexit.

Payments will be awarded on a first-come, first-served basis and to be eligible producers must have a minimum stocking level of 235 breeding ewes or 25 breeding cattle (or a combination of both) and be registered with Farming Connect.

Click here for more information on how to apply.   

BPS payments begin to hit Scottish accounts

Direct payment loans equivalent to over £241m have started to arrive in Scottish farmers’ bank accounts - two months ahead of schedule - according to the Scottish Government.

Eligible farmers and landowners are set to receive up to 90% of their BPS payments early this year under the national loan scheme, which opened in the summer due to this year’s adverse weather.

Rural economy secretary Fergus Ewing said: “As promised, I can confirm the first tranche of loan payments will begin to arrive in bank accounts in the coming days. The money will help ease the pressure on farmers and crofters feeling the effects of higher feed and fodder prices. I would encourage anyone who has yet to accept a loan offer to consider it carefully and respond as quickly as possible.”

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.