Input costs, Rewilding nuance, Vineyard expertise

I’ve never subscribed to the conspiracy theories about the “mainstream media” peddling misinformation spoon-fed to them by some mysterious elite, but it can sometimes be exasperating to read articles about farming that have obviously been dashed out quickly with no real insight. The rewilding frenzy following last week’s government announcement of its Landscape Recovery scheme was a good case. We aren’t going to see huge swathes of England rewilded overnight, and it’s unlikely such schemes will threaten food security. However, it’s not just the media who don’t do their research. A politician lauding higher commodity prices, without mentioning the commensurate surge in input costs is asking for trouble. Luckily our rural experts know what they are talking about, and we have just recruited four new members to our consultancy team, including our very first Head of Viticulture. Cheers!

Do get in touch if we can help in any way
Andrew Shirley, Head of Rural Research

In this week’s update:

• Commodity markets – Input costs spiral
• Land prices – 2022 starts strongly
• Rewilding – A nuanced perspective on our podcast
• Rural consultancy – New viticulture expert joins expanding team
• The Rural Report – Sign up to watch our ground-breaking video
• Overseas news – Irish land values boom

Commodity markets – Input costs spiral

There are always two sides to an equation, and when Defra Minister George Eustice concentrated on just the outputs side of things at the recent virtual rendition of this year’s Oxford Farming Conference he stoked the ire of farmers. Mr Eustice said that the rise in commodity prices could cancel out this year’s reduction in farm subsidies. But with red diesel prices up 23p/litre on this time last year and ammonium nitrate costing around £400/tonne more, much of those gains will have been negated. Some fields earmarked for spring plantings may no longer get planted, farmers are warning.

Land prices – 2022 market starts strongly

In case you missed last week’s update, the full-year figures for the Knight Frank Farmland Index have just been released. They reveal that the average price of bare agricultural land in England rose by 10% to £7,580/acre in 2021. Will Matthews of our Farms & Estates team says the main drivers supporting values - limited supply and strong demand - look set to continue this year.

“I’ve definitely had more people ringing me up so far this year looking for land, mainly eco and rollover buyers, than those thinking of selling.”

Download the full report for more insight and data

If you are thinking of selling into a strong market do get in touch with Will

Rewilding – A nuanced perspective on our podcast

Following the recent launch of the government’ Landscape Recovery scheme the press has sent itself into a frenzy about how much of the UK is going to be rewilded as a result. Of course, landscape recovery is about much more than rewilding, so I was delighted to join my colleague Tom Heathcote, Head of our Agri-Consultancy team, on Knight Frank’s Intelligence Talks podcast to add some nuance to the debate. I hate listening to my own voice, but apparently, it’s quite good! Have a listen to see if you agree.

Rural consultancy – New viticulture expert joins expanding team

It’s always exciting to be working with a growing team so it’s great to be able to share the news that our Rural Consultancy department has just recruited a host of new talent. Joining us this week are Claire Whitfield, Jess Waddington, Zoe Smith and Ed Mansel Lewis. Claire and Zoe will be bolstering our land agency presence in the north of England, while Jess will be based in East Hendred. As a wine lover, Bristol-based Ed’s appointment as our very first Head of Viticulture is particularly exciting! Do get in touch.

The latest edition of The Rural Report, our unique publication for rural landowners and their advisors, was launched with a video highlighting some of its key content around the topic of ESG. If you missed it, you can sign up to watch on demand at your leisure. It was a lot of fun making it and includes a thought provoking interview on diversity, with Wilfred Emmanuel-Jones AKA The Black Farmer. I think you’ll find it both entertaining and informative.

Sign up to watch The Rural Report launch video

Overseas news – Irish land values boom

A survey of auction sales by the Farming Independent reveals that the average value of Irish farmland rose 14% last year to €13,296/acre.

Transactions totalled €73.4m, an increase of 34%, with the acreage sold also up 17%. South Leinster was the most expensive region averaging €16,110/acre. Around 75% of the sales were conducted online, which may have helped push up prices as neighbouring farmers were able to bid anonymously.