Gene editing, Milk boost, New grants
The Knight Frank Rural Property and Business Update – Our weekly dose of news, views and insight from the world of farming, food and landownership
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Are we about to see a bit of a Brexit bonus for farmers? Well, if you are opposed to gene editing the answer is no. But if you are comfortable with the technology, then, as discussed below, all sorts of exciting innovations that could boost productivity and enable more nature-friendly farming may well be emerging from Britain’s agricultural research stations soon. Actually, make that England’s. Scotland and Wales plan to stick to the EU’s wider GM rules, which prohibit gene editing. Unless the government in Westminster can win over the devolved regions, the bonus might not live up to its potential. Wouldn’t it be good if everybody could work together?
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Andrew Shirley, Head of Rural Research
In this week’s update:
• Commodity markets – Milk up, grains and oilseeds down
• Technology – Gene editing bill in parliament
• Podcast – Technology and the energy crisis
• Trees 1 – Welsh petition launched
• Trees 2 – New saplings grant
• Business development – £300,000 ‘adding value’ grants available
• Overseas news – Farms and vineyard showcase
Commodity markets – Milk up, grains and oilseeds down
Wheat and oilseeds shed some of their recent gains last week as hopes for a solution to the blockades of Ukraine’s Black Sea ports rose. However, reports in the weekend press seemed to pour cold water on any immediate breakthrough so volatility will likely remain the order of the day. Meanwhile, dairy co-op Arla has agreed a price rise for its members that will see them receive almost 48p/litre for their milk from June.
Technology – Gene editing bill in parliament
The UK’s farmers are one step closer to being able to benefit from the latest plant breeding techniques after the Genetic Technology (Precision Breeding) Bill was introduced to parliament last week.
According to the government, the bill will “remove unnecessary barriers to research into new gene editing technology, which for too long has been held back by the EU’s rules around gene editing, which focus on legal interpretation rather than science”.
Environment Secretary, George Eustice, said: “Outside the EU we are free to follow the science. These precision technologies allow us to speed up the breeding of plants that have natural resistance to diseases and better use of soil nutrients so we can have higher yields with fewer pesticides and fertilisers.”
However, Scotland and Wales said they planned to remain aligned with the EU, which does not differentiate gene-editing from more controversial genetic modification (GM) techniques.
Podcast – Technology and the energy crisis
For the latest edition of our Intelligence Talk podcast I was interviewed with Oliver Novakovic, technical and innovation director at house builder Barratt on how new – and sometimes old - technologies can help housebuilders and farmers cope with the current energy crisis. You can listen here, or wherever you get your podcasts.
Trees 1 – Welsh petition launched
I’ve mentioned before that not all of the latest tree-planting schemes in Wales have gone down very well with local communities and farmers.
Now Countryside Alliance Wales has launched a petition urging the government and Natural Resources Wales to stop buying commercial farmland for woodland schemes as it “threatens food security and self-dependency”.
Trees 2 – New saplings grant
Meanwhile in England, landowners can now apply to a new scheme the government hopes will encourage the production of enough trees to help it hit its ambitious planting targets. Almost £9 million is available as part of the Tree Production Capital Grant with individual businesses able to claim up to £175,000 to cover 50% of the cost of kit used to produce tree seeds and saplings. Applications close on 30 June.
Business development – £300,000 ‘adding value’ grants available
Defra has started to promote the latest theme in its Farming Transformation Fund – Adding Value. Grants from £25,000 to £300,000 will be on offer to farming businesses to cover 40% of the cost of capital items to enable them “to add value to eligible agricultural products, after they’ve been harvested or reared”.
Overseas news – Farms and vineyard showcase
The forthcoming issue of The Rural Report, due to be published on 8 June, will include a selection of farms and vineyards that Knight Frank is selling around the world. If you’re interested in an overseas’ investment or lifestyle purchase watch this space.