UK rural property: looking for leadership

Opinion

Sometimes you need to look close to home when seeking answers to the many challenges thrown at farmers and landowners these days.

There is a huge focus on how new natural-capital-based income streams are going to make up for the loss of Basic Payment Scheme cash, and we spend an awful lot of time complaining about policymakers who don’t understand the countryside, but when 75% of rural employers have not carried out any formal management or leadership training themselves in the past three years, perhaps there is some low-hanging fruit that could be grasped.

Given how quickly the world is changing, participating in Agri-leadership Week, as discussed below, could be a good start. AS

Do get in touch if we can help you navigate through these interesting times. You can sign up to receive this weekly update direct to your email here.

Andrew Shirley Head of Rural Research; Mark Topliff, Rural Research Associate.

In this week's update:

• Commodity markets – Barn stocks pressure prices
• Management – It’s Agri-leadership week
• International news – Spanish fruit growers prosecuted
• BPS claims – Deadline imminent
• House prices – Super-prime rural booms
• Farmland Index – Prices rise in quarter 1
• The Wealth Report – 2023 edition out now
• Farmland Index – Agri-land 2022's top-performing asset

On the market – Surrey regen farm to rent

Commodity markets

Barn stocks pressure prices

Many farmers it seems didn’t take advantage of the healthy cereal prices on offer post-harvest last year, perhaps hoping values would bounce back to the £300/t levels seen in the aftermath of Russia’s invasion of Ukraine.

New figures from Defra show that arable farmers in England and Wales were storing 17% more wheat in their barns in the first three months of 2023 compared with the same period last year. This overhang could put further downward pressure on wheat markets later in the summer, especially as demand for feed from livestock producers is also down. AS

Talking points

Management – It’s Agri-leadership week

Thanks to my agri-consultancy colleague Simon Britton for pointing out that it’s Agri-leadership week! Maybe not as taste-bud tingling – who misses national sausage week - or as socially “worthy” as some of the many seven-day periods of awareness-raising or celebration we are bombarded with these days, but still not something to dismiss lightly.

“This new initiative aims to raise awareness about personal and professional growth opportunities that can enhance not only individual abilities but also individuals’ capacities as an employer and manager. Succession, training and retention of staff is key in any industry and it is particularly pertinent in UK agriculture at the moment,” points out Simon.

Use #agrileadershipweek on your favourite social media channels to get involved in the initiative, which sets out to showcase the benefits of leadership development and is aimed at current and aspiring leaders in farming. AS

International news – Spanish fruit growers prosecuted

Twenty-six Spanish farmers have been prosecuted for drilling illegal boreholes to grow tropical fruit it the drought-hit south of the country. More than 250 wells, boreholes and ponds were discovered during an investigation into the misappropriation of public waters in the Axarquia area of Andalusia. Water is set to become an increasingly contentious issue for landowners all over the world. AS

Need to know

Win wine and beer – Take our Rural Sentiment Survey

If you have five minutes to spare, why not share your opinions about the opportunities and challenges facing your rural business by taking our latest Rural Sentiment Survey. All respondents who complete the survey will have the chance to win a case of Chapel Down English wine and a case of beer from the Gritchie Brewery. AS

BPS claims – Deadline imminent

Farmers and landowners planning to make a Basic Payment Scheme (BPS) claim this year have until midnight tonight (May 15th) to submit their paperwork. Thousands of claimants are still apparently yet to do so. For help with future claims please get in touch with our Agri-consultancy team. AS

House prices – Super-prime rural booms

Tight supply and resilient demand mean buyers looking to secure a prime property outside London are still facing strong competition, even as the ‘race for space’ calms down, according to a new report from my research colleague Chris Druce. There were 52 sales at over £8 million outside of London in the 12 months to March 2023 - an increase of 16% on the year before and the highest total in 15 years. Sales over £5 million reached 122 in the same period, which was the second highest total in the last 15 years. AS

Knight Frank Research

Farmland Index – Prices rise in quarter 1

Agricultural land proved resilient in the first three months of 2023. While residential property values weakened, the average price of bare farmland rose by 2%, edging closer to £9,000/acre, according to the Knight Frank Farmland Index. The hike takes the annual rise to 11%, reinforcing farmland's reputation as a good hedge against inflation. Read the full report for more data and insight.

You can also listen to the latest edition of our Intelligence Talks podcast where I discuss biodiversity net gain and nutrient neutrality schemes with my Rural Consultancy colleague Isabel Swift. AS

The Wealth Report – 2023 edition is out now

Knight Frank's leading piece of thought leadership on property and wealth trends was launched last week and includes an interview by me with one of Scotland's pioneering rewilders, as well as some thoughts on why farmland could be one of this year's most in-demand property investments. Download your copy to find out more. AS

On the market – Surrey regen farm to rent

Our Horsham office is letting a 126-acre Grade 3 grass farm near Reigate, Surrey. Kinnersley Manor Farm comes with a three-bedroomed house, 30,000 sq ft of buildings, including a milking parlour, and is available to rent on a six-year Farm Business Tenancy. The landlord, Surrey County Council, requires the farm to be managed regeneratively. For more information please contact Isabel Swift. AS