UK rural property: Soil health is our health

Opinion

As it stands, most of what we eat and how that ultimately impacts our health starts in the soil. It sounds quite obvious, but it’s only now that soil health is widely being linked to human health. Evidence is building that fewer nutrients in the soil means fewer in our diets. That’s why, to my mind, the increasing shift (see ADM article below) to more soil-friendly farming practices, such as regenerative agriculture, is good news for both the environment and us. It’s also a chance to unlock new income streams in the form of carbon credits, awarded to farmers who are helping their soils to lock up more carbon and hence mitigating global warming. But we need to be careful about expecting too much of our soils. As the research discussed below shows, the carbon sequestering capabilities of soil may not be as great as some have suggested. Greenwashing accusations are rampant at the moment and the whole concept of ESG is taking a bit of a drubbing. Improving the health of our soils should be a no-brainer from a resilience and sustainability perspective, but the agricultural industry and policy makers shouldn’t rely too heavily on carbon credits, which may come under closer scrutiny in the future, to make it happen. There are lots of other good reasons AS

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

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In this week's update: 

• Commodity markets – Apples under pressure
• Soil carbon 1 – Sequestration needs a reality check
• Soil carbon 2 – Alliance launches at COP28
• Housebuilding – Gove scraps greenbelt targets
• Dartmoor – Review advocates partnership plan
• Biodiversity – Defra sets out 30by30 plans
• Overseas news – ADM four-million-acre regen pledge
• SFI – Finish off your application or get nixed
• Pollution – Penalties now unlimited
• Trees – Welsh 10% target relaxed (slightly)
• Grants 1 – New fund opens for smaller abattoirs
• Grants 2 – Solar panels included in productivity fund
• Defra – It is the season for giving
• Land at Simonsbath – Rare piece of Exmoor for sale
• Development land – Prices still falling 
• Country houses – Prices drop
• Farmland prices – Market at peak?
• The Rural Report – Watch the videos

Commodity markets

Commodities – Apples under pressure

We don’t usually focus on apple prices, but given fruit is one of the products that free-trading acolyte and Tory MP Jacob Rees-Mogg thinks we may as well import more cheaply from overseas, this article in The Grocer caught my eye. The sector is on a “knife edge”, according to industry body British Apples & Pears (BAP), with costs rising by 30% over the past two years, while the price paid to fruit farmers has gone up by just 8%. This despite consumers being charged far more on supermarket shelves. A recent BAP survey found 70% of growers were now less confident in the industry than a year ago and only 3% felt they had a “true partnership” with supermarkets. Mr Rees-Mogg may get his wish by default AS

Talking points

Soil carbon 1 – Sequestration needs a reality check

Those who are big advocates of soil’s significant potential to sequester carbon may have to temper their optimism, according to a group of leading researchers. In a recent letter to the journal Global Change Biology, the group, including scientists from the UK’s Rothamsted research centre, says that recent studies of innovative soil management techniques are presenting an “over-optimistic picture” of their potential to store carbon in the soil. Soil scientist Stephen Haefele, explains: “When organic material is added to fields, only about one-third of carbon is incorporated into the soil itself in the first year – the rest is decomposed by soil microbes and ends up back in the atmosphere. To achieve a specified soil carbon increase that persists for 30 years, it’s necessary to add about ten times that much. So, you need to add many tons of organic matter per hectare to increase soil carbon by one ton per hectare.”

Although soil is the world’s largest active carbon store, holding three times the amount found in the world’s atmosphere, boosting soil organic matter is unlikely to have a substantial effect on mitigating climate change in the short term. However, there are long-term benefits for soil structure and sustainability of cropping systems. The most rapid changes are achieved through the conversion of land use, such as arable land to grassland or woodland. A better understanding of the potential of soil carbon sequestration is required, and the group supports a more rigorous approach to estimates MT

Soil carbon 2 – Alliance launches at COP28

The above findings will no doubt come under close scrutiny from a group of carbon-credit traders, natural capital consultants and ag-chemical companies that announced the formation of the International Soil Carbon Industry Alliance at the recent COP jamboree in Dubai. The alliance has been established “to collaborate, share knowledge, accelerate agricultural decarbonisation and increase soil organic carbon”. For anybody interested in looking at what COP28 meant for food and faming in more detail this summary from Modern Farmer is worth a read AS

Housebuilding – Gove scraps greenbelt targets

In a move that has infuriated developers, Housing Minister Michael Gove is set to say that local authorities will not have to set aside land in the greenbelt or build on the best farmland to meet future housing needs. The announcement is expected to be part of the government’s delayed response to its consultation on the revised National Planning Policy Framework, which was due out last week, but is now expected over the next few days. The policy is anticipated to give councils the power to reduce the number of homes they must build if developments will significantly alter the character of their area or damage the greenbelt, as well as exempt them from building homes on prime agricultural land. Housebuilders claim the policy will stifle the already sluggish delivery of new homes even further. Contact our planning guru Roland Brass if you require any help AS

Dartmoor – Review advocates partnership plan

Last summer saw tensions heat up over plans by Natural England (NE) to require Dartmoor’s farmers to reduce livestock stocking rates due to increasing degradation of the moor’s protected sites. An independent review was ordered by the government to find a middle way that addresses the moors’ and commoners’ issues. Published last week, the resulting report underscores the imperative for Dartmoor to evolve with a comprehensive, landscape-level vision and a robust delivery strategy. It advocates supporting the National Park Partnership Plan and establishing a Land-Use Management Group for enhanced governance. Addressing protected areas, the group aims to maintain transparency, repair relationships, and develop strategies for SSSI conditions. Focusing on biodiversity, it emphasises hydrology improvement, controlling Molinia, and restoring heather populations. 

The report envisions a revamped approach to agri-environmental schemes, emphasising tangible benefits, flexibility, and farmer engagement. Communication improvements, simplified protected site management, and recommendations for NE’s operations and Dartmoor institutions are also highlighted. The report concludes with proposals for Higher Level Stewardship roll-overs, emphasising openness, trust-building, and a reassessment of NE’s approach on Dartmoor MT

Biodiversity – Defra sets out 30by30 plans

Last year, the UK government signed up to protect 30% of land and marine for nature by 2030, the so-called 30by30 target. Well, Defra has now released its plans and actions and an indicative map showing how it will achieve that target in England. The “Delivering 30by30 on land in England” sets out the strategy around strengthening policies, extending protected areas, and investing in habitat restoration while, Defra says, ensuring effective safeguards and access while preventing degradation. Acknowledging the need for wider priorities like food production, certain unsuitable zones, including highly productive land, won’t be part of 30by30. 

Farms and estates may be relieved to hear that participation in the 30by30 target will be voluntary, with no obligation on landowners or managers to contribute. It acknowledges and honours existing effective biodiversity conservation efforts. While adhering to current designations, new contributions won’t impose additional management requirements. Landowners can withdraw at any time. The initiative aims for collaborative, voluntary efforts led by those fostering nature’s recovery.

Defra states it wants to lead in nature protection through a bottom-up approach, engaging landowners, managers, and partners for effective target delivery. Rural businesses in the areas to be targeted should watch out for initiatives that may help with the 30by30 target and provide a useful additional income MT

Overseas news – ADM four-million-acre regen pledge

ADM has just released its first annual regen ag report.  The US-based global agrifood giant, formerly known as Archer Daniels Midland, says almost two million acres of farmland within its supply chain have started to be managed regeneratively over the past two years. The firm aims to increase that to four million acres by 2025. It claims the outcomes so far includes the sequestration of 115,500 metric tons of CO2 and reduction of CO2e emissions by 253,000 metric tons in 2022 — equivalent to removing more than 80,000 cars from the road for one year AS

Need to Know

SFI – Finish off your application or get nixed

Defra has just announced that any unfinished Sustainable Farming Incentive applications currently in its system will be deleted if they are not finished and submitted by the end of the year. This could be frustrating for those who have started the online process, but for some reason want to wait before applying AS  

Pollution – Penalties now unlimited

Rural businesses should be aware of a recent change to pollution penalties. Variable Monetary Penalties (VMPs) issued by the Environment Agency have undergone significant changes, eliminating the previous £250,000 cap and broadening the range of offences covered. Firms now face unlimited financial penalties for breaches, offering a swifter punishment alternative to prosecution. Offences now include breaches of permit conditions for discharges into water bodies, illegal discharges without permits (eg pollution from slurry stores), waste-related violations, and permit breaches contributing to air pollution. 

The overhaul, following a spring 2023 consultation, applies to all firms with environmental permits, impacting water, waste, agricultural, and process industries. The funds from water company penalties will fuel a new Water Restoration Fund, supporting local river, lake, and stream improvement initiatives MT

Trees – Welsh 10% target relaxed (slightly)

Welsh farmers and their unions have been up in arms about the proposed requirement that anybody wanting to join the country’s new Sustainable Farming Scheme (SFS), which is due to open in 2025, would have to commit to covering at least 10% of their farms with trees by 2030. The target is still one of the 17 actions SFS claimants must adhere too, but the Welsh government has clarified that the target will not include unplantable areas on farms, such as roads, yards, hard standings, ponds and peatland. Existing broad-leaf and coniferous woodland, individual trees in fields, hedged areas beyond three metres from the original hedge and orchard trees and trees within agroforestry systems are also included in the 10% AS

Grants 1 – New fund opens for smaller abattoirs

In a ground-breaking move, England’s smaller abattoirs can now access a newly established £4 million fund, marking a significant boost for the sector. Recognising the pivotal role of smaller abattoirs in facilitating farmers’ market access and supporting rural economies, the initiative aims to counter the alarming decline—around 25% for red meat and 40% for poultry—in operational smaller abattoirs over the past four years. 

Addressing financial constraints and rising costs, the Smaller Abattoir Fund offers grants ranging from £2,000 to £60,000 at a 40% intervention rate, fostering productivity, animal welfare, value addition, and innovation. Eligible applicants can submit up to three applications, with the deadline set for 30 September 2024. However, some in the industry have branded the move too little too late MT

Grants 2 – Solar panels included in productivity fund

News of new grant funds and advance notice of further rounds of others have been coming thick and fast in the last couple of weeks. The upcoming second round of the Improving Farm Productivity grant scheme is a particularly exciting offer for farmers and horticulturists in providing funding for innovative robotic and automated equipment as well as solar installations. In this round, changes include a reduced minimum grant of £25,000 and expanded eligibility for various agricultural applications. The grant covers up to 40% of robotic equipment costs (max £500,000) and 25% for solar equipment (max £100,000). 

Round 2 omits slurry acidification equipment, but introduces a new solar offer. The application process starts with an online checker in January to assess eligibility and likelihood of success, determining whether applicants proceed to submit a full application. Knight Frank’s grant expert, Henry Clemons, says: “This is one of the few grant funds out there that solar installations are eligible for and one that rural businesses should look to take advantage of” MT

Defra – It is the season for giving

Anyone who follows the various Defra blogs won’t fail to notice the deluge of festive grant giveaways being pushed out at the moment. I’ve covered the smaller abattoir funding and farm productivity grants above. But there has also been an announcement on the opening of a competitive scheme designed to help farmers attract private investment into nature called the Natural Environment Investment Readiness Fund (NEIRF) giving individual grants of between £10,000 and £100,000 to farmers and farm groups. Also, the annual health and welfare review of livestock scheme, the Animal Health and Welfare Pathway, has now been opened to non-BPS registered farmers. This scheme funds a vet visit and some disease tests. And then there’s a third round of the Farming Innovation Programme – large R&D partnerships competition which has been confirmed as launching in January. This is meant to fund industrial research and experimental development projects that will address major on-farm or immediate post-farmgate challenges or opportunities that have costs between £3 million and £5 million.

Defra’s yuletide giveaways may also have something to do with the government department’s own letter to Santa. Staff are campaigning for a new working arrangement that will see them work a four-day week with no reduction in pay. Ho ho ho indeed MT

On the market 

Land at Simonsbath – Rare piece of Exmoor for sale

Our Farms & Estates and Bristol teams are selling approximately 390 acres of pasture, improvable grazing land and moorland in Exmoor National Park near Simonsbath, Somerset. The land is in a private location, and offers opportunities for existing traditional farming as well as for natural capital and nature recovery. The guide price is £1.77 million. Contact Will Matthews or John Williams for further information MT

Our Latest Property Research

Development land – Prices still falling

The latest findings from our Residential Development Land Index show values are continuing to fall. “UK greenfield and urban brownfield values fell on average by 2.4% and 2% respectively in Q3 2023. In prime central London, land prices were flat during the quarter,” writes my colleague Anna Ward. “Average urban brownfield land values across England have now fallen by 20% since the most recent peak of the market in the first quarter of 2022 up to Q3 this year, with greenfield values down 17% during this period. But this quarter we have seen price falls start to moderate in nearly all areas,” adds Anna AS

Country houses – prices drop

The value of a home in the countryside is falling at the fastest rate since the global financial crisis, according to the latest instalment of the Knight Frank Prime Country House Index compiled by Chris Druce. In Q3 2023 average prices dropped by just over 2% taking the 12-month slide to over 8%. Despite the slump, values are still 12% higher than they were in June 2020. Chris says there is a bit of stalemate in the market as sellers cling to last year’s prices, while purchasers are angling for big discounts. Read the full report AS

Farmland prices – Market at peak?

The latest edition of The Knight Frank Farmland Index has now been published. The average value of bare agricultural land rose by 1% in the third quarter of the year to just shy of £9,000/acre. Annual growth was 8%, which outperformed a number of other asset classes (see chart). Our research suggests values may remain flat into 2024. Read the full report for more insight and analysis AS

The Rural Report – Watch the videos!

You've read the book, now watch the videos! To complement the thought-provoking articles contained within this year's edition of The Rural Report our whizzy Marketing team has also created a series of videos featuring many of the report's contributors. Head to our very own YouTube channel to discover more about biodiversity net gain and regenerative farming; find out how we are helping Guy Ritchie's Ashcombe Estate on its diversification journey; and read about the travails of an entrepreneurial Zimbabwean searching for a farm for his family. Plus, lots more AS