The Knight Frank Rural Property and Business Update – 22 March
Our weekly dose of news, views and insight from the world of farming, food and landownership
4 minutes to read
The battle for the UK’s rural land is heating up. Rewilders, foresters and renewable energy providers, often encouraged by government policy, are all staking their claim on increasing amounts of agricultural land. Farmers, meanwhile, are starting to question if the government really cares about food production and whether it actually has a strategic vision for what it wants farmers to do with their land. Ultimately though that vision needs to come from the landowner. Every farm or estate will be different, but chances are business as usual won’t be the best option.
Please do get in touch with me or my colleagues mentioned below if you’d like to discuss any of the issues covered. We’d love to hear from you
Andrew Shirley, Head of Rural Research
In this week’s update:
• Commodity markets – Lambs springing up
• Renewable energy – Biggest UK solar farm seeks consent
• Rewilding – demand from buyers rises
• Rural broadband – Government announces boost
• Workers’ accommodation – New tax rules take effect soon
• International news – Land values rocket in Ireland
Commodity markets – Lambs springing up
Wheat values have taken a small step backwards, but oilseed rape and lamb prices continue to rise. The number of lambs slaughtered in February was down 8% on the same period last year, which helped to sustain upwards pressure. Conflicting evidence makes it hard to calculate the impact of Brexit on the market. According to HMRC data, as reported in the latest AHDB market update, volumes sent to France, the main export market for UK sheep meat, fell by 21% to 2,300 tonnes. However, French customs data suggests that shipments from the UK during the month rose by 21% to 3,900 tonnes.
Renewable energy – Biggest UK solar farm seeks consent
A proposed 1,100 hectare East Anglian solar scheme is set to test the public’s appetite for renewable energy and add fuel to the food security debate that is currently raging in the UK.
If planning consent is granted the project, set to be built on arable fields, will be the country’s largest solar farm.
David Goatman, Knight Frank’s Head of Renewables and Energy, said the scheme, although likely to be contentious, had a good chance of being approved. “The government wants more big solar.”
Contact David if you need help with any renewable energy projects
Rewilding – demand from buyers rises
Last Saturday (20 March) was World Rewilding Day and demand for land to “rewild” certainly seems to be growing, according to my colleagues in our Farms & Estates team who have been dealing with numerous potential buyers who fancy going back to nature.
It is, however, a contentious subject with those concerned about food security issues questioning the wisdom of taking land out of production. However, as my agri-consultancy colleague Tom Heathcote points out, rewilding is still on the whole a managed process in the UK, often including elements of food production.
I’ve been lucky enough to interview some of the UK’s leading proponents of rewilding. You can find out more by following the links below
• Charlie and Isabella Burrell – The Knepp Estate
• Anders Povlsen – Scottish highlands
• Ben Goldsmith - Somerset
To help decide if rewilding is for you please contact Tom
Rural broadband – Government announces boost
More than one million hard-to-reach homes and businesses will be connected to next generation gigabit broadband in the first phase of a £5 billion government infrastructure project.
Up to 510,000 homes and businesses in Cambridgeshire, Cornwall, Cumbria, Dorset, Durham, Essex, Northumberland, South Tyneside and Tees Valley will be the first to benefit as part of ‘Project Gigabit’.
"In June the government expects to announce the next procurements to connect up to 640,000 premises in Norfolk, Shropshire, Suffolk, Worcestershire, Hampshire and the Isle of Wight."
The projects will prioritise areas that currently have slow connections and which would otherwise have been left behind in broadband companies’ rollout plans.
However, the government admitted that in some very remote parts of the UK it might be too expensive to build a gigabit-capable network, even with substantial public subsidy. It estimates fewer than 100,000 premises would be affected, although many of these are likely to be rural businesses.
Read the full announcement
Workers’ accommodation – New tax rules take effect soon
Farms and estates that provide staff accommodation and housing need to be aware of new tax rules that come into effect from 6 April.
From this date, employees will be taxed on the value of the benefit provided by their accommodation at their marginal rate of income tax, unless they qualify for certain exemptions. Employers will also need to pay extra National Insurance contributions.
"The three exemptions are: accommodation necessary to perform their duties properly, accommodation customarily provided for the better performance of duties and accommodation required for the personal security of the employee."
Please contact Kathryn Brown in our Rural Asset Management team if you are concerned about the changes
Overseas news – Land values rocket in Ireland
Farmland values in Ireland rose by 15% in 2020, despite the Covid-19 pandemic, according to the latest land price report compiled annually by the Irish Farmers Journal.
The report reveals that the average price of agricultural land reached €10,316/acre, up from €8,971 in 2019. This is the highest average land price figure recorded since the financial crash of 2008. Supply fell by 25%.
Photo by Rayner Simpson on Unsplash