Welsh politics, net zero meat, muck impasse
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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The Co-operation Agreement, a title so vanilla only hard core political wonks would be tempted to read it, but nonetheless a document well worth looking at for Welsh rural property owners as it sets out the long-term direction of the country’s politics. The consequences of the agreement between the Welsh government and Plaid Cymru could be significant. In Scotland, they have an eye for a wittier title with the newly published Our Steak in the Ground report laying out the red meat sector’s journey to net zero. Both reports illustrate why the impacts and politics of climate change, not food security, will be the defining influence on agriculture in the UK over the coming decades.
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Andrew Shirley, Head of Rural Research
In this week’s update:
• Commodity markets – Wheat up, oil down
• Welsh politics – Co-operation Agreement consequences
• Muck spreading ban – Environment Agency digs in
• Net zero – Scottish meat producers set target
• Shooting – New report highlights gamebird impact
• The Rural Report – Sign up to watch our ground-breaking video
• Overseas news – Floods devastate Pacific northwest
Commodity markets – Wheat up, oil down
A double whammy of good news for arable farmers last week as fuel prices started to come back and wheat prices continued their upwards rampage. Oil prices recorded their steepest daily fall since July on Friday as a new more virulent strain of Covid-19 detected in South Africa raised fears of further travel restrictions and an economic slowdown. The release of millions of barrels from US strategic reserves also dampened trading sentiment. A shortage of milling wheat is the latest bull factor to support wheat prices.
Welsh politics – Co-operation Agreement consequences
The Welsh government and Plaid Cymru have just released The Co-operation Agreement, a document that details the areas where they will work together. The document is worth a read as it could have far-reaching consequences for rural property owners, points out my rural asset management colleague Eddie Holloway.
“The agreement outlines plans to take immediate and radical action on second homes and unaffordable housing using the planning, property and taxation systems. Those with second homes could find themselves with greater council tax liabilities, new licencing requirements and limits on the number of second or holiday homes. There is also mention of proposals to reform the private rental market in order to increase affordability and end homelessness. While these are admirable objectives, the potential knock-on effect of reforms on property owners could be wide ranging.
“It also lays down a commitment to tackle climate change and move towards creating a net zero Wales. This will include the reform of agricultural support to help family farms and agricultural businesses become greener and more sustainable, encouraging woodland creation, tackling agricultural pollution and developing a community food strategy. Those involved in the rural economy will therefore be at the forefront of addressing nature loss, improving biodiversity and increasing food security.”
Muck spreading ban – Environment Agency digs in
As highlighted in the Rural Update earlier this year, the Environment Agency’s ban on the autumn spreading of organic matter, unless it meets the immediate nutrients needs of the crop in question, is a blow for those farmers using muck and sewage sludge to improve soil structure and reduce the application of artificial nitrogen. However, despite a recent request from parliament’s Environment, Food and Rural Affairs committee to reconsider, the Environment Agency, as reported in the latest edition of Farmers Weekly, is not giving ground.
Photo above by Kieran Osborn on Unsplash
Net zero – Scottish meat producers set target
An aptly named new report from the Scottish Red Meat Resilience Group sets how Scotland’s livestock farmers will be able to deliver net zero by 2045. Our Steak in The Ground commits the Scottish red meat industry to advancing a science-based route map to net zero, a project that will take place over the next two years. It includes five key pledges to kickstart action in the intervening years that will support businesses across the supply chain on their journey to net zero.
The pledges include prioritising reskilling and upskilling, securing a baseline emissions measurement, enhancing brand image and supporting all of those involved in a Just Transition to secure livelihoods as the economy shifts to climate-friendly production.
Shooting – New report highlights gamebird impact
Released last week, a “landmark” new science-led report from the Game and Wildlife Conservation Trust examines in detail the positive and negative impacts of releasing gamebirds on the environment. It included details of how to avoid the negative impacts while showing how well-run shoots can deliver biodiversity net gain.
This year’s edition of The Rural Report, our unique publication for rural landowners and their advisors, launched last month 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 – Floods devastate Pacific northwest
Farms on either side of the US Canada border have been hit by a month’s worth of torrential rain in just two days. Extreme floods and mudslides have sent regions of British Columbia and Washington State into an agricultural crisis. There have been reports of several thousand farm animals dying, many being trapped without access to food and water since torrential rain swallowed highways and forced farmers to leave submerged pastures. Some have even resorted to using motorboats and jet skis to rescue their stock.
Main photo by Jack Seeds on Unsplash