Beavers boom, raptors recover, US farmland surges
The Knight Frank Rural Property and Business Update – 16 August
4 minutes to read
Our weekly dose of news, views and insight from the world f farming, food and landownership
After last week’s gloomy climate change report from the UN, it’s good to report some environmental success stories from the countryside that show success can be delivered when landowners, legislators and conservation organisations work together. A pragmatic approach to the reintroduction of beavers in Scotland, which includes the option of lethal control where necessary, is paying dividends, while Hen harriers have had a good year in England. Working together will also benefit landlord/tenant relationships as a new Code of Good Practice is published.
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 – OSR values on the up
- Tenancy reform – New Code of Good Practice published
- Species reintroduction – Scottish beaver boom
- Raptor recovery – Hen harrier success continues
- Covid-19 support – Vat rate change deadline approaches
- Connectivity – Government launches competition to deliver better broadband
- The Rural Report – Sign up to watch our ground-breaking video
- Overseas news – US farmland values surge
Commodity markets – OSR values on the up
Poor growing and harvesting conditions around the world, a late start to the Ukrainian harvest and an uptick in oil prices are helping to support oilseed rape prices. Traders are currently focusing on the heat-hit Canadian canola harvest.
Tenancy reform – New Code of Good Practice published
A new Code of Good Practice relating to projects, schemes or works requiring a landlord’s consent in agricultural tenancies has just been published by the Tenancy Reform Industry Group (TRIG).
Edward Holloway, from our Rural Asset Management team, says the Code, which includes a five-step process that parties should seek to follow where either one is seeking consent to a variation, is a positive step in the wider context of relationships between landlords and tenants of agricultural property.
“In a period of accelerated change for the farming sector, agricultural tenants and their landlords need to engage with each other to aid the adaptation of the sector adapt and make the most of new opportunities. The Code sets out an important framework for positive discussion and collaboration.” between these two parties which, if managed correctly, will lead to mutual benefit where change may be required.”
Please contact Edward for more information
Species reintroduction – Scottish beaver boom
According to a report just published by NatureScot, Scotland’s beaver population has hit 1,000 after the dam-building, bark munchers were reintroduced in 2009. A carefully managed process has contributed to the success, says NFU Scotland. Over 100 beavers have been “lethally controlled” under licence to avoid damage to farmland or infrastructure.
Read our Rural Report focus on Beaver and Lynx reintroduction
Raptor recovery – Hen harrier success continues
New numbers from Defra show that Hen harriers have had their best breeding year since the 1960s. Almost 85 chicks fledged from nests across uplands in County Durham, Cumbria, Lancashire, Northumberland and Yorkshire. It has been the fifth successive year of increased fledglings.
Covid-19 support – Vat rate change deadline approaches
The temporary 5% rate of Vat applied to hospitality payments as part of the government’s support for businesses hit by the Covid-19 pandemic rises to 12.5% from the end of September. The change could affect diversified businesses such as cafés and camping sites run by farmers and estate owners. The pre-pandemic rate of 20% is due to return on 1 April 2022.
Connectivity – Government launches competition to deliver better broadband
Poor broadband is one of the biggest challenges for rural businesses, according to the Knight Frank Rural Sentiment Survey. To help deliver better connectivity to rural areas the government is inviting organisations to submit ideas for utilising the country’s mains water network to speed up the rollout of fibre broadband.
Four million pounds is available for cutting-edge innovators to trial what could be a quicker and more cost-effective way of connecting fibre optic cables to homes, businesses and mobile masts, without the disruption caused by digging up roads and land.
The Rural Report – Sign up to watch our ground-breaking video
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 – US farmland values surge
The 2021 USDA Land Values Summary released this month reveals that the average value of US farmland (including buildings) has risen 7% this year to US$3,380/acre. Cropping land jumped 8% to US$4,420/acre, while pasture was up 6% to US$1,480/acre. The hikes were the biggest since 2014. Cash rents are yet to see a similar uptick.