New Ways to Farm

September 25, 2017

New ways of farming that increase the financial yield per acre can bring other benefits, such as being more eco-friendly and sustainable. Currently, British farmers are not competitive with the Netherlands, which is the world’s second largest global exporter of food after the US.

Protected Designation of Origin, or How to Increase Margins

March 28, 2017

The UK currently has 78 registered PDOs, which effectively create a brand for locally produced food (and drink) that cannot be copied. For example, a sparkling wine is only called Champagne (a PDO) if it comes from the Champagne region and is produced under the appellation rules. This is an EU food naming scheme that protects regional and traditional foods, whose authenticity and origin can be guaranteed, from being copied by other producers.

Equity Release

March 28, 2017

One of Britain’s largest equity release firms has reported that the market hit a new record in 2016, after a fifth year of growth, with retired homeowners withdrawing over £2.1 billion of property wealth last year via some 27,600 plans. Clearly, the market for traditional equity release on residential property is booming, however when it comes to farms and the agricultural sector is this repeated? Searching the web suggests nothing is available and we find several instances of farming forums asking where to find equity release.

The Savills Farmland Value Survey 2017

March 27, 2017

Savills recently published their research on Farmland Values in the Great Britain showed the combined 39.8 million acres of farmland in 2016 has been valued at £185.7 billion. In 2016 the available acreage for sale was circa 180,000 one of the lowest levels in the post war period.

The Returns on Farming

March 27, 2017

A few weeks ago, DEFRA published its initial analysis of farming’s financial performance for England in 2015/16. As ever, there are statistics to suit everybody’s needs. What caught our eye was the Return on Capital Employed (‘ROCE’ pronounced so it rhymes with croquet).

Energy Storage and the opportunity for landowners

March 27, 2017

Farmland prices

March 27, 2017

Rural property demand was robust last year, despite the Brexit vote. Supply was generally muted, with landowners adopting a ‘wait and see’ approach to the many potential policy impacts. While CAP subsidies are secure until 2020, and a weak pound boosted GBP commodity prices, the growing unpredictability makes income diversification far more important for all but the most profitable farms. As a result, potential buyers are increasingly discriminating between farmland’s underlying commercial value, its amenity value and its development potential.

New Zealand – farming without subsidy

March 27, 2017

With the inevitable changes that Brexit will impose on the UK farming industry, it’s worth looking at New Zealand’s approach, where almost all farming subsidies were removed in 1984, after years of protection by a government that had set production quotas, paid generous subsidies and dictated land use.