Green standards and technology

Opinion

Being married to an EU citizen I was slightly biased, but my personal view was that the benefits of Brexit were never likely to outweigh the disadvantages and inconveniences it would deliver. Nevertheless, as somebody who studied crop technology at university, I was at the same time attracted to the idea that we would gain the ability to follow the science and make up our own minds on whether to allow the use of gene-editing technology when developing new crops, something that is prohibited in the EU. Last week, as discussed below, that ability became a reality, in England at least (the Scottish and Welsh governments are still toeing the EU line). Many people won’t agree with me. My colleague Melissa Walker from our Agri-consultancy team, for example, is nervous that the use of gene-edited crops could mask unsustainable farming practices. Adjusting your management approach to promote farming methods that prioritise soil health and the establishment of resilient and sustainable ecosystems, could often be more effective than investing in altered genetics, she points out. I totally agree, but on balance I still feel that with the right regulation (perhaps a distrust of government and agri-corps to do the right thing is behind much of the opposition) gene-edited crops could help many of the world’s farmers who are facing more and more climate-related challenges. What do you think? AS

Do get in touch if we can help you navigate through these interesting times. You can sign up to receive this weekly update direct to your email here

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

In this week’s update:

·      Commodity markets – Wheat slumps, lamb simmers

·      Rights of way - Defra U-turn on deadline for lost paths

·      Investing in nature – New standard in the works

·      Local nature recovery – Defra response out now

·      Water pollution – Lords’ report cites nature-based solutions

·      Gene editing – Greenlight given for English research

·      Out and about – Green land use strategy

·      Grants 1 – Cash to save endangered species

·      Grants 2 – Animal welfare scheme open

·      Inheritance tax – BPR for environmental projects

·      The Wealth Report – 2023 edition out now

·      Farmland Index – Agri-land 2022’s top-performing asset

·      Staff Salaries Report – Rural wages benchmarked

·      On the market – Australia and Africa calling

Commodity markets

Wheat slumps, lamb simmers

Feed wheat and oilseed rape markets are continuing to take a battering, sliding by 13% and 11%, respectively, last week. Falling crude prices are weighing on rapeseed markets, along with an expected stream of boats laden with wheat and OSR leaving Ukraine and Russia following a 60-day extension of the Black Sea corridor agreement that guarantees safe passage of vessels. Improving production prospects for US and EU winter wheat crops also weighed on prices, despite a predicted 23 million-tonne drop in Russian and Ukraine wheat output this year. Meanwhile, the Ramadan festival has helped nudge up lamb prices in the UK slightly AS

Talking Points

Rights of way - Defra U-turn on deadline for lost paths

Defra has announced a complete reversal of last year's decision to scrap the deadline to record any historical public rights of way on the Definitive Map. It will now implement the cut-off as initially intended in the Countryside and Rights of Way Act (CROW). Although, the deadline has been extended to 1 January 2031 due to Covid-19. The Definitive Map is the legal record of where public rights of way exist. Claims can be made, and routes added to the map where evidence exists. Frustratingly for landowners, the condition of the land, its suitability on environmental or development grounds, a lack of physical evidence of any highway or the current public need for such a route, are not considered in the legal debate. “A definitive cut-off date is good news for landowners to be able to draw a line under any potential claims and impact to their farm or estate. Although this deadline is likely to increase the number claims made prior the cut-off point, councils are facing years of backlogs and these claims are likely to take some time to resolve,” says Rachel Patch, a colleague in our Rural Consultancy team MT

Investing in nature – New standard in the works

Greenwashing is an accusation, rightly or wrongly, thrown at many so-called green investment schemes, including a number of carbon and biodiversity credits. A lack of clarity around regulation and certification is certainly leaving the sector open to exploitation and holding back investors and the owners of natural capital who want to invest in or deliver meaningful projects. To help combat that, the government in conjunction with BSI, the UK’s national standards body, has just launched the Nature Investment Standards Programme. Its aim is to establish a framework that will help funnel more investment into nature-based solutions by “creating a new, consensus-based, UK-wide standards framework for nature”. It sounds ambitious and we’ll be following closely AS

Local nature recovery – Defra response out now

Defra has just published its response to the consultation on the preparation and content of local nature recovery strategies. These are a nationwide system of spatial strategies to help reverse the decline of biodiversity. There will be around 50 strategy areas covering the whole of England, and a ‘responsible authority’ will locally lead the preparation of each strategy. The implications of this approach could be quite significant so I’ll be providing some more analysis in next week’s Rural Update MT

Water pollution – Lords’ report cites nature-based solutions

Nature-based solutions and catchment approaches were some of the recommendations in a recent House of Lords report on “cleaning up failure in water and sewage regulation”. Rather than relying on traditional, infrastructure-heavy solutions, it says that more innovative approaches that are cost-effective, environmentally friendly ways of reducing water pollution should be considered in the Price Review and ‘Water Industry National Environment Programme’ – environmental obligations that water companies need to take.

Any considerations to bring nature-based solutions to tackling water pollution need to take account of parallel policies and schemes. The last thing the rural community needs is a lack of consistency across regulations and added layers of complexity to planning frameworks. Also, the main calls from the report to improve infrastructure and help reduce pollution incidents will undoubtedly mean that water bills will need to rise further in the future MT

Gene editing – Greenlight given for English research

The Genetic Technology (Precision Breeding) Act was passed into law last Thursday. Precision breeding involves using technologies such as gene editing to adapt the genetic code of organisms – creating beneficial traits in plants that through traditional, breeding would take decades to achieve. Although not popular with many environmentalists, the government claims the act will allow farmers to grow crops that are drought and disease resistant, reduce use of fertilisers and pesticides, and help breed animals that are protected from catching harmful diseases. Under the provisions of the act, a new science-based and streamlined regulatory system will be introduced to facilitate greater research and innovation in precision breeding - with stricter regulations remaining in place for genetically modified organisms (GMOs) AS

Out and about – Green land use strategy

Just a virtual visit, but I tuned into an interesting AgriFood4NetZero webinar discussing the Green Alliance’s land use report released earlier this year. The alliance’s Dustin Benton shared some fascinating insights, such as only 9% of agriculture’s annual carbon emissions are covered by policies to reduce greenhouse gases. Compare that to the energy sector where 81% of carbon emissions are accounted for. But Mr Benton said it was still possible for UK farmland to balance all the demands placed on it and reach net zero by 2050. The best approach, he suggested, was to have a quarter of farmland under high-yielding systems, around one-third under habitat creation and the rest under low-yielding practices. This, however, would require a 45% reduction in meat and dairy consumption. Although it would reduce our land use overseas by 45%, increase nature in 2050 by 82%, and be the least costly option for taxpayers MT

Need to know

Grants 1 – Cash to save endangered species

Funding between £50,000 and £500,000 over two years are available under the Species Recovery Capital Grant Scheme to be launched by Natural England (NE) in April. NE say that “the funding is intended to support projects which enhance or create heritage assets to support wildlife habitats which benefit species recovery”. Species include hedgehogs and once common birds such as house sparrows. The capital funding can be used to support various activities such as habitat enhancements, preliminary surveys, equipment, staff costs and research and development. Partnerships, individual organisations and formally constituted businesses in England can apply. But collaborative projects from multiple organisations/partners are also welcome. The application window opens on 3 April for six weeks MT

Grants 2 – Animal welfare scheme open

Defra’s Animal Health and Welfare Grant Scheme is now open and will continue for 12 weeks, with a deadline of 15 June at noon. The scheme offers funding applications ranging from £1,000 to £25,000 for purchasing specified items such as cow mats, mobile handling systems, weighing equipment and perimeter fencing. The scheme is part of the Farming Equipment and Technology Fund and is only available in England. Contact Henry Clemons, our rural grants expert, to help you navigate the myriad of grants that could support any projects you may have MT

Inheritance tax – BPR for environmental projects

In last week’s Rural Update we shared the welcome news that a consultation had been launched that will hopefully clarify that farmland put into environmental schemes should still qualify for Agricultural Property Relief (APR) on inheritance tax. However, hidden in the supporting documents was the helpful confirmation that such land already qualifies for Business Property Relief (BPR) AS

Knight Frank Research

The Wealth Report – 2023 edition is out now

Knight Frank’s leading piece of thought leadership on property and wealth trends was launched last week and includes an interview by me with one of Scotland’s pioneering rewilders, as well as some thoughts on why farmland could be one of this year’s most in-demand property investments. Download your copy to find out more.

Farmland Index – Agricultural land top-performing asset in 2022

As predicted, the latest results of the Knight Frank Farmland Index show that agricultural land as an investment beat inflation in 2022 and outperformed other asset classes, including mainstream house prices, luxury London house prices, the FTSE 100 share index and even gold. According to our index the average value of farmland rose by 13% over the year to hit over £21,000/ha, a record high. A shortage of supply and continued strong demand from a wide range of buyers underpinned the market. Download the full report for more facts and figures.

You can also hear some thoughts from my colleagues and me on the outlook for property markets in 2023 in a recent edition of Intelligence Talks, our research podcast.

Estate Staff Salaries Survey – Rural wages benchmarked

Just a reminder that the latest edition of the Knight Frank Estate Staff Salary Survey has recently been published. The report reveals the average salaries paid for a wide range of rural estate and farming roles and level of wage increases being offered by rural businesses. Also highlighted are the key employment issues facing the rural economy. Download your copy here or get in touch with Chris Terrett for more details.

On the market

Australia and Africa calling

Our global farmland team has just launched a couple of interesting investment opportunities. In Australia, broker Andrew Blake is selling Karakin Farm, near Lancelin, an 8,500 hectare arable and livestock unit, one of the largest private landholdings within 100km of Perth’s CBD. Expression of interest around AU$30 million have been received. Meanwhile, Tanya Ware, our Head of Farm Sales in Zambia, is looking for buyers for Serenje Farm in the country’s Central Province. The 680-ha arable farm has excellent water access, with irrigation rights for 700 ha of land. Tanya is looking for offers of around US$1.36 million.