After a brief pause, the RICS has re-started publication of its land price series. This shows transaction data (i.e. actual sales) reported across Great Britain, and is compiled by the Royal Agricultural University. The chart below shows the published data (in current prices). This shows a sharp upwards trend in values over the past few years to the current average of £14,000 per acre (£34,500 per Ha). Howwever, in real terms, values have been much more stable, being little different to those seen back in 2014 (albeit with some volatility in the interim).
The price shown in the RICS ‘weighted average’ figure. This excludes transactions where the residential element is more than 50% of the sale price, or sales with some other reported distortion such as development value or the impact of a secure tenancy. This still means the average price shown will include an element of houses and building value, so it is not a ‘bare land’ price.
More information can be found at – https://www.rics.org/news-insights/market-surveys/rics-rau-rural-land-prices-market-survey .
A new Code of Practice has been launched for the tenanted farm sector in England. It is designed to encourage good practice and enforce minimum standards expected of
landlords and tenants, and their professional advisers. The Code has three underlying principles – clarity, communication and collaboration. It is a voluntary code drawn up by the Farm Tenancy Forum – a body made up of representatives from across the tenanted farm sector. A copy of the ‘Agricultural Landlord and Tenant Code of Practice for England’ can be found at – https://www.nfuonline.com/media/2znayotx/agricultural-landlord-and-tenant-code-of-practice-for-england.pdf .
A reminder that as from the 1st April 2024 farmers in England should only use urea fertiliser that has been treated with a urease inhibitor. The new rule, which was delayed by one year due to the volatile fertiliser market in 2023, is part of a voluntary industry scheme designed to reduce ammonia emissions from agriculture. Untreated solid urea/liquid UAN fertiliser can still be applied between 15th January to 31st March each year (when air temperatures are lower). The new rules apply to any fertiliser that contains 1% or greater urea nitrogen.
Defra has provided more information on support for farmers who suffered uninsurable damage to their land due to flooding earlier this year caused by Storm Henk. Readers will recall we wrote about the Government activating both the Flood Recovery Framework and the Farming Recovery Fund back in January (see https://abcbooks.co.uk/flood-relief/). Since then Defra has consulted with stakeholders and developed eligibility criteria for the Farming Recovery Fund. This analysis has identified fields that are eligible (using satellite imagery and river gauge level data). The parcels must be in the counties listed below and be ‘contiguous’ to (previously within 150 metres of the midpoint) one of the rivers that had notably high river level gauge readings during 2nd and 12th January 2024:
Gloucestershire: River Severn, River Thames and River Avon
Leicestershire: Rothley Brook, River Wreake and River Soar
Lincolnshire: River Witham, River Brant, River Welland, River Ancholme
Nottinghamshire : River Trent, River Devon and River Soar
Somerset: River Brue, River Exe, River Parrott and River Tone
Warwickshire: River Avon and River Leam
West Northants: River Nene and River Great Ouse
Wiltshire: River Avon (Hants), River Avon (Bristol), River Kennet, River Thames, River Bourne and River Wylye
Worcestershire: River Severn, River Teme and River Avon
We understand eligible farmers are being written to directly by Rural Payments Agency (RPA) outlining the support available to them and how they can make a claim, this is expected to be a simple form which needs checking and returning by 10th July. The amount is £130 per hectare, with a minimum payment of £500 and a maximum of £25,000. This is to return the land to the condition it was in before exceptional flooding due to Storm Henk. The RPA will indicate how many hectares of land is eligible in its communication with farmers.
Initially the the fund will be available to those in the areas outlined above which have experienced the highest levels of flooding, but Defra has said eligibility for the fund will remain under review to ensure it is supporting areas where farmland is most impacted, in particular the counties of Berkshire, Herefordshire, Oxfordshire, Surrey, Staffordshire, Yorkshire, Norfolk and Derbyshire. Of course, the winter has been exceptionally wet with much ‘generalised’ flooding at various times in numerous locations. This grant is specifically for the flooding caused by Storm Henk from 2nd-12th January 2024 and there is no indication that any other rainfall events will be added.
Defra has opened a new scheme to help improve the water environment England. The Water Restoration Fund is funded through environmental fines and penalties issued to water companies between April 2022 and October 2023. It is focused on restoring and improving inland rivers, streams and their headwaters (including chalk streams), canals, lakes, ponds, wetlands (including freshwater and saltwater wetlands) and estuarine waters in the specified geographical areas where fines and penalties from water and sewerage companies have accrued. The project must also be in an area in which sewage collection and treatment is provided by;
Thames Water – £3,334,000 available
Yorkshire Water – £1,600,750 available
Anglian Water – £3,085,000 available
United Utilities – £800,000 available
South West Water – £2,150,000 available
Local groups and farm clusters are encouraged to work together to deliver projects at a catchment-level with integrated outcomes and which address multiple objectives where possible. The Fund is a competitive grant scheme and is limited to the specified geographical areas and funds for each area shown above. Applications will be assessed against the scheme objectives, value for money and each other.
There are two grants available, which can cover up to 100% of eligible costs.
Development awards – short-term grants to build capability and help design and plan future projects. Grant value from £75,000 to £250,000. The project length is 6 to 12 months and starts from July 2024.
Delivery awards – medium to long-term grants to help carry out projects already planned. The project should begin as soon as possible after receiving a grant funding agreement. Grant value from £500,000 to £2 million. The project length is 12 to 30 months starting from July 2024 and ending by 31st March 2027.
New Cross-compliance Rules: new measures are to be introduced to protect peatland and wetland. These will be included under GAEC6 – Maintenance of Soil Organic Matter (there was originally plans to have them as a new stand-alone GAEC8). It will apply to peat soils of over 50cm depth and with a ‘near natural vegetative cover’ – i.e. unimproved land. There will be prohibitions on fertiliser, pesticides, herbicides, cultivations and any drainage works
Calving Index: for those claiming the Scottish Suckled Beef Support Scheme (SSBSS) headage payment, there will be a new condition on calving index. Payment will only be made on calves coming from cows with an interval of 410 days or less. This will be on a cow-by-cow basis, and not on a herd-average. First-calvers will be exempt from the rules. The Scottish Government outlines that the calving interval threshold may reduce in future years, but it will not reduce by more than 10 days in any given year.
Whole Farm Plan: the requirements for this are gradually being phased-in. For 2025, farmers will need to indicate on their Single Application Form that they have done at least two of the following five activities.
Carbon Audit – done within the previous five years prior to May 2025
Biodiversity Audit – done within the previous five years prior to May 2025
Soil Analysis – done within the previous five years prior to May 2025
Animal Health and Welfare Plan – to be updated annually
Integrated Pest Management Plan – to be updated annually
The Scottish Government points out that there is currently funding for Carbon Audits and Soil analysis through the Preparing for Sustainable Farming programme.
Detailed guidance on the conditionality rules for 2025 and more information about the actions farmers and crofters will need to take in 2026, will be announced in summer 2024.
Red Tractor has officially announced that it will drop its proposed ‘Greener Farms’ environmental bolt-on to its Farm Assurance standards. This comes after widespread producer concern over additional compliance costs and the way the new standards were developed and announced. Meanwhile, an independent review has been jointly commissioned by the NFU and AHDB along with NFU Cymru, the Ulster Farmers’ Union and NFU Scotland. This will be a wholesale review of ‘Farm to Fork’ assurance and aims to ensure that UK schemes and practices are fit for purpose. More details can be found at – https://www.nfuonline.com/updates-and-information/industry-wide-assurance-review-officially-launched/ .
UK Minimum Wages rise as from the 1st April. The main National Living Wage rises to £11.44 per hour from £10.42 – an increase of 9.8%. The Living Wage also now applies to anyone 21 years old or over – previously it was only for those 25+. All this adds considerably to costs for those farming and horticultural businesses employing a lot of staff. England no longer has an Agricultural Wages Board, but they continue to operate in Wales and Scotland. These also change their rates from the 1st April. Rates are set to be compliant with Minimum Wage rates, but there are also supplements based on experience etc. The Welsh Wages Order for 2024 can be found at – https://gov.wales/agricultural-wages and the equivalent for Scotland at – https://www.gov.scot/publications/agricultural-wages-scotland-twenty-eighth-edition-guide-workers-employers/.
There has been a re-shuffle of the Welsh Cabinet following the appointment of Vaughan Gething as First Minister. This has seen Lesley Griffiths be replaced by Huw Irranca-Davies as Rural Affairs Minister, which covers the farming brief. In fact, Mr Irranca-Davies’ portfolio has expanded, as he is Minister for Climate Change and Rural Affairs.
It seems increasingly clear that farmers (and their advisors) will not have to do anything to claim their de-linked BPS payments this year. Defra and the RPA have been silent on what might be required. In the absence of information, there was speculation that claimants might, at the least, have to tick-a-box to indicate they still existed. There was a school of thought that Defra would not want to give up on the information provided by the annual BPS application, and that some sort of field-by-field submission would still be required. However, whilst there has been no formal announcment from Defra, ‘stakeholders’ are clearly stating that those due delinked payments will not have to do anything. The money will simply be paid into bank accounts. It will come in two tranches – half in August and half in December. Those budgeting should remember that there will be further progressive reductions this year as the BPS phase-out continues. See Key Farm Facts for details.
Farmers in England should remember that the deadline for transfering delinked Reference Amounts is the 10th May. See our article of last month for more details.
One final point is on Countryside Stewardship and Environmental Stewardship revenue claims. The deadline for these is the 15th May. These were often done as part of the the overall ‘BPS process’. With a BPS form to trigger the work, they may get overlooked.
Scotland, Wales & N.I.
Of course, the BPS carries on unchanged in the rest of the UK for the 2024 year. None of the devloved regions is instituting radical change to their BPS systems for 2024 as all have plans to reform farm support sooner or later. Therefore, for most, the rules and forms remain unchanged from 2023. The deadline for the submission of forms is the usual 15th May. In Wales the entitlement trading deadline is also the 15th May. In Scotland it is 2nd April.
