Fortunes are mixed in the farming world
Agriculture in the first six months of 2009 has seen conditions which in many ways resemble the current state of the British weather – that is – unpredictable. George White, founder and partner of Alnwick-based land and property agency George F White reviews the changes in the farming industry this year.
Agricultural property may be too wet or too dry, but it is a relatively safe and secure.
A landowner with a track record based on existing assets will benefit – and farmers need to exploit this to take advantage of the cheap money available in this market place.
Second-hand farm machinery is changing hands profitably; this is due primarily to the high cost of importing new equipment, the weaker pound and the shortage of second-hand equipment on the open market.
Regarding the environment, the Government is moving towards Environmental Stewardship Schemes; these are point-based schemes aimed at encouraging good environmental practices throughout the farming community.
This new system replaces the former Countryside Stewardship and Environmentally Sensitive Area schemes and will involve the renegotiation of some schemes. The industry is looking forward to a number of initiatives and opportunities.
The effects of some cannot be anticipated easily. The hill farm allowance is changing to the Upland Entry Level Scheme, open to all farmers in upland areas. And already, the re-negotiation of some farmers’ stewardship schemes are about to commence.
Government bureaucracy is reaching new heights and we are well placed to comment here, as much of our work is spent unravelling the red tape in order to help farmers benefit from the presumably good intentions of Government.
Farming is now a very important part of the leisure industry. No longer are farmers just farmers, they may also be hoteliers, holiday cottage proprietors or shopkeepers. For those in the agri-tourism industry business is looking relatively rosy, with the weak pound and the new trend to holiday in the UK resulting in high occupancy levels.
However, in order to get the best returns, they need to make the most of these valuable assets, for example the increase in farming technology has decreased the demand for labour so consider letting your agricultural cottages and houses as holiday or long- term lets.
There are many farmers adding value to their farms through diversification and we have worked on a range of schemes including fishing ponds, caravan parks, walking and cycling paths and this trend looks set to continue.
All land holdings are currently subject to a re-mapping process under the Rural Land Register Refresh. Clients in the North East will receive a map pack in the autumn and we are advising them to check these and report any anomalies as soon as possible in order not to delay the processing of any Single Payment Schemes.
For the most part, the agricultural industry seems to be surviving the financial recession better than many other industries. In particular, rural land prices have continued to rise and it is seen as a relatively safe asset class. However, the future is still uncertain, current government guidelines on rural regeneration do not seem to be feeding through to planners, so farmers are still being restricted from making the most of their assets.
George F White has never been so busy, with schemes to sift through and support, red tape to be unravelled, and problems of diversification to sort out. Unlike many businesses we are recruiting extra staff to help advise the increasing numbers of clients demanding professional advice on coping with these changes.
The agricultural industry is unlike any other in the world. What other industry is there that manufactures something but does not know what it is worth. It is totally weather and market dependent.
However rest assured whatever the next six months has to offer, like the land it uses, farming will still be here for many, many generations to come.
