The Rural Update: Policymakers must look long-term

Viewpoint

Better late than never. It’s good news for farms and estates that Defra has finally decided to offer an extension to those whose Countryside Stewardship Mid-Tier agreements are expiring at the end of the year. There was genuine concern that tens of thousands of acres of environmental initiatives would be lost if there was a funding gap between the end of the current scheme and the introduction of a new one. But with little more than two months left until the schemes expire, it is another example of the government’s lack of understanding of the long-term nature of farming. Cropping and livestock decisions need to be taken well in advance and, sadly, Defra’s announcement may be too late for some farmers who have already made plans for harvest 2026. Policymakers focus on electoral cycles, but the recent news that one of the country’s most efficient farming operations, Velcourt, is giving up a large chunk of its contract farming operations should encourage them to take the longer view.

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Commodity markets 

Mixed OSR picture

Productive talks between Canada and China could see a resolution to the current trade dispute that has put a stop to Canadian oilseed rape exports. If China starts buying again, it will mean less Canadian supplies will be looking for a European home and hopefully provide some support for farmgate prices in the UK. However, a global oversupply of soybeans, another source of oil, could cap any upward momentum.

The headline

Stewardship relief

Defra has just announced that farmers with Countryside Stewardship (CSS) Mid-Tier agreements ending at the end of this year will be able to extend them for 12 months.

Until the announcement last week from Angela Eagle, the new Farming Minister, environmental stewardship schemes on around 5,000 farms and estates faced an uncertain future with the new version of CSS not yet ready.

With no available funding, some farmers said they would have no choice but to plough up their schemes and plant crops instead.

Dame Angela said: “This targeted extension to Countryside Stewardship Mid-Tier agreements ensures farmers have the certainty and support they need to continue to grow their businesses, get more British food on our plates, and help restore nature.”

However, the move was branded ‘too little, too late’, with some farmers having already made the decision to leave the scheme.

Meanwhile, Defra has also confirmed that over 8,800 applicants have successfully secured funding worth £68.4 million through this year’s Farming Equipment and Technology Fund.

Please contact Mark Topliff if you need help with any grant funding applications.

News in brief

IHT rumour denied

Farming Minister Angela Eagle has quashed rumours that the government is considering a rethink regarding the controversial family farm tax. Industry speculation had been mounting that the Treasury was open to revised proposals that would see fewer farms and businesses affected by the changes to Agricultural and Business Property Relief announced in last year’s Autumn Budget.

Largest UK solar farm approved

Net Zero Minister Ed Miliband has just approved the UK’s largest solar farm. The 3,000-acre Tillbridge Solar project at Glentworth in Lincolnshire is classified as a Nationally Significant Infrastructure Project (NSIP), meaning the government can overrule local planning authorities. Mr Miliband, who has approved 17 clean-energy NSIPs since Labour won power in July 2024, said the benefits of the controversial scheme, which will power 300,000 homes, outweigh any adverse impacts. Please contact Chris Monkhouse for advice on renewable energy schemes.

Data centre bottleneck

Despite the government’s enthusiasm for renewable energy schemes, a lack of grid connections is limiting infrastructure development, including the burgeoning data-centre industry, which it was hoped would develop in tandem with renewable schemes. A survey of data centre developers by grid consultant Roadnight Taylor found that around 75% were looking at sites in other countries due to connectivity issues in the UK that could delay projects by up to eight years. 

NGOs slam planning rush

Environmental organisations have accused the government of rushing the Planning and Infrastructure Bill (PIB) through parliament, leaving insufficient time for the new legislation to be properly scrutinised. Chancellor Rachel Reeves would like the bill to be passed before delivering her next Autumn Budget at the end of November, as it will give a boost to her economic aspirations. However, the RSPB’s chief operating officer, James Robinson, said: “Dropping 67 amendments to the Planning Bill at the eleventh hour isn’t just poor process, it’s legislative chaos.”

Red Tractor rapped

The Advertising Standards Agency has agreed that an advertising campaign by the Red Tractor farm assurance scheme misled consumers. The case against the 2023 “Farmed with Care” campaign was bought by NGO River Action, which said Environment Agency data showed that many of the most serious pollution incidents were found on Red Tractor farms. Red Tractor, however, claims the ruling is unfair, pointing out that only a tiny proportion of its membership was involved in the incidents.

Lidl farming investment

Meanwhile, supermarket Lidl has said that from next year, all of its fresh fruit and vegetable suppliers in the UK will be LEAF Marque certified. The marque promotes nature and welfare-friendly farming. The requirement is part of the firm’s new five-year, £30 billion commitment to building sustainable relationships with over 650 of its farming suppliers. The move includes a £1.5 billion investment in Lidl’s Sustainable Beef Group to cut carbon emissions and improve profitability.

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Properties of the week

Trophy NZ station

We’re back in New Zealand this week with another panoramic hill property. Riverbank Station is a 2,060-acre beef and sheep unit with sporting opportunities near Napier on North Island. The current owners have invested heavily in the property, including 40km of new fencing and new cattle and sheep yards. There is also consent to irrigate 111 acres of “flat” land to grow forage crops and maize. The four-bed homestead dates from the 1890s and there is also a manager’s house and staff accommodation. The farm is bordered by the Manganone River, which offers excellent trout fishing, and there is also red deer stalking. Tenders close on 12 November. For more information, please contact Georgie Veale.

Historic Kent estate home to rent

Knight Frank’s Rural Consultancy team in Kent has an intriguing option on offer. Newhouse at Mersham, near Ashford, which was once home to Countess Mountbatten of Burma and Lord Brabourne, is part of the idyllic 2,700-acre Hatch Park Estate. Now available to rent, the nine-bed period property costs £6,995 a month. For more information, please contact Katie Bundle.

Discover more of the farms and estates on the market with Knight Frank

Property markets Q3 2025

Country houses – Budget uncertainty

The average price of country houses has fallen by 5.4% so far this year, according to the Q3 edition of the Knight Frank Prime Country House Index. Properties worth below £1 million dropped by 4.7%, while those worth over £1 million lost 6.7% of their value. Owners of higher-priced properties are particularly concerned about any further property taxes being announced by Rachel Reeves as part of her Autumn 2025 Budget, which is due to be delivered at the end of November, points out Tom Bill, Head of UK Residential Research.

Read more of Tom’s numbers and insight