The Rural Update: Be inspired to stay positive

Viewpoint

With Rachel Reeves’ second Autumn Budget just around the corner it would be fair to say that most businesses, including those in the rural sector, are somewhat anxious about what lays in wait for them when the Chancellor steps up to the dispatch box and outlines her latest plans to plug the country’s notorious financial blackhole. Her previous attempt, which included the introduction of the deeply unpopular “family farm tax” sent farmer confidence plummeting. Reports that Minette Batters’ eagerly anticipated Farming Profitability Review has been buried until after the budget aren’t reassuring. But despite the government’s best efforts there are reasons to be positive. In the latest edition of The Rural Report, we highlight how forward-looking estates are proactively building resilience into their businesses and developing innovative new relationships with their tenants and local communities, as well as sharing insights from leading food-chain experts about the opportunities that lay ahead for rural businesses. In tumultuous times, the report offers some much-needed inspiration and thought leadership.

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Commodity markets

Oil markets twitchy

Ukraine’s ongoing campaign against Russia’s oil infrastructure is keeping commodity traders on their toes. Brent Crude values rose 2% last week after an attack shut the key Black Sea port of Novorossiysk for two days, but by the beginning of this week they had dropped back to US$63.75 after exports resumed. More stringent US sanctions on Russian oil, which are due to kick in later this week, further Ukrainian attacks and a weakening of the pound could push up UK pump prices. However, increased production by the US and OPEC members, coupled with sluggish global demand, should mitigate the pressure.

Farm input index mixed

The latest AgInflation Index from buying group AF (formerly Anglia Farmers) reveals a mixed picture across a range of inputs. Of the nine categories tracked by the index, three saw falling prices during the 12 months to the end of September. Chemicals dropped 11.2%, animal feeds and medicines were down 7.4% while seeds fell 1.2%. Fertiliser was up by almost 11%, contract and hire leapt by over 6% and machinery, fuel and electricity were all up by almost 3%. Rent, interest, property and office costs grew by 0.7%, while Labour costs were 0.2% higher.

The headline

Rural Report launched 

The Autumn Winter 2025/26 edition of The Rural Report, our leading publication for rural property owners, businesses and their advisors, has launched today (18th November).

Based around the theme of resilience, the report includes thought-provoking interviews with the managers of some of the UK’s most innovative, forward-thinking and community-focused farms and landed estates, such as Elveden, Yattendon and Hatch Park.

Leading food-chain and environmental entrepreneurs including Henry Dimbleby, author of the National Food Strategy; Rich Stockdale, CEO of Oxygen Conservation and Dr Hosein Khajeh-Hosseiny, Executive Chairman of Trinity AgTech, also share their insights on future opportunities for farms and estates.

In addition, our own experts offer their tips and expertise on hot topics such as the value of data to rural businesses and the importance of succession planning strategies.

Explore the report and download your copy today!

News in brief

Precision breeding 

The controversial Genetic Technology (Precision Breeding) Act 2023 finally came into force last week after a six-month implementation period. Supporters of the act are hopeful that it will help the UK’s farmers by allowing the development of new crop varieties with better yields, greater disease resistance and climate-change resilience. Critics, however, allege that it will allow genetically modified organisms (GMOs) to be released into the food chain without proper traceability or labelling. Gene editing is currently banned in the EU.

Batters’ report buried?

The publication of former NFU President Minette Batters’ Farming Profitability Review, originally scheduled for later this month, could be delayed according to a report in The Sunday Times. It alleges that the Treasury has asked for the report, which was commissioned by former Defra Secretary Steve Reed and is believed to include concerns about the government’s Inheritance Tax reforms, to be delayed until after Chancellor Rachel Reeves’ second Autumn Budget next week. New Defra Secretary Emma Reynolds has said the review will now be published sometime before Christmas.

Planning appeal victory

As reported in Farmers Weekly, the owner of a rural business in Sussex has won a planning appeal that could help farms and estates looking to diversify. Lucie Latham, who wanted to set up a yoga studio in a former glasshouse, appealed against a condition imposed by Wealden District Council that limited the consent for the change of use to just indoor sport or recreation activities. The planning inspector said the condition “frustrated the purpose of Class R”, which was designed to allow flexibility when converting agricultural buildings.

Welsh animal disease moves

The entirety of Wales was declared a bluetongue restricted zone last week. This means that individual premises are no longer subject to bluetongue-specific movement or control restrictions. Livestock movements between England and Wales will also no longer require vaccination or mitigation measures. It was also announced last week that all Welsh poultry flocks of over 50 birds will have to be kept indoors to help combat the spread of avian influenza.

Kenya genetic export boost

The UK’s sheep and goat breeders have just gained access to Kenya’s estimated 46 million-strong livestock market after the government struck a deal with the East-African nation regarding the export of genetic material. The agreement, worth around £700,000 a year according to industry estimates, will help address Kenya’s growing demand for high-quality breeding stock as the country works to improve food sufficiency for its rapidly expanding population. 

Beyond Meat slump

Shares in the plant-based protein firm Beyond Meat tumbled further last week as markets reacted negatively to the business’s ongoing debt restructuring plans. The firm’s shares, now worth barely US$1, peaked at over US$200 in 2019 amid overly optimistic predictions that huge numbers of consumers would be switching to meat alternatives. Cost and a backlash against ultra-processed foods have hit the sector hard. Meanwhile, Supermarket Lidl is calling for the UK government to make it mandatory for supermarkets to set plant-based protein sales targets.

Sign up for Rural Report

The Autumn Winter 25/26 edition of The Rural Report, our thought-leading publication for rural property owners and their advisors, is available now. Full of insight from leading landed estates and our Rural Consultancy experts, it’s a must-read. To receive your copy, please sign up here.

Properties of the week

“England’s most beautiful vineyard” for sale

Anybody looking for a unique Christmas present for the wine-lover in their family might want to take a look at Bantham Vineyard, near Kingsbridge, Devon. Planted with over 25,000 vines in 11 south-facing blocks, the 29-acre property enjoys stunning views over the Avon Estuary. Despite being established in only 2019, the vineyard has already produced an award-winning Pinot Gris, a very popular ‘Rosé Spritz’ sold in cans and a Vermouth. There is the opportunity to significantly expand the range of wines if desired, with particular scope to focus on the production of an outstanding pale rosé. The vines are split into two lots with almost 20 acres available to purchase freehold for £650,000 and around 10 acres available to rent. For more information, please contact Bertie Gilliat-Smith.

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

Development land – Market hiatus

Greenfield and urban brownfield land values remained flat in Q3, according to the Knight Frank Residential Development Land Index, taking the annual price decline to 5%. At a national level, housebuilders are deferring many decisions until after the Autumn Budget, when reforms to taxation and planning may clarify the government’s policy direction. The prevailing uncertainty is likely to weigh on delivery for several quarters. Some 43% of respondents to Knight Frank’s survey of more than 60 small and volume housebuilders expect housing starts to fall through the fourth quarter of the year, while 45% expect land values to fall further.

Farmland – Prices dip

According to the Knight Frank Farmland Index, which tracks the value of bare agricultural land in England and Wales, the average price of land fell by just 1.6% to £8,719/acre over the third quarter of the year. That equates to an annual fall of 6.8%. As ever, the market remains highly localised, and where there is competitive bidding, prices have even been going up in some locations. Download the full report for more insight and data.

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.