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The Rural Update: Hold politicians to account

The Rural Update: Hold politicians to account

Your weekly dose of news, views and insight from Knight Frank on the world of farming, food and landownership.

Written by:
Written by:

7 mins read

Viewpoint

When you are in opposition, it is easy to make promises that you know you may never have to deliver on. That’s why farmers will be sceptical of Green Party leader Zack Polanski’s sudden concern for them. However, the current mayor of Manchester Andy Burnham does have a realistic chance of taking control of the Labour Party from Keir Starmer and becoming the UK’s next Prime Minister if he can defeat Reform and win the forthcoming Makerfield by-election. If that turns out to be the case, his pledge to look again at the hated ‘family farm tax’ will not be forgotten.

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Commodity markets

Potato pessimism

A newly released survey of potato growers highlights the lack of optimism within the sector. According to the poll, conducted by grower body GB Potatoes before the Iran conflict, 43% of respondents were pessimistic or very pessimistic about prospects over the next 12 months, compared to just 26% who expressed confidence. The picture improves slightly when growers look further ahead, with 37% saying they were confident or very confident about the sector’s five-year outlook, compared with 24% who were pessimistic.

The headline

Politicians woo farmers 

The Makerfield by-election on June 18 has taken on a new significance for farm and estate owners.

In an interview with the Daily Telegraph last week, Manchester mayor Andy Burnham, who is contesting the seat in a bid to unseat the current Labour leader Keir Starmer, said that, if successful, he would look again at the controversial reform of agricultural and business property reliefs on inheritance tax imposed by Chancellor Rachel Reeves.

Green Party leader Zack Polanski, meanwhile, used a speech yesterday (8 June) to the Bakers, Food and Allied Workers Union to call for more support for farmers.

He said the UK’s food system was "close to collapse", that there should be robust regulation of supermarkets to ensure growers receive a fair deal for their produce, and demanded that the government present a "real plan" to bolster the struggling agricultural sector.

News in brief

BNG NSIP statements

There could be new opportunities for landowners following the publication of biodiversity gain statements by the government last week. The statements set out how nationally significant infrastructure projects (NSIPs), including data centres and renewable energy schemes, must calculate, deliver and report on biodiversity net gain (BNG). BNG will become mandatory for NSIPs from 2 November 2026.

SFI launch confirmed

Defra has said it expects that the application window for the 2026 round of the Sustainable Farming Initiative will open on 30 June. However, applications will be restricted to holdings smaller than 50 hectares or to those without an existing environmental agreement. Other farming businesses will be able to apply from September. The duration of each application window will depend on available funding, says Defra. For help with any claims, please contact Mark Topliff.

Abattoir fee ruling

There was a boost for struggling small abattoirs last week when the High Court ruled that the Food Standards Agency (FSA) has been imposing unlawful inspection costs on the industry. These included charges for improperly qualified veterinarians employed by the FSA’s private contractors. The decision follows a judicial review brought by the Association of Independent Meat Suppliers and the British Meat Processors Association.

Gene-editing blow

In another High Court ruling delivered last week, a judge agreed the process that the government used to push through its “light touch” gene-editing rules, which don’t include any mandatory labelling requirements for food made from gene-edited organisms, was unlawful. Beyond GM, the lead claimant in the judicial review, said the current regulatory framework will need to be reconsidered.

New carbon budget

Last week, Net Zero Minister Ed Miliband announced that the UK’s seventh carbon budget for the period 2038 to 2042 will align with the Climate Change Committee’s recommendation to cut carbon emissions by 87% compared with 1990 levels. To help achieve the target, the committee advises that people should consume less meat and dairy. However, a government spokesperson said: “We are clear that we will hit our targets without telling people how to live and behave.”

Egg colour controversy

In a bid to cut carbon emissions from its own supply chain, Sainsbury’s has just announced it will be switching its own-brand eggs from brown to white. The UK’s second-largest retailer claims white eggs have a 12.7% lower carbon footprint than brown eggs, largely, it says, due to better feed efficiency and the longer productive lifespan of white hens. Some egg producers have disputed the claims.

Cage consultation delay

Defra, meanwhile, has been forced to delay its response to a consultation on banning the use of so-called enriched ‘colony’ cages for laying hens due to the overwhelming number of responses. In a statement last week, it said it had received 39,000 responses. Critics say the cages, while an improvement on traditional battery systems, still do not fully provide for the physical and behavioural needs of laying hens.

Bird flu restrictions lifted

But free-range poultry flocks can at least head back outside. The avian influenza prevention zone (AIPZ) for poultry and captive birds in England, Wales and Scotland was lifted on 4 June 2026. However, Defra says bird keepers should continue to take steps to prevent bird flu and remain vigilant for signs of disease.

Biosecurity review funding

To help protect their businesses from threats such as avian flu, chicken, turkey and duck farmers can now apply for funding to cover the cost of up to three biosecurity reviews. £430 can be claimed for each review, and all reviews must be completed by 31 December 2028.

Regen resilience

A new study claims that it offers the first large-scale evidence that regenerative farming practices can boost drought resilience. The research conducted by KU Leuven, a Belgian university, for Soil Capital looked at the response of over 1,260 French cereal farms covering almost 820,000 acres to very dry weather conditions in 2023. It found that highly regenerative farms saw yields drop by just 8% compared with 22% for the least regeneratively farmed.

Sign up for vineyard insights

If you manage your own vines or are interested in the English wine sector, the regular subscriber-only newsletter written by Ed Mansel Lewis, Head of our specialist Viticulture team, could be of interest. Commenting on his latest article, Ed says: “As the industry matures, we are seeing an increasing range of business models in English wine. Some are navigating the challenges of our times better than others, although each has its benefits and drawbacks.” Sign up to find out more. 

Property of the week

Dorset delight

Our Farms and Estates team has just launched almost 1,000 acres of productive Dorset arable land with natural capital and solar energy potential, plus stunning views over Chesil Beach and the Fleet Lagoon. Located near Langton Herring, the sale has been split into five lots with a total guide price of £10.6 million. The largest lot, 555-acre Higher Farm, includes a range of modern farm buildings, a two-bed bungalow and a well-established shoot. Lotted separately, Wans Barton is a four-bedroom, four-bathroom barn conversion with panoramic sea views. Please contact Will Matthews for more information.

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

Property markets Q1 2026

Development land – Green fields flat

The average value of urban brownfield and prime central London development land fell by 2.5% in the first quarter of the year, according to the Knight Frank Residential Development Land Index. Download the full report for more data and insight.

Farmland – market treads water

The average value of farmland remained relatively unchanged in the first three months of the year, according to the Knight Frank Farmland Index. Despite a perception by vendors that now is not a good time to sell, demand remains firm from a range of buyers. If you are thinking of selling, please contact Will Matthews.

Country houses – values stabilising                                                                                                   

The average price of houses in the countryside fell 5.5% in the 12 months to the end of the first quarter of 2026, which was a modest improvement on the 5.7% decline recorded in December, despite the uncertainty caused by the Middle East crisis, according to the Knight Frank Country House Index.

 

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