The Rural Bulletin: 16 October 2017

Bad Brexit deal could see farm incomes fall by 50%

A bad Brexit deal could see farm profitability fall from £38,000 to £15,000 a year, according to a new report from AHDB – ‘Brexit scenarios – an impact assessment’.

As a result, British farmers are being urged to prepare their businesses ahead of 2020, with the risk of reduced subsidies and increased overseas competition on the horizon. In particular, AHDB emphasised the importance of monitoring business performance and learning from the high-performing group – using them as a benchmark for what is achievable on an individual farm level. 

Farmland market steadies, but sheds £1,000/ac in 24 months.

The value of bare agricultural land in England and Wales remained unchanged in the third quarter of 2017, averaging just over £7,310/ac - bringing an end to a seven-quarter run of sliding values, according to the Knight Frank Farm Index. 

Despite this, average land values fell by 12% in the past 24-months - taking £1,000 off the average price of an acre of land. However, farmland remained one of the best long-term investments and given the low transaction volumes, many landowners will be sitting on an asset that has greatly increased in value.

Dispute over plans to stop ‘drying’ under RHI

Proposals to remove all forms of drying as an eligible heat use under the non-domestic Renewable Heat Incentive (RHI) scheme has met a backlash from rural businesses in Scotland. 

The latest plans from the UK government come after the “cash for ash” scandal in Northern Ireland revealed some of the scheme’s participants were earning more in subsidies than the cost of fuel being used. However, Scottish Land & Estates has warned of the detrimental effect of removing all forms of drying as an eligible heat use on businesses that have been encouraged to diversify.

Northern Ireland flood victims to receive 70% CAP advance

After the flash flooding in August, farmers in Northern Ireland will receive a 70% advance on their Common Agricultural Policy.  

Eligible businesses will receive early CAP payments from 16 October to help remedy cashflow issues 63% of the average August rainfall fell in just nine hours at the on 22 August damaging infrastructure and flooding fields and roads. The remaining balance payments will be available from 1 December, as usual. 

Report low powerlines, says the HSE

Landowners are being urged by the Health and Safety Executive (HSE) to report any power lines that fall below the minimum legal height requirement on farmland.

The minimum height for power lines ranges between 5.2m to 7.3m above ground level - depending on the voltage of electricity they carry - often within reach of a lot of farm machinery. This warning comes after it was revealed that power lines over UK farmland were responsible for 1,000 incidents or strikes each year. 

Any landowners with concerns over power line height should report to the power companies responsible, said the HSE.