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The latest issue of The Rural Report, our thought-leadership publication for the countryside, has just been released and includes a wealth of information, insight, advice and thought-provoking interviews to help businesses take advantage of those opportunities. If you haven鈥檛 already received a copy please to request one. To whet your appetite, this week鈥檚 update includes links to a selection of new articles from the report.

This update, by its news-led nature, often includes details of new challenges facing rural landowners, especially in an era of political change. But that鈥檚 not to say there aren鈥檛 many opportunities available to forward-looking farms and estates, whether from nature-based solutions, delivering social value or using new technology to help businesses run more efficiently and sustainably.

Commodity markets

Oil nudges up

Crude oil and diesel prices rose slightly last week amid fears that Iran could be drawn into the fighting between its proxy Lebanon-based terror group Hezbollah and Israel. However, weak global demand means the rises so far have been more muted than some might have expected.

Inputs down, outputs up

The average price of agricultural inputs fell by 3.2% in the 12 months ending July, according to Defra鈥檚 latest . Seven of the 12 inputs tracked dropped, with compound feeds (-1.7%) the biggest faller. Building materials, however, were up 0.4%. On average, output prices increased by 4.5% over the same period. Potatoes (+2.9%) and milk (+1.8%) were the biggest gainers. But wheat dropped 0.3%.

Alternative land use figures revealed

For the first time, Defra鈥檚 includes figures for how much of England鈥檚 8.7 million hectares of farmland has been taken out of production for environmental schemes and how much is being used to generate renewable energy.

As of 1st June 2024, 3,600 hectares were being used for combined solar panels and grazing, while 3,700 hectares were solely devoted to solar panels. These figures pale in comparison to the area left uncropped.

In total, 581,000 hectares were left uncropped during the year. About half of this was bare fallow because bad weather meant many farmers were unable to plant as many crops as they had planned.

Just over 300,000 hectares were being used to deliver environmental benefits, although this includes field margins and other areas of less productive land.

The Rural Report: Delivering multiple income streams

News in brief

Budget stalls ag progress

Farming and environmental groups attending last week鈥檚 Labour Party conference have complained that progress on delivering a sustainable future for farming and the countryside seems to have ground to a halt in the run-up to the Budget on 30th October when it is feared departmental budgets will be cut. So far, for example, only 600 2024 Sustainable Farming Incentive (SFI) applications are currently live, despite many more farmers applying.

The Rural Report: What a Labour government means for the countryside
The Report Report: Six post-election tax takeaways

Conservation covenants

The number of organisations able to enter into conservation covenant agreements with landowners in England has been boosted to 10 by Defra following the addition last week of the Staffordshire Wildlife Trust, The Land Trust and the Westcountry Rivers Trust.

The Rural Report: Helping landowners and corporates work with nature

Making carbon credits equitable

A new report is calling for voluntary carbon markets to do more to help local communities in the Global South. The report, , says many carbon credit schemes lack transparency and do little to foster sustainable development in local communities. Even in the UK, the methodology of some voluntary carbon schemes has been questioned. However, as discussed in The Rural Report, high-integrity carbon credit schemes mean it is possible to be involved in the carbon market and create a greener future without accusations of greenwashing.

Clarkson blacklisted

One suspects he won鈥檛 be too concerned, having endured a fair few controversies over the years, but celebrity farmer Jeremy Clarkson鈥檚 new pub The Farmer鈥檚 Dog has been added to that have been declared "blood businesses" by Protect The Wild. The animal rights group is angry over Mr Clarkson鈥檚 support for his local hunt.

Bluetongue update

Beef and sheep farmers now have access to a bluetongue vaccine following by Defra of jabs produced by three companies. You can find the latest updates on the spread of the disease and what measures stock farmers are being advised to take .

Research

Country houses - Dipping but outlook brighter

The average value of country houses nudged down by a further 0.6% in the second quarter of the year taking the 12-month fall to 3%, according to the latest results from the 博鱼体育集团 Frank Prime Country House Index. Homes priced between £1 million and £2 million recorded the biggest annual fall of almost 4%, while those worth between £4 million and £5 million dipped by just 0.4% - potential buyers at this level are less dependent on mortgage funding, points out Head of UK Residential Research Tom Bill. He predicts a total average price slide of 2% this year, with values bouncing back by 3% in 2025 as interest rate cuts boost market confidence.

Farmland - Values hold firm

The farmland market in England and Wales shrugged off the potential impact of the recent general election to register another quarterly price increase, according to the latest results from the 博鱼体育集团 Frank Farmland Index. Average values nudged up by almost 1% in the second quarter of the year to hit £9,335/acre. .

Development land - Market stays flat

The value of greenfield development sites remained static in the second quarter of the year, according to the latest results of the . Over the past 12 months the index is down 2%. According to Anna Ward, who compiles the index, developers have welcomed Labour鈥檚 commitment to reinstate local housing targets and recruit more planning officers. But with interest rates failing to shift and build costs increasing, homebuilders still face significant headwinds, she adds. Download the full report for more insight and data.

The Rural Report: Find out what Labour鈥檚 proposed changes to the National Planning Policy Framework mean for landowners

Property of the week

Opportunity down under

This week we鈥檙e taking a trip to New South Wales, Australia, to visit Niloc, . Water security is paramount and the property includes 19 dams. Over 60km of new livestock fencing has recently been installed and there is a comfortable three-bed house on the property. Niloc is being sold by 博鱼体育集团 Frank鈥檚 specialist rural team in Australia. The guide price is A$5,500,000. Please contact Georgie Veale for more information. In addition to an update on the UK farmland market, of The Rural Report includes a special focus on Australia and New Zealand.