Simon Gooderham, joint managing partner at Cheffins says:
“This year has been a mixed story for the farming community. With decent average yields, strong grain prices and better establishment and growth conditions, there were certainly some high points for arable farmers in the run up to harvest. However, despite this, there have been some real hits to farmers pockets this year, with the combination of not only uncertainty around grant funding and subsidies, but also significantly increased fertiliser costs and a prolonged harvest. In spite of the income gap left by the reduction in BPS payments, there has been more details released over the future of funding, with details of the first phase of the Sustainable Farming Incentive now available and also the opening of the window for the Farming Investment Fund. A number of farmers are also waiting to hear more about the Lump Sum exit scheme for retiring farmers, details of which are set to be announced by the end of the year.
Next year, farmers will need to keep an eye on application dates for new levels of support from the government and planning on how best to take full advantage of the different funding streams on offer. This, combined with succession planning, diversification opportunities and looking carefully at fixed costs for mainstream enterprises, will be highest on the agenda for many of our clients. Similarly, as the farmland market has seen an acute shortage of supply in the past few years, land values have continued to rise throughout the region with a number of emerging markets looking to invest in land. It looks likely that the short supply will continue for at least the next 12 months, and we predict that land values will remain firm as not only farmers but also investors, property developers and amenity and environmental buyers continue to enter into the market.”
For more information or advice on estate management, contact the Cheffins Rural Professionals team on camb.agric@cheffins.co.uk for the Cambridge office or ely.agric@cheffins.co.uk for the Ely office.