Land Management Today

Masthead design

Land Management TODAY – LMT – is published for the first time today.  The first edition is the work of a group of postgraduate students at Harper Adams University who came together at the end of June to study a module called Land Use and Management.  The first edition contains 28 short articles covering a range of topics.  Download your copy of LMT here: Land Management Today July 2017.

Here is the full contents list:

  1. How farming is set to lose its flavour
  2. Buying into Ecosystem Services – whetting the appetite for diversification
  3. Battery storage, the next big thing for energy production?
  4. Branding: Rural Estates in the head and on the ground
  5. Bringing Back Britain’s Trees
  6. Avoiding Failure with Forwards and Futures .
  7. Smother With Cover: black-grass .
  8. A Tale of Two Leys
  9. Will Dairy Cows Ever See a Human?
  10. Conventional v Organic: Breaking Down Barriers
  11. Diversity & Inclusion; The £24 billion boost
  12. Farm smart in the hills
  13. The Drones are Coming
  14. Finding your perfect partner: Relationships not Rules for land tenure success
  15. State Open for Business
  16. Tax simplification; anything but simple
  17. Spring Budget Basics for Taxation on Rural Estates
  18. Brexit for Breakfast
  19. Agricultural Trade: “Preparing for the Worst, Hoping for the Best”
  20. Soil Health Subsidies
  21. Countryside Stewardship Scheme
  22. Telecommunications-The Implications for Rural Land Owners
  23. Telecoms and the Rise of Statutory Powers
  24. Compulsory Purchase: RICS mandates practice with new PS
  25. Make sure you don’t lose out with Business Rates
  26. No Growth in the Greenbelt
  27. Mid-Tier Countryside Stewardship and Capital Grants – are you missing a trick?
  28. H-App-y Maps
  29. Contributor Profiles

This is the first in what we hope will continue as a series of occasional papers on current topics of concern to land management today.

Brexit and the rural economy

A first reaction to the referendum ‘Brexit’ decision from a group of postgraduate students at Harper Adams University who have been studying Land Use and Management this week.

Project Brexit

The 18 students have worked rapidly in small groups this morning to appraise the impact on different sectors of the rural economy, and the actions that land managers, owners and occupiers should now be considering.  Here they are:

Agriculture: the issues here have been well rehearsed.  What will replace the Common Agricultural Policy?  If anything?  On what terms will we trade with the EU, both for sales of our produce and purchase of our inputs?  Is there an opportunity in this to open or develop new markets at home or abroad?  One paradox is that enhanced regulation of our farming and food industry may add to the quality perception of British food once outside the EU.  But our markets may then be open to genetically-modified crops, and it may be possible to accelerate the uptake of GM technology here.

Scale and efficiency look as if they will become even more important and we might expect to see small farms going to the wall and large farms getting larger.  On the margins some land may switch from sheep production to forestry if there are shortfalls in support.

Knowledge for farming may take a hit: early pest and disease intelligence from continental Europe may become less accessible, and investment in research and development may fall without access to EU funding.  If capital values fall, problems may in turn emerge over borrowing ratios and liquidity.

Labour availability may also limit the production of some higher value crops, even in the short term if seasonal workers choose EU destinations with longer term prospects for free movement of labour.

A wider question over the management of the industry as a whole: will the emphasis on compliance with Basic Payment requirements start to fall away, with what consequences for the wider environment of the countryside?

Land and property: Savills shares saw a 20% drop at one point, wiping £824 million off the value of the company.  House builders fared worse.  This points to a slow down in the rate of house construction, exacerbated by the danger of higher input costs and more difficulty in recruitment given the reliance of construction on EU workers.  This in turn knocks on to the demand for development land, and its price.  Farmers may still be in the market for land if they see bargains available on which they could expand, but foreign buyers are likely to hold off and investment buyers may be far less confident of their own positions given the impact on financial services.  Could this be good news for new entrants?  Even if land prices do drop the prospects of access to land by this route remain unrealistic.  A more likely scenario is for the market to go into virtual stasis, and for prices to do no more than tick over in a narrow price band.  The clear message here: only sell now if you have to.  Rather than sell look at short term options like farm business tenancies.

Forestry: much of the return on investment in forestry comes in the form of capital appreciation.  Will land prices wobble?  A weaker pound could push up the cost of the 60% of our timber we import, in turn pushing up prices to the construction industry while stimulating demand for home grown timber  Good news for foresters could be bad news for processors and end users.  Although the UK Forestry Standard has a EU origin it is now embedded in UK legislation.  The UK however has no planting targets but we do know that there will be severe shortages of home grown timber in 50 or 60 years due to a lack of planting now.  Might changes in agricultural policy lead to the abandonment of marginal land sheep farming, making this ground available for afforestation?  It’s hard to see where planting land may come from otherwise.

Forestry disease and pest control may benefit if plant health import regulations can be imposed rigorously.  But this will require significant expenditure on plant health inspectors.  Will this be a priority for future spending?

Renewables, energy and the environment:  Many of our environmental objectives embody wider obligations than the EU alone, for example our membership of the UN, adoption of the Kyoto protocol and the outcomes of the Paris climate talks.  But without pressure from fellow EU members to achieve the UK target of carbon reduction of 80% against 1990 levels by 2050, will there be sufficient pressure on the government here to make sure we stick to these obligations?

CAP Pillar 2 environmental and rural development schemes are bound to be tied up with whatever happens to domestic agricultural and environmental policy.  The directives on bathing waters and birds and habitat are an EU obligation, but if we stick with the European Economic Area we will still be subject to controls on pollution, industry, energy policy, chemical safety rules and rules on product liability.

The internal energy market in the EU may also become more difficult.  More agreements with specific countries are likely to be needed and the overall effect may be to increase the price of new interconnectors.  Increased investment costs will in turn push energy prices up.  This in turn could foster home production of renewable energy, but companies like Siemens may need to reconsider the use of the UK as a production base for the EU.  The departure of major suppliers could in turn lead to price rises on kit putting further pressure on energy prices.

So: one door has closed firmly and for good.  Who knows where the other doors are or what lies behind them?  The outlook is still very substantially speculative beyond the short-term market reactions.  The future belongs to those who will be the most vigilant and opportunistic.

Agriculture: Five Great Challenges

Jeremy Moody, Secretary and National Adviser to the Central Association of Agricultural Valuers, spoke at Harper Adams University on Thursday 15th October on ‘Agriculture: Five Great Challenges’.

Opening with the observation that necessity is the mother of invention Jeremy commented that farming only adapts when it has to do so.

Jeremy identified his five great challenges as:

  1. Volatility.  Farming’s response so far has been to spread unit costs by taking on more land.  Attempts have been made to spread risks as well, but farming risks are increasingly connected.  Cost leadership is the answer, but ‘costs are like daisies’ – you cut them down and they grow up again.  Some farmers have responded effectively by moving further down the supply chain, for example the potato grower who now supplies chips to take aways.
  2. Output/acre ~ value/acre: We are generally growing low value commodity crops and with this we are seeing an inexorable shift to domination by combinable crops, wheat in particular.  The number of potato growers is predicted to drop from 2,000 to 1,000 over 10 years.  On the other hand, high value output enterprises are starting to appear.  For example vineyards in the south of England, and orchards.
  3. Resources: capital has been readily available at very modest cost, but the rising challenge will be the repayment of the capital itself rather than the servicing charges.  There are 60,000 farms which keep only one person in work.  Employed labour is concentrated in the pig, poultry, horticulture and dairy sectors and many of these employees come from abroad.  There are gaps in the age structure of farmers and it will be a continuing challenge to recruit and retain skilled labour.  Foreign workers are no longer confined to handwork in the fields but are steadily moving up the value chain – without its input we would not be able to sustain much of the higher value cropping leaving farmers with little choice but to revert to monocultural wheat.  Soil health and the resilience of natural capital is also a key part of the resource challenge.  We need to be able to put the right values on the health of soil.  This also draws in the value of water, and abstraction rights for irrigation in particular.
  4. Science and productivity: There has not been much growth in productivity since the 1980’s yet we know that precision farming can increase yields.  There needs to be spare capacity in management in order to make time to consider the possibilities and implement new approaches.  Our increasing reliance on data raises questions about its ownership, for example at the end of tenancies, from one farmer to another, from contractor to farmer.  Actually making effective use of all the data and technology now at the farmer’s disposal is also a large part of this challenge.  Modern machines have enormous technical capacity, but in practice little of what is available might actually be used.
  5. Progression: Flexibility must be the watchword in considering progression.  New entrants need not be young.  Sideways entrants from other sectors can bring just as much and more.  The wonderful smallholding opportunity for the 25 year old can be prison for the same 40 year old.  The industry is dominated by family businesses, 90% of farm employers and 30% can trace their farming origins to before 1900.  Increasingly we may see 90 year olds leaving farms to 70 year olds.

We cannot be the world’s cheapest producers, it is therefore essential that we focus on high input and high output farming with a long term view to ensuring the health of the basic resources on which farming and much else depends.

What do you think of Jeremy’s Five Challenges for Farming?  Here’s the video if you would like to see more:

Source: Agriculture: Five Great Challenges by Jeremy Moody

This video was filmed at Harper Adams University on 15 October 2015 in front of a live audience of students and staff in the Weston Lecture Theatre

Valuation: Cross-roads or cul-de-sac?

This was the title of my presentation at the RICS Wales Rural Conference held on Tuesday 9 December 2014 in Llandrindod Wells.  Here are the slides.

The contrast between the complexities of valuing woodland for taxation purposes and renewable energy installations is meant to indicate the broad sweep of the challenge facing the modern rural valuer. This is a challenge which is likely to be become broader and more complex with the need to consider the valuation of natural services and capital. Equally the accountability of valuers is only set to grow as the two case updates demonstrate.

The Prince of Wales, Country Life and our countryside heritage

The Conversation is a website sponsored by several universities and others, with the aim of combining academic rigour with journalistic flair. Environment Editor Michael Parker asked me to appraise Prince Charles’ editorial in the Country Life, and this is the article published by The Conversation on Friday 15 November 2013.

Charles: the future

king with retro-

vision

By Charles Cowap, Harper Adams University

In this week’s Country Life HRH Prince of Wales writes of the social and economic importance of farming. It is, he says:

the bedrock of our rural communities, making post offices, pubs, public transport and local health care absolutely vital to the production of our food and the protection of the landscapes we all benefit from in so many ways. This is why the countryside’s contribution to the national good has to be cherished and sustained. Without it, we will all be very much the poorer.

Elsewhere in his editorial HRH writes of the British countryside as the backbone of our national identity. Setting aside for a moment just what the 21st century British identity might be, what about the many generations of seafaring, war, empire, trade, or the industrial revolution? We need only go back to 1701 to see Daniel Defoe’s characterisation of “The True Englishman” in his typically satirical way.

HRH identifies several champions or “heroes” of the countryside, and what an interesting and in some ways inspiring group they are. But heroes? Have they unflinchingly stepped forward to meet terror, risking all for their peers? And can we really say that using helicopters to ferry in material for dry stone walls is a sustainable way to manage the countryside? Here are a few others who we might also recognise for championing the countryside:

  • WG Hoskins, 1908–1922, who taught us to understand the countryside, not least through his The Making of the English Landscape.
  • Octavia Hill, Hardwicke Rawnsley, and Robert Hunter, founders of the National Trust.
  • Kenneth Watkins, founder of the Woodland Trust.
  • Countless agricultural pioneers and innovators including the likes of Bobby Boutflour who did so much to revolutionise dairy farming and cattle nutrition.

Who would be on your list?

HRH rightly recognises the vital role farmers have in feeding us and as custodians of the countryside. But there is a contradiction when he goes on to lament the decline in genetic diversity in livestock, the deteriorating condition of soil and the short herd life of some cows. The Irish potato famines are blamed on lack of genetic diversity with no mention of good rotational practice and other vital aspects of crop husbandry. Can this be a description of the “best farmers in the world” as Prince Charles says?

Contrast this with the views expressed by Allan Wilkinson, Chief Agricultural Adviser to HSBC at the Linking Environment and Farming Conference (LEAF) this month. Wilkinson noted that the performance gap between the best farmers and the rest has always been large – it is now enormous. Wilkinson’s menu for success included attention to detail, good up-to-date knowledge, personal development, looking for ways to collaborate, recognising and respecting the competition.

Price pressure

Prince Charles makes the point that the “big retailers and their shareholders do so much better out of the deal” than the farmers they buy from. He also laments the enormous waste of food in the UK every year. Perhaps some of these retailers understand farming and consumers rather more than we recognise. Increasingly we see the big supermarket groups working with preferred groups of suppliers. During the recent milk price crisis, Tesco was recognised for being more supportive of its producers. In addition Tesco has also just produced its own analysis which revealed the waste of 30,000 tonnes in the first six months of 2013, a vast tonnage lost along the supply chain “from farm to fork”. Losses start in the field, and continue right through to the final consumer.

Waste is not the only problem with food: overconsumption leads to health problems, as are changing patterns of consumption in developing countries. But while many have plenty to eat we have also seen the rapid growth of the Food Bank movement in response to a shameful economic and social need. The Trussell Trust has seen its work triple. It is now rumoured that the publication of Defra research completed in the summer is being suppressed because it links the boom in food bank demand with welfare reforms. Perhaps our list of heroes needs to include Carol and Paddy Henderson for establishing the Trussell Trust in 1997 (named after Carol’s mother whose legacy made it possible).

Like much of what HRH has written about the countryside and farming, there is little to grasp in the way of a broad view of the future of the countryside, much less how to get to that future. The countryside as romantic idyll certainly seems central to his view of the countryside, yet how will that idyll be maintained?

Investing in the countryside, but where?

There are some surprising omissions from Country Life’s editorial. For example, the government is currently consulting on the implementation of the latest changes to the Common Agricultural Policy (CAP). Here is something which really does shape the countryside, and Defra has given us 28 days to respond to its consultation exercise.

Should we move the remaining money “up the hill” to support the beleaguered upland farmers mentioned by Prince Charles? HSBC’s Wilkinson and Tesco would both probably tell us that there is plenty more that the lowland farmers can do for themselves to improve profitability and farming sustainability. There is a strong case for diverting more of the public money to the marginal farming areas – not to support agriculture as such, but to maintain its value in supporting the rest of the industry “down the hill”, and for the numerous environmental and social benefits it can bring us all.

It is a shame that HRH does not seem to tackle this central issue of the extent to which public money should continue to support farming, what value we get in return for it, and the considerable amount of work which is currently underway looking at how we can reflect the much wider value of nature in the management of natural capital and the “purchase” of natural benefits from ecosystem services. All vital considerations in establishing a rural vision which builds on the best of a rural idyll.

Charles Cowap is a member of the Royal Institution of Chartered Surveyors, the Central Association of Agricultural Valuers, and non-executive Director of Management Development Services Ltd. He works as a rural specialist and land consultant for various companies and on various projects developing ecosystem service approaches, and providing training.

The Conversation

This article was originally published at The Conversation.
Read the original article.

Sustainable Agriculture: show me the money #LPE13

The annual LEAF (Linking Environment and Farming) President’s Event takes place today, 5 November, at the headquarters of HSBC in Canary Wharf, East London. The theme of the event is Sustainable Agriculture: Show me the money, and I am speaking on the Valuation of Ecosystem Services. Here are my slides:

The key message is summed up on Slides 10, 11 and 12. We have the potential to embark upon a new paradigm in rural land management but will we step up to the task of the ecosystem entrepreneur?

Jeremy Moody full speech at Harper Adams on CAP Reform

Jeremy Moody spoke to a packed audience of students and staff in the new Weston Lecture Theatre on the subject of CAP Reform on 17 October 2013. This is the full presentation (about 30 minutes with questions).

CAP Reform from Harper Adams on Vimeo.

Jeremy Moody is Secretary and National Adviser to the Central Association of Agricultural Valuers. He is recognised nationally and internationally as one of the leading authorities on the Common Agricultural Policy, in particular its effects in practical farming terms in the United Kingdom. Jeremy is also a member of the group which produced the Future of Farming Review report earlier this year under the chairmanship of former Country Landowners President David Fursden.

Video courtesy of Harper Adams University