22/04/2015
Headlines
23 April 2015
Rent statistics from Defra for 2013 Defra’s statistics for England show that the average Agricultural Holdings Act (AHA) rent was 5% higher in 2013 than in 2012 and 11% higher for Farm Business Tenancies (FBTs). The table below compares Defra’s data to our Agricultural Rent database. Although the AHA rents are broadly comparable, Defra’s FBT rents seem very low compared with our experience of the market. We found FBT rents reviewed in 2013 rose by 33% (Defra says 20%) compared with previous rent levels. AHA
Defra
Smiths Gore
Arable Dairy Livestock Mixed % change at rent review (all farm types)
£77 £78 £45 +14%
£87 £83 £49 £82 +21%
(£/ac, average)
FBT
Defra
Smiths Gore
Arable Dairy Livestock Mixed
£85 £79 £40 +20%
£157 £99 £82 £93 +33%
(£/ac, average)
Government and BT have more to do on rural broadband, says EFRA committee The House of Commons Environment, Food and Rural Affairs Committee says that BT, despite saying that the target of 95% of premises receiving superfast broadband by 2017 may slip, must meet the target otherwise the gap between the digital ‘haves’ and ‘have nots’ will remain. It also says:
that the difficult terrain and remoteness of some communities must not be used as an excuse that government should reassess whether the 2 Mbps Universal Service Commitment remains a valid one – as many online services now need 10 Mbps that the allocation of funding between urban and rural areas is greatly unbalanced, with poorly connected rural areas sometimes asked to pay twice: once through their taxes for the Governmentfunded Broadband Delivery UK (BDUK) programme and potentially again from their own pockets if the BDUK programme does not reach them.
CAP reform 2014: MEPs lay into ‘totally unworkable’ CAP that was supposed to be simplified The debate on how to simplify the new CAP regime, which has barely started to be implemented, has highlighted how badly the European Commission has failed to simplify it. Words used by MEPs have included chaotic implementation, avoiding flexibility and obstinate officials. Given the CAP’s long-term failure to meet its policy objectives, is it time to start again with a new simple model, focussed on addressing market failures and rural development?
Farming Farm tenancies: government makes changes to 1986 Agricultural Holdings Act There are three changes: the option for parties to use third party determination rather than arbitration; changes to end of tenancy compensation for short-term improvements and tenant right matters; and, the introduction of new Model Clauses on who is liable for maintenance, repair, replacement and insurance of fixed equipment. The changes only affect England and Wales, and it is unclear whether the Welsh Assembly will apply them.
Dairy faces the open market as 31 years of milk production quotas end Farmers’ leaders are concerned that the end of quotas could lead to slumps in milk prices and difficulties for some producers, most notably those in mountainous or less favoured areas. The quota end-date was decided in 2003 as the EU committed to make the sector more market-oriented. Despite the continuation of quotas, EU dairy exports have increased by 45% in volume and 95% in value over the last 5 years amid surging demand among the growing middle income populations in countries such as India.
CAP reform 2014: call for applications to Growth Programme launched The Growth Programme has launched in five Local Enterprise Partnership areas (Worcestershire, South East Midlands, Greater Lincolnshire, South East and Coventry & Warwickshire). Support will focus on small and micro-businesses, tourism, agri-food businesses and business-led renewables. Also for skills and business advice for rural businesses, broadband and community renewables projects. The minimum grant is £35,000
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