Despite having left the Common Agricultural Policy (CAP) in January 2021, the settled policies for each of the three nation states have yet to be delivered. And while we might have some sense of the general direction those policies could take, the important details remain absent.
More recently, reforms to both Agricultural Property Relief (APR) and Business Property Relief (BPR) have further shaken the sector’s confidence, and the sudden closure in March of England’s Sustainable Farming Incentive (SFI) will have left many in the sector feeling stunned.
Under the CAP, which was the same for England, Scotland and Wales, warnings of such significant changes to agricultural policy would be broadcast well in advance. Yet, in the past few years, we have seen substantial policy swings with little or no warning.
The full impact of this is yet to be seen, but it’s clear the agricultural sector now needs to adapt and flex to an ever-changing policy landscape.
However, if we stand back from the short-term turmoil, and consider food security, climate change and water, agricultural land has never been more important or relevant to the wider society. As such, I believe it continues to represent an exceptionally good long-term investment opportunity, and I have no doubt the challenges faced today are raising public awareness of the meaningful contribution the rural sector makes to us all.
Farmers are hugely resourceful and resilient and will adapt to the new policy frameworks; and the ideas and enthusiasm of the next-generation farmers showcased in the latest edition of Savills Aspects of Land are testament to that. However, people need to operate as things stand today, and make decisions on that basis, as we discuss in our article on succession planning.
Increasingly, there is no one solution that fits all, and each farm or rural business needs to sit down with its professional advisors to come up with a plan that meets their needs. My key piece of advice is to explore all the opportunities available – whether that is natural capital, regenerative farming or mineral extraction – and always think outside the box.
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