Balancing nature and economic growth

Viewpoint

Environment Minister Emma Hardy kicked off her announcement last week that there would be no emergency authorisation for the neonicotinoid pesticide Cruiser SB (discussed below) with the words: “Britain is currently one of the most?nature-depleted countries in the world.”

The statement crops up a lot in environmental announcements, often, it seems, as a stick with which to beat farmers. But do those bandying it around so liberally know what it actually refers to and whether it’s always justified? Its use stems from the Natural History Museum’s Biodiversity Intactness Index created in 2021, which estimated that only 53% of the UK’s original flora and fauna remains intact. Multiple factors, such as urbanisation, population growth, the Industrial Revolution and even medieval shipbuilding, have contributed to that loss over many centuries.

Heaping the blame onto today’s farmers, a huge proportion of whom are involved in environmental schemes, seems unfair, especially as some of the government’s recent announcements (also discussed below) on easing up the planning system and boosting infrastructure development could potentially have a significant impact on the environment if not properly regulated.

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In this week's update

·????? Trump pulls oil back

·????? Grains and oilseeds calm

·????? Starmer’s judicial review review

·????? Build baby build

·????? IHT pressure mounts

·????? Nature bill blocked

·????? Quality carbon credit boost

·????? Red Tractor review findings

·????? Neonics nixed

·????? Bird flu measures extended

·????? Property of the week

·????? Country houses Q4 2024 – Market weakens

·????? Farmland Q4 2024 – Prices resilient

·????? Development land Q3 – Greenfield sites up

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Commodity markets

Trump pulls oil back

Crude prices were down last week, ending four straight weeks of gains, as markets concluded that Donald Trump’s many pronouncements since taking office on Monday were bearish for oil markets.? Repeated calls for OPEC to cut prices in a bid to help end the war in Ukraine weighed most heavily on the market. However, his threats to impose sanctions on Colombia, which supplies the US with oil, after it refused to accept two military planes carrying returned migrants, initially nudged prices back up. Oil markets will undoubtedly remain volatile as President Trump implements his new policy agenda.

Grains and oilseeds calm

UK farmgate grain and oilseed prices remained relatively flat last week as it became apparent that Donald Trump wasn’t planning to immediately impose the punitive trade tariffs on imports from China and Canada that he has frequently discussed. If implemented, such tariffs could put downward pressure on grain and oilseed prices. For now, weather remains the key market driver - but watch this space.

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The headline

Starmer’s judicial review review

In a robust statement issued last Thursday (23 January), Keir Starmer said that he will boost economic growth and cut energy bills by making it much harder for “nimbys” to use the legal system to block public infrastructure projects.

The Prime Minister said nuclear plants, train lines and windfarms would all be built quicker “thanks to changes to the rules to stop blockers getting in the way of the government’s Plan for Change”.

Changes to the judicial review process will limit legal challenges to large infrastructure projects to one attempt, replacing the current system that allows cases to return to court up to three times, often delaying projects by many years.

Primary legislation will also be amended to prevent cases deemed “totally without merit” by a High Court judge during an oral hearing from being reconsidered by the Court of Appeal. However, “to maintain access to justice”, a second attempt to appeal will still be permitted for other cases.

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News in brief

Build baby build

Speculation is mounting that Chancellor Rachel Reeves will announce new plans for a third runway at Heathrow Airport later this week. Expansion of two of London’s other main airports, Gatwick and Luton, is also apparently on the cards. Plans to transform Cambridge into the UK’s version of Silicon Valley, including a rail link between the city and Oxford, are also being dusted down again. Four locations for “new towns”, including Taplow in Buckinghamshire, have also been recommended.

Nature restoration fund

Meanwhile, Defra Minister Steve Reed confirmed last week that plans for a national nature restoration fund will be included in the Planning and Infrastructure Bill, which is set to be published later in the spring. The government says contributing to the fund, which will be used to facilitate large-scale nature restoration projects, will make it quicker and easier for developers to offset any damage done to the environment by their schemes. Critics, however, warn that it downplays the importance of smaller areas of local nature habitat that could be lost forever.

IHT pressure mounts

All the UK’s major supermarkets have now backed calls for the government to rethink its decision to ramp up the amount of Inheritance Tax farm businesses must pay. The Chair of the Environment, Food and Rural Affairs Committee (EFRA), Alistair Carmichael MP,?has also written?to the Prime Minister calling for an urgent meeting to discuss the ramifications of the tax reforms and potential changes to mitigate their impact. Meanwhile, many hundreds of farmers and their tractors took part in demonstrations across the country on Saturday to protest against the “family farm tax”.

Nature bill blocked

A private members' bill that would have compelled the government to meet new legally binding targets on protecting nature and climate change was kicked out of parliament on Friday after the government won a motion to end the debate on it. The Climate and Nature Bill, proposed by Lib-Dem MP Roz Savage, was backed by environmentalists, but its critics claimed it would hold back the UK’s economic growth.

Quality carbon credit boost

Buyers are willing to pay a premium for high-integrity carbon credits, according to a new report from rating agency Sylvera. Although the overall demand for credits remained largely static during 2024, with numerous greenwashing allegations denting credibility, demand for top-rated credits grew.

Red Tractor review findings

An independent review of the Red Tractor farm assurance scheme has called for an overhaul of its leadership and governance. Published last week, the report by consultant Promar International found there was a growing gulf between those running the scheme and the farmers taking part in it. Producers have complained of unduly onerous inspection requirements that aren’t applied to imported food.

Neonics nixed

The government has, for the first time, refused to issue an emergency authorisation allowing sugar beet producers to use the neonicotinoid spray Cruiser SB to help control virus yellows disease. Environment Minister Emma Hardy said: “This government is committed to protecting bees from toxic pesticides while working with our farmers to find new ways to protect crops and support a profitable farming sector.”

Bird flu measures extended

Following further outbreaks of highly contagious avian flu, the government has just extended the Avian Influenza Prevention Zone (AIPZ) under which all poultry flocks must be housed indoors. The zone now covers the East Riding of Yorkshire, Kingston Upon Hull, Lincolnshire, Norfolk, Suffolk, Shropshire, York and North Yorkshire. In addition, an?AIPZ mandating enhanced biosecurity but without mandatory housing came into force on Saturday across all other areas of England.

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Property of the week

Cotswold classic

Saddlewood Manor at Tetbury, Gloucester, offers a classic slice of Cotswold living. A sensitively renovated six-bedroomed 17th century manor house lies at the heart of the property, which features an indoor leisure complex, equestrian facilities and two additional dwellings. The grade 3 land consists of 12 acres of permanent pasture and 160 acres of arable soil, currently down to grass. The previous owners used some of the land for a 25-acre polo field. The guide price is ￡7.95 million. Please contact Georgie Veal for more information.

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Property markets

Country houses Q4 2024 – Market weakens

The price of houses in rural areas slipped by 0.3% in the final quarter of 2024, according to the latest results from the Knight Frank Prime Country House Index. Overall, values fell by 0.9% during the year. Demand for homes in the countryside has continued to fall since the Covid-19 pandemic, points out Head of UK Residential Research Tom Bill. Exchanges in 2024 were down 20% on the five-year average, he says. However, prices are expected to rebound by almost 18% over the next five years, Tom predicts.

Farmland Q4 2024 – Prices resilient

The farmland market edged up slightly during 2024, according to the latest results from the Knight Frank Farmland Index, which tracks the value of bare agricultural land in England and Wales. Average values started the year at ￡9,152/acre and, heading into 2025, stood at ￡9,164/acre, a slight rise of 0.1%. Given the challenges that the farming industry has faced over the past 12 months, this shows the inherent resilience of agricultural land as a multi-functional asset class. Prices, however, did dip in Q4 after Inheritance Tax reforms on farmland were announced as part of the Autumn Budget. ?For more insight and data please download the full report.

Development land Q3 2024 – Greenfield sites up

The average value of greenfield land values in England rose 3% in the third quarter of 2024, according to the latest instalment of our Residential Development Land Index. However, brownfield and prime central London prices stayed flat due to thin activity, with some market participants taking a “wait-and-see” approach ahead of the Budget, says the report’s author, Anna Ward. Housebuilders are also sceptical that it will be possible to deliver the 1.5 million new homes pledged by Labour over the next five years. Download the full report for more insight and data.