Tag Archives: press-releases
UK Ignores Land Change In Biomass Criteria
By Dave Keating – 27.08.2013 draft proposalcirculated by the European Commission’s energy department earlier this month. The criteria would ensure that the extraction of energy from biomass, largely wood from forests, is not causing more emissions through land displacement than it abates. Under the UK proposal, published on Thursday (22 August), large biomass energy plants would have to demonstrate that they are emitting 66% less carbon than fossil fuel in order to qualify for renewable energy subsidies from 2014. This would rise to 72% in 2020 and 75% in 2025. The threshold is stricter than the 60% suggested by the Commission’s energy department. But like the energy department’s draft, the UK criteria would not factor in indirect land use change (ILUC), which would include such phenomena as loss of carbon storage potential for trees or the increased use of land for displaced food crops. The 2008 renewable energy directive obliged the Commission to come forward with sustainability criteria for biomass and biofuel, but these have been long delayed. A proposal put forward last year to factor ILUC into decisions about which biofuel can receive renewables subsidies and meet fuel objectives has encountered huge resistance from the biofuel industry, which says the restrictions would destroy their business. Environmental campaigners are angry that the draft proposal circulated within the Commission does not include ILUC, saying the Commission has backed off because it wants to avoid the same level of controversy it has encountered with the biofuel proposal. There is conflict with other Commission departments which want to include ILUC and carbon debt, according to Commission sources. However the biomass industry maintains that biomass does not cause ILUC in any significant way and comes from land that would not be used to grow food crops. The Commission is expected to put forward its proposal in October. © 2013 European Voice. All rights reserved. Continue reading
The Value Of Farmland Reaches A Record High
The price of farmland in the region has soared to record levels and is expected to tip £10,000 for an acre in the next two or three years, market experts say. During the first six months of the year, the cost of farmland in Yorkshire and Humber jumped to £7,000 per acre, bringing the value to almost three times what it was during the same period in 2004, when an acre in the region cost just over £2,613. The exponential growth in prices, revealed by the twice yearly RICS Rural Market Survey, has been driven by the ongoing surge in demand for land from both farmers and investors. Sue Steer, RICS rural spokeswoman, added: “The growth of farmland prices across Yorkshire and Humber in recent times has been nothing short of staggering. In less than ten years we’ve seen the cost of a square acre of farmland grow to such an extent that investors – not just farmers – are entering the market. And, if commodity prices continue to increase and keep demand high, there’s no reason at all why we won’t see the cost per acre going through the ten thousand pound barrier in the next two to three years.” Interest from potential buyers started to steadily grow at the beginning of 2006, RICS say, with hikes in commodity prices leading a charge to expand agricultural operations and, as a result, investors are increasingly seeing land as an economic safe haven. With bare farmland so sought after, the six months to June saw availability of such farmland remain flat. Across Great Britain, land prices were highest in the North West at £8,813 per acre, while the cost per acre was lowest in Scotland at £4,438 per acre. Tom Whitehead, senior associate at property agents Carter Jonas in Harrogate, said: “The regional market has surged into activity since mid-May with a good mix of bare land and equipped farms of varying calibre now available. Reasonable quality bare arable land in blocks of 50 to 150 acres is highly sought after commanding a 20 per cent to 50 per cent premium over ‘average’ prices, with weaker demand for farms with a strong residential element or in less fashionable districts.” Respondents to the professional body’s survey in Yorkshire and Humber expect the trend of rapidly growing farmland prices to continue over the coming year with a net balance of 67 per cent more chartered surveyors predicting further growth. Barney Kay, regional director of the National Farmers’ Union, said big investment funds listed on the stock exchange had invested capital in farmland since 2008 as a result of the economic crash. He said: “For many in the industry, high land prices provide a stronger basis against which to invest in infrastructure and machinery but for those younger people entering the industry and looking to expand it makes it a lot harder to buy land.” Chance to reduce arrears? Farmers who are struggling after inclement weather last summer and earlier this year could use high farmland prices to boost their finances, says Andrew Black, rural expert at Savills in York. Mr Black says: “While large farm businesses may have the reserves or borrowings to cope, smaller enterprises may struggle. Sale and leaseback could be a very sensible option to consider. Investors need someone to farm their asset, so farmers can generate capital by selling and continue with a livelihood that they love.” Continue reading
Price Of Farmland Trebles In Decade And ‘Set For £10k An Acre’
The price of UK farmland has trebled in less than a decade to hit a record high, according to a new survey, as researchers predicted the average price of an acre could soon hit £10,000. Prices for farmland are climbing, a new survey shows. Photo: Alamy By Emma Rowley 7:00AM BST 23 Aug 2013 Interest from farmers and investors buying to rent land to farmers pushed the cost of farmland to £7,440 an acre across the UK in the first six months of this year – three times the price fetched during the same period in 2004, when an acre cost just more than £2,400. Commercial farmers want to expand production to take advantage of the long-term trend for rising food prices and economies of scale, according to researchers at the Royal Institution of Chartered Surveyors (RICS), who produced the data. While commodity prices have eased in recent months, demand for food is expected to remain on an upwards path in the long term, driven by growing populations and changing diets around the world. The appeal of farmland as a “safe haven” investment to rival gold also plays a part, researchers said. Farmland has outperformed a number of alternative asset classes, which – combined with tax breaks – has enhanced its appeal as an investment. Analysis by estate agents Knight Frank has shown that for years gold was the only asset to outperform farmland, but in the short term this situation has reversed as the price of the precious metal has weakened. “The growth in farmland prices in recent times has been nothing short of staggering,” said Sue Steer, spokeswoman for RICS. “In less than 10 years, we’ve seen the cost of an acre of farmland grow to such an extent that investors – not just farmers – are entering the market. “If the relatively tight supply and high demand continues, we could experience the cost per acre going through the £10,000 barrier in the next two to three years.” The most expensive farmland was found in the North West – where supply is tight – at £8,813 an acre, the RICS survey showed, while the cost was lowest in Scotland, at £4,438 an acre. None the less, prices north of the border touched record levels for the Scottish market. Some areas are already past the £10,000 mark, surveyors said. A 13.5 acre block of land near Antrobus near Northwich, which was suitable for potatoes, recently went for well over £12,000 an acre, said Andrew Wallace at Cheshire-based auctioneers Wright Manley. He reported “keen farmer competition for extra land”. Graham Bowcock, a surveyor, said last year’s wet summer and a tough winter and spring that followed did not seem to have diminished the appetite for land purchase. “The big [farmers] still want to get bigger but continue to be hampered by shortage of supply,” he said. “There are plenty of non-farmers waiting in the wings and many seem to have cash available.” On a long-term perspective, the demand for farmland looks likely to increase further around the world due to the finite supply of arable land and population and consumption trends. Analysts also say that rising demand for land for renewable energy sources such as biofuels will compete against food production, further increasing pressure on arable land. Against this backdrop, food prices will stick above their historical average over the medium term for both crop and livestock products as demand grows and production slows, according to a recent report published by the OECD think tank and the UN’s food agency. The twice-yearly RICS rural market survey, which began in 1995, tracks market prices for farmland across England, Wales and Scotland. Continue reading
