Tag Archives: arable
‘Deep-Pocketed’ UK Land Investors Hit 3-Year High
The number of large investors queuing to buy UK farmland has hit its highest in three years, but demand is focused on high-quality arable operations, whose premium over low-quality grassland continues to increase. Savills, the land consultancy, said that the number of investors with £5m-10m to spend on farmland had risen to its highest quarterly total in three years, some 13% above the average. “There has been an increase in the number of applicants who have deeper pockets for buying farmland”, said the group, which has investors with some £6bn to spend on farmland on its books. “A large proportion of these funds will still be available into next year,” given the shortage of farmland for sale, with the supply of 128,000 hectares in the first nine months “historically low”, the group said. What is in demand However, buyers were focused on high quality arable farms, particularly in the east of England – a factor reflected in price growth which has hit 8.5% in the January-to-September period, taking average values nearly to £8,300 an acre. That includes growth of 2.3% in the latest quarter. “What they want is top quality, big farms, that will give them price appreciation and a bit of yield,” Ian Bailey, Savills’ head of rural research, told Agrimoney.com. “They are looking for big blocks of arable land. It is that market which has been doing best.” Regional gap However, there were differences within the market, with investors preferring the east of England which government data last week reaffirmed as the best yielding for wheat, with an average of 7.9 tonnes per hectare. That increased its advantage over wetter western areas, which were hurt particularly by the wet spell in 2012 and in the early months of 2013, with north west yields this year averaging 5.4 tonnes per hectare. In the land market, while prime arable farms in the east of England land appreciated by 4.6% in the July-to-September quarter, the market in western areas, including Wales, stagnated. Indeed, in Wales, research “indicates no change in prime arable values since December”, leaving them at about £7,000 an acre. ‘Really sluggish’ In the market for smaller and grassland farms too, and those where residential assets make up a large proportion of the overall value, activity “is really sluggish”, Mr Bailey said. “For a stock farm of 150 acres, you are probably looking at sub-5% price growth, compared with 8-10% for the top end.” The group said it was “comfortable” with its forecast for farmland values overall rising by 8.8% this year, but acknowledged that prices of top arable operations, and “the best” dairy farms, would see stronger growth. Continue reading
Biofuel Plant Will Be Boon For Arable And Livestock Sectors
By Andrew Arbuckle Published on 09/07/2013 00:00 The official opening of the massive bioethanol Vivergo refinery on Humberside yesterday was welcomed by the English NFU not only for its planned annual consumption of more than one million tonnes of wheat but also for providing half a million tonnes of animal feed. The Vivergo company was set up six years ago by AB Sugar, the petroleum company BP and the chemical giant Du Pont. Since then some £350 million has been spent on creating the plant on the 25 acre site which will, at full production, produce some 420 million litres of bioethanol annually. The union said the refinery would not only provide an alternative to fossil fuels through its production of bioethanol but would also reduce the UK’s reliance on imports of soya from the Americas. A spokesman said the opening of the facility would come as a relief to both the arable and livestock sectors following a difficult 12 months, which saw a below average harvest, the temporary mothballing of an ethanol plant by Ensus and high animal feed prices as a result of the poor weather across the country. NFU combinable crops board member Brett Askew said: “It’s a boost to farmers to hear that Vivergo will be maximising their potential capacity in the run up to harvest. “The industry’s troubles have been well documented over the past year and the latest noises emerging from Brussels on common agricultural policy reform have done little to lighten the mood. “Multiple markets for our produce allows individual farmers the certainty we need to do what we do best and produce to satisfy market demand for food, feed and fuel. We have a responsibility to help drive a sustainable increase in production and the biofuels market can play a role in delivering the necessary economic certainty that will help us all achieve this.” But he added that policy makers had to take a really close look at the enormous benefits collaboration between the agricultural industry and biofuels sector could deliver. He hoped they would then provide the consistency in policy making that would allow farmers to not only sustainably feed the country but also to contribute towards a changing energy sector. ANDREW ARBUCKLE Continue reading
