51乱伦

Viewpoint

Our Rural Consultancy team was out in force at last week鈥檚 Groundswell event, which has gone from strength to strength since it was first held in 2016. Often blessed by sunny weather and playing host to some of agriculture鈥檚 most passionate and inspirational champions, who this year included Dakota rancher Gabe Brown and the Prince of Wales, it can be hard not to get swept away by the collective enthusiasm for the resurgence of regenerative agriculture. It is certainly true that looking after your soils is the key to long-term resilience for most farming businesses, especially given the increasing frequency of drought or floods. Unlike the organic sector, though, it鈥檚 worth noting that there are few premium prices currently available for regeneratively farmed products and, as the figures from farm business consultant Andersons revealed at the show illustrate, regen producers are far from immune to drops in farm support payments and commodity prices.

Mark Topliff, who was one of our team who attended the event, notes: 鈥�If Groundswell reaffirms anything, it鈥檚 that there is a hardcore of land managers who believe regen agriculture is the only way forward for the industry. But many remain sceptical. However, there is no doubt that elements of regen agriculture are applicable to any farming business, whether that is adding organic matter to arable soils or changing grazing practices. For farming to be more sustainable long term, it will need some of these approaches to be widely adopted.鈥�

Commodity markets

Milk firm

Farmgate milk prices seem to be holding firm, despite a sharp hike in production. Average daily output levels hit almost 37 million litres towards the end of June, a year-on-year jump of close to 7%, according to the latest AHDB figures. Most milk buyers, however, have . A suggests global dairy markets could come under pressure in the second half of the year, but low production in mainland Europe could insulate UK producers somewhat.

The headline

Royal regen approval

The Prince of Wales made a surprise speech at last week鈥檚 Groundswell event, arguably the world鈥檚 premier regenerative farming show.

Prince William, who introduced US rancher Gabe Brown, considered by many to be the godfather of the modern regenerative movement, said: 鈥淟et this festival be not just a celebration of innovation but a rallying call, for regenerative farming is not a fringe alternative. It must be a foundation stone for British agriculture to help us rebuild the health of our nation.鈥�

Also attending the show, Defra Minister Steve Reed, expressed his support for regenerative agriculture, but controversially told journalists that some of the UK鈥檚 less productive farms, which are most reliant on support payments, should be taken out of agricultural production completely.

As reported in The Guardian, Mr Reed said the government鈥檚 proposed land use framework 鈥渆nvisions taking some of the least productive land out of food production, but supporting the more productive land to increase production鈥�.

Regen profit pinch

New figures released by farm business consultant Andersons at Groundswell reveal that a lack of price support for regeneratively farmed products means the sector is still vulnerable to swings in commodity prices and cuts in government support payments.

The margin from farming activities this year on the firm鈥檚 600-hectare model regenerative farm is predicted to fall into the red by £95/ha. What鈥檚 left of the Basic Payment Scheme (BPS) and Sustainable Farming Incentive will help ensure a total business surplus of £56/ha. For 2026, the firm forecasts a farming margin of £9/ha and business surplus of £149/ha.

However, over the longer term, consultant Amelia Rome said that using regenerative farming practices would make soils more resilient to increasingly volatile weather conditions. But there is still likely to be further industry consolidation, warned her colleague Sebastian Graff-Baker.

News in brief

Capital grants rekindled

Given the above, it鈥檚 welcome news that Defra鈥檚 , which was suspended earlier this year, has just reopened with £150 million of funding up for grabs. Grants are available for 78 items under six categories: air quality; water quality; natural flood management (capped at £25,000 each); boundaries, trees and orchards (capped at £35,000); assessments; and improvements. Four new items are available under this round of the offer: assess woodland, create a wildfire checklist, repair stone walls, and host educational access visits. For help with grant applications please contact Mark Topliff.

SFI applications reopen

Applications for (SFI), which was also controversially closed in March, reopened yesterday (7 July). However, applications are largely limited to those farmers who were in the process of making an application when the scheme was shuttered with no warning.

Last chance for tech grants

Anybody thinking of applying to the has until midday on 10 July to submit their applications. Grants of up to £25,000 are available for each of three themes: productivity, slurry management, and animal health and welfare. The grants cover 40% to 50% of the cost of eligible items, which include direct drills and cattle crushes.

Climate costs

The results of a survey of 300 farmers across the UK, , reveal the scale of the climate issues the farming industry is facing. Almost 90% of producers have seen their productivity hit by extreme weather conditions in recent years. Almost 85% recorded a drop in arable or livestock yields, with 75% saying this had reduced their incomes. Meanwhile, . In Spain, water availability dropped by 12% between 1980 and 2023, while 90% of the land in Turkey is at risk of desertification.

Farmer optimism slumps

Climate-related problems might help explain why only 13% of farmers feel optimistic about agriculture鈥檚 future, according to the results of law firm Tees鈥� . However, it鈥檚 not just the weather - 80% of the respondents say their businesses will be affected by the government鈥檚 inheritance tax reforms, while 84% claim that current compliance issues make running a farm difficult. Over 90% are involved on some kind of environmental scheme.

Onshore wind roadmap

As part of its bid to help combat climate change, and hot on the heels of its solar strategy (see below), the government has just published its . The construction of new turbines has stalled over the past decade following a de facto ban by the previous Conservative administration. Key measures in the 40-plus-point plan include putting onshore wind on an equal footing with offshore wind and nuclear projects for infrastructure approvals, and repowering ageing turbines to extend clean energy generation.

Give me sunshine

The government has also issued , which sets out how sunshine will help the UK hit its target of generating 95% of its electricity from fossil-free sources by 2030. The ambition will require 45GW of new solar capacity to be installed and operational within the next five years. The roadmap includes 70 actions, including more upfront support to encourage domestic solar installations. Meanwhile, the UK鈥檚 largest solar farm at Cleve Hill in Kent is now operating at full capacity. At peak output, the 373MW site, which was the first solar farm to be granted planning consent under the Nationally Important Infrastructure Project regime, has provided 0.7% of the UK鈥檚 electricity needs.

Grey belt planning

Planning geeks might be interested to know that Medway council鈥檚 proposed includes the first review of Green Belt policy that identifies areas of previously developed land, which is now widely termed as grey belt. 51乱伦 research found 11,000 such sites across the country with the potential for 200,000 new homes.

EA inspection jump

The number of on-farm pollution inspections carried out by the Environment Agency (EA) is set to jump by 50%, according to Defra. It says the extra visits will enable the EA to offer more guidance to farmers, strengthen links with supply chains and farm networks, make better use of technology like remote sensing, and take stronger action against serious or ongoing pollution.

Argentina Scotch boost

Scotch whisky has become the first international product to gain legal protection in Argentina as a Geographical Indication (GI). This will help combat counterfeiting by ensuring products labelled as Scotch whisky are genuine and meet strict production standards. GI products account for approximately 25% of all UK food and drink exports, with an estimated annual value of over £6 billion.

The Rural Report SS 25 鈥� Out now

, 51乱伦鈥檚 flagship publication for rural businesses, which looks in more detail at many of the issues discussed in The Rural Update, is out now. The new report includes the latest news, research and insights from 51乱伦鈥檚 rural property experts, as well as thought-provoking contributions from some of Britain鈥檚 most iconic estates.

Available online and in print, you can to access the full report.

Properties of the week

East Sussex opportunities

Tulleys Wells Farm at Offham, near Lewes, offers several interesting opportunities for anybody looking to move to this lovely part of the country. The seven-bed house, believed to date from 1735, would make a charming rural residence, while the adjacent traditional Sussex Barn has great potential as an event, leisure or storage space. Almost 21,000 sq ft of modern agricultural buildings are suitable for livestock and arable agriculture, or possible conversion to alternative uses. The farm鈥檚 222 acres of Grade 2/3 pasture have been home to an organic beef herd since 2012 and are enrolled in the mid-tier environmental stewardship scheme with a focus on enhancing biodiversity and improving soil and water quality. The guide for the whole is £5 million. Please contact Will Oakes for more information.

Historic Kent estate home to rent

For anybody looking to sample estate living without making a long-term commitment, 51乱伦鈥檚 Rural Consultancy team in Kent has an intriguing option on offer. , which was once home to The Countess Mountbatten of Burma and Lord Brabourne, is part of . Now available to rent, the nine-bed period property costs £7,995 a month. For more information, please contact the team鈥檚 Katie Bundle.

Discover more of the farms and estates on the market with 51乱伦

Property markets

Development land Q1 2025 鈥� Market falls

The value of greenfield development land fell by 2% in the first quarter of the year. Urban brownfield sites, however, lost 5% of their value over the same period, according to .

Farmland Q1 2025 鈥� Values resilient

The 51乱伦 Farmland Index, which tracks the average price of bare agricultural land across England and Wales, showed a marginal drop of 1% in the first quarter of 2025 to £9,072/acre. This follows a similar small decline in the final three months of 2024, bringing the annual fall to just 1.9%.

Country houses Q1 2025 鈥� Mixed picture

The average price of desirable homes in the countryside slipped by just 0.3% in the first quarter of the year, according to the 51乱伦 Prime Country House Index. Over the past 12 months, values have fallen by 1.6%.