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Forest of Marston Vale Trust Delivers Record Tree Planting Season
Last winter, projects delivered through the Forest of Marston Vale Trust created nearly 120 hectares of new tree planting. This incredible achievement for the Trust’s Forest Creation Team is an area three and half times larger than has ever been planted in a single season before and equates to over 150,000 trees and nearly 7 km of hedgerow.
As a catalyst for woodland creation, the Forest of Marston Vale Trust has been a trusted partner for landowners in the area for over 25 years. Thanks to the Trees for Climate programme, the Trust has been able to extend that support to offer their expertise and experience, combined with an attractive funding package beyond the Forest boundary (see map). The Trust doesn’t take a “one size fits all” approach to support or funding; instead it works with landowners to assess potential planting ideas and help to develop schemes that fit their business and environmental objectives.
Trees for Climate is a multi-million pound woodland creation programme that offers landowners and community groups the opportunity to transform their land through tree planting. The programme can provide funding to create the woodland together with ongoing maintenance payments for up to 15 years.
James Russell, Forest Director at the Forest of Marston Vale Trust, said: “The Forest of Marston Vale Trust has a long history of building relationships with local landowners, and through the Trees for Climate programme we have the funding to support them in bringing the impressive range of benefits which come from planting trees to their land.”
The Forest of Marston Vale is one of England’s Community Forests, which nationally delivered over 1,000 hectares of new woodland last winter and is aiming to double that in the next planting season. The trees planted in 2022-23 are expected to sequester 10,499 tonnes CO2e/y over their lifetime.
Mark and Kier Hall from Medbury Farm, Elstow were so happy with the Trees for Climate approach that they agreed to take part in a video testimonial for England’s Community Forests. Kier Hall and Nick Marsh, Forest Creation Officer for Forest of Marston Vale Trust, were interviewed, and the team got some great footage of the farm. They were hugely positive and because of their desire to increase biodiversity, expand existing woodlands and hedgerows and create a shelter belt protecting against new developments, 13 hectares were planted on their land.
Kier Hall said “We looked at various tree woodland grant options and when we saw the Trees for Climate option, we thought that it was the most competitive financially, which for a small tenant business like ours is important. But also, they offered the expertise and the whole package, so from planning right through to delivery and the maintenance as well and created a plan that was going to be practical to implement.”
Trees for Climate funding is still available, and the Trust’s Forest Creation Team is actively seeking landowners and community groups interested in planting on their land.
To find out more, visit their website https://www.marstonvale.org/trees-for-climate, email the team at treesforclimate@marstonvale.org or call 01234 767037.
Updated guidance for the ‘new and improved’ Sustainable Farming Incentive (SFI) for 2023 has been provided by the Department for Environment, Food & Rural Affairs (DEFRA). This has been met with high anticipation by all involved in agriculture and land management.
The 2023 scheme offers 23 land management actions in total, which can be ‘picked and mixed’ across a farm. New options include actions on hedgerows, integrated pest management, nutrient management, farmland wildlife, buffer strips and low input grassland.
A guidance handbook has been produced by DEFRA detailing the scheme’s rules and requirements. This is available online at https://www.gov.uk/government/publications/sfi-handbook-for-the-sfi-2023-offer
The main points are summarised below:
DEFRA is in the process of contacting farmers already signed up to the original scheme, to explain how they can access the new payments, benefits and improvements in the 2023 offer.
As further details emerge, we will be updating our clients. Should you have any questions, please do not hesitate to contact our Rural Property & Business department on 01234 352201.
We are entering a period of change in the agricultural and rural sector. It seems that the Department for Environment Food & Rural Affairs (DEFRA) is releasing information on a weekly basis and there are other changes affecting rural property such as business rates revaluation. All this can make it difficult to keep up to date with the requirements.
A summary of the Government schemes are:
The application window for the new five-year Mid-Tier agreements, starting on 1st January 2024, is open until 18th August with new revenue rates for many options. Higher-Tier applications closed on 28th April.
Following much needed consultation, the scheme has had a shake-up. A Management Payment now provides £20/ha for the first 50 hectares, up to £1,000 per annum, as an incentive to join the scheme. DEFRA has also released information on six new standards to accompany the two soil standards from 2022. These include Integrated Pest Management, Low Input Grassland and Hedgerows. The new standards consist of a set of actions which applicants are to pick and choose from, providing flexibility. The new standards are to be introduced this summer and are to work alongside other schemes, including Countryside Stewardship.
Applications can be made at any time for a three-year agreement. Items fall into four groups: boundaries, water quality, air quality and natural flood management. There is no funding limit. A review in January 2023 resulted in many payment rates increasing, which, alongside the removal of the funding cap, makes this a good opportunity for on-farm investment. It is expected to be oversubscribed, with 6 weeks’ notice to be given prior to the fund closing.
The Animal and Health Welfare Review application window is open until midday on 15th June. Grants are available for between £1,000 to £25,000 for equipment, which includes mobile livestock handling systems, EID readers and feeder systems. Each item is given a grant value, which, if successful, can be claimed after purchase of the item.
The second round of the Water Management Grant is open. Grants, available from £35,000 to £500,000, can cover up to 40% of the total cost for items that will improve efficiency of water use.
The England Woodland Creation Offer provides support for the creation of new woodland on areas as small as one hectare. There is the potential to receive up to £13,000 per hectare for woodland establishment, with a £350/ha annual maintenance payment for 10 years and top up payments for public goods.
There are other things to be aware of though including:
Changes to the rateable values for all individual, non-agricultural businesses such as farm shops, holiday lets and storage buildings came into effect on 1st April 2023. This latest review was based on the rateable values from 1st April 2021. There have been some significant increases, as well as a few decreases. Reliefs may be available in the form of Agricultural Relief, Small Business Rate Relief (different rates are generally applied to rateable values up to £15,000) and Transitional Relief (to ease the move from one rate to another). With these reliefs potentially available and the ability to challenge the new ratings, we would recommend reviewing your business rate on the https://www.gov.uk/ website. Should a rate be considered incorrect the ‘check, challenge, appeal’ process can be undertaken.
With the rapid increases in building values and the materials to re-build, we have come across several instances in recent months of buildings being significantly under-insured. We would encourage clients to review all insured values to ensure they are in line with current costs and that you are sufficiently covered should the worst happen.
This is a new and evolving area of potential income for landowners and farmers. Based upon DEFRA’s natural capital approach, the biodiversity net gain (BNG) requirement means that developments must demonstrate a 10% improvement in biodiversity by completion. This may be through enhancing existing habitats or creating new ones. In many cases, development sites lack the space to achieve the biodiversity areas and therefore other landowners or farmers within the same local authority can enter agreements to offer this. Agreements are long term, generally 30 years. Reports of strong prices being paid to landowners have been circulating, however we would encourage care and involvement with a professional to review any potential agreements. Alongside this, there is increasing focus on developing markets in carbon and nutrient credits, with the Hedgerow Carbon and Soil Carbon Codes pilots working to produce a set of minimum requirements to appraise existing standards and schemes. This is a new and exciting area, but again we would encourage care and consideration before entering into any agreement.
For more information or to discuss any of the above, please contact Alice Brodie, Rural Chartered Surveyor on 01234 362921 or email amb@robinsonandhall.co.uk
Robinson & Hall’s core patch lies within one of the strongest areas in the country for residential development land activity.
Lying in the centre of the Oxford-Cambridge Arc, beyond the London Green Belt and with excellent access to the railway and motorway networks, this area is easily commutable to London with good connections to Birmingham and the north. It is no surprise that considerable residential development is focussed on the counties in which we operate. We have achieved many significant successes for our landowning clients, with every expectation that this will continue.
Clearly, the housing market has been tested since September of last year with increased interest rates on top of significantly increased energy, materials and labour prices. Nevertheless, during this time we have been able to conclude four major sales, all to housebuilders who need to maintain their presence in this all important region.
As we enter 2023, sales rates are climbing again and there is increased confidence that both inflation and interest rates will come under control. While there remains a degree of caution, a housebuilder needing to hold a presence within the Oxford-Cambridge Arc will not have many sites to pursue and good sites continue to sell well.
Sale prices per acre can vary considerably but we are still expecting most sales to achieve many hundreds of thousands of pounds per acre and even in excess of £1,000,000 per acre on occasion. We are also involved in zoning land for distribution warehousing where even higher prices per acre can be achieved for the correct location.
The journey for our landowning clients usually starts with a planning appraisal. We then offer the site to a small number of professional development promotion firms with whom we have strong contacts. A promoter can be engaged to manage and fund the promotion process, usually over many years, in return for a share of the development proceeds. We oversee this process on behalf of the landowner, acting as the liaison between landowner and promoter.
Releasing land for residential development can be extremely rewarding but the pitfalls are many. It is important to assemble a strong, experienced team if a positive result is to be achieved.
For more information please contact Hugo Bryan, Assistant Development Surveyor on 01234 362894 or email hjgb@robinsonandhall.co.uk
As I write, the 2023 farmland market is just beginning to get underway. Agents across the country are launching farms and land for sale. Others are keen to see what might be available to buy.
The past few years have seen a shortage of farms on the market. Some localised areas might have seen a small flurry of sales but for many other areas, the cupboard has often been bare.
This shortage of supply is combined with a continued demand. There is always a latent demand among farmers to purchase the land next door. Funding might be a challenge, but such opportunities are rare and local competition for smaller blocks can sometimes be fierce. That said, if the locals are unable or unwilling to compete for small blocks of land, the demand from further afield is likely to be less enthusiastic, with a consequential reduction in price. It is not uncommon to find two very similar blocks of land where the price differs by 100%; the only difference between the two blocks of land being the capacity of the neighbours to compete in the purchase.
The sector which is perhaps the most under-supplied is the market for larger complete farms. There is a surprising number of potential buyers for a farm of, say, 1,000 acres or more. The money may come from a development sale or from outside the industry but there is a large number of potential buyers with tens of millions of pounds held in cash at the bank. The number of farms of 1,000 acres or more to come to the market in any year is limited and again competition for such farms can be intense.
The average price for decent arable land now lies in excess of £10,000 per acre, albeit this hides quite a wide range. £8,000 per acre is not unknown where the locals will not compete. Likewise, it is not unusual for prices to rise to £12,000 or even £14,000 per acre and sometimes more where competition is strong.
We shall see how matters develop as the market unfolds through 2023. There remains little pressure from the banks, and the tax advantages of remaining in farmland have not been withdrawn. My expectation is that we shall see a year of continued constrained supply where cash buyers are king.
For information or assistance on any of the above, please contact David Jones, Head of Agency on 01234 362906 or email djj@robinsonandhall.co.uk
When it comes to land that sells for development, it may appear that some landowners are just lucky but that is not the case; such landowners have made their own luck! Turning farmland into a potential housing development happens by actively and successfully promoting the land (usually over several years). If a landowner is not trying to promote the land or working with third parties to do so, they have little to no chance of success.
Is now the right time to promote my land for development and what’s the current development market like?
It is no secret that the development land prices have dropped from the 2022 peak (prior to Liz Truss’s mini budget in October 2022). A few examples of issues that housebuilders and purchasers are contending with are:
On the flip side, development land prices continue to benefit from a limited supply of good development sites available on the market and in turn, limiting the current reduction in sales prices. Looking forward, it is predicted that the inflation rate will slow to around 5% by the end of the year, which will also benefit the sector.
Development sites often take many years to promote and a few years to construct. Therefore, there is ample time for the market to recover for a development scheme that begins the promotion process today. In addition, a net minimum sale price (per acre) can and should be put in place to protect the landowner. Our knowledge of strategic development sales is invaluable in the sales process to ensure that the best price can be achieved given the current market circumstance.
What are my promotion options?
Promotion Agreement
A promotion agreement is a legally binding contract between the landowner and a land promoter. The promotion agreement is created to bind the parties to work together in achieving a desirable planning permission. The promoter funds the planning process entirely at their risk and if they are unsuccessful then the landowner has nothing to pay. However, if the promoter is successful then the land is marketed, a proportion is paid over to the promoter and the remainder is available for the landowner. There are of course many other important terms within a promotion agreement to protect the landowner which would need to be carefully negotiated. The correct land promoter will bring with them experience and expertise that is invaluable to achieving the desired outcome.
Option Agreement
An option agreement is a legally binding contract between the landowner and a developer. The option agreement grants the developer the right to purchase the land from the landowner during an option period in return for an option fee. The developer may look to gain planning on the land during the period. The purchase price the developer will need to pay the landowner will be pre-agreed within the option agreement. The price could be a fixed price or a discounted percentage from the agreed market value of the site at the point of sale. The right to exercise the option lies with the developer.
Self-Promotion
Land can be promoted by the landowner, usually with the help of an agent and other third parties. The landowner will look to fund the promotion of their land themselves, the benefit being that if their promotion is successful, the landowner will keep a higher amount of the proceeds. It is usually more viable for a landowner to promote their land on a smaller scheme.
How can we help?
Robinson & Hall, acting as land promoter, has promoted smaller sites for clients and the costs for the promotion are shared between Robinson & Hall and the landowner. We would take a pre-agreed percentage of the final sale if the promotion was successful, similar to any other promoter.
Robinson & Hall can increase your odds
We act for the landowner, not the promoter, to achieve the most favourable terms. Factors that are often negotiated include the upfront payment to the landowner, the length of the term of the agreement and the percentage split of the proceeds.
Robinson & Hall has a preferred list of promoters who we approach on behalf of our clients and who have a track record of successfully promoting sites for development.
From instruction to the point of sale, we will be working on behalf of the landowner to achieve the best results.
If you are considering your options and would like to find out how we can help you, then please contact David Jones, Partner at Robinson & Hall, on 01234 362906 or Hugo Bryan, Assistant Development Surveyor at Robinson & Hall, on 01234 362894.
The Department for Environment Food & Rural Affairs (DEFRA) has now opened applications for the Productivity and Slurry Grant and the Animal Health and Welfare Grant through the second round of the Farming Equipment and Technology Fund.
This fund offers grants for specific items which will increase productivity, improve animal health and welfare and be environmentally sustainable.
Farmers (including contractors) can apply for a grant of between £1,000 and £25,000, with grants funding around 40% of the cost of specific items included in the Fund.
Following the first round of funding, DEFRA has reviewed and added to the list of items available under this grant. There are an additional 19 items to aid productivity, 2 items to improve slurry management and 66 items to support animal health and welfare.
Some examples of items eligible for funding under the grant are detailed below:
| Productivity & Slurry Grant | Animal & Health Welfare |
| Direct Drill 3m, 4m, 6+m | Mobile or fixed cattle and sheep handling systems |
| Direct Drill with fertiliser placement | EID panel reader for cattle and sheep |
| Retro fitted yield monitoring | Snacker feeder |
| Grain stirrers | Enrichment block holder for pigs |
| Tractor mounted stubble rake 6m | Automatic weigh scale for poultry |
| Slurry separators | Cameras for monitoring livestock |
However, following this review, some items from Round 1 of the funding have been removed.
The grant funding is competitive and will be allocated based on a scoring system, and therefore if the scheme is oversubscribed, funding will be allocated to those applications which best meet the objectives of the scheme.
Applying for the grant must be done online, through either the ‘Productivity & Slurry’ portal or the ‘Animal Health & Welfare’ portal, depending on which item is being applied for. If an application is successful, the applicant will receive an offer via email and from here they can accept the offer and purchase the items.
It is important that the item applied for is available, as it must be paid for and installed before the claim can be made for the grant payment. Currently, the claim submission deadlines are expected to be October 2023 for the Productivity & Slurry items and January 2024 for the Animal Health & Welfare items.
These capital grants will not be available in the long term so it is important to consider them now and to look at the full list of available items.
For more information or to find out how our Rural Property & Business department can help you please contact 01234 352201 or 01280 428010 or email bedford@robinsonandhall.co.uk
Countryside Stewardship
The Department for Environment, Food and Rural Affairs (Defra) has announced that some of the Countryside Stewardship revenue payment rates have increased with effect from 1st January 2023. Where applicable, the higher revenue payment rate will be for both applications received in 2023, as well as revenue agreements which started on or before 1st January 2023.
Payment rates for capital Countryside Stewardship items have also been updated in line with current costs. The increased payment rates only apply to agreements which start 1st January 2023 onwards but there is the option to withdraw capital items from earlier schemes and reapply. Farmers will now have three years to complete and claim for capital works rather than two. Applications for new Capital Grant only schemes can now be made all year round so anyone considering applying should start looking at the application process.
Both Countryside Stewardship Mid-Tier and Higher-Tier Schemes will continue to be offered to applicants for agreements starting on 1st January 2024, with applications opening February/March 2023. It has also been announced that Defra will replace the proposed Local Nature Recovery Scheme with an enhanced Countryside Stewardship Scheme. This scheme will be known as Countryside Stewardship Plus and will provide payments in relation to carbon and biodiversity. Further details are yet to be released, but there are likely to be up to around 30 additional actions available to farmers under this new scheme by the end of 2024.
Sustainable Farming Incentive
2022 saw the launch of the Sustainable Farming Incentive (SFI) Scheme, with land managers able to apply to enter their land into three standards, being Arable & Horticultural Soils, Improved Grassland Soils and Moorland.
In 2023, there will be new standards launched under SFI, as detailed below:
Additionally, a new SFI Management Payment is being introduced. This payment will be for £20 per hectare, for up to 50 hectares of land entered into the SFI scheme, so a maximum payment of £1,000. The payment is aimed towards encouraging smaller farms to take advantage of the financial incentives that SFI could provide. This management payment will not be offered to those who already participate in the SFI pilot programme. Currently, there are no further details as to when the Management Payment will be applied or available.
Landscape Recovery
The Landscape Recovery Scheme falls under the umbrella of Environmental Land Management Schemes (ELMS) and is for large scale projects which look to undertake significant habitat restoration and land use change. The first round of applications has now closed but there will be a second round of applications opening later this year.
Innovation and Productivity Grants
It is expected that the next round of the Farm Equipment and Technology Fund, for small grants between £2,000 and £25,000, will be launched in spring 2023.
These latest announcements made by Defra provide much of the information we’ve been waiting for to allow farmers to plan future schemes, although there are still further details to be announced. We’d encourage all farmers to look at the various schemes and consider which work best for their farm to ensure opportunities are not missed.
If you would like one of our team to undertake a review please do get in touch. For more information or to find out how our Rural Property & Business department can help you please contact 01234 352201 or 01280 428010 or email bedford@robinsonandhall.co.uk
When approached by clients with potential development land, our first task is often to select a professional promoter to take the project forward. A land promotion can easily cost hundreds of thousands of pounds, even millions in some cases, and few landowners wish to risk such sums on an uncertain outcome. A promoter will take on the cost of the promotion at risk in exchange for a slice of the sales revenues if a consent can be achieved and the land sold.
But, which promoter to choose? There are hundreds claiming to be the next big thing, but few have both the experience and the finances to make it onto the Robinson & Hall shortlist. Negotiating good terms is an important part of our role but selecting the right partner to work with is arguably the most important decision of all. Much better to achieve a sale at more generous terms to the promoter than to choose the promoter offering the keenest terms only to find that they are unlikely to produce a positive result.
We work with the client’s solicitor and accountant (it is never too early to take tax advice in these matters) to produce a promotion agreement and it is then for the promoter to survey the land, produce masterplans, make representations to all relevant bodies, woo local politicians and planning officers, deal with local objections, overcome technical issues and many other things besides. We remain close to the promoter throughout this period, reporting to the landowner and often having input into design and the handling of local politics. We monitor the many surveys which will be required (ecological, archaeological, landscape impact, highways, ground investigations and many more), ensuring the minimum disruption to farming activities and negotiating compensation where necessary.
Hopefully, usually after some years of input from the promoter and ourselves, we will eventually arrive at the happy day when a planning committee resolves to grant consent for the residential development of the land. Our work is just starting. There is a Section 106 agreement to be agreed and signed, the planning consent must be issued by the local authority and we begin preparations for a sale of the land. Often, we need to commission further work to clarify matters such as archaeology, contamination or ground conditions. We bring all the title, technical and planning documentation together into an online dataroom and we market the land to our database of national and local developers. Our work is not over until a sale contract is signed and it takes great experience to ensure that the best possible price is actually achieved for our landowner clients.
Over the past year or more, residential development land values have been assailed by higher materials prices, higher labour costs, increasing fuel costs, rising interest rates, political turmoil and the covid pandemic. Yet we have continued to achieve rising prices for our land sales. Part of this success comes from the continued strength in the housing market, but part lies in knowing which housebuilders are in greatest need of a new site in any particular area. Our local knowledge is invaluable.
No doubt there are new challenges to the market now upon us. How the market will react in the short term I cannot say at this time. However, in the longer term, the demand for new housing in this region must continue and the opportunities for careful landowners are obvious. Promoters are as keen as ever to secure good sites and the housebuilders know that they need to buy land if they are to continue to build houses.
If you are considering your options and would like to find out how we can help you, then please contact David or Andrew.
There has been a noticeable shift in sentiment amongst our farming clients in the last 12 months with more looking towards the future and how to protect their businesses with all the current uncertainty both in the UK and further afield. We thought it would be useful to share our thoughts on how farming businesses can best prepare and safeguard for the future.
Look at options for conversions of buildings, amenity uses of land or value-added processes to broaden the sources of income and be less reliant on one market. Many farmers have taken this approach already but it is always worth re-looking at income streams and ensuring an opportunity is not being missed. For example, letting buildings which are no longer useful to the farming enterprise could provide an income which would allow investment in new buildings. We are continuing to see strong demand for rural storage/workshop units across our area.
Consider whether you have any land which may be strategically placed for residential development. With increasing pressure on councils to meet housing targets, there could be a further window of opportunity for those with strategic land to secure development. If you are receiving approaches from developers, think about whether it is worth following them up.
2. Farm the right land
All farms have some land which is less productive or awkward for modern equipment to access. Look at yields and input costs on this land against the payments which could be received under Countryside Stewardship and other environmental schemes. If the income received under a scheme would be more than farming the land, this may be a better option than farming. Whilst there is growing interest in privately funded schemes under carbon and biodiversity net gain schemes, these are long term commitments that need to be carefully thought through.
3. Budget & stress test
Having accurate working budgets which are reviewed regularly provides an essential resource when considering cropping, machinery and manpower. Preparing a budget at the beginning of the cropping year and then forgetting about it doesn’t provide a useful tool for planning future years, so they must be reviewed frequently. We would also advise stress testing budgets at different yields, input costs and receipts so that all scenarios have been considered.
4. Financial considerations
Before purchasing new equipment, additional land or investing in improvements, consideration should be given as to how these are to be funded. Furthermore, thought should be given to how this may impact on future funding and the speed you are making repayments of capital, especially with hire purchase.
5. Evaluate risks
Each farming business should consider the threats it faces and plan accordingly. If the risks are known, consideration can be given to them before a situation arises. Key risks we consider when looking at farming businesses are:
• Commodity prices
• Input price changes
• Changes to land values and rents
• Reductions in subsidy payments and changes to environmental schemes
• Inspection failures
• Interest rate fluctuations
• Changes to ownership
6. Succession planning
Considering the future plans for the business at the earliest opportunity means decisions can be made with the eventual aim in mind. Whilst it can be a difficult matter to discuss between family or members of a farming partnership, having a robust succession plan enables all parties to work to the same end goal. There is no set format for a good succession plan, as every business is different. It does, however, need to deal with a number of key issues and points, including:
• A summary of the overall succession plan.
• A business overview and plan.
• A retirement plan for the older generation.
• A financial plan, detailing how the proposals will be funded.
• An action plan and implementable timetable.
Seeking professional advice at an early stage is vital; there are many factors that need to be taken into account, including tax and inheritance implications. Robinson & Hall is frequently called in to manage the process and liaise with accountants, solicitors and bankers to see the process through from the start of a plan to completion.
7. Compliance
Whilst paperwork is everyone’s least favourite activity, it is not something which can be ignored in modern farming. Spend some time each year ensuring all the documents are in place and easily accessible
should you have an inspection, be it from the Rural Payments Agency, HM Revenue and Customs or Crop Assurance. Penalties received can be
large and can be avoided by having the right documents to hand when an inspector knocks on the door.
Whilst the current uncertainty in the financial markets, commodity prices and political outlook is concerning for farm businesses, it is outside most people’s control. However, with forward planning, strategic
thinking and due diligence, it is possible to make businesses as resilient as they can be for the years ahead.
For information or assistance on any of the above, please contact Polly Sewell.
