Rural Newsletter - September 2012

    The UK may still be in recession, but the rural sector continues to buck the trend by remaining in generally good health.

    Although we have faced a difficult harvest, with wet weather and below average yields, grain prices have reached record highs. Forward prices for 2013 are equally strong. While this won’t help intensive livestock producers, it presents a rosy outlook for arable farmers, as Andrew Wraith explains.

    Grain prices are inextricably linked to arable rent levels, which have exceeded £200/acre in some cases. With an increasingly volatile global marketplace, setting rent levels is a challenging task – unless you are dealing with Agricultural Holdings Act tenancies, which, Mark Little argues, appear increasingly outdated and uncompetitive.

    Many landowners are looking to the renewable energy sector to boost incomes and lower energy costs. The Government released a plethora of announcements before the summer recess, and we examine the likely impact of these on future renewable projects.

    With such a bright future for the industry, land prices have continued to rise, and now average almost £7000/acre. Using our Farmland Value Model, Charles Dudgeon predicts a growth of 5% in 2012, rising to 36% over the next five years.

    But almost half of land and estate sales never reach the open market, with a large number of landowners preferring to sell privately. Christopher Miles explains how our dedicated purchasing service can give buyers the competitive edge.

    It is said that volatility brings opportunity, and that is certainly the case in the rural sector at the moment. With some careful planning and forethought, landowners can make the most of their assets, and we would be delighted to help in any way we can.

     
     

    Key contacts

    Paul Cressy

    Paul Cressy

    Director
    Rural

    Savills Exeter

    +44 (0) 1392 455730

    +44 (0) 1392 455730

     

    Jonathan Henson

    Jonathan Henson

    Director
    Estate Management

    Savills Perth

    +44 (0) 1738 477 511

    +44 (0) 1738 477 511

     

    Paul Ainscough

    Paul Ainscough

    Director
    Rural

    Savills York

    +44 (0) 1904 617 838

    +44 (0) 1904 617 838

     

    David Cross

    David Cross

    Director
    Farm Agency

    Savills Salisbury

    +44 (0) 1722 426 813

    +44 (0) 1722 426 813

     

    Michael Horton

    Michael Horton

    Director
    Rural

    Savills Ipswich

    +44 (0) 1473 234 813

    +44 (0) 1473 234 813

     

    Jason Emrich

    Jason Emrich

    Director
    Rural

    Savills Haywards Heath

    +44 (0) 1403 741 509

    +44 (0) 1403 741 509