Rural Newsletter - February 2011

    Welcome to the first newsletter of 2011 – a year which promises to be positive for the rural sector, despite the general economic gloom.

    We expect demand for farmland to remain strong throughout 2011, with supply remaining limited, pushing prices further upwards. Meanwhile, banks’ willingness to lend to agribusinesses provides opportunities for judicious reinvestment, while agricultural rents in the arable sector are likely to increase.

    High up the agenda for 2011 are the proposals for CAP reform, already leaked in Europe.  Single farm payments will probably favour delivering environmental benefits and supporting the rural economies of poorer regions, with larger commercial agribusinesses having their payments reduced.

    That is just one reason why you should consider restructuring your agribusiness now. With commodity prices rising, the need for efficiency savings is becoming increasingly urgent. Farmers should be controlling capital expenditure and reassessing their exposure to IHT in the light of the recent Balfour case, which confirmed that properties let to third parties qualify for Business Property Relief.

    This newsletter addresses some of these topics – the outlook for rents, the year’s agenda set out in the Oxford Farming Conference and the state of the global farmland market. In addition, the article on mediation highlights a relatively new approach to dispute resolution. As ever, if you would like to discuss these or any other issues in greater detail, our teams will be happy to help.


    Key contacts

    Michael Horton

    Michael Horton


    Savills Ipswich

    +44 (0) 1473 234 813

    +44 (0) 1473 234 813


    Choose an Office Location