Bruton Knowles Rural News Issue 47

IN THIS ISSUE POST BREXIT:

CALL FOR SITES:

FARM SUPPORT:

Government introduces Agriculture Bill to Parliament

Local Authorities issue new call for sites

Slow uptake for grant schemes under CSS

RuralNews News and views on property assets

FEATURE:

The Farmland Market Supply of farmland coming to the open market in the South West has diminished with 16% less land on the market compared with the same period last year.

Issue 47

Ruralnews

The Farmland Market It was always said that the usual economics of supply and demand would come to the fore with regard to increasing land values but this has not proved to be the case in recent times. from developers for strategic land for development, is helping to boost competition for the limited amount of agricultural land currently available. A large number of farmers or land owners who have sold land or had it compulsory purchased for development are looking for alternative property in specific areas.

Recent research continues to reveal muted pricing across all land types with values down some 2.2% in the year to date with the current average value of ÂŁ7,300 for all types of agricultural land with the average price for prime arable being in the region of ÂŁ8,900 per acre.

The supply of farmland coming to the open market in the South West has dwindled with recent research stating that some 16% less is on the market compared with the same period in 2017. In historic context this is some 26% below the 10 year average.

The lack of land coming to the open market is, of course, due to the impact of the uncertainty surrounding the Brexit process.

Although the DEFRA minister, Michael Gove, has consistently repeated his support for farmers albeit with an increasing focus on the delivery of environmental benefits, he has provided little detail to back this up.

This uncertainty limits the likelihood of a large amount of land coming to the open market unless a significant number of farmers exit the industry because of Brexit. A short term exit from the industry seems unlikely as

many farmers advocated leaving the European Union and, indeed, some sort of financial support is likely to remain in place for in the short term at least.

Low interest rates have enabled the agricultural industry to remain in place with the low transaction volumes of recent years being seen against the majority of farmers sitting on an asset that has greatly increased in value since it was either purchased or inherited.

A number of factors are helping to support the market with the decline in Sterling and favourable economic conditions continuing to underpin farm gate prices for most agricultural commodities.

It is also the case that large infrastructure projects such as HS2 together with the increased interest

It is certainly noticeable that buyers are becoming ever more discerning and looking into every aspect of a purchase prior to committing themselves. The ongoing challenges of Brexit as mentioned above will come into play, however the majority of land sales are being driven by neighbouring competition and, if that competition is not there, some land parcels will be extremely difficult to sell unless very realistically priced towards the lower end of the average value.

The current uncertainty, both in the political and economic market place, continues to drive land sales and with the lack of clarity over post Brexit trade arrangement still lacking, this will further inhibit matters.

Matthew Peters Partner 01452 880184 matthew.peters@brutonknowles.co.uk

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Countryside Stewardship 2018 saw the introduction of many different grant schemes under Countryside Stewardship (CSS) to encourage good environmental practice, water quality improvements and productivity.

With slow uptake in many schemes since the introduction of Countryside Stewardship, Natural England are working to deliver more attractive schemes for farmers.

Deadlines for application packs are often relatively short and complications with their computer systems have made this more complicated. CSS Wildlife Offers (a simplified Mid-Tier scheme) which were introduced in 2018, more akin to the previous Entry Level Stewardship schemes, offered secure additional income for 5 years, for little change to farming practices. This income stream could be important during the transition period when BPS ceases to exist under the current regime. Careful thought needs to be given to ensure that the farm will still comply with Greening under

Catchment Sensitive Farming Catchment Sensitive Farming under the Water Framework Directive is being promoted to raise awareness of diffuse pollution.

These schemes allow for training, advise and grants for infrastructure, such as covering an existing yard.

Schemes are available through Natural England in partnership with the Environment Agency and DEFRA. Applications for 2018 have now closed but similar schemes will likely be available in 2019.

Natural England can be contacted on 0208 0262018 to discuss further. Bristol Water is also promoting its partnership scheme with projects along the River Frome and its subsidiaries, Luckington Brook, Sheraston, Malmesbury and Mendip Lake Partnership Projects in the Chew Valley area. Bristol Water can be contacted on info@bristolavoncatchment.co.uk

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BPS. It is also worth noting that CSS areas such as wild bird mix or nectar margins do also require active management to ensure they are able to deliver environmental benefits.

It is yet to be announced if Wildlife offers will be open for applications in 2019 for 1st January 2020 start date.

If your ELS scheme has expired and you are open to the possibility of a simplified CSS, please contact Anne Dyer on 01452 880162 or anne.dyer@brutonknowles.co.uk to register your interest so we can be back in touch once Natural England has announced more details of CSS for 2020.

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Basic Payment Scheme With all BPS applications submitted in May, we are now dealing with minor queries mainly relating to RPA mapping updates.

We will respond to these on your behalf. If you are in receipt of any correspondence from the RPA, please forward it to us. Any outstanding queries could result in delays in payment. Whilst any changes to BPS rules for 2019 are yet to be confirmed, it is worth bearing in mind Greening rules when drilling any crops this Autumn or Spring: 1 Crop Diversification: • Less than 10 ha – not applicable • 10 – 30 ha of arable land the main crop must not be more than 75% of arable land • More than 30 ha of arable land the main crop must not be more than 75% of and the two main crops must be no more than 95% of arable land 2 Ecological Focus Areas If more than 15ha of arable land, 5% of arable land total must be for ecological good by following options located on arable land: • Nitrogen fixing crops – cannot be sprayed • Fallow land – shut up from 1st January – 30th June • Buffer strips • Hedges – minimum of 20m lengths • Catch Crop – must be present 20th August – 14th October • Cover Crops – must be present 1st October – 15th January

There has been much coverage of hedges for EFAs in the farming press this year. If hedges are to be used for EFA, the hedges must be registered with the RPA. Where hedges have been used before the RPA has sometimes done this already, if not an additional form is required. The risk with using hedges for EFA is that hedges are only eligible if there are no more than 20m gaps in them.

The RPA plots hedges using satellite imagery which may differ from what it is in practice on the ground. The management options are no more onerous than cross-compliance rules (only cut between 1st September and 1st March each year). However following an inspection, if there are found to be differences between the RPA’s interpretation of a hedge and what is on the ground, this can result

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in penalties including administration charges. Combined these can equate up to 125% of the Greening element of the claim.

As hedges are open to more interpretation than other EFA options, if there is an alternative we would recommend using these options before hedges. If you think that you will need to use hedges for EFAs in 2019 please contact us so that we can arrange to have the hedges registered with the RPA prior to BPS deadline in May 2019.

Ben Compton Associate 01452 880180 ben.compton@brutonknowles.co.uk

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Planning for the future post Brexit The Government has now introduced its Agriculture Bill to Parliament on how to deliver a Green Brexit. Whilst details are not yet available, it provides the bigger picture of key policy changes and proposed subsidy schemes.

The present Government has committed the same funds currently available under CAP until the end of the current Parliament, potentially to March 2022. This includes not only Basic Payment Scheme (BPS) but also some agrienvironment schemes which are partly EU funded.

BPS in its current format will be phased out: 2019: Claims will remain similar to 2018 BPS scheme.

2020: Claims will be “in much the same way” with some simplifications – details yet to be announced.

2021: Payment rates will start to reduce. All claims will likely see some form of decrease with large initial reductions for claims over 150,000 euro. Reductions are likely to be phased starting from 5% for smaller claims and increase to 25% for large claims. Money saved through these decreases will be used for establishing new schemes and research.

2022- After initial reductions 2027: in 2021, BPS will be phased out with 2027 being the last claim year. Deductions are expected to increase annually with minimum payments being made in 2027. BPS payments will no longer be linked to “the requirement to farm the land”, known as “De-linking”. This is to make changes to land occupation and farming structures easier, such as business changes and retirement. “De-linking” could also result in no cross-compliance or greening requirements.

2028: No BPS Claim

Future subsidies?

What’s next?

DEFRA has confirmed that future schemes will use “public money for public good” under a new Environmental Land Management (ELM) schemes. Pilot schemes will start from 2021 with ELM being in place for 2025.

Whist the bigger picture has now been introduced by the Agricultural Bill, much detail remains to be determined and will be affected by the mechanisms of Brexit. Ensuring adaptability will be key to any farming business over the next 10 years and beyond.

Whilst there will be a subsidy scheme in the form of ELM, it will not be at the same level as BPS and must deliver “public good”. Farm businesses that are currently heavily reliant on BPS payments will need to look at their efficiency and potential diversification options that complement their existing farming business. Diversification does not necessarily mean large initial investments but innovative ideas, knowing the local markets and needs, social media presence and offering a unique product are key. A sustainable rural business will be key to ensuring the success of the farm for future generations.

With many changes ahead, now would be a good time to review succession planning and involve the next generation in any future on farm business plans.

Payments for “public good” under ELM could include: • Improved air and water quality • Improved soil health • Providing habitats for wildlife (hedgerows, food sources for birds and insects) • Reducing flood risk • Preventing climate change • Improving public access • Maintaining iconic landscape features such as dry stone walls Countryside Stewardship Scheme will remain and phased out once ELM is in place. There may also be a possibility to extend existing Higher Level Stewardship Schemes that come to an end between 2019 – 2024.

Transitional support will be available from 2021 to help increase productivity, investing in equipment and technology to deliver “public goods”. Additional support may be available for new entrants.

Animal welfare standards will also be reviewed by 2020 with an industry led program. Pilot schemes will follow with new measures in place from 2024.

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For help and assistance contact Anne Dyer on 01452 880000 anne.dyer@brutonknowles.co.uk

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Call for Sites A number of local authorities are now having an eye to the future with their housing delivery and are potentially looking to make further allocations.

Most recently a number of local authorities have issued a call for sites, requesting landowners who are interested in having their land put forward for development to

come forward with the plan of their land and a brief template.

We would recommend that all landowners with suitable land, take up this opportunity and also ensure that that land is incorporated within any SHLAA. For local authorities this provides an excellent database of deliverable sites that could come forward, which might help them when they have issues with their 5 year housing supply.

At Bruton Knowles we also have over 300 contacts with promoters and housebuilders seeking land for promotion or development.

A free appraisal is offered.

Scott Winnard Partner 01452 880187 scott.winnard@brutonknowles.co.uk

Compulsory Purchase Update Compulsory Purchase legislation for infrastructure and development-led schemes has changed over the past 3 years and it is important to know these changes in order to plan ahead.

The Housing and Planning Act and the Neighbourhood Planning Act have made changes to how access is taken to land for pre-scheme surveys and also how compensation is assessed post-scheme; for example, it is now assumed that land which is likely to get consent for a change of use has received that permission for valuation purposes.

One major negative change, being phased in over the next few years, relates to the ignoring of ransom strips for compensation valuation where they form part of a Relevant Transport Project.

It’s worth making the point that the current (and recently revised) legislation supporting Compulsory Purchase Orders is as fair and as balanced as it has ever been.

The government can’t do any more than it has to assist Local Authorities in their use of CPOs and has regularised the compensation assessment process to make the system equally as fair for landowners. So, any movement

on that legislation would have to be carefully thought out as upsetting the current balance, (and a balancing act it most certainly is) could be a retrograde step.

CPOs are driven by planning requirements. Without them we would be unlikely to see development of all the housing, employment or infrastructure developments essential to local strategic plans. CPOs work best when the private sector cannot deliver a development to market profitably, for example because to successfully negotiate with multiple landowners of a site is too complex or the mix of development and infrastructure takes profitability down to a level that is unacceptable.

For some businesses forced to relocate as a result of an Order, the picture can be quite a mixed one. Where CPOs are used to clear a large area of land of say 1930s industrial units used mostly by small businesses, replacement accommodation that is affordable

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in the locality is often a problem.

The larger the area covered by a CPO the more pressure on remaining second-hand stock on the market to meet that demand.

I would always advise anyone subject to business relocation to gather and heed as much professional advice as possible.

Infrastructure scheme CPOs affect rural property in a different manner. The single advice I give to landowners is to engage at the planning consent stage, not leave it until the Compulsory Purchase Inquiry when the scheme has already been designed and consented.

For further information or to discuss any aspect of Compensation please contact Bruce Fowler.

Bruce Fowler Partner 01452 880000 bruce.fowler@brutonknowles.co.uk

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National Planning Policy Framework

The long awaited National Planning Policy Framework was published in August, below we list 10 things which landowners considering development should know.

Paul Barton Town Planner 01452 880055 paul.barton@brutonknowles.co.uk

1 The new NPPF provides policy support for developing tied dwellings for those taking a majority control of a farm business. This is welcome news for those wishing to take on the farm business, but who do not wish to live with mum and dad.

5 There remains policy support for exceptional dwellings within the open countryside. Whilst this is a very high bar to get over, it is welcome that it remains a possibility for those wishing to building their dream house.

2 The new housing delivery test will be introduced in November. This is important for those landowners considering residential developments on sites which are not allocated within the local plan. The test will measure the number of homes created against local housing need and ‘penalise’ councils that under deliver. The test is unlikely to initially assist many rural landowners as the delivery target in 2018 is only 45%. However, this is stepped year on year rising in 2020 to 75%.

6 Design is now “fundamental” to a scheme’s success.

Whilst the previous NPPF, and its predecessors placed importance on design, the new NPPF looks to increase powers to secure good design.

3 There is a new standardised method of calculating housing need. The method uses the Government’s household growth projections, and applies an affordability ratio to the figures and subsequently applies a cap. Therefore landowners considering residential development on unallocated sites should monitor both, delivery and need, in case targets are amended or not achieved.

4 There is now a much wider definition of affordable housing, for those landowners considering releasing land as rural exception site. Starter Homes (Homes offered to a first time buyer under the age of 40 for a discount of at least 20% below the open market value) may now be possible, which in turn means land values may not be as low for rural exception sites as once was the case and may provide a route to developing land, especially if schemes are cross subsidised with a small amount of market housing.

7 The NPPF provides policy support for the subdivision of a dwelling in the open countryside.

This is not as flexible as was suggested in the draft NPPF which allowed suggested the subdivision of the “the property”, but still may of benefit landowners wishing to split rural houses.

8 The importance of Neighbourhood Plans is emphasised in the revised NPPF. Neighbourhood plans, where adopted, form part of the development plan and with more and more areas being designated landowners considering development may wish to engage with plan preparation, or consider submitting applications well in advance of a plan’s adoption.

9 The NPPF provides support for rural businesses wishing to expand and diversify both through conversion of existing buildings and well-designed new buildings; 10 Green Belt Policy when determining applications remains largely unaltered and very special circumstances are still required for inappropriate development in the Green Belt.

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Barn Conversions Planning Success Bruton Knowles continue to obtain planning for barn conversions in difficult locations following the successful application to convert a Dutch barn in the Cotswolds Area of Outstanding Natural Beauty earlier in the year.

Our planning team has also been successful in gaining planning approval for 5 barn conversions within Green Belt land.

Paul Barton Town Planner 01452 880055 paul.barton@brutonknowles.co.uk

Dutch Barn - Middle Duntisbourne

Following the introduction of Class R Permitted Development Rights which allow the conversion of agricultural buildings to commercial uses, Bruton Knowles advised the client that the barn could be suitable for conversion under Class R. Working with Officers, Cotswold District Council granted permission for the use of the Dutch barn as an Aparthotel but refused the associated building works, designed by Andrew Kenyon Architects, which Bruton Knowles had to secure via appeal.

Bruton Knowles gained planning permission to convert and develop a Dutch barn into an aparthotel, following the refusal of the local authority to approve other uses.

Our clients originally applied to convert the barn to a pair of holiday lets but this application was refused.

The Planning Inspector concluded: “The proposed works to the barn would be sympathetic to its character and the surroundings and the parking and turning area is modest and could be screened with landscaping.

Inspector K Taylor said the development would not cause any harm to the aims of preserving and enhancing the natural beauty of the AONB.

Cattybrook Farm – Almondsbury Bruton Knowles successfully secured the conversion of 5 barns within the curtilage of a listed building and within the Avon Green Belt. Following some initial resistance from the local planning authority to the idea of creating domestic paraphernalia in the Green Belt and the negative impact on the setting of the listed farmhouse, Bruton Knowles worked closely with Conservation and Planning Officers to secure a scheme which offers significant landscape improvements and sympathetic conversions designed by Eric Cole Architects.

Properties in the Green Belt, National Parks or in an Area of Outstanding Natural Beauty are often going to be problematic, but Bruton Knowles look forward to working with other clients to bring forward difficult projects.

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Long standing farming roots, firmly embedded in Gloucestershire The Gloucestershire Root Fruit and Grain Society, run by farmers for farmers is very much alive today…

With a long standing history, the society born in 1863, from two farmers who came to blows in a Gloucester Market, each claiming to grow better crops than the other. A peacemaker suggested that specimens be brought to Gloucester where independent judges would pronounce. The event attracted crowds of interested farmers and from that day, The Gloucestershire Root Fruit and Grain Society was formed.

Since it began, GRFGS has gained a huge following from the Gloucestershire farming and agricultural community, its society members, and the professional communities that support it. The aim of the society is to ‘Promote Farming Excellence through Competition’. Over the decades and despite farming having endured periods of uncertainty, with food security being under the worlds spotlight, the need for good, quality, locally grown food produce has become at the forefront of everyone’s mind and no more so than in Gloucestershire.

Pride in locally grown produce and a willingness to showcase the best practices

in agriculture have returned to the farming industry, evident in the growing number of members The Gloucestershire Root Fruit and Grain Society has.

GRFGS is headed by its President, Roger Bush, Chairman, Andrew Walters of Boddington Estates and run by the society’s Honorary Treasurer and secretary, Samantha Pennington of Bruton Knowles. Along with a history of support from Bruton Knowles and Gloucestershire’s good and great of the farming world, the society was also honoured by HRH The Prince of Wales who became a society Patron in 1984.

Gloucestershire Root Fruit and Grain Society, the event is attended by more than 800 farmers. With working demonstrations, farmers have a chance to see how some really impressive cutting edge machines perform and with tractors averaging £100,000 each, there are literally millions of pounds worth of new equipment on show.

The diversity and involvement of member’s farming business’ is what makes the GRFGS so successful and we look forward to a continued long history of support for Gloucestershire farming community.

Each year the GRFGS organise a host of events for the society which include the two key annual competing events: The Annual Farming Awards The Gloucestershire Root Fruit & Grain Society Annual Dinner and Prize Presentations including the most sought after and fiercely fought prestigious Premier Award for most points in all classes is hosted annually by the society and the event just gets bigger each year with over 250 guests from the good and the great of the Gloucestershire farming community attending the evening awards.

Bi-Annual Tillage Event Gloucestershire farmers take part in the bi-annual Tillage Event. Organised by the

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To find out more about sponsorship, our events or becoming a member contact Sam Pennington.

Tel: 01452 880101 Email: sam.pennington@ brutonknowles.co.uk www.grfgs.com

Issue 47

We are here to help you – initial advice is always free We provide a comprehensive range of services so if you are not sure what your next step should be then talk to us and we would be happy to provide some initial advice for free.

Valuations

Ben Compton

01452 880180

ben.compton@brutonknowles.co.uk

Development

Richard Brogden

01452 880193

richard.brogden@brutonknowles.co.uk

Planning

Paul Barton

01452 880055

paul.barton@brutonknowles.co.uk

Compensation

Jonathan Smith

01452 880125

jonathan.smith@brutonknowles.co.uk

Commercial

Dorian Wragg

01452 880104

dorian.wragg@brutonknowles.co.uk

Grants

Anne Dyer

01452 880162

anne.dyer@brutonknowles.co.uk

AMC Loans

Roger Bush

01452 880000

roger.bush@brutonknowles.co.uk

Sales Advice

Matthew Peters

01452 880184

matthew.peters@brutonknowles.co.uk

Landlord and Tenant

Julia Allen

01452 880113

julia.allen@brutonknowles.co.uk

Farm Support

Eleanor Isaac

01452 880076

eleanor.isaac@brutonknowles.co.uk

Property Update SO

SO

LD

Oakey Farm Sold July 2018

LD

Dutchcombe Farm – Sold September 2018

Wades Farm Under offer

SO

SO

LD

82 Hampnett Sold at auction September 2018

LD

Land at Pebworth Under offer

Land and farms coming soon…

• Arable and grass farm close to Mitcheldean

Ruralnews

• Bare land at Stinchcombe • Land near Thornbury

Pathwell Farm Sold September 2018

For a free, confidential, no obligation up to date market valuation please get in contact.

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