News Image: Gareth Squance @IrishPixel www.garethsquance.com.
Selling your farm with 2020 vision Those looking to sell their farm can mitigate the impact of current challenges and, in some instances, even benefit from them, one expert believes. Andrew Chandler (pictured), a partner at Carter Jonas, is optimistic that static land values, evenly matched supply and demand and new opportunities are all good news for potential sellers. “A lifestyle change is happening and we expect this demand to continue – if you can capitalise on this then it improves saleability no end,” Andrew says. But those still recovering from the shock of 2020 may be risk adverse when it comes to listing. With that in
mind, Andrew runs through his predictions and possible blind spots in the road ahead. COVID: “When lockdown started to ease and we could return to the ‘new normal’ the pause picked up from where it left off and, in a lot of areas, it had more spring in its step than before,” Andrew says. And, thanks to the efficient use of alternative marketing measures such as virtual viewings, trading has continued apace. “Unless there are draconian
restrictions imposed, we would expect marketing of property and movement in the marketplace to continue, albeit with careful measures in place,” he adds. As consumers adapt, their wish list for properties and land has altered. “The Covid world has crystallised the desire for many to have more space,” Andrew reckons. “Land and property providing this, and in close proximity to good travel networks, is high in demand from lifestyle purchasers.” TAX: Although the autumn budget has been cancelled, Andrew believes changes that impact the land market could be forthcoming as the Chancellor considers every means of supporting the country through the current crisis and tackling increasing national debt. “We expect the Chancellor will be making further erosions of reliefs or increasing tax rates for Capital Gains Tax, given the disparity between top rates of capital and income taxes,” Andrew says. BPS: Tapered reductions in BPS
payments and the transition to ELMS could prove another contributing factor to sell for some. Diversified businesses and those with varied landscapes or features enabling them to take advantage of public money for public goods will be better placed to manage the removal of direct payments. However, it could prove a potential stumbling point for smaller operations. “As the income decreases, we would expect it to be a contributing factor in the decision to consider a sale in the next five years,” Andrew says. BREXIT: While Covid is currently at the forefront of everyone’s mind, proposed amendments to the Brexit Withdrawal Treaty and NI borders continue regardless and UK-US negotiations are ongoing. “UK farm gate prices are likely to be pushed to compete with the margins of businesses in a global world where there is no level playing field on production systems,” Andrew says. This means that many will move to larger holdings to factor in the economies of scale, with those who cannot produce on scale forced to consider alternative solutions – selling being one of them. FG
Ultima CS The universal seed drill
For best seed placement and uniform emergence. The perfect solution to farmers needing to work equally efficiently in min-till and plough based crop establishment.
Contact in the UK- Steve Berry Phone: 01256 - 384208 Mobile: 07860 - 663104 | www.koeckerling.de
52 www.farmersguide.co.uk November 2020
52-55 News.indd 52
12/10/2020 14:32