Rural Outlook - 2022

As the reports show, we are now in an agricultural transition period. Changes for farmers will be phased in over seven years and over this time, the Basic Payment Scheme (BPS) will be gradually reduced in a tiered system.

It has been hard to miss the seemingly constant, upward trajectory of a lot of agricultural commodities within the last 12 months. Let’s look at some of the contributory factors causing this rise.

Both carbon sequestration and biodiversity enhancement are becoming increasingly necessary to reduce emissions and offset environmental impacts generated by development in the UK.

In 2019, the UK and Scottish Governments made their commitments to net zero, with target dates of 2050 and 2045 respectively. Relatively, both countries are progressing well, with emissions falling faster than in other major developed economies. However, with 326m tonnes of ‘carbon dioxide equivalent (CO2e)’ emitted in 2020, there is still a long road ahead.

The warehouse and logistics market has bolstered as a result of the pandemic, with close to 50m sq ft of deals completed in the UK throughout 2021.

Your site has development potential, but where to start? Two of Bidwells’ development experts answer the typical questions to consider from a landowner’s perspective.

There is a full spectrum of diversification projects for you to consider if you wish to enhance your rural property portfolio. But before you embark on this process, here are our top five questions to consider.

Now is an excellent time to review existing uses on your farm or estate and consider opportunities for the future.

The outlook for the rural property market is positive and strong interest and values are welcome after a difficult 18 months.

2021 was a busy time for the residential sector. With restrictions in place at the beginning of the year, the house move process was more onerous, though demand for vacant properties remained strong.

Rural property Income return was up marginally over the 12 months, in part as a result of new tenancy arrangements, active management was the primary driver of returns, with alternative uses, and the promotion of strategic land counteracting wider market capital value declines.

With farmers and investors’ interests aligning after Brexit and Covid, Bidwells’ Head of Rural Investment, Roland Bull, explains why raising capital from a sale and leaseback on your farm or estate might work for you in 2022.