I think you would agree that it has been a wet start to 2025 following on from the same in Autumn 2024, and we can only hope it improves this Spring as the fresh crop of lambs are turned out and people look to plant Spring crops.  This will hopefully improve the general mood of the industry, which seems to be low at present, especially on the arable side, following the Government’s changes to various policies, not least Inheritance Tax and, even after representation by the NFU and CLA, the government do not seem to be budging on their initial proposals.

On a positive note, the sheep and cattle trade seems to be holding up with many farmers travelling further afield for grass keep, notably for well sized blocks especially for people who managed to buy stores well.  However, owing to the increase in other costs, grass keep value has not increased much on last year’s incomes.

Many farms have Spring tenancies based on Lady Day (25^th March) which provides an opportunity to serve Rent Review Notices. A reminder that rents can go up or down, as a Rent Review provides an opportunity for both landlords and tenants to readjust their rents, subject to negotiation and agreement. With the withdrawal of BPS and the phasing out of delinked payments, you may see rents begin to come down, but only time will tell.  

This coming Spring, we hopefully have various blocks of land and farms to come to the market, including approximately 20 acres in North Northamptonshire and a pasture farm in South Leicestershire.   If you are looking to buy land or farms, please do register your interest with ourselves. If you have land or farms to sell, we will be more than happy to come and visit you and undertake a Market Appraisal. The Inheritance Tax changes may see a change in perspective for owning land as an investment, as time will tell.

In terms of the Government’s proposed changes to the Inheritance Tax regime, we can offer support through the process and undertake valuations of land and farms but also machinery and livestock, to assist discussions with accountants, tax advisors and solicitors on the best options for farming businesses to ensure they are prepared.

Encouragingly, at the NFU conference in February, Rt. Hon. Steve Reed the Secretary of State for Environment Food and Rural Affairs announced the following:

• Higher Level Stewardship (HLS) payment rates across a range of options are increased to provide a fairer payment, as many have not been changed for several years with payments being lower than other schemes on various options.

• Countryside Stewardship Capital Grants Scheme will re-open in the Summer following the pause in November due to the unprecedented demand in applications, where farmers were utilising the grants to farm in a more sustainable manner and work towards Net Zero targets, especially with the likes of hedge planting options it had seemed strange for the Government to pause the grants. 

• The RPA will honour and process any Capital Grant applications that were submitted before the 24^th November 2024, which includes more than 4,000 applications and, if you had an application submitted, one of the team will be in contact when we receive the agreements and summaries from the RPA.

• The Farming Equipment and Technology Fund will open for a further window to allow businesses to develop and support the uptake of modern technology and equipment which is commercially available on the market, with a proposed budget of £30m for Productivity and Slurry, and £16.7m for Animal Health and Welfare. It is advisable to make use of these grants, especially slurry, being the carrot before the stick to follow in future years, with an expectation that rules could be stricter for application of slurry and other nutrients.

• Animal Health and Welfare Pathway will again provide keepers of cattle, sheep and pigs in England access to fully funded vet visits of their choice.

• We will update you on commencement of the above changes. 

Additionally, the SFI Scheme is available to maximise income alongside the environment and can provide an additional income alongside current farming practices. 

Please do not hesitate to contact a member of the Agricultural team for initial support and on-going assistance.

George Pullin

Agricultural Team