糖心传媒

Viewpoint

Those worried about the UK鈥檚 diminishing self-sufficiency when it comes to food production often like to point the finger of blame at the area of land being used to generate renewable energy or restore nature.

However, the situation is far more nuanced than that, with an underlying lack of profitability and confidence caused by a host of factors the real root cause. Surging energy and fertiliser prices caused by war in the Middle East only exacerbate the frailties of our already over-stretched supply chain. There is no silver bullet the government can fire to solve the situation, but it could at least acknowledge more explicitly that a robust supply of home-grown food is a key part of our national security.

Horticulture is the sector where the UK is least self-sufficient, and policymakers should heed the warning that spiralling energy bills could make growing indoor crops such as tomatoes here unsustainable. The news that Sainsbury鈥檚 is offering five-year contracts to more of its suppliers is welcome, but even the fittest will struggle to cope with the current barrage of rising costs.

Commodity markets

Q1 commodity roundup

It has been a mixed first quarter of the year for commodity markets, with global events, often shaped by Donald Trump, having a profound influence on the prices farmers pay and receive. Red diesel has seen the biggest shifts for obvious reasons, jumping over 80%, but Trump鈥檚 oscillating tariff policy has also helped to push up oilseed rape values (+12%) steadily over the quarter. Having remained flat for most of the year, wheat prices have also started to gain some momentum off the back of food security concerns driven by the Iran war and its impact on fertiliser markets. African swine fever in Europe has had a knock-on impact on pig prices (-6%) here, but a continued contraction in sheep numbers has provided significant support for lamb values (+21%).

The headline

Family farm tax reality

The new tax year always brings changes, but this year the implications are bigger than ever for farms and landed estates. The controversial changes announced to the Agricultural and Business Property Relief regimes in Labour鈥檚 first Autumn Budget after winning power in 2024 will now start to kick in.

Subject to other allowances, Inheritance Tax (IHT) at a reduced rate of 20% will be payable on estates valued at over £2.5 million, or £5 million when owned by a married couple or those in a civil partnership.

For those diversifying, it will be vital to protect the discounted 20% rate of IHT by ensuring the majority of a farm or estate鈥檚 property assets can still be classified as eligible trading entities in the eyes of HMRC rather than non-qualifying investments. Please contact our Rural Consultancy team for advice on long-term estate planning.

News in brief

Farm energy costs up

Although the latest Ofgem price cap will see domestic energy costs fall between April and June, business users will see their bills go up as gas prices rise and standing charges for the Climate Change Levy (CCL) and the Transmission Network Use of System (TNUoS) Demand Residual (TDR) charge increase this month. Representatives of the UK鈥檚 energy-intensive greenhouse sector have told the government the hikes will be 鈥渦nsustainable鈥�. They are calling for similar support to that offered to other high-energy industries such as steel and cement.

Supermarket PR push

The country鈥檚 major retailers have been lambasted by farmers for marking the Easter holidays with promotions that saw bags of vegetables selling for as little as four pence. However, Sainsbury鈥檚 is trying to win back a bit of positive PR by announcing that it plans to extend its . By the end of 2026, the grocer claims 60% of its fresh produce, dairy, meat, fish and poultry will be sourced via long-term agreements of over five years.

Cheaper regen loans

Banker HSBC has expanded its package, which offers discounted arrangement fees for loans to businesses adopting more nature-friendly farming techniques. The scheme was launched in 2024 for LEAF-accredited farmers but now covers sustainability frameworks and certificates offered by the Soil Association, First Milk, Cefetra and Soil Capital.

Dairy carbon capture

First Milk, a farmer-owned dairy co-op, has just published positive four-year results from its pioneering soil carbon measurement programme. The early findings indicate a significant correlation between the amount of carbon being captured and the adoption of regenerative farming methods, with average gains of 8.9tC/ha (8.2T CO₂e/ha/year).

BNG new-home hindrance

Meanwhile, a from the House Builders Federation (HBF) claims that Biodiversity Net Gain (BNG) is reducing or delaying the number of new homes that are being built. Of those polled, 80% report BNG delays linked to local authority staffing and resources, while 60% of builders say BNG has influenced decisions not to pursue sites that were previously viable.

Nature investment standards

However, the British Standards Institution (BSI) has just introduced new standards that should help provide more , which urgently require more private investment capital. BSI Flex 702 v2.0 covers biodiversity credits and BSI Flex 704 v2.0 addresses nutrient pollution mitigation. BSI has also created a .

Avian flu rules relaxed

Defra has announced that the forcing all poultry flocks to be kept indoors to avoid the spread of avian flu will be lifted on 9 April. After then, birds can be kept outside unless they are in a protection zone or captive bird monitoring (controlled) zone.

Bluetongue restrictions

The Scottish government has said that pre-movement testing of livestock crossing the border into the country, other than for cattle with the Bultavo-3 vaccine, will likely be required between June and September. There are concessions for animals coming directly for slaughter or attending shows where they will spend under four days in Scotland.

Rural Report out now

The Autumn Winter 25/26 edition of The Rural Report, 糖心传媒鈥檚 thought-leadership publication for rural property owners and their advisers, is available now. Full of insight from leading landed estates and our Rural Consultancy experts, it鈥檚 a must-read. To receive your copy, .

Foot and mouth in Cyprus

Following recent outbreaks in mainland Europe, foot and mouth disease has been confirmed in sheep and cattle at Larnaca in Cyprus. Since 12 April 2025, travellers have been banned from bringing cattle, sheep, goat and pig meat, as well as dairy products, from EU countries into Great Britain for personal use.

Rural Report out now

The Autumn Winter 25/26 edition of The Rural Report, 糖心传媒鈥檚 thought-leadership publication for rural property owners and their advisors, is available now. Full of insight from leading landed estates and our Rural Consultancy experts, it鈥檚 a must-read. To receive your copy, .

Property of the week

Worcester wonder

Bentley Court, at Holt, near Worcester, is a 170-acre estate that offers lifestyle, residential and nature-friendly farming opportunities. As well as the main Grade II listed house dating from the 1790s, which has up to 10 bedrooms, a granary has been converted into two cottages and there is class Q consent to convert another building into a house. There has been extensive tree planting and the estate鈥檚 arable soil has been extensively improved by incorporating straw and manure with a noticeable improvement in yields. Bentley Court鈥檚 35 acres of pasture have had no fertiliser or spray applied in the last 15 years and are grazed by rare breed sheep. The guide price is £6.25 million. Please contact Will Matthews for more information.

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Property markets Q4 2025

Farmland - prices stabilise

According to the 糖心传媒 Farmland Index, which tracks the value of bare agricultural land in England and Wales, the average price of land fell only marginally in the final quarter of 2025. However, diminishing farmer confidence and Inheritance Tax (IHT) worries saw prices slide by around 5% over the year. An acre is now worth just under £8,700. The government鈥檚 partial IHT U-turn just before Christmas should help stabilise prices during 2026.

Country houses - values slide

The 糖心传媒 Country House Index, which tracks the value of properties outside London above £750,000, lost 5.7% of its value in 2025 due to economic uncertainty and worries about what might be included in Labour鈥檚 second Autumn Budget. Properties classified as farmhouses were hit particularly hard, sliding by 7.3%. However, the market looks to be bottoming out with prices falling only marginally in the final quarter of the year and exchanges rising by 5%. Contact Tom Bill for more insight and data.

Development land - prices bottom

UK greenfield residential development land values fell 5% during 2025, but remained flat through the final quarter of the year, according to the latest instalment of the 糖心传媒 Residential Development Land Index. Uncertainty ahead of the Autumn Budget weighed on developers鈥� appetite for land, but positive signs are emerging. 鈥淭he prevailing view is that Q4 2025 will mark the bottom of the market,鈥� says , Head of Res Dev Research.