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FC Wales smooths passage to important woodland

With its fascinating historical features, enchanting scenery and strong links to the end of the last major ice age, i Parkwood on the Gower is a popular tourist location. Forestry Commission Wales has stepped in to ensure a smoother passage into this environmental jewel after the Welsh Government woodland became the victim of its own alluring beauty. The road allowing access to the site of special scientific interest (SSSI) was showing signs of serious wear and tear, with badly pot-holed areas testifying to Parkwood’s popularity.

 
Saffery Champness comment on CAP Reform announcement

Commenting on the announcement on CAP Reform by EU Farm Minister, Dacian Ciolos, Andrew Arnott, a partner of  Saffery Champness Landed Estates & Rural Business Group says: “There was not much in the announcement that had not already been leaked. However, it confirms the intention to distribute subsidies more evenly by way of a cap on payments to farmers at 300,000 euros (£261,240) per year.  A progressive levy, to be applied on all payments exceeding 150,000 euros (£130,620), was also announced as a proposal. Assuming that the proposals will be approved by both the EU parliament and all member states, this will be bad news for many large arable farmers and some medium scale farming businesses, including those in the uplands.It remains to be seen whether the ‘sustainable and inclusive growth’ for European agriculture can really be achieved through these proposals.  I think they could, as they stand, have the opposite effect, acting as a disincentive to invest for farm businesses that are highly-mechanised with lower staffing levels”.

 
Leaked proposals for the reform of CAP entitlements

News has recently been leaked from the European Commission that farmers who claim more than €150,000 from the direct support element of the CAP (Pillar1), will see their entitlement payments progressively capped.  Commenting on the leaked proposals Mike Harrison, a partner of Saffery Champness Landed Estates & Rural Business Group, says: “There is a strongly worded proposal for progressive cuts in the entitlement payments above €150,000 ( £127,000) with a cap of €300,000 (£255,000)”.   Whilst the new regulations will apparently incorporate an allowance which reflects the farm’s wages bill, which is welcome news and should mean that both larger and smaller farms are treated equally, there will be a discrimination for those using external contractors

 

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Home Rural agency Euro rich? Buy British land, says Savills
Euro rich? Buy British land, says Savills PDF Print E-mail
Written by Charlie Jacoby   
Wednesday, 04 February 2009 18:56

Recent currency swings which now put the euro nearer parity with sterling present a real opportunity for overseas buyers looking to invest in UK farmland, according to the latest research from Savills.

Ian Bailey of Savills research comments, "When a euro was worth 70p as it towards the end of 2007 an overseas buyer in the eurozone needed to spend €6,200 to buy land at £5,000 per acre, whereas now, with sterling much weaker at around 90p/€‚ today, farmland is significantly discounted. A shift from 70p/€‚ to 90p/€‚ will give a  22% improvement and, at parity, the saving will be considerable at 30% giving around a 10% saving for each 10p weakening of the pound."

Savills' Christopher Miles comments: "There has been a big influx of overseas buyers in the past two or three years, who were attracted by the price differential between UK farmland and their own, but last year when average values rose by 21% this differential was eroded. This year however exchange rates make UK farmland look attractive again."

Overseas buyers have been a significant and important source of demand for many years. Savills' research, back to 1995, shows that buyers from overseas, mainly Europe but also including America and Australia, have had a presence in the British market every year except 2001, the year of the Foot & Mouth disease outbreak.

Until 2003 overseas buyers represented somewhere between 1% and 6% of UK farm buyers. However, in the past six years this proportion has increased to between 10% and 20% of all buyers of farms over 50 acres.

In 2008 the Danes and Irish (mainly from Northern Ireland) represented 9.4% and 4.2% of all buyers, comparable with their activity in 2007.

Miles says: "Now the biggest frustration for any potential buyers looking to take advantage of current exchange rates at the moment is likely to be the lack of acres available to buy."

Download the Agricultural Land Market Survey here.

 
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