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New money brings new opportunities: farm sales don't always lead to farming exodus Despite a new survey showing that a large proportion of farmland sales are going to non-farmers, such sales aren't necessarily bad news for farmers or for rural communities. A shift in land ownership may actually boost investment in the countryside whilst ensuring farmers are able to restructure their businesses to increase their profits.
CLA Head of Rural Economy Oliver Harwood says: 'A significant proportion of farms have always been sold to people from outside farming, although this trend appears to be on the increase. Sadly, for the last five years most farmers have not been able to make the kind of money needed to buy up adjoining holdings. At the same time, reduced incomes affect the willingness of existing farmers to struggle on. 'However, sales of farmland to non-farmers may benefit the countryside as a whole. Farmers who are stuck with unprofitable farms can sell-up, and the new landowner can then lease the land to other farmers who can spread their fixed costs and achieve better economies of scale. Some new owners may be starting farming in their own right. 'What matters most is whether outside money is bringing a better restructuring of farming, along with new investment. New landowners may well invest in the local community, hiring local builders and land consultants and investing in new types of businesses, which brings a welcome boost to the rural economy.' CLA South West Deputy Director Tim Brooks says: 'Our region has seen farmers having to sell up. On the other hand, new enterprises are springing up in the South West through this type of inward investment, particularly in the tourism and leisure markets. 'Sympathetic conversion of redundant buildings, good environmentally-friendly land management and a general interest in the maintenance and enhancement of the countryside are qualities that new incomers are frequently keen to learn when they move to rural areas.' Notes to the editor: The Royal Institution of Chartered Surveyors report, released today (4 Aug 03), says that between April and June this year, 44 percent of purchasers of rural property were non-farmers, with the figure rising to 56 percent in the South East. Contact CLA Head of Rural Economy Oliver Harwood on Tel: 020 7460 7940 Contact CLA South West Deputy Director Tim Brooks on Tel: 01392 202 070 Contact Jenny Gimpel, CLA National Press Officer, on Tel: 020 7460 7936, Mobile 07855 788 985, e-mail jennyg@cla.org.uk |
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