012- Opportunities for Farmers time for less "Oh Jeremy Corbyn" and more "Oh Jeremy Clarkson!"

Introduction

A couple of years ago, I made the move from a suburban London borough to the countryside in a Home County, seeking a better quality of life while still maintaining proximity to transport links for work. The move opened my eyes to rural life. I’ve become increasingly aware that 70% of the country’s land area is used for farming, with a significant portion protected under agricultural designations. These protections make it challenging and almost near impossible to repurpose land for development, even amidst a housing crisis that demands innovative solutions. (Message from Labour “watch that space”.

With substantial economic and housing demands and an eager new government, the perspective many take is to target rich “Tory” farmers suggesting they turn farmland into housing and are taxed more. Whilst my expertise is property and building I personally feel that in a world of uncertainty, being an island is a blessing, and self-sufficiency offers great benefits—it allows control over food quality and cost. Basic supply and demand principles suggest that losing supply will drive costs. Farmland may be vast, but its value, particularly for farmers, is limited and doesn’t always equate to money in the pocket. The land may be worth a lot (to some), but ultimately, it needs to be worked by farmers—an occupation that is in gradual decline. 

I believe it is never beneficial to encourage farmers to sell or develop their land or, worse, to convert lush green fields into the red-brick developments of Taylor Wimpey new-builds but there may be more modest opportunities to make an extra buck and support regional economies. Yet maintain the farming culture.

What opportunities currently exist for farmers to diversify their land, ensures financial stability, yet avoid the temptation to turn to new-build developments, which seem to be the most obvious solution to the housing crisis?

This blog has been written in light of recent changes in inheritance exemptions for farmers, which may create significant challenges for those who feed the nation.

Personal note:
I recently become interested in the topic of the farming industry when I watched a TV series which opened my eyes and may have even been a factor into where I moved to. The series Clarkson’s Farm saw former Top Gear host (and public disappointment) Jeremy Clarkson attempt to show the difficulties of running a farm. Of course, there were plenty of innuendos and a few instances of tractors reversing into hedgerows, but the show did open the nation’s eyes to some of the difficulties. In particular the challenges of securing planning permission for developments that would enhance a farm’s financial stability. I found this aspect of the show to be sensationalising town planning, but it made me realise there is some merit in assisting farmers, as we’ve started to see. It’s put farming in the public eye and may even be a substantial contributing factor in why recent taxation announcements and protests have made the 6 o’clock news. It is important to note that Clarkson did buy the land to avoid tax and as a result there may be some merit in better executed tax changes with further exemptions.  Furthermore most farmers do not have millions of followers who would happily turned a portion of the Cotswolds in to a weird kind of motor enthusiast Mecca or queue in the rain for a pint of “cow juice”.

The State of UK Agriculture: Challenges and Opportunities

 ​The UK boasts some of the most fertile agricultural land in Europe, with rolling hills, pastures, and arable fields making the countryside a defining feature of the nation. In addition welfare and farming standards are generally higher than other European nations in theory making produce more valuable.
Yet, farmers face mounting pressures these are some factors we have noted in passing discussions with our clients:

• Profitability Challenges: Many farms operate at a loss or break even, with over 16% of farms reporting negative profit margins in recent years.
• Inheritance Tax Changes: The government’s recent budget proposals, which reduce inheritance tax reliefs for farmland, have sparked backlash and financial concerns for farming families.
• Housing Crisis: The UK needs an estimated 300,000 new homes annually to meet demand, yet much of the land suitable for housing remains untapped due to agricultural restrictions.

Agricultural land is often classified under protected designations, such as Green Belt or Areas of Outstanding Natural Beauty (AONB), which prevent large-scale residential developments. This protection exists to safeguard food production and preserve the rural landscape, but it creates hurdles for farmers seeking to adapt to modern economic challenges.

​We believe that there are definitely opportunities for farm land and many protections need to be altered with careful considerations particularly to promote small developments and schemes.

Permitted Development Rights: A Path to Diversification

Despite current restrictions implemented on much farm land opportunities for diversification do exist. Farmers can use permitted development rights (PDR) to repurpose certain buildings without undergoing full planning approval. Key areas of opportunity include:

Converting Agricultural Buildings:
Farmers can transform disused barns, storage sheds, or other buildings into residential, commercial, or tourism spaces. PDR allows for changes such as: 

1. Converting up to 465 square meters of farm buildings into homes (Class Q).
2. Using existing structures for farm shops, cafes, or community spaces, provided external appearances remain unchanged.

Tourism and Short-Term Rentals:
Converting farmworker accommodations or unused spaces into Airbnb-style properties or holiday lets is another lucrative avenue. However, working farms must balance practicality and safety concerns when hosting visitors.

Renewable Energy Projects:
With the UK’s push towards sustainability, farmers can explore using their land for solar farms or wind energy projects. These not only generate income but also align with environmental goals.

we have also recently assisted in conversion of agricultural land into a bio fuel production plan which planning is generally supportive on due to pressures on renewable fuel production.

The Case for Policy Reform

The government must recognise the potential in enabling farmers to diversify responsibly while maintaining agricultural integrity. Policymakers should consider:

• Incentives for Sustainable Development: Introducing grants or tax reliefs for converting farm buildings into eco-friendly housing or tourism ventures.
• Flexible Planning Policies: Allowing more agricultural land to be reclassified for small-scale, sustainable housing developments.
• Support for Agri-Tech Innovation: Encouraging high-tech farming methods that increase yield on less land, freeing up portions for development without compromising food security.

These changes could help address the housing crisis, boost rural economies, and support struggling farmers.

Why This Matter?

​Agriculture is more than just food production; it’s a cornerstone of Britain’s cultural and economic fabric. However, without financial resilience, farms risk falling into disrepair. A study found that 20% of farm buildings are in a state of neglect due to lack of investment—a trend that could worsen if inheritance taxes and profitability pressures persist.
At the same time, the UK imports a significant portion of its food, often from South America and Africa, despite having the capacity for greater self-sufficiency. Encouraging adaptive land use could strike a balance between preserving farmland and meeting housing demands.

Moving Forward

​Farmers hold the key to unlocking development potential in rural areas. Whether it’s through PDR, innovative conversions, or engaging with local authorities to explore reclassification options, the opportunities are vast.
As the conversation around farmland, housing, and inheritance taxes evolves, it’s crucial to support farmers in making their land work for them—not just for today, but for future generations. By embracing forward-thinking strategies and advocating for policy reform, we can ensure that British agriculture thrives while addressing pressing societal needs.
If you’re a farmer considering development opportunities, our team is here to guide you through the process, from feasibility assessments to planning applications. Together, we can create sustainable solutions that benefit you and your community.

​Conclusion

​This blog post not only highlights the challenges faced by farmers but also positions them as pivotal players in addressing the UK’s housing and sustainability crises.

​About the Author

Joe Marshall BSc (Hons)
Building Surveyor and Director of Silver Teal Ltd

With an expansive career throughout London and Southeast England. Joe brings a wealth of expertise to the Silver Teal Workspace. His extensive experience in both public and private sectors, notably in social housing and emergency services, has honed his proficiency in building pathology and the overall built environment. Joe's academic achievements are highlighted by his 1st Class Honours degree in Building Surveying.

As a director, he is a fervent advocate for nurturing young talent and fostering industry growth. Joe is committed to propelling Silver Teal Workspace forward with his visionary leadership.

If you would like a complimentary discussion with Joe feel free to get in touch

📞 0208 103 4842
✉️ [email protected]

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