Tuesday 23rd October 2018

(5 years, 6 months ago)

Public Bill Committees
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David Drew Portrait Dr Drew
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Q 45 Will rents decrease? Is that likely to encourage people to take up more land?

Christopher Price: I think that rents will go down in the short term. I suspect that, as the productivity improves, and farmers become more efficient and earn more themselves, with the passage of time rents will start to increase a little.

George Dunn: It is interesting which rents you are talking about, Dr Drew. The average level of rent paid on a farm business tenancy for arable land, quoted by the Department for Environment, Food and Rural Affairs, is currently £98 per acre. If you look at rents tendered in the marketplace for land which becomes available in a very lumpy and haphazard way, we could have double those rents being tendered in the marketplace. I suspect that we will see a lot of those very high rents coming down as people readjust to the new world. I think that an average of £98 to £100 per acre for arable land is about sensible.

Nigel Huddleston Portrait Nigel Huddleston (Mid Worcestershire) (Con)
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Q 46 Following on that theme, the issue of diversity in British farming is key, because today we will have had 14 people give evidence and all of them have been middle-aged, white men. The average age of a British farmer is now 59, and only 3% of farmers are under the age of 35. What more can we do to make farming a far more attractive proposition to a younger and more diverse population?

George Dunn: I disagree with the premise of your question. I apologise that I am a white, middle-aged male. There is nothing I can do about that. I am here as I am. Regarding the statistics, the average age of a farmer has been 58 or 59 for as long as I can remember, which tells me that we are in somewhat of an equilibrium—that the people joining the industry equate with those who are leaving the industry— because the age is not increasing over time.

I would also say that those who are filling out the forms do not tend to be the ones who are doing the active farming. In the memberships that we both have, we see quite a lot that the younger members of the family do more of the farm work and the older members do the form filling.

We are inundated on show stands and events around the country with people who want to get a start in agriculture. Frankly, we will not be able to give everyone the opportunity to come in to be a principal in their own right. We are quite keen to encourage people to see farming as an employment opportunity, not just a business opportunity, and I think there is more work that we can do on that front.

None Portrait The Chair
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Thank you, Mr Dunn. I must remember that my job is form filling and not activity.

Christopher Price: I agree with a lot of what has been said. I think that the way the Bill operates will inevitably result in some churn. People will feel inclined to move on at a faster rate than they have. There is no shortage of people coming out of agricultural colleges at the moment. There is a definite desire among a bigger number of young people than has been the case for a while to go into the sector. As George Dunn said, not all of them will be able to become the traditional owner-occupying yeoman farmer of myth, but I think there will be a lot of other opportunities elsewhere in the sector. Again, a lot of this depends on there being sufficient investment for people to get the skills and to be able to do the jobs that will be required in the new sort of farming.