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The farming boom

Muck and brass

Why the price of farmland is soaring

Feb 4th 2012 | MELTON MOWBRAY, LEICESTERSHIRE | From the pr!t e"to!

One grand, two grand, three grand…

AT MELTON MOWBRAY cattle market, a maze of concrete barn hea!"ng w"th cow,

hee# and ch"cken, the mood " character"t"call$ downbeat% &re$'ha"red farmer "n

battered wa(ed )acket com#la"n abo*t the go!ernment, the E*ro#ean +n"on and the

weather%

-armer are a m"erable lot., a$ /hr" Wele$, a 01'$ear'old L"ncolnh"re farmer who

" here to b*$ cal!e% Lean"ng on h" t"ck "n the w"nter *nh"ne, tho*gh, Mr Wele$

adm"t that th"ng are far better than the$ *ed to be% 2n 3114, he a$, commerc"al cow

old for 56 a k"logram, on a!erage7 toda$ the$ go for do*ble that% Lamb cho# are alo

dearer%

/ommod"t$ #r"ce are *rg"ng% Lat $ear wheat fetched he"ght of 5311 8906:; a tonne,

*# from 5<1 onl$ three $ear ago% A d"atro* har!et "n R*"a " one reaon for the

*rge% B*t a =*"cken"ng a##et"te for gra"n'fed meat "n emerg"ng market l"ke /h"na ha

alo #*hed *# #r"ce and, a Mr Wele$ #*t "t, taken ome of the #ower from Teco.%

Meanwh"le grow"ng b"of*el *e mean more com#et"t"on for cro#% Aro*nd >1? of the Amer"can ma"ze cro# w"ll be *ed to #rod*ce ethanol th" $ear%

http://www.economist.com/printedition/2012-02-04




R""ng #r"ce affect farmer "n le #o"t"!e wa$, of co*re7 Arable farmer are =*"ck to

c"te the cot of fert"l"er and l"!etock farmer the #r"ce of feed% @ome ector, notabl$

da"r$ and #"g farm"ng, cont"n*e to tr*ggle% B*t there ha been a marked *#l"ft "n Br"t"h

farm"ng "nce 3114, when @"r @t*art am#on, then #re"dent of the Ro$al Agr"c*lt*ral

@oc"et$ of England, #oke of a dee#'eated cr"".% That d"agno" followed $ear of

tro*ble, from the foot'and'mo*th cr"" of 3116 to *#ermarket grow"ng tranglehold

o!er #rod*cer%

The mot tr"k"ng #roof of th" agr"c*lt*ral conf"dence " the #r"ce of farmland, wh"ch "

at record le!el 8ee chart;% Cro#ert$ agent #o"nt to an "ncreae of abo*t 6>? lat $ear,

w"th h"gh'=*al"t$ arable land fetch"ng the h"ghet #r"ce% @carc"t$ f*el that growthD le

than half of one #ercent of the total land farmed "n Br"ta"n wa *# for ale "n 3166%

2n!etor ha!e long t*rned to land a a afe ha!en for the"r cah "n hazardo* t"me%

Tho*gh ann*al f"nanc"al $"eld "n farm"ng are low, the"r ca*t"on ha been well rewarded%

O!er the #at decade farmland #r"ce ha!e r"en tw"ce a fat a London #ro#ert$ #r"ce

and man$ t"me fater than hare% -or "nde#endent "n!etor, farmland " an e#ec"all$

attract"!e o#t"on beca*e "t can offer rel"ef from e!eral b*rdenome ta(e%

Land agent a$, howe!er, that "n the #at co*#le of $ear the growth ha been dr"!en b$

farmer elbow"ng "n!etor o*t of the wa$ a the$ eek to get a m*ch land *nder the

#lo*gh a the$ can% Accord"ng to reearch from @a!"ll, an agent, the n*mber of

"nt"t*t"onal "n!etor and landlord b*$"ng land dw"ndled lat $ear, wh"le more farmer

entered the market% The latter acco*nted for 46? of the b*$er of farmland "n 3166, *#

from :4? )*t a $ear earl"er% R""ng commod"t$ #r"ce ha!e lent *rgenc$ to an anc"ent

"nt"nct% 2t that age'old th"ng of want"ng that f"eld )*t o!er the hedge,. a$ @te#hen

"ng, a farm"ng con*ltant from the Anderon /entre "n Melton Mowbra$%



Of co*re, onl$ thoe farmer who are ell"ng the"r f"eld can cah "n on the land'#r"ce

boom, and mot do not want to, e#ec"all$ now% And, altho*gh owner of an "ncrea"ngl$

!al*able aet f"nd "t ea$ to borrow from bank, tenant farmer t"ll f"nd cred"t hard to

come b$% Both t$#e of farmer arg*e that an$ f"nanc"al ga"n from h"gher food #r"ce are

#lo*ghed back "nto the"r farm after $ear of econom"c hardh"#% @ome gr"#e that h"gh

commod"t$ #r"ce are of l"ttle benef"t to thoe who forward'old the"r cro#%

The "ncrea"ng !al*e of land alo ha *nwelcome #ol"t"cal "m#l"cat"on for farmer% The

E*ro#ean +n"on " #ro#o"ng to tweak the /ommon Agr"c*lt*ral Col"c$, ca##"ng

#a$ment *nder the "ngle farm #a$ment. $tem, wh"ch g"!e farmer a *b"d$ baed

on the "ze of the"r hold"ng% R""ng #r"ce make that *b"d$ e!en le )*t"f"able than "t

m"ght otherw"e be% E+ comm""oner alo want more land et a"de for nat*re% -armer

w"ll f"ght that one hard% A the$ #o"nt o*t, "t " a trange t"me to be #*tt"ng land o*t of#rod*ct"on%

From the pr!t e"to!# Brt$!



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