Farmland prices come under pressure as more acreage is put up for sale
The acreage of farmland put up for sale in the East of England rose by almost ten per cent in the first half and prices are coming under pressure as the sector adapts to reduced government subsidies. Savills quarterly farmland survey shows that 14,292 acres of farmland was publicly marketed in the East in the first half, up from 13,072 acres in the period last year. The report also shows a dip in value for some farmland types in the East although prices remain above the national average. Harry Kennedy at Savills in Norfolk said: “Our last survey forecast the supply of farmland would continue its upward trajectory and so far this has played out – predominantly driven by larger blocks over 500 acres becoming available as farmers and landowners manage the transition away from the Basic Payment Scheme….The continued reduction in funding is encouraging many farmers and landowners to diversify and find alternative sources of income, however others are making the difficult decision to leave the industry completely or to consolidate and sell part of their holding.” The average value of all farmland in the East fell to £9,276 an acre at the end of June, down 6.6 pc. The value of prime arable land in the region dropped 8.3 pc to an average of £9,928 although Grade 3 arable rose by 7.3pc to £9,251 an acre. Previously, farmland prices in the East had hit a near-high over the past 18 months, well ahead of the rest of the UK. Nationally, 118,232 acres of farmland were marketed across the country in the first six months of 2024, up 36 pc on last year.
Will Radbourne of Savills in Chelmsford added: “Encouragingly, there continues to be a strong pool of committed buyers with appetite for best in class properties ranging from prime residential estates to substantial farming portfolios.”
Photo: Land at Reed Lane Farm near Dereham in Norfolk currently on the market for £4.5m.
Region’s firms draw up plans for ‘multi-million pound’ investments
Two-fifths of East Anglian mid-sized businesses plan to invest more than £5 million in expansion over the next five years, according to BDO’s bi-monthly economic engine survey. Nearly half of firms in the region plan to direct their investment mainly to the UK. Priorities include developing new products and services and investing in AI. Meanwhile, firms’ wish-lists from government include policies to ease workforce pressures, including reform of the apprenticeship levy or more support on skilled worker visas and better access to finance. Peter Harrup, regional managing partner in East Anglia at BDO, said: “The message from East Anglia businesses is clearly one centred on growth, but they will need the support of central policymakers to ensure that the regions receive the required investment to accelerate those ambitions, with Labour looking to take a fresh approach to tackling regional inequalities.”
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Jump in number of companies facing ‘financial distress’
The number of UK companies in ‘significant’ financial distress jumped by nearly ten per cent to 601,950 businesses in the second quarter compared to the previous three months, according to the latest “red flag alert” from Begbies Traynor. Financial distress rose sharply at businesses involved in travel & tourism, hotels & accommodation, health & education and bars & restaurants. Meanwhile, ‘serious concerns’ remain over the state of the construction, real estate and support services sectors. Julie Palmer, partner at Begbies Traynor, said: “It is a particularly difficult situation for businesses in consumer facing sectors, such as hospitality. While a fall in inflation to more palatable levels will likely provide some relief, consumers simply aren’t behaving like they used to and these businesses, who are still grappling with higher costs pushed up by higher wages, are really struggling.”
Planning go-ahead for building materials plants in freeport
Planning consent has been granted for two buildings, providing a total space of over 130,000 sq ft, at Gateway 14, Stowmarket, both to be occupied by building materials manufacturers. Assan Panel, a major affiliate of Turkish industrial group Kibar Holding, will invest £45m in an 86,565 sq ft manufacturing unit (photo, right) bringing 100 jobs to the area. It will be joined on Gateway 14 by Bauder – which produces materials for waterproofing systems and insulation – and which manufactures in Ipswich. It plans to occupy a 44,000 sq ft distribution centre at the park. Each will benefit from Gateway 14’s inclusion in the Freeport East zone, which brings tax benefits and wider support. Jaynic development director Ben Oughton said: “We are pleased to be making strong headway at Gateway 14 where potential occupiers see the benefits that the park provides with its freeport status as well as underlining its locational advantages sitting next to Junction 50 of the A14. This provides direct trunk road access into the UK motorway system.”
Crisp producer invests £2 million to meet growing demand
Essex-based Fairfields Farm has installed a new state-of-the-art fryer which is set to boost its weekly yield of hand-cooked crisps by 90 per cent to meet growing demand and expand its market presence. The company, based at Wormingford, near Colchester, has invested over £2 million in its factory over the past year after a successful 2023 when crisp sales rose by 46 per cent and branded-crisps were up by 70 per cent. A new prawn cocktail flavour was also introduced earlier this year. Co-founder Robert Strathern, said: “We are incredibly excited about the installation of our new fryer on the farm. As demand for our crisps continues to grow locally and further afield, this significant upgrade will allow us to increase our production capacity to meet consumer needs.”
Norwich startup wins award at investment event
Norwich-based Bioscopic, a pharma startup researching the use of bacteria for cancer treatment, won both the audience favourite and judges awards after pitches at a showcase event for Anglia Capital Group’s Halo Programme. The programme, sponsored by British Business Bank, is an intensive two-month series of workshops preparing smaller businesses in the region to get investment ready. Chris Price, CEO and co-founder of Bioscopic, said: “We are honoured to have won the audience favourite and judges awards. It has been such a valuable two months and we were thrilled to share our story and future plans with the local Norwich business community and impressive panel at the showcase.”
Photo: The final candidate presentations.
Cambridge company moves towards sustainability goals with solar panels on hq building
Cambridge company Domino has taken a major step towards its sustainability goals with a large installation of solar panels at its Bar Hill hq. The company has put more than 650 new solar panels on its main building at Trafalgar Way, adding to 250 already installed on adjacent units. During a recent refurbishment of the site, the company was awarded an SKA Bronze Certificate, the highest accreditation possible for the project. It also received a Silver EcoVadis rating in recognition of its improved CSR performance. Meanwhile over the past two years, the company has procured all its energy from renewable sources reducing consumption by around 8 percent; installed LED lighting on its Bar Hill sites to save energy; and put in 38 vehicle recharging points for employees as well as launching a green car scheme. During 2024, Domino is aiming for zero waste to landfill and to significantly reduce its reliance on gas. Steve Impey, estates and SHE manager at Domino, said: “Post pandemic, our comprehensive refurbishment of Trafalgar Way to align with the move to hybrid working gave us an ideal opportunity to review our sustainability goals for the building. The recent installation of solar panels is a major milestone but we recognise that this is an ongoing journey which requires commitment and collaboration as we go forward.”
Photo (l-r): Steve Impey, Domino estates and SHE Manager and Perri Crowder, general maintenance.
Law firm partners on Public Sector Challenge to raise funds for charity
Bury-based law firm Greene & Greene is to be a partner of the 2024 Public Sector Challenge, which brings together professionals from various sectors to raise money for Cancer Research UK. This year the challenge on Friday 6th September will see over 500 people take to the Yorkshire Dales to walk over 24 miles across, over and back down each of the infamous Three Peaks. Eleven Greene & Greene partners and staff will take part actively fundraising both in and out of the office. Partner Greg Jones said: “As a leading law firm in Suffolk, we are thrilled to support the Public Sector Challenge. Our team of 11 dedicated staff members will be taking on this formidable journey, showcasing not only their physical endurance but also their commitment to giving back to the community. Supporting this event aligns perfectly with our values of social responsibility and staff well-being….”
