Making way for the next generation in agriculture
The pathway for young people to enter into the farming industry or start a land-based business is feared to be becoming harder and harder in response to rising land prices, interest rates, feed prices and everything in between.
It’s challenging for new entrants to find land, secure tenancies and finance business prospects. With BPS and the young farmer payment being phased out, it may seem as though there are even fewer chances of securing well needed capital and successfully entering into the industry.
DEFRA have been working closely with landowners, estate manages, support providers and some recent new entrants to gain external expertise to establish a support scheme for new entrants, included with the Agricultural Transition Plan. Some of the key things they have learned through their research are:
- “Starting in farming is a long game; it can take 5-10 years to get a business established, so newcomers need support that takes that timescale into account.
- There are fewer council farms these days and support for new entrants varies around the country; council farms have traditionally provided an easier path into the industry.
- Although ownership and tenancy models are widespread in the sector, there are lots of different business models available for farming entrepreneurs. These can include; contract farming, grazing licences, share farming, joint ventures, partnerships, community models and co-operatives and machinery sharing.
- New entrants often struggle to get loans because they don’t already have land or other assets to offer as security and generally lack a track record. Early-stage finance can help businesses establish themselves and grow.
- Local support exists, but the amount and quality on offer varies. We’ve learnt that support, such as mentoring, peer group learning and applied business skills training, is valuable, but new entrants can’t be certain that they’ll have access to suitable support in their area.
- Even after getting started, it’s hard to grow a farming business and obtain more land because landlords see newcomers as risky investments”.
Despite these difficulties, efforts are being made
to support new entrants into all aspects of the agricultural industry, not just
the farming route, by several organisations who have seen the importance in
ensuring future generations have a place in agriculture. Some of these include:
– The Farmer Network: Farming Ambition Programme
– The Prince’s Countryside Fund: Young People and New Entrants
– Oxbury New Gen
If you are a new entrant and would like advice on getting into the industry or information on what’s available in your are, please contact one of the team where we will be happy to discuss the opportunities available
