Farmland values around the globe continue to rise

The Savills Blog

In plain English: Land Use Framework

Land Use Framework for England

The Royal Geographical Society was an apt place to launch the Land Use consultation on Friday 31 January. Farmland has primarily been used for producing food, fuel, and fibre. However, the demands on this finite resource have expanded and diversified, reflecting broader economic, environmental, and social priorities. A Land Use Framework (LUF) as Secretary of State Steve Reed described at the launch, would be “our chance to reimagine England for the future and to deliver”. The LUF is proposed to be a “toolkit to take better decisions” on land use.

Modern Demands on Farmland

Today, the demands on farmland are more complex than before driven by climate change, environmental priorities and population growth (projected to reach 78 million by 2050) – all of which necessitates a balance of needs from land. Whilst food production remains a critical function, land use must also accommodate development, the transition to renewable energy sources, and environmental recovery to name a few.

The overriding aim of the Labour government is to deliver growth and it is proposed that an LUF would allow us to make the best use of land to:

  • “boost food production” - to maintain long-term food security and protect the highest quality of agricultural land.
  • Build 1.5 million homes.
  • Execute the Clean Power 2030 Action Plan.
  • Protect and restore nature through the targets set in the Environment Act 2021.

Steve Reed said that “until now, there has been no clear direction”. Direction is certainly welcome in this currently confused and complex landscape. A question often asked is, what does government want to prioritise? Food production in the UK? Development at the rate required? Environmental recovery? New infrastructure? The answer is the country needs all of these to mitigate impact from various directions and to achieve growth. An LUF is a sensible starting point and while it will be difficult to achieve an outcome palatable to all stakeholders, it is not impossible.

Key Factors Influencing Farmland Use

  1. Food Security: Post-Brexit, agricultural support in the UK has declined, impacting food production confidence. The government aims to maintain domestic food production levels, with future support likely focusing on productivity grants. Prime arable land with resilient water supplies will be in demand, and there are opportunities in fruit and vegetable production, given the UK's low self-sufficiency in these areas.
  2. Energy Transition: The UK is committed to obtaining 95% of its electricity from low-carbon sources by the end of the decade. This transition involves increasing solar capacity significantly. Agrivoltaics, which combines solar energy production with agriculture, is being developed to maximise land use efficiency.
  3. Development: The government plans to build 1.5 million homes in England, which will involve developing some lower-quality green belt land. This development will influence the farmland market, particularly as the demand for land for housing increases.
  4. Infrastructure: Significant public investment is expected in roads, railways, broadband, and electric vehicle charging points. These infrastructure projects will also impact land use and availability.
  5. Environmental Recovery: The Environment Act 2021 sets out targets for protecting and recovering the natural environment. Initiatives like biodiversity net gain and nutrient and water neutrality require land, and the agricultural transition in England is moving towards schemes that support sustainable food production and environmental improvement.

The Role of the Private Sector

The private sector plays a crucial role in supporting land use change. Whilst still in its infancy, this feels an area worth investing time and resource to explore opportunities of mutual benefit and to create synergies across industries for the long term. For example, nature provides essential capital for businesses, and the degradation of natural resources poses significant risks. Therefore, private investment in sustainable and regenerative agriculture is vital.

What next

The changing use of farmland reflects broader societal shifts and the need to balance multiple demands on a finite resource. From food security and energy transition to development and environmental recovery, the pressures on farmland are diverse and growing. Effective policies and private sector engagement are essential to navigate these challenges and ensure that farmland continues to meet the needs of society.

For this to work, collaboration at every level will be key, from across government departments to farm level. At government level, the LUF will interact with other strategies currently being developed in DEFRA, The Environmental Improvement Plan, a 25-year Farming Roadmap, a Food Strategy and, across government, the Infrastructure Strategy and the Planning and Infrastructure Bill, for example.

At the farm level, a key message from my recent visit to E J Barker & Son, a farming business in Suffolk, was, we achieve greater things when we come together, working with neighbours and up/down stream of our supply chains to exchange knowledge and innovation. We must do away with silo thinking and embrace diverse thought. As Einstein said “You cannot solve a problem with the same mind that created it”.

The LUF consultation is open for a 12-week period (closes 25 April) and I would urge everyone to respond. This is an opportunity to shape policies for the future to face the impact of climate change, population growth and environmental protection. The government is wanting to hear how you would shape these, and what you need to allow you to make better decisions on land use. Data, evidence, principles, levers and co-creation = the right land use, in the right place

Recommended articles