Jeremy's Blog 18th March 2022: Professional Work in Today's Market

This article by Jeremy Moody first appeared in the CAAV e-Briefing of 17th March 2022

The immediate and multiple human and economic consequences of Russia’s invasion of Ukraine are reverberating around the world, further testing already disrupted supply chains and following the impact of the pandemic (still closing cities in China). With sharp movements in the prices and availability of gas, oil, metal and produce and consequent issues for fertiliser, there is much to consider in professional work this spring.

Prices will bear on stocktaking with potentially different figures for spring operations from autumn ones. Current prices will drive deemed costs and end of tenancy assessments.

Judgments may have to be made about outstanding rent review notices, whether too little is now known to settle a change or the facts and evidence still warrant proceeding. Either way, the discussions in a rent review make the opportunity for landlord and tenant to discuss many other matters and so keep in informed touch. With so much change, from reactions to reducing Basic Payments and new schemes to the issues and demands of supply chains, it is more important to encourage a shared and pragmatic understanding of issues and how they bear on the objectives of each. This is not the time to let contact lapse, risk misunderstanding, misread new questions and act to disadvantage.

DEFRA’s prospective slurry store grants, starting later this year and initially helping livestock farmers with slurry systems reach six months covered storage, offer an example. As well as issues from contractors to planning, it may open a discussion about the length of the tenancy – such DEFRA grant schemes favour five years security – as well as arrangements for the store itself. Alternatively, if the remaining cost is not seen as practical and makes a moment to consider options, that might be better done while the Lump Sum Exit Scheme is still available. In the background, the 1986 Act tenant has recourse to the new s.19A powers to challenge restrictions on spending his money for this.

If drafting a tender for a letting is now a challenge, so will be managing and setting up contract farming and joint ventures. Intended to be of mutual benefit, how might diesel prices be handled? Or where it is scarce? What is the balance between the first charge and contractor’s rates? What needs re-thinking in a share farming agreement?

With much else beyond these points, these are times when farmers and owners have a particular need for the considered, rounded, practical professional advice that a CAAV Fellow can bring as a trusted adviser.