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Reinventing Rural: Opportunities for Farm Diversification
Supply, Demand and the Future of Farmland Values
Making Great Britain a Clean Energy Superpower: What Farmers Need to Know About Labour’s Grid Reform
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Inheritance Tax and the Future of the Modern Farm Business
With Inheritance Tax reforms set for 2026, farming businesses have limited time to plan. Beyond tax, success will depend on clear succession strategies, resilience, and ensuring profitability in a leaner, more competitive environment.
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Renewable Energy in 2025: Trends, Challenges and Opportunities
The wind sector is set for remarkable growth in 2025, bolstered by changes to the National Planning Policy Framework and bold plans to double capacity.
Padel has taken the UK by storm, with facilities popping up nationwide. Its popularity presents a unique opportunity to landowners looking to diversify and bolster their income.
Permitted Development or Planning Permission? Bringing Padel to Rural Communities
The sugar beet contract for the 2026/27 season has now been agreed, setting out a range of options designed to provide flexibility and stability for growers. The agreement reflects the realities of today’s market while aiming to offer growers more control over risk and reward.
2026/27 Sugar Beet Contract
The government's Clean Power Action Plan, with its ambitious strategy for modernising the electricity grid, places landowners across Britain at the centre of the transition.
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Rural landowners and farmers are increasingly looking for innovative ways to maximise the potential of their assets. With changing agricultural landscapes and economic challenges, diversification has become key to sustainable business growth, but it is important to find the right fit to ensure a viable enterprise.
Permitted development rights (PDRs) offer rural businesses greater flexibility in transforming their properties without going through extensive planning applications and avoiding many restrictive local and national planning policy constraints. These rights are also exempt from the provision of Biodiversity Net Gain, making them a more cost-effective route through planning in most cases. These rights come in several categories: Class Q: Agricultural to Residential Conversion Permitted development rights for agricultural buildings have undergone significant changes in recent years, with new legislation introduced last year. Landowners are able to convert agricultural buildings to residential dwellings, with the maximum number of potential dwellings permissible per ‘established agricultural unit’ increased from five to ten. The total floor area allowance has expanded to 1,000 square metres, providing more flexibility for conversion projects. However, it's crucial to note that there's now a significant limitation: the maximum footprint per dwelling is restricted to 150 square metres, which can impact the scale and potential of conversion plans. These rights are not available in Conservation areas or Areas of Outstanding Natural Beauty (AONBs)/National Landscapes, nor can they be applied to Listed buildings. However, they can be used in the Green Belt and other sensitive rural locations, so can provide the key to unlocking residential opportunities in many cases where full planning permission may not be achievable.
Temporary Use Opportunities Rural landowners now have multiple options for generating additional income through temporary land uses. Innovative approaches include creating wedding venues in woodland areas, offering camping and glamping experiences (with up to 60 days of permitted use per year), organising festivals and outdoor events (up to 28 days per year under permitted development), and filming (permitted development rights also extended here). These temporary uses provide are a great way to generate additional revenue without making permanent alterations to land, offering flexibility and minimal long-term commitment. Farm Shops and Cafes Developing on-site produce sales can be an exceptional diversification strategy for rural businesses. Success relies on several critical factors, including likely footfall on site, social media presence and existing farm reputation. The rising popularity of farm-to-table experiences, including high profile case studies, like Clarkson's Farm, has renewed public interest in farming businesses. A more expansive offering may require full planning permission. Creating dog training fields We have seen great success from the change of use of land to provide dog training and exercise facilities, which can also expand to a dog day care offering. Such facilities can be operated in hand, as a joint venture or leased to an operator. This requires full planning permission, so it is important to check whether this would be achievable in the first instance. Commercial lettings Ranging from self-storage to CrossFit gyms, breweries to workshops and everything in-between, rural buildings can offer unique and desirable opportunities for commercial uses. This taps into the variety of businesses and entrepreneurs who are looking for lease or joint venture opportunities. In many cases, Class R permitted development can be utilised to secure these changes of use.
“The rising popularity of farm-to-table experiences, including high profile case studies, like Clarkson's Farm, has renewed public interest in farming businesses”
Rede Hall Farm Park: Innovative Barn Conversions The transformation of a traditional Suffolk Punch farm demonstrates the power of strategic property development. By carefully leveraging Class Q rights, we navigated a complex property challenge on behalf of the landowners. Rede Hall Farm Park successfully secured consent for barn conversions, which allowed them to create a new family home without the typical restrictive occupancy conditions. This not only solved their immediate housing needs but also significantly increased the overall property value, showcasing how creative thinking can unlock hidden potential in rural properties. We were also able to obtain permission for a new, purpose-built agricultural building in the process.
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Louise Newton, Partner, Rural Investment 07932 699 707 louise.newton@bidwells.co.uk
Author
Understanding Permitted Development Rights (England)
Exploring Additional Income Streams
Rural Diversification in Action
Navigating the complex landscape of permitted development rights and rural planning requires expert insight. Local Authorities interpret these rights differently, making professional consultation crucial. Experienced consultants can provide invaluable assistance by helping landowners understand local perspectives, effectively tailor applications, assess the viability of a potential diversifications scheme, and ultimately maximise the potential of their rural assets.
Professional Guidance is Key
Waresley Park Estate: Diversifying into Multiple Income Streams Waresley Park Estate presented a classic rural diversification opportunity. Spanning approximately 90 acres and previously operated as an equestrian stud, the estate was struggling to maintain its traditional business model. The landowner took a strategic approach by initially using 28-day permitted development rights to test the events and wedding market. The client is now in the process of obtaining full planning permission to establish the events and wedding business permanently, and permitted development has enabled them to demonstrate to the council the demand for such a venue in the area. Other activities such as wild swimming, dining experiences and arts & crafts have also been highly popular, appealing to tourists and local residents alike. In addition to diversifying the estate into a venue, we secured full planning permission for a cafe. Alongside this, we have also obtained planning consent for 8 glamping pods, with views over the parkland and vineyard. Waresely Park Estate showcases how strategic planning and permitted development rights can unlock new opportunities for rural landowners.
The new cafe at Waresley Park
“One critical consideration for landowners is the interaction between different development rights...”
Class R: Agricultural to Commercial Transformation This category offers an exciting opportunity for rural businesses to reimagine their existing agricultural spaces. Using Class R, landowners can transform agricultural buildings into flexible commercial spaces, with recent expansions allowing up to 1,000 square metres of floor space per established agricultural unit. Uniquely, these rights are applicable even in AONBs, providing broader opportunities for diversification. The rights support a range of uses, including industrial use, storage facilities, and recreational spaces, giving rural businesses unprecedented flexibility in utilising existing agricultural property. However, it is important to note that any external works required will need to be addressed through a full planning application. Agricultural Permitted Development Rights These rights provide a 28-day prior notification period for constructing new agricultural buildings (amongst other agricultural development), with the footprint increased to 1,500 square metres for non-livestock buildings. One critical consideration for landowners is the interaction between different development rights - these agricultural development rights cannot be used within 10 years of implementing Class Q rights (and vice versa), requiring careful strategic planning.
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The 2024 farmland market in England and Scotland was marked by shifting supply, sustained demand, a general election and policy changes. While the latter half of 2023 saw land values rise due to strong demand and limited supply, the early months of 2024 introduced some uncertainty, but overall average land prices rose marginally. This update explores the key trends and factors shaping the market, including changing buyer behaviours, tax reforms, and the evolving outlook for land values.
The farmland market experienced a substantial increase in supply during the early months of 2024, when compared with the same period in 2023, and all regions in England saw an increased supply, a stark contrast to the historically low levels of recent years. This surge was partly driven by strong market performance in Autumn 2023 and concerns over anticipated changes in government policies and capital tax treatment for farmland. However, the economic outlook for farming remains uncertain. Volatile crop prices, rising costs, challenging climate conditions, and the removal of traditional farm support have created financial strain for many farmers. Although the Sustainable Farming Incentive (SFI) offers some relief, high interest rates and borrowing costs have limited the purchasing power of local farmers who typically rely on loans. The result being that the market is now almost entirely reliant on equity buyers with liquid reserves to acquire these investments. This imbalance between supply and demand has resulted in several farms or blocks of farmland remaining unsold. In areas without strong institutional, private, or local investor interest, demand has proven insufficient to absorb the increased supply. Off-market sales have also continued to be a favourable way to acquire land, offering confidentiality, transactional speed and, in many cases, premium prices for the seller. Intense competition for available land, especially in high-demand regions like the South East, East of England and certain localities within Scotland, has further reinforced values in these locations.
The buyer landscape is more diverse than ever. Traditional buyers, such as farmers and rollover investors remain active, but the market has also seen the continued rise of "green investors." These buyers seek land for renewable energy projects, biodiversity initiatives, carbon offsetting and for environmental societal gain (ESG). Sellers include land and estate owners rationalising holdings to reinvest elsewhere and individuals retiring from farming with no succession, or those under financial pressures from an increase in interest rates and subsequent increases on borrowing. The challenging weather has also played a role for some to make the decision to sell up.
“...the market is now almost entirely reliant on equity buyers with liquid reserves to acquire these investments”
We anticipate that the outlook for farmland values will remain fairly static. This is down to the budget announcements whereby Agricultural Property Relief has been replaced with 50% inheritance tax relief over £1 million of agricultural value and due to a slowdown in development land sales. We don’t anticipate values increasing until there is a downward shift in the base rate and pressure from alternative land uses picks up. However, opportunities for alternative land use does continue to support values in certain areas. Farmland remains a resilient asset, particularly for strategic and environmental investments. While the market is expected to face short-term challenges and possible stagnation, its long-term appeal as a secure and versatile investment is likely to endure producing favourable growth in the medium and longer term.
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James Wood, Head of Rural Agency 07780 200 717 james.wood@bidwells.co.uk
Supply and Demand
Buyers and Sellers
Outlook
Matthew Alexander, Partner, Rural Agency 07918 561 606 matthew.alexander@bidwells.co.uk
Jake Shaw-Tan, Associate, Rural Agency, Scotland 07392 341 400 jake.shaw-tan@bidwells.co.uk
Land values improved during the latter half of 2023, driven by strong demand and a limited supply of available land. However, 2024 was more challenging. As noted above higher interest rates has deterred investment from a number of buyers, fewer rollover purchasers were motivated to acquire land as the volume of development land sales have fallen and generally declining agricultural productivity have all reduced buyer demand. Regional variation appeared with some land continuing to command premium prices, particularly in areas with strong demand for alternative land uses, such as renewable energy projects or biodiversity initiatives. The price of arable land in the latter half of 2024 reached on average £10,000 per acre, below the 2023 record high and on average pastureland sold for in the region of £8,000 per acre. At the same time, a significant number of farms and blocks of farmland have failed to sell at current valuations, suggesting that overall prices have softened. With buyers wary of the tax changes introduced in the Autumn Budget and the cost of borrowing remaining high, land values in some regions are under pressure. Of particular note in Scotland has been the cooling of competition for afforestation ground and along with that, a cooling of values being achieved bringing agricultural buyers for the same land back into focus.
Land Values
“With buyers wary of the tax changes introduced in the Autumn Budget and the cost of borrowing remaining high, land values in some regions are under pressure”
The UK's ambitious clean energy targets for Great Britain to be supplied with clean power by 2030 and achieve Net Zero by 2050 are driving the transformation of the grid network. As the government pushes forward with its grid reform programme, landowners across Britain are at the centre of this transition.
“...demand for land suitable for energy infrastructure is rising, not only for generation sites but also for the essential grid infrastructure...”
Clive Meikle, Partner, Head of Grid Infrastructure 07780 584 669 clive.meikle@bidwells.co.uk
Across the UK, the need for economic growth, grid reform and the transition to clean energy infrastructure are driving significant changes, creating both challenges and opportunities for landowners. The government's commitment to streamlining the planning and approval processes, through initiatives such as the Planning & Infrastructure Bill1 and Scotland’s Electricity Infrastructure Consenting in Scotland2 paper, aims to speed up the delivery of critical infrastructure projects. Network operators are accelerating the upgrade of their existing networks and building new infrastructure. At transmission level, the Great Grid Upgrade underway by National Grid comprises 17 major infrastructure projects intended to connect clean energy from where it’s generated to where it’s needed. As a result, demand for land suitable for energy infrastructure is rising, not only for generation sites but also for the essential grid infrastructure and corridors needed to distribute electricity to areas of growing demand. This could mean more approaches for wayleaves and easements, as well as potential land acquisition and compulsory purchase negotiations. However, it also presents opportunities for proactive landowners to engage early in the process and potentially benefit from this infrastructure expansion.
Delivering New Infrastructure
The UK, Scottish and Welsh governments are implementing a more structured approach to energy infrastructure development through the development of the Strategic Spatial Energy Plan (SSEP)3, which will help to plan the future of the energy system for the UK. The National Electricity System Operator (NESO) has been commissioned to prepare the plan, which will focus initially on electricity generation and storage, including hydrogen. It will present options for how the energy system could look in the future and will provide guidance on energy development priorities in specific geographical areas. Alongside this, NESO has produced the Clean Power 2030 advice note4 for the UK government, setting out what needs to be done to support and accelerate the delivery of the new infrastructure required, and in turn the Clean Power Action Plan5 was produced, which sets out the pathway to a clean power system by 2030. These will inform the methodology and development of the SSEP. The UK's clean energy transformation will present numerous opportunities and challenges for landowners, including:
Move Towards Strategic Energy Planning
New and improved grid infrastructure Approaches from network operators and energy developers for land access More opportunities for landowners to connect and operate their own energy projects
• • •
Infrastructure Development
More grid and energy infrastructure impacting land use Greater burdens on energy developers to commit financially and secure project rights In the short term, market uncertainty on energy project delivery across the regions
Challenges
Grid upgrades and new grid infrastructure will create new development opportunities Potential for revenue through hosting infrastructure or new energy projects Increased land value for strategically located land holdings
Adding Value
For landowners, grid reform represents a significant shift in the clean energy transition. Seek professional advice to understand how these reforms might affect your land holdings and what opportunities they might present. Informed landowners who engage early will be best positioned to benefit from these changes while managing potential impacts on their land.
Looking Ahead
Amy Souter, Partner, Energy and Renewables 07502 984 271 amy.souter@bidwells.co.uk
Sources 1 Planning Reform Working Paper: Streamlining Infrastructure Planning, Ministry of Housing, Communities & Local Government, January 2025 2 Electricity Infrastructure Consenting in Scotland, Department for Energy Security and Net Zero, October 2024 3 Strategic Spatial Energy Plan, Department for Energy Security & Net Zero, October 2024 4 The National Electricity System Operator, Clean Power 2030 5 Clean Power 2030 Action Plan, Department for Energy Security and Net Zero, December 2024
The UK's energy sector is set for significant changes in 2025. With clear targets for clean power energy generation by 2030, the government's Clean Power Action Plan outlines a detailed strategy for reducing carbon emissions from power generation, increasing renewable energy capacity, and modernisation of the grid network, whilst also ensuring energy security and economic prosperity.
“The solar sector is undergoing a dramatic transformation, particularly large-scale ground-mounted solar farms”
The onshore and offshore wind sectors are set for remarkable growth in 2025, bolstered by the recent removal of the de facto ban on onshore wind in England and changes to the National Planning Policy Framework. The UK government has set bold targets to double onshore wind capacity from 15 to 30GW by 2030, positioning wind as a key driver of electricity decarbonisation. There continues to be technological advancements in the sector, with onshore commercial turbine capacities increasing from around 2MW to 7MW machines, featuring larger hub heights and rotor diameters. While this represents a significant increase in energy generation potential, it also presents new design and locational challenges. For instance, modern onshore commercial turbines may require a minimum stand-off distance of over 800 metres from third party residential properties to meet noise limits, compared to much smaller stand-off distances in the past. Repowering opportunities for existing onshore commercial wind farms and medium scale wind turbines is becoming increasingly attractive, allowing operators to upgrade older turbines with more efficient modern machines while utilising existing infrastructure and grid connections. In the case of medium scale wind turbines, the risk of losing government tariffs has also been removed due to the changes in the Feed-in Tariff regime to allow for repowering.
Wind Energy
The solar sector is undergoing a dramatic transformation, particularly large-scale ground-mounted solar farms. While previous solar schemes developed under government tariffs were typically under 5MW, schemes are now being developed subsidy free due to technological advancements and declining costs, with sub 50MW projects becoming commonplace, which can be determined at local authority level. There has also been an increase in private wire prospects, with schemes proposed to generate electricity for on-site or nearby high energy users, subject to a power purchase agreement between the generator and the offtaker. As investor confidence has grown and opportunities have been identified to connect at transmission level, Nationally Significant Infrastructure Project (NSIP) scale solar farms are now being progressed. The Labour Government has already shown commitment to such schemes, approving five NSIPs since being in administration, a 100% consent rate by UK Energy Secretary Ed Miliband for these large-scale solar projects. The solar farms, proposed in Lincolnshire, Nottinghamshire, Rutland and Suffolk, will collectively generate almost 2.9GW of power alone. These decisions have shown a practical approach to development, with projects proceeding even where Best and Most Versatile agricultural land is present, provided agricultural uses can continue alongside solar generation.
Solar
The battery energy storage market has evolved significantly over the past decade, becoming a key component in balancing electricity supply and demand. Systems in the development pipeline now range from 10MW to 1GW, targeting a range of revenue streams. There is currently 4.9GW of installed capacity, with the UK forecasted to have around 30 to 35GW of battery energy storage capacity by 2030. The market faces challenges, with increasing competition between schemes, complex revenue streams, and oversupply. At present, the battery energy storage pipeline currently far exceeds the offered capacity, which is resulting in investment uncertainty and project attrition. However, battery energy storage does have a key role to play in the shift towards clean power generation and ensuring security of supply, and NESO has stated that suggested capacity limits can be exceeded. Going forwards, long-duration flexibility is a key area of focus, with a move towards long duration electricity storage. While traditional battery storage systems (like lithium-ion) are excellent for short-duration energy storage, long-duration storage is becoming increasingly important as the grid integrates more renewable energy, especially wind and solar.
Battery Energy Storage
Hydrogen is emerging as a vital component in the UK's decarbonisation strategy, aligned with the UK Hydrogen Strategy's goal of establishing 5GW of low-carbon hydrogen production capacity by 2030. The focus is increasingly on green hydrogen, produced via electrolysis using renewable electricity.
Investment in Hydrogen
Government funding for hydrogen initiatives Development of a Hydrogen to Power business model Establishment of an H2P expert working group Design of new business models for hydrogen transport and storage infrastructure
Key developments include:
• • • •
Co-location is gaining momentum, with developers proposing to combine solar installations with battery storage, and in some cases hydrogen electrolysers to maximise returns. Agrivoltaics is emerging as a potential option to balance energy generation with agricultural production, given the food versus energy security debate. The proposed changes to the planning regime and the planning thresholds in England are expected to streamline the consenting process for projects.
Several key trends are shaping the solar sector:
Grid capacity constraints and the need for suitable land near connection points. Growing competition for land use between food production and energy security. Local opposition to developments in some locations impacted by schemes, particularly NSIPs.
However, the solar sector faces several challenges:
However, challenges remain, particularly around production costs, with green hydrogen currently more expensive than conventional hydrogen produced from natural gas.
2025 marks a crucial year for grid connection reforms. Comprehensive changes are being implemented at both transmission and distribution level to accelerate grid connections. Historically the connections process has been based on a “first come, first served” basis. With the connections queue now in excess of 750GW, and projects blocking progress, this is no longer tenable. Connections reform, under “TMO4+”, introduces the “first ready, first connected” approach, and built on the milestones process introduced to grid connection offers in 2023. The idea is to strengthen the need for projects to demonstrate viability, ensuring only feasible, committed projects can remain in the queue. The new process will be fully implemented this year and re-ordering of the queue is expected to significantly change the position with connections, freeing up grid capacity that cannot be utilised, prioritising projects that are ready to progress, and improving connection timescales. The new criteria will also result in early stage projects losing their place in the queue. Whilst there is uncertainty around the pipeline versus the required capacities, the changes to the connections process is also creating new opportunities for landowners to own and operate their own schemes on site, with distribution grid connection applications below set thresholds no longer being caught by transmission restrictions. However, the reforms also place greater financial commitment requirements on applicants, emphasising the need for careful planning and investment strategies.
Grid Connections
Battery energy storage has a key role to play in the shift towards clean power
Rosalind Clifford, Partner, Head of Energy and Renewables 07778 230 558 ros.clifford@bidwells.co.uk
Despite sustained lobbying by the NFU, CLA, CAAV and others, it seems likely that the government will continue with its proposed reforms to Inheritance Tax, as reflected in the draft Finance Bill clauses. While this presents challenges, it also gives farming businesses clarity on what to expect. It confirms that now is the time to act. An initial review suggests the draft clauses follow the headlines from the Autumn 2024 Budget. In summary, these are: 1 million cap for full relief for APR and BPR combined, per individual (not transferable to spouses) Thereafter 50% rate of relief for APR and BPR (i.e., effective tax rate of 20%) Nil Rate Band and Nil Rate Residential Band frozen until 2030 The option of paying by 10 annual instalments, interest free, remains. The changes still remain to take effect from April 2026. This does not leave much time to plan.
Whilst the Secretary of State for Environment, Food and Rural Affairs, Steve Reed, might profess to support the agricultural sector, the actions of DEFRA and the Exchequer indicate a different path for the government. It is increasingly clear that farming will need to find a way to operate independent of government support. For the first time since the 1980s, British agriculture is moving away from production subsidies. The tapering away of BPS, changes to SFI, and reduced access to Capital Grants mark a significant transition – one that challenges business and will require innovation and resilience.
Whilst concerning, a potential tax bill should not solely dictate how a business operates day to day. It’s a critical consideration, but so is operating efficient gross margins, being within regulatory considerations, and producing a high-quality product, demanded by the market. Succession plans must be prepared, but not just in order to ‘beat’ a tax bill. A succession plan should consider whether the successor is the right person for the job, and actually sufficiently skilled and supported to run an efficient competitive business. A business plan should exist, which is enacted in greater depth than the paper it was written upon. Active drives towards economisation and growth should be made. This does not necessarily mean more acres, but it might mean selling a premium product or cutting costs of production. Standing still is not an option. Running a farming business is both a responsibility and a privilege – one that builds on generations of hard work and continues to provide food for the nation. Success will depend on making thoughtful decisions that secure the business for the future.
Samuel Nobbs, Senior Rural Surveyor 07386 968 970 samuel.nobbs@bidwells.co.uk
The Current Context
Autumn 2025 Budget
Wider Government Narrative
What does this mean for farming businesses? It means the tax changes are only part of an evolving puzzle. Each business needs to address this differently. The solution will be different to everyone. But the one commonality is that we are operating in a leaner and more competitive environment. It also means that we must not allow the idea of potential future government support to dictate business decisions. Any business enterprise should be profitable solely on the revenue it generates. We should take inspiration from New Zealand’s farmers post deregulation. Whilst not an exact parallel for a number of reasons, as an industry they have a very good handle on gross margins for every element of a farming operation. If something does not make money, then it does not survive.
Moving Forward
“For the first time since the 1980s, British agriculture is moving away from production subsidies”
In advance of the 2025 Autumn Budget, the ‘pitch rolling’ has begun. Various stories have appeared in the broadsheets, including further revisions to lifetime transfers (i.e., ‘PETs’), reform of pension taxation, reform of Stamp Duty and or Capital Gains Tax. It is understood that the Exchequer has a £40 billion shortfall in the public finances, caused by worsening bond markets, global trade instabilities, and a ballooning welfare budget. All signs suggest that the government will be working within significant financial constraints, sharpened by somewhat over-zealous pre-election commitments. This means it is likely that we will see further changes in taxation and related policy areas, and farming businesses must plan accordingly.
Despite sustained lobbying by the NFU, CLA, CAAV and others, it seems likely that the government will continue with its proposed reforms to Inheritance Tax, as reflected in the draft Finance Bill clauses. While this presents challenges, it also gives farming businesses clarity on what to expect. It confirms that now is the time to act. An initial review suggests the draft clauses follow the headlines from the Autumn 2024 Budget. In summary, these are:
Padel has taken the UK by storm, with facilities popping up across country in both urban and rural locations. The surge in popularity presents a unique opportunity to landowners looking to diversify their estate and bolster their income.
“Padel developments also create opportunities for ancillary facilities like cafés, changing rooms, and farm shops to support additional income streams”
Originating from Mexico in the late 1960s, padel has gained recent traction across Europe and is now booming in the UK. Played on a smaller, enclosed court using tennis scoring, padel combines elements of squash and tennis. Its appeal lies in its fast pace, accessibility, and social nature. Typically played in doubles with underarm serves, it suits mixed-ability groups and offers a more inclusive alternative to traditional racquet sports. This rise aligns with a broader societal shift toward health and wellbeing. People increasingly seek exercise that is enjoyable and social, not just functional. Younger generations, driving an 8% increase in gym and fitness spending, are opening up new markets for innovative sporting ventures. The pandemic’s impact on work culture has also played a role. With flexible work now the norm, people are no longer tied to urban centres, freeing up time and space for leisure activities in rural areas. This shift, coupled with growing support for local businesses, presents a unique opportunity for rural development.
Padel’s Popularity
For landowners, padel offers a chance to diversify income and repurpose underused agricultural buildings. The compact court size makes it ideal for rural settings, allowing flexible land use while meeting community demand. From a commercial perspective, indoor courts offer year-round usability and durability, while outdoor courts appeal during summer months. Revenue models vary: pay-to-play, memberships, or partnerships with clubs and schools - all with proven success. Padel developments also create opportunities for ancillary facilities like cafés, changing rooms, and farm shops to support additional income streams. Though padel requires more upfront capital than some diversification options, the long-term returns and added opportunities make it a worthwhile investment. It’s important to seek professional advice, tailoring plans to your site’s specifications, to help build a sustainable business model. Class R Permitted Development Rights (PDRs) allow for the change of use of eligible agricultural buildings to be repurposed for flexible commercial uses. These rights streamline the approval process, with fewer criteria and shorter timelines when compared to the traditional planning application process. However, the Class R eligibility criteria are strict and should be carefully navigated with the advice of a rural surveyor. Seek advice on practical steps to ensure the long term-site potential is maximised. The building eligibility requirements include:
Developing and Diversifying Your Estate
Used solely for an agricultural use as part of an established agricultural unit on 3rd July 2012 or for a period of 10 years. Must not be a listed building. A maximum floor space of eligible agricultural buildings for change of use under Class R must not exceed 1,000 square meters per established agricultural unit.
Practical development requirements include lighting, parking, and access - also central Class R considerations include contamination, highways, noise, and flood risk. Each site presents unique challenges, often requiring third-party surveys. It is important to identify these early, helping avoid unnecessary costs and delays. Developments where a building requires external modification and landscaping, like new-build courts or large leisure complexes, require full planning permission. These applications demand more detailed proposals and broader assessment against local planning policies. The rise in popularity of padel presents a new, exciting opportunity, for those wanting to diversify their assets. Seek advice early on to ascertain if you can use permitted development rights or full planning, and to conduct feasibility studies, site assessments, stakeholder engagement and support with planning applications – which will ensure a smooth path to successful rural diversification.
Tom Fussey, Rural Surveyor 07825 594 062 tom.fussey@bidwells.co.uk
Fixed Price Contract A one-year fixed price is available at £30 per tonne, covering up to 65% of a grower’s Contract Tonnage Entitlement (CTE). This offers a secure, predictable return for a significant proportion of the crop. Guaranteed Base + Market-Linked Bonus An alternative one-year contract sets a guaranteed base price of £25 per tonne, with additional earnings possible through a market-linked bonus, covering up to 100% of the tonnage. Index-Linked Contract Growers can also opt for an index-linked contract for up to 50% of their CTE, giving greater alignment with future sugar market movements.
The new contract price represents an adjustment from the previous year, reflecting the current pressure on the global sugar market. While this season’s fixed price is lower than last year, the broader package of measures is designed to balance financial stability with opportunities for growers to benefit from market improvements. The 2026/27 contract provides several clear pathways: security through fixed pricing, the potential for higher returns via a market-linked structure, or the flexibility of an index-linked approach. This contract offer will not suit all growers, and it is for the individual grower to decide whether to grow or not. The additional offer to take a contract holiday for one year will help ease the decision not to grow, as, unlike in previous contracts, they will still get a contract offer to grow in the following year. Each farm business will have different needs, so it is worth reviewing the contract options in detail to determine the best balance between stability and opportunity for the season ahead.
Guy Bicknell, Partner, Rural 07780 266 952 guy.bicknell@bidwells.co.uk
Key Contract Options
Additional Support for Growers
Market Context
“The new contract price represents an adjustment from the previous year, reflecting the current pressure on the global sugar market”
Yield Protection A £1/t reduction applies across both the fixed and market-linked contracts, helping to offset variability in crop performance. Transport Allowance Transport allowance is available for deliveries up to 60 miles from ALL factories. Contract Holiday A one-year contract holiday option is available for up to 750,000 tonnes of CTE, allocated on a first-come, first-served basis. Extra Measures Interest-free cash advances, late-delivery payments and complimentary frost insurance are also available as in previous years.
