Sir Ashley Fox's Perspective on LBC
In March, Bridgewater MP Sir Ashley Fox appeared on LBC radio to discuss the inheritance tax debate and its impact on Britain's farmers1 . During the interview, he illustrated the financial challenges with a striking example: a farm valued at £5 million, yet generating only £50,000 in annual income—a return of just 1% on the asset value.
Average Farm Income and Land Yields
Data from DEFRA for 2023/24 projects the average farm income at £86,000 per year. The average farm size in Britain varies widely, with estimates ranging from 208 to 440 acres. This equates to an income of roughly £200 to £440 per acre, though many farms earn much less. Notably, 59% of farms report a farm business income below £50,000 annually—income that does not account for the significant costs required to produce it.
The Scale Problem: Small Farms Under Pressure
Britain is home to some very large farms, with holdings over 1,500 acres. However, the majority struggle to make ends meet. Conversations with working farmers reveal that many would be satisfied with a return of just £150 per acre from their crops, before even considering risks such as disease or adverse weather.
Smaller field sizes present additional challenges. Modern agricultural machinery is designed for efficiency on large tracts of land, making operations on small fields less viable. For example, a 40-acre field with grade 3 soil quality is unlikely to yield a sustainable profit from traditional crops. Even alternative uses, such as installing polytunnels, require substantial investment—often beyond the reach of smaller farms.
Rethinking Land Use: The Case for Solar Farms
Given these economic pressures, repurposing small plots—especially those under 20 acres—for solar farms emerges as a practical solution. If located near industrial parks or heavy industry, these solar installations can provide long-term, lower-cost renewable energy to local businesses while returning funds to the community.
This approach offers multiple benefits:
- Provides farmers with a reliable income stream, supporting long-term planning and investment in land stewardship.
- Enables local businesses to reduce their energy costs and carbon footprint.
- Ensures the land remains managed and productive, with options for grazing sheep to maintain soil health during the solar farm's lifespan.
- Smaller plot sizes help to reduce the visual impact solar farm have by ensuring they are in unobtrusive locations.
- After 40 years, the land can be renewed, having rested and improved in quality.
Conclusion: A Sustainable Future for Rural Communities
British farmers are stewards of the countryside, essential for food production and environmental management. As traditional farming becomes less viable on small plots, innovative solutions—such as community-focused solar farms—offer a way to support rural economies, protect the landscape, and ensure a sustainable future for all.