Peterborough Council puts more farms up for sale

Peterborough City Council is continuing to sell off its council farms with the listing of five lots covering a combined 493ha of Grade 2 arable land.

The cash-strapped council had a large rural estate portfolio exceeding 1,200ha, with more than 20 farming tenants. However, almost half of this has since been put up for sale.

See also: Peterborough council begins mass farm sell-off

A local government finance review in 2021 suggested that Peterborough City Council should sell off its farms as a way to plug the gap after it fell into financial difficulties.

The review, by Department for Levelling Up, Housing and Communities, recommended that the council not sign any new farm business tenancies, so that agricultural land could be sold free of tenancies where possible. It also said the council should make no further capital investment in farms.

Newborough Estate, covering 493ha near Peterborough, has been listed by land agent Savills for sale as a whole or in up to five lots.

This follows the sale of an 80ha holding at Turves Farm, Peterborough, by the council last year.

Tenant Farmers Association chief executive George Dunn said: “It is a huge frustration that years of financial mismanagement by Peterborough City Council has led to its decision to dispose of a significant area of its farms estate which should be providing opportunities for new entrants and progressive farmers.

“Under better management, the council tax-payers of Peterborough should have expected to have been able to harvest ongoing financial benefit year on year.

“However, in 2021, Peterborough was identified as one of a number of councils that were under central government special measures due to lack of adequate financial control and, as a result, was told to dispose of available assets including farms.”

Mr Dunn added: “While those with security under the Agricultural Holdings Act 1986 and on long-term Farm Business Tenancies will be protected, I am worried that those on shorter term agreements are unlikely to be given renewals. This is a sad day for Peterborough and for county council smallholdings generally.”

A spokesperson for Peterborough City Council said: “The council has been in the process of negotiating sales of its rural estate for the past two years, following a review of its finances carried out by the Department for Levelling Up, Housing and Communities.

“As part of this process, areas of the rural estate were offered to tenants on a first refusal basis and we remain in negotiations with tenants who have made offers.

“However, it is likely that parts of the estate will also be offered for sale on the open market and we will announce updates in due course.”