Cross elasticity: Demand for allotments

From Wrexham to Eastbourne and in virtually every part of the country, the demand for allotment space is rising much faster than local councils can supply. The economics of having your own allotment land have changed significantly in the last few years. Allotments peaked in popularity in the immediate post-war years as people looked to grow their own food and drag themselves out of the restrictions of rationing. But gradually the number of allotments declined as the food availabilty improved, real prices fell and the number of supermarketsexpanded. By the 1980s using an allotment was widely regarded as the preserve of the ‘Good Life’ crowd and those in retirement wanting a way to pass the time.

But now the combined effect of rising food prices, growing concerns over the environmental effecs of food miles and demand for locally-grown organic produce has prompted a fresh wave of demand for scarce allotment space.

Sadly the supply of plots is inelastic and long and lengthy waiting lists have remained the method of choice for balancing supply and demand. In some parts of our major towns and cities there are no allotments at all as land has been sold to private property developers by local councils strapped for cash. Councils are legally obliged to provide 15 allotments per 1,000 households and under current rules, no more than six people are allowed to be waiting for a plot at any one time.

One approach has been to divide up current allotment space into smaller plots so that more people can have access to one. Another has been to give beginners smaller areas of land.

If demand is running well ahead of supply, the market approach would be to raise the annual rent or perhaps introduce an auction system for allotment land as it becomes available. However charging market prices might have equity considerations especially when a large number of people tending their plots are elderly and on low incomes. In Harlow in Essex for example, the cost of renting a plot is typically about £18.00 for the whole year depending upon the size of the plot, with concessions given for pensioners or those on benefit.

Looking ahead, if food prices are to remain high and councils and the government are truly serious about improving access to land for people to grow their own fruit and vegetables as a means of improving health outcomes, the approach must be to make more land available, for example by turning brownfield land in urban areas back into land that is available for cultivation. A combination of economics and some vision is needed.

For more ... read ‘Dig for thrifty’