Galbraith Rural Matters Autumn 2023 by Galbraith

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Room for right to roam?

Your Place or Mine?

Relinquishment and Assignation

Miles, Megawatts & Money

Public access: A host of opportunities and challenges for landowners.

Local place plans can unite the needs of local communities and landowners.

Michael Halliday from our Castle Douglas office offers his experience of the new legislation.

the complex issues behind rebuilding the electricity grid for the green-energy era.

Autumn 2023

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| Rural Matters | Autumn 2023

As I write, cereal harvest is almost complete and growers are assessing the impact of the very dry conditions earlier in the summer, followed by torrential rain and very unsettled spells throughout the UK, just when it was least needed!

Welcome to Rural Matters Autumn 2023 Edition

The newspapers are full of the controversy over ‘nutrient neutrality’ rules and water quality in our rivers. Farmers and landowners are under scrutiny as never before, with national conversations about biodiversity, nature recovery and public goods all looking to landowners to provide the solution. The vast majority of landowners are keen to know how they can do more, or can demonstrate what they are already doing, to help native species to prosper and thrive, but we still need greater clarity, and support, from policymakers. While it can sometimes feel as if we are under attack, the articles and insights in this edition of Rural Matters, provide a wealth of reasons to be cheerful, alongside some insightful knowledge.

By embracing those aspects of the national conversation on nature recovery that are appropriate to your business, and working more closely with the local community, there are numerous opportunities to maximise the potential of your land. Galbraith has been at the forefront of the estates and farms market for over 250 years. We have 78 specialist agents located across Scotland and the north of England, with detailed local knowledge of rural management and land agency as well as a national perspective through our network of offices. Our aim is to help our clients adapt and thrive in these fastmoving times. We hope that this edition will provide useful food for thought and I hope you have enjoyed a successful harvest and that your livestock are thriving.

Ian Hope 07968 209 543 ian.hope@galbraithgroup.com Head of our Rural Department

Galbraith is a leading independent property consultancy. Drawing on a century of experience in land and property management the ﬁrm is progressive and dynamic employing over 200 people in offices throughout Scotland and the North of England. We provide a full range of property consulting services across the commercial, residential, rural and energy sectors. Galbraith provides a personal service, listening to clients and delivering advice to suit their particular opportunities and circumstances.

Follow us on twitter: @Galbraith_Group Like us on Facebook: www.facebook.com/ GalbraithPropertyconsultancy See us on instagram: www.instagram.com/ GalbraithGroup Join us on Linkedin: www.linkedin.com/company /galbraith

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Contents

32 Miles, megawatts and money.

34 Active kids on Snaigow Estate.

Solar Vs Agriculture

Harmonious tree planting.

In at the deep end.

Relinquishment and assignation.

Room for right to roam?

Rivers, house builders and farming.

Preparing for sustainable farming.

Telecom mast negotiations.

Experts in their ﬁeld.

Peatland action project development support scheme.

Mind your P’s and Q’s.

Risky business.

Short term lets... long term commitments.

We are what we eat.

40 Land sales north of England.

Work experience case study.

Land sales south west Scotland.

27 Group life insurance.

Your place or mine?

28 Market update Autumn 2023.

31 13 Show and tell.

Saddle up! A whistle-stop tour of rural businesses in Canada.

Great Glen challenge.

Making the Grade on Energy Efficiency.

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| Rural Matters | Autumn 2023

SOLAR VS Rene emissions by 2050. As such, the demand for land for renewable energy projects has reached unprecedented levels in the past year and shows no sign of stopping. Renewable developments offer large financial benefits for landowners but some, particularly solar farms, require substantial amounts of land. Approximately 25 acres of land is required for every 5 megawatts (MW). Space is not just needed for the panels but essential equipment for the solar farm to operate and there also needs to be enough space between the rows of panels to allow for maintenance access. Due to the amount of land that solar farms occupy, these developments have been seen as a threat to British farming as it is thought that this land should be used for food production rather than the harvesting of sunshine. Land in the UK is varied and it is important to consider the best place to locate renewable energy when considering strategic use of land. There are certainly plenty of brownfield sites, roof-tops, motorway embankments and car parks that can be used, however putting solar arrays on farmland is not as damaging as many people think.

Across all UK land, ground mounted solar panels only cover 0.1% of it, or about 40,000 acres. To meet the government’s net-zero target, the plan is to scale up solar, bringing the overall percentage to 0.3% of all UK land or 0.5% of UK farmland (Is Solar Power a ‘Threat’ to UK Farmland, CarbonBrief, August 2022). If we compare this to golf courses, they take up approximately 667,184 acres or 2% of the UK’s total land area. In order to power the whole country, the UK would require approximately 7.3 million acres of land to be devoted to solar arrays, or 12% of the landmass, but there are other renewable technologies available to reduce the amount and type of land required. Renewable technologies are a popular way for farmers to diversify by providing an alternative revenue stream. In addition, the land is taken out of the normal cycle of farming so it could be argued that better crop yields could be achieved once the solar panels have been removed. Solar farms are not

permanent structures and there is no permanent loss of farmland as this land will be returned back into agricultural production once the lease term has ended. If agricultural land is used for solar developments, planners will push for dual usage such as combining solar panels with grazing animals or wildflower meadows to help with crop pollination. Recent studies carried out in solar developments have found that they have a role to play in habitat provision, flood mitigation, carbon storage, and mitigation of soil erosion. Dual usage can be achieved through agrivoltaics, which allows for the perfect crossover between energy and food production, whilst resolving the conflict between the two. Agrivoltaics is the dual use of land for agriculture and solar generation to maximise land use. We do regularly see dual use solar farms in the UK through the grazing of sheep under solar panels which helps reduce solar farm maintenance costs by managing foliage under and around the

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AGRICULTURE place worldwide to work out the best way in which solar and crops will work well together and what crops will thrive within the microclimates under the panels. Currently there are three types of agrivoltaics: •

Spaced – where the solar panels are installed at steep angles in order to leave large gaps between the panels to allow for crops or grazing. This would suit crops that require direct sunlight such as cereals and grains

•

Stilted – where the solar panels are lifted from the ground on stilts, leaving large spaces to plant crops. This would suit crops that are shade-tolerant, such as tomatoes or lettuce.

•

Roofed – where the solar panels are placed on top of greenhouses or livestock sheds.

Agrivoltaics can improve agriculture and animal husbandry by synergistically providing temperature regulation, moisture retention, shade and cheap electricity for heating. However, they do come at a greater upfront cost and it may require changes to agricultural machinery and/or practices in order to combine harvesting both crops and sunshine. The solar and wider renewable industry is one that is always adapting, improving and becoming more efficient. Although the UK is not quite there with agrivoltaics at the moment, if the debate on land use continues, the industry will need to adapt further in order to achieve the country’s net-zero target. n

Philippa Orr 07917 220 779 philippa.orr@galbraithgroup.com

Renewable technologies are a popular way for farmers to diversify by pr alternativ stream. Philippa Orr

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| Rural Matters | Autumn 2023

Harmonious tree planting The Woodland Trust Scotland, Soil Association Scotland and NFU Scotland have jointly called on the Scottish Government to provide ringfenced funding for agroforestry and to support farmers and crofters to incorporate tree planting on their land alongside food production.

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More than 85% of Scotland is classified as Less Favoured Area (LFA), with low productivity for food production. This means that there should be significant potential for landowners to improve business efficiency by enhancing the value of underproductive land through the establishment of woodlands. Crucially, the production of food does not have to be sacrificed to plant trees. Healthy soil, clean water, and biodiverse ecosystems are the cornerstones of food production, and they can all be supported by carefully planned and well managed woods. The use of shelterbelts in dairy systems have been shown to decrease heat stress in animals and improve milk yields. Additionally, trees on farms can benefit society at large by absorbing carbon, providing habitats for pollinators, and reducing the likelihood of flooding downstream. Increasing the number of trees may boost the insect population, which will in turn provide a food source for birds, with a resulting increase in biodiversity overall. Trees on farmland can also reduce nutrient loss from surface run off. Farm-scale woodland growth can also add a component of diversification to the farming enterprise through the production of timber or other wood products, adding a long-term income stream. Agriculture's main goal has always been and will always be food production. But food production, farm enterprises, and the environment can and must go hand in hand. It is not about choosing between the two but combining the best of both, by ensuring that it is the least productive ground which is chosen for tree planting. This could be a corner of a field which is exceptionally boggy or always floods or is generally difficult to access or use productively. Enhancing the woodland environment may actually increase food output for the various reasons outlined above. So far, we have seen some farmers moving ahead with an area of tree planting while many others are resistant. In recent farm sales, some farmers have very understandably requested that their farm is sold only to a farmer and not to those intending to use the land for forestry. The purpose of agroforestry is not to turn large landholdings over for wholesale commercial planting in their entirety but rather to use the land productively

with the principal focus remaining food production, with an element of tree planting incorporated. Increased tree planting on farms is likely to be central to Scottish government policy going forward, therefore it is wise for farmers and tenant farmers to plan ahead now to take advantage of future government support. For tenant farmers, the process may be more complicated but there are provisions for land diversiﬁcation which also apply to tenants – and grant funding for woodland creation is available to tenant farmers. In essence, tree planting absolutely can and should be part of your planning. There is no need to sacriﬁce productive ground, rather, choose the

Increased tree planting on farms is likely to be central to Scottish government policy going forward... Alice Wilson

least productive land, within an LFA and take advice on which species to plant and when. Creating a shady area for livestock is good for animal welfare, may create an additional income stream and may potentially fall within the requirements of future support for the agricultural sector, which is tending to favour habitat creation alongside food production, If you are considering agroforestry, please do call me to discuss, or call your local Galbraith office for advice. n

Alice Wilson 07920 724 906 alice.wilson@galbraithgroup.com

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Room for right to roam? Following Labour’s vow to introduce a Scottish style “right to roam” in England and Wales, as well as the recent High Court judgement supporting wild camping on Dartmoor, public access is now a topic at the forefront of public debate.

In Scotland a right to walk through the countryside but “leave no trace” has been part of life since the Land Reform (Scotland) Act 2003, bringing with it a host of opportunities and challenges for landowners. With approximately 4,952 miles of available footpaths in England alone, many landowners have already sought to monetise this opportunity by building hard-standing car parks, installing milk vending machines and even offering overnight accommodation in high footfall areas. Our experience acting for landowners along Hadrian’s Wall suggests that the business opportunity is clear for those brave enough to open their gates. In addition to self-funded projects, DEFRA have also made clear their desire to “support access to our countryside, farmland, or woodland, so the public can understand and become engaged with farming and the

environment.” Countryside Stewardship funding is already available for a variety of actions including farm tours; new signage, toilets, bridges, and gates; as well as for enabling permissive access through woodlands. However, for those English and Welsh landowners seeking a quieter life, the talk of additional public access rights is likely to be unwelcome news. Whilst the current public access system can leave landowners feeling frustrated as walkers, cyclists and horse riders stray from designated routes, many of these paths have been trodden for decades and are already integrated into their farming systems. A submission under Section 31(6) of the Highways Act 1980 can protect landowners from the inadvertent creation of any new public rights of way by prescription and as such there is still an element of control. However, the fear of a “right to roam” policy is that it will open the ﬂood

gates for wider, less manageable public access, posing safety, business, wildlife and environmental concerns. It is important for any new legislation to strike a balance between expanding public access and managing the knock-on impact on rural businesses and the wider environment. It is crucial that any future rights are well-deﬁned and pre-agreed to ensure that people can enjoy the open countryside, whilst also protecting areas landowners would prefer were not disturbed by high volumes of foot traffic. Landowner consultation will be needed to ensure public safety and environmental protection. n

Heather Warburton 07792 503 685 heather.warburton@galbraithgroup.com

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Telecom mast negotiations Telecoms companies are increasingly aggressive in negotiating the siting of equipment. Ian Thornton-Kemsley looks at the latest developments Operators are adopting a very aggressive approach in radio mast negotiations. Whereas under the 32 years of the previous code, some 52,000 radio masts were rolled out across the UK with only seven reported cases of the use of compulsory powers, this has totally changed following the introduction of the Electronic Communications Code 2017 (“the Code”) as operators exploit their new powers.This is important to landowners such as farmers because typically, they own or control the land on which telecom providers wish to site their masts. The Westminster Government is keen to facilitate the process to modernise the UK economy, ensuring more remote areas aren’t left behind in the mobile and wireless revolution. In the three years following the introduction of the new Code there have been over 900 applications to settle siting disputes in England and Wales and some 80 in Scotland to the tribunal. Contrary to the expectations of Government during the introduction of this legislation, operators have shown a propensity to litigate under the Code rather than negotiate. Despite the requirement that the legal tribunals award terms that protect landowners, operators are not really prepared to consider

representations made by landowners on key contractual terms, often leaving them unable to safely access their own roof-space. Rather than increase the rentals they offer, some telecom companies use other inducements to obtain a consensual agreement; such as premiums of up to £15,000, considering these as ‘commercial payments’ rather than part of an agreed package. In respect of lease renewals, notwithstanding the provisions of the Code, operators ignore the terms of the existing agreements, and seek new agreements heavily weighted in their favour. Despite established case law, they make little attempt to justify their position and it is only if the matter goes before a tribunal that they make any attempt to justify the changes demanded (which are heavily weighted in their favour). Recent cases have highlighted the anti-competitive nature of agreements reached between operators and we have seen instances where landowners have offered to build out sites themselves rather than accept the terms and payments offered via Code applications. n

Ian Thornton-Kemsley 01224 860710 Ian.Thornton-Kemsley@galbraithgroup.com

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Risky Business Farming has the poorest safety record of any occupation in the UK, with one person killed on average every nine days over the past decade. But there are simple steps that all farmers can take to improve their health and safety at work.

Farmers account for just 1.5 per cent of the UK’s workforce, but 20 per cent of workforce deaths.

and in recent years have advised a number of Galbraith’s rural clients. The company was founded by Tracey’s husband, Ian, who has 20 years’ experience in the health and safety sector.

Non-fatal injuries are also far too high. On average there are 1,650 injuries per year across all industry sectors but in agriculture the ﬁgure is 4,100.

The ﬁrm provides support to a range of industries including agriculture, health care services, hospitality and construction.

The main causes of injury are through livestock handling, falling from height and being struck by a vehicle.

Tracey has kindly answered some key questions on Health and Safety which I hope will provide valuable insight to our clients.

The statistics make grim reading - 27 people were killed last year in the farming sector.

In busy times, Health and Safety can be the last thing on people's minds, but the advice from the experts is: don't risk it! To gain a greater insight into health and safety, I asked Tracey Billings from Fleet Health and Safety to outline some of the risks and hazards to be avoided. Fleet Health and Safety are based in Dumfries and Galloway

Should every business/farm have a H&S policy? Yes. Whilst it is not a requirement to have a written policy if less than 5 people are employed, we believe every farm should have one. It demonstrates a commitment to health and safety. It should show what the organisation is going to do to keep people safe, who is going to do it, and how.

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FARM SAFETY - DO’S & DONT’S: •

• • • • • • • •

Don’t assume that a cow you’ve known for years will always act in a calm and predictable manner – if it’s dark or if startled, any animal can act in an aggressive way; Check ladders and other safety equipment regularly for defects; Keep a register of on-farm risks and make sure all colleagues / family members are up to date with safe working practices; Never attempt to ﬁx a roof on your own; Always tell a family member where you are going and what time you will be back; Never use machinery without the safety guards in place; Always wear PPE and make sure it ﬁts you correctly; Keep a mobile phone in a secure pocket and make sure it is fully charged; Respect livestock and stick to safe procedures for livestock handling.

Are there common areas of health and safety clients often overlook? Yes - the importance of training and instruction for all members of staff; slips and trip hazards are often overlooked yet simple to put right; the importance of wearing personal protective equipment at all times; machinery and vehicle maintenance is crucial too. Farmers are undertaking such a wide variety of jobs on their land and many of them are intrinsically dangerous e.g. welding, joinery, milking cattle, ﬁxing roofs, helping deliver calves during a difficult labour, harvesting and cropping using a wide variety of machinery and vehicles. That in itself is dangerous but when you add in the fact that many farmers undertake most jobs on their own, in all weather conditions and with severe time pressures, it can be a fatal combination. What is the area of H&S you most frequently have to deal with? Lack of training and supervision, provision of information and consulting with employees. Although health and safety is a legal requirement, it shouldn’t be complicated. We can provide a relatively simple health and safety system that will assist in making sure farmers are compliant.

Have there been any significant changes to H&S in the last 5 years? The number of fatal and non-fatal injuries has decreased over the last few decades which is a good outcome but figures for workplace ill health remain too high. During and since the pandemic, workers are taking more time off for issues such as stress, anxiety and depression Describe your role/or what a typical day looks like. Every day is different for each of our team. We might be carrying out a health and safety inspection, delivering farm safety or other types of training, carrying out a risk assessment, writing up a policy document or visiting customers to assist in their understanding of their health and safety system. How do you deal with H&S violations in the workplace? It would depend on the severity of the violation. We would begin with advising on the consequences of an accident or incident and explain possible outcomes of breaching regulations. Our approach would then be to advise on control measures to rectify the breach, and assist the client in putting controls into practice. Once a violation has been identified, we would work with the client until the breach is rectified.

How would you encourage farm workers to follow the H&S policy at work when they are often reluctant (e.g. wearing a helmet on a quad bike)? A good interactive training course such as our Farm Safety training which provides an understanding of why they need to follow instructions and what could happen if they don't. All workers are responsible for the health and safety of themselves and anyone affected by their activities. Involve workers in the risk assessments and decision making if possible. It's always better that they buy into health and safety measures. What tips would you give readers for implementing a simple but effective health and safety policy? A health and safety policy should state how an organisation is going to keep their workers safe and comply with regulations, who is going to do that and how. Set up key responsibilities and monitor. Consult with employees so that you are involving them. Provide training, information and make sure all employees are aware of controls put in place on the risk assessments. All of these will improve health and safety culture and help put the written policy into practice. Do you have a system for the continuous improvement of H&S within the workplace? As consultants, we support clients to implement their health and safety system every step of the way. We don't just give clients a nice shiny file and let them get on with it. We sit down with clients to make sure they understand their policy document, risk assessments and responsibilities. An action plan is provided after an inspection and we then follow that up with regular visits to the client’s premises. In brief - monitor, audit and review. What is the process to have a Health and Safety system or policy implemented on an estate/farm? To implement a health and safety management system, you need to devise a systematic approach to managing risks in the workplace. A policy is the basis of a health and safety system, once that is in place and clear responsibilities are set, tasks can be assigned. Consultation with employees is important. They need to know what you are doing and why. What do you find most challenging in your job? The lack of time that employers allow to manage health and safety What do you find the most rewarding? Making a positive contribution to keeping people safe in the workplace. n

Rose Nash 07342 053 317 rose.nash@galbraithgroup.com

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Your Place or Mine? Local Place Plans can unite the needs of local communities and landowners Landowners and estates across Scotland are very much part of their local community, providing not just employment but homes, cultural, arts and leisure facilities along with amenities such as local farm shops, pubs or cafes not to mention open access to the natural environment for outdoor leisure pursuits, wildlife watching and exercise.

James Bowie 07824 141 810 james.bowie@galbraithgroup.com

The recent Wellbeing Economy research report produced by BiGGAR Economics for Scottish Land & Estates, found that estates support around 57,300 jobs – around 1 in 10 rural jobs. They also provide homes for 13,000 families, land for 14,000 rural enterprises and attract an estimated 5.4 million people each year to enjoy the countryside. This engagement with, and involvement in, the local community stretches back in many cases over hundreds of years but it can also provide a good foundation for considering future diversiﬁcation or rural business planning. Local Place Plans were introduced in the Planning (Scotland) Act 2019, Section 14 of which contains the right for communities to produce Local Place Plans as part of the Scottish planning system. Local Place Plans set out proposals from the local community for the development and use of land, and so provide an additional opportunity for communities to proactively contribute to the planning system. Communities themselves lead in the preparation of plans which will have an impact on the future of their area. A range of organisations may be involved in Local Place Planning including groups from the public, private and charity sectors, the local authority, or even central government. The legislation requires a clear vision to be set out of the proposed development and land use, such as improvements to community facilities, new homes, better streets, or public spaces. The LPP rules may be used to suggest improvements to resolve local issues such as traffic congestion or a lack of parking or rural housing, or to boost economic growth or improve provision of community activities or access to sustainable transport options, or leisure and ﬁtness facilities. The types of project envisaged under LPP legislation could include tourist and visitor facilities, new woodland creation and carbon reduction schemes, sustainable energy or biomass capacity, commercial premises such as

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offices or shops, cafes, restaurants or pubs to provide jobs, revitalize the local village and boost the local economy. The legislation offers an opportunity for landowners to engage with their local community and consider potential solutions to local issues. For instance, if your landholding is in a remote location where there is a lack of housing for those working in the area, the local community might welcome the opportunity to discuss proposals for residential development. Whether it be remote or urban fringe, commercial development such as retail or office space is often mutually beneficial to both the local community and landowner. It may be that there is opportunity to expand an existing business or indeed look to improve local infrastructure, such as roads or junctions, in order to limit impact on the community and remove any limitations on future development or diversification. In each case, early engagement with your local community council presents an opportunity to find mutually beneficial opportunities for development. It provides a good opportunity to review any plans you have or might have had in the past and consider whether the characteristics would apply well to the Local Place Plan. Local Place Plans must be aligned with delivering national policy aims in terms of the economy and jobs, health and wellbeing, fairness and equality, zero carbon, and community empowerment. The proposals must be compliant with all existing legislation and must be realistic in terms of the likelihood of actually delivering the benefit set out in the plan. The legislative route usually followed is that accepted proposals from LPP would be incorporated into Local Development Plans. Once the Local Development Plan has been approved by the local authority, the proposed development is more likely to be granted planning permission, subject to meeting necessary criteria required by other stakeholders such as NatureScot or Historic Scotland. Landowners and rural businesses working in partnership with local communities can identify pressures and shortfalls that are holding a community back. The landowner may be able to provide space to meet the needs of the community in a way that benefits all. n

SHOW AND TELL In 2022 the Galbraith team ﬁnally got a full year of events under our belt after a three-year hiatus due to the Covid-19 Pandemic. The goal for 2023 was to look at how we could maximise interest and engagement. With over half of the year behind us we can look back on successful participation at events spanning Scotland and Northern England. We started off our year with a trip to the Bull Sales in Stirling and Oban and have seen our teams in Galbraith gilets across the length and breadth of the country supporting their local shows. In the North of Scotland there were appearances at the Black Isle Show, Moy Game Fair and Gordon Castle Highland Games. Our Central Belt team have been to the Game Fair, Fife Show, Perth Show and the Stewartry Show, while our Borders and Northern England team attended the Border Union Show, Northumberland Show and Westmoreland Country Show and many more. Overall, Galbraith have attended more than 60 shows in 2023 so far! The Royal Highland Show was one of our highlights this year. The four-day show kept us busy catching up with clients, friends and other professionals. We started proceedings with our annual drinks reception on the Thursday. On Friday we were treated to a premium gin tasting, courtesy of Galbraith consultant Niall Macalistair Hall, who runs Beinn An Tuirc Distillers when he is not selling property in Argyll and the Isles. On Saturday we hosted the stars of Edinburgh Rugby alongside their fan-favourite mascot Flinty McStag. This year the marketing team incorporated social media into every second on-stand. From Live Q&As to TikTok competitions, there was always something going on under the Galbraith marquee. It is not all shows. Once again this year, the Galbraith teams have been part of some tremendous charity fundraisers, for some very worthwhile causes. We have a team who embraced the great outdoors of Scotland with the Great Glen Challenge which involved a range of activities such as; cycling, running, kayaking, and walking. As well as brewing some ﬁerce office rivalry, the team managed to raise over £2,000 for agricultural charity RSABI. We are not out of the woods yet, and there are plenty more events to keep us busy before the end of the year. The team are well on track to make 2023 the most memorable year yet, but as our event offering grows, we cannot wait to see Kirsten McQuillan what is achievable in 2024. n 07827 352 865

kirsten.mcquillan@galbraithgroup.com

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Saddle up! A whistle-stop tour of rural businesses in Canada

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Earlier this year I was delighted to be one of the seventeen delegates selected to attend a two-week Agricultural & Rural Study Tour to Canada organised by the Scottish Association of Young Farmers Clubs (SAYFC).

The main theme of the tour was Sustainability. The tour involved travelling across Canada, from Alberta to Ontario, seeing some of the differences in Canadian agriculture and Scottish agriculture was quite remarkable. In particular, the scale of some of the units in Canada is unlike anything seen in Scotland. The highlights included standing in a 240 acre ﬁeld which would be the equivalent of a decent sized farm in Scotland! We visited ‘Highland Feeders’ a feedlot producing premium Alberta Beef running 36,000 cattle at maximum capacity - one of the top 10 largest herds in Alberta. Unlike the UK, growth hormones are still allowed in the production of beef. When animals are brought on to the farm they are processed; verifying tags, general health check and inserting a hormone tablet into the ear. We took a trip to ‘Lewis Farms’ which is a 10,000-acre family run farm with 500 acres used to plant seed potatoes, 4,000 acres of grain, 250 acres of corn, 500 acres of silage and the remainder for grazing cattle. We also had the opportunity visit an Elk Ranch with the main purpose of the ranch being the production of antlers. These are very popular, with some antlers selling for £10,000 for artwork or furniture. This was followed by a behind the scenes tour of the Calgary Stampede stadium and watching the impressive horseback cattle penning competition. Once the cowboy hats were purchased and we looked the part we were ready for the famous Calgary Stampede rodeo, which is a

prime example of a health and safety nightmare…. bull riding, calf roping, chuckwagon racing, steer wrestling and barrel racing, none of which would be allowed in the UK! We went from rodeos to more ranches where we learnt all about the production of cattle in Canada. Our next visit was to Barr Ag, the biggest producer and exporter of hay and forage in Canada shipping 25-40 containers a week to Japan, China, Korea and the Middle East. The process of packing the hay begins in the ﬁeld, where it is baled and brought into the shed to be packaged. It is run through a slicer, made into square bales and then double compressed. We experienced a Canadian market at Olds Auction Mart (which sells between 80,000 – 90,000 cattle a year). They also sell sheep, goats, pigs, machinery, land and everything in between. Luckily none of the delegates placed a bid otherwise the logistics of getting the stock home would have been a challenge! We also visited Olds College of Agriculture and Technology to learn about some of the cutting-edge research they are doing on site, mainly their Oc RAE system which uses sensors to gather real

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buffalo, where mozzarella and ricotta were being made and sent back to be sold in the on-farm shop. We visited one sheep unit running 600 Rideau breeding ﬂock. Smaller trips in between included vegetable production units, orchards and distillery tours.

time data on plants to monitor crop growth and disease activity. A remotecontrolled automated tractor has been designed to improve efficiency and accuracy by cutting down on operator fatigue. We left the college to make a ﬂying visit to the 4H Summer Synergy Youth Livestock Show where we saw stock judging, showmanship and sheep dressing. We then enjoyed a tour of Galloway Seeds Ltd; a family run business producing 5000t of seed grain per year that is distributed all over Canada. The family own a total of 2,800 acres growing a mixture of cereals, pulses and Canola (Better known as Oil seed rape). Continuing our travels we toured a pork unit with its own education centre to help to increase consumer awareness, and a maple syrup farm with over 30,000 tapped trees. It was interesting to hear that 40 litres of sap creates just 1 litre of syrup, and that it takes 1 hour to produce 1 litre of sap using the traditional method. For all the dairy fanatics on the trip, who were getting withdrawal symptoms from seeing their cows, the visits to

dairy farms were an absolute highlight! We visited Carlton Farms where they farm a herd of 350 Holsteins, and alongside the cow enterprise there was a 750KW bio-gas digester with the power being supplied back into the grid. The plant is solely run from the dairy herd’s slurry and manure from the calve pens as well as any waste feed that’s been left from the milking herd. The farmer explained that this is a great way to reduce spraying costs because the digester kills any weed seeds that would have been in the slurry. The dry ﬁbre that is left at the end is reused for bedding cubicles. Dairy farmers in Canada still implement a quota system, where they can exchange or purchase quota based upon litres of milk and percentages of butterfat. This is still a well received system as the banks know they will get paid and the farmers know they will get a fair return. We ﬁnished off the tour of this dairy farm with a very enjoyable BBQ with Carlton Young Farmers. We also visited a dairy enterprise milking goats, and a dairy with water

Farm Credit Canada (FCC) which supports growth and prosperity in the Canadian agricultural sector, talked to us about their work. They offer a starter loan that helps to increase ﬁnancial literacy in the next generation of entrepreneurs with no guarantor required. They also offer a young farmer loan which has favourable interest rates and no admin fees, up to $1,500,000 and is available for reliable farmers under 40. We had a tour of the Peninsula Ridge Winery, where 42 acres of vinifera grapes are grown producing all types of wine. We ﬁnished off the tour as wine connoisseurs. Even with our jam-packed itinerary we still managed to have dinner at the Skylon Tower where we enjoyed views over Niagara Falls before heading to the airport for the journey home. The sheer variety of farm and business visits allowed everyone on the trip to experience a range of agricultural systems that were very different to anything we know in Scotland. Many thanks to all at SAYFC and our numerous sponsors, if you are offered the opportunity to join a tour like this – you should jump at the chance! n

Christina Smith 01292 268 181 christina.smith@galbraithgroup.com

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In at the deep end Water Asset Management – Legislative Considerations Water forms a key part of the rural environment and has the potential to be either a signiﬁcant resource or trip fall for landowners. Whether a river, loch, or coastal region is involved, ensuring correct management of our water is an important aspect of land management across the UK. The management of water assets is principally governed by the Scottish Environment Protection Agency (SEPA) in Scotland and the Environment Agency in England. The Water Environment (Controlled Activities) (Scotland) Regulations, more commonly referred to as the Controlled Activity Regulations (CARs), were introduced in 2005 and underwent a number of major amendments, with the most recent made in 2021. The CARs monitor activities that may have an adverse impact on water quality and the groundwater environment such as abstractions, engineering works, discharge and diffuse pollution. When planning any works involving water environments an application must be made to SEPA for review as to whether the works the applicant proposes are lawful and necessary on a case by case basis. Fees are charged by SEPA for this service, however a small number of works do not require permission or an application from SEPA. Galbraith has recently been involved in the planning stages for a number of unique and challenging projects involving the water environment,

including adjusting water flows for hydro infrastructure to improve the efficiency of electricity production. This involves planning to moderate the flows through a river system and has involved the advice of a hydrologist and extensive planning of the best course of action. In this case the CARs require that the water environment is protected and all applications are assessed for their biodiversity, hydrological, and societal impacts. A separate project involved improving fish passage which included working with existing Victorian infrastructure to find workable solutions for all interested parties including complex legal frameworks and engineering options. Working with those involved to develop an acceptable solution has been a long running project which is driven by the requirements of the CARs. If any water assets under your management require enhancement or maintenance do not hesitate to get in touch with our rural team who can provide a wide range of consultancy for water projects, including liaising with the relevant governing body and the drafting of initial applications. n

Galbraith has recently been involved in the planning stages for a number of unique and challenging projects involving the water environment...

Cameron Main 0131 240 6960 cameron.main@galbraithgroup.com

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| Rural Matters | Autumn 2023

RIVERS, HOUSE AND FARMING The perception that agriculture is failing our rivers is growing. Hugo Remnant looks at the options for farmers.

Last May, we commented that while the focus of river pollution was on the water companies and sewage discharges, we could expect farming to come under the spotlight.

establish, housebuilding near rivers has stopped altogether in the affected catchments at a time when the need to build more homes is a national priority.

That was because diffuse waste from agriculture is regarded as a much bigger contributor of pollution to our rivers than water companies. The Environment Agency has reported that the majority of England’s rivers are in poor ecological condition, and Parliament has found that agricultural pollution is the most common factor.

In order to free up developers to build, the Government has now loosened the rules around building houses near waterways. Reactions have been swift:

Sure enough, headlines such as ‘Ministers propose scrapping pollution rules to build more homes’ (BBC, 29 August) show a shift in focus to farming. The Government’s initial response to the public outcry over rivers has been to apply a ‘Nutrient Neutrality’ policy, requiring housebuilders to show that proposed developments do not add to the nutrient load in a catchment. Because proof of that is very hard to

•

Environmental bodies blame ministers for watering down rules designed to protect rivers, saying that action is needed immediately;

•

Housebuilders say new houses’ contribution to nutrient overload is negligible, and suggest more effective intervention should involve water companies and farmers;

•

Water companies say that they are investing in infrastructure to reduce sewage discharges as never before, but the work will take many years.

None of this will improve the state of rivers in the short term. But with a General Election looming, there is likely to be renewed focus on diffuse pollution from farming. The Government will no doubt highlight additional money provided to help farmers under the Environmental Land Management Scheme (ELMS) as justification for asking UK agriculture to put its house in order. While capital grants are available to help farmers address pollution, generally they stop short of 100% funding, so the balance must be paid at a time when profitability is low. Yet farmers’ reluctance to invest may look short-sighted if current financial support is replaced by increased regulation, with enforcement and fines.

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BUILDERS

Thus, the options for farmers include: •

Investigating the availability of capital grants;

•

Reducing the risk of nutrient run-off through best practice;

•

Managing soils to reduce run-off, keeping nutrients in the ﬁeld and available to growing crops;

•

Maximising revenue from the environmental enterprise (ELMS), to improve farm business resilience.

The need to look after soils explains the growing interest in regenerative farming practices. That is likely to be a part of the solution. At Galbraith, we can help farmers and landowners to identify the best support structures to suit their individual property. Please contact us to discuss the available options. n

Hugo Remnant 07718 523 051 hugo.remnant@galbraithgroup.com

Natural Capital: Galbraith’s expert advisers guide our clients in realising value in all land uses – by assessing and measuring natural assets, furthering opportunities in biodiversity net gain, and ensuring stakeholders are rewarded fully for their investment in and contribution to delivering ecosystem services and net-zero outcomes.

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| Rural Matters | Autumn 2023

Experts in their ﬁeld Galbraith have a plethora of talented agents across multiple industry-speciﬁc disciplines but for some that expertise also extends into the sporting sphere. Many relax out of hours with hobbies and sport as a means to re-charge but some have found excellence equivalent to their professional careers. In this edition of Rural Matters we have taken time to pick the minds of those who walk the tightrope of both professional and sporting success. For a graduate the journey to pass your APC (Assessment of Professional Competence) and become a RICSaccredited surveyor may feel like scaling a mountain - but for Iain Paterson that just sounds like a weekend well spent. Iain works in our Perth office and when not supporting the Residential Sales team he competes in endurance horse riding – long distance racing across tracks varying between 80 to 160 kilometres. This passion was engrained from the age of ten by his mother who was keen to keep him interested in horses. He juggles daily training alongside the day job, as well as travelling the globe competing. Iain’s talent has seen him represent the Scotland national team seven times and also win the toughest endurance race in the country – 100 miles in one day over the Cairngorm Mountains.

Still not satisfied, he has his sights set on becoming Scottish Champion, as well as ensuring his young horse qualifies for British team selection. The term ‘land agent’ is one that bounces around the industry but for Anna Fisher she’s equally adept on water. The talented rower competes for St Andrew Boat club and has also represented Scotland. Anna works full-time in our Stirling office as part of the rural team whilst fitting in between six to nine training sessions per week depending on schedule and programme. She finds being organised with meals and nutrition in advance - and scheduling longer training sessions in the evening after work - allows her to manage the workload effectively. Anna’s highlight to date is being selected for the Scotland team for the home International Regatta and winning gold in the eight. Attention now turns to qualifying for the 2024 Henley Royal Regatta. It takes a degree of mental fitness to juggle the workflow of a Rural Surveyor but it’s Rachel Urquhart’s physical fitness which has brought sporting success. Rachel, who works in our Highland hub, started CrossFit as a hobby after moving back home

following university. After getting a taste for it she began competing and success in Britain’s Fittest Farmer Qualifiers at the 2023 Royal Highland Show led to second place in the Finals in September 2023. They do say there’s nothing like some friendly office competition and Rachel is also looking forward to participating in the Baxters 10k in Inverness soon, alongside nine of her colleagues. To maintain competitive pace Rachel manages four to five CrossFit sessions a week around her working schedule, alongside hill walking and rolling wool at the weekends. These three agents personify the sporting balance many of the firm’s workforce find weekly. Although it may appear that high performance alongside full-time employment could be a hindrance, it’s their unwavering commitment and dedication to their craft that allows them to excel on both fronts. We salute you! n

Callum Kerr 07920 496 824 callum.kerr@galbraithgroup.com

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Short Term Lets... Long Term Commitment? In an effort to regulate the short-term letting industry, the Scottish government passed the Regulation of Short Term Lets (Scotland) Act 2021 last year and the deadline for applications on 1 October is fast approaching as we go to print. Under this legislation, individuals who intend to rent out their properties on a short-term basis, such as holiday lets, must obtain a Short Term Let License. The deadline for applications is the 1st of October 2023, however, transitional rules for existing hosts allow the continuation of letting without a license, as long as their application has been submitted. Anyone operating without a license could be deemed to be committing an offence, punishable by a ﬁne of up to £2,500 by your local council. These rules are due to apply to all types of accommodation, from holiday cottages to B & Bs, guesthouses, a room that is being let within a private residence, glamping pods and yurts! The primary objective of these licences is said to be to introduce greater transparency and control to the shortterm rental market. By imposing regulations and licensing requirements, the government aims to strike a balance between tourism-driven economic beneﬁts and maintaining the character of Scottish communities. A further aspect is to establish improved regulation and enhance the

effectiveness of health and safety standards within the sector, to align with the strict health and safety conditions already governing the private rented sector (PRS). It is arguable as to whether any of these objectives is not already being met by the current system and there are concerns that the new legislation will simply reduce supply and increase average prices. However, accommodation providers must comply with the regulations to either continue to operate or to start the process of a new holiday let. As part of the licensing requirements, accommodation providers are mandated to meet specific standards, which include having a valid Energy Performance Certificate (EPC), holding the necessary gas and electrical safety certifications, and adhering to prescribed maximum occupancy limits. Moreover, local authorities can set

supplementary conditions based on the needs of their respective area. Therefore, it is essential to verify and comply with your local council stipulations through their online guides and webpages. Many property owners have proactively initiated the application process in anticipation of the impending deadline. The continued uptake of these licenses will provide valuable insights into the willingness of property owners to adapt to these new standards and regulations. Local communities will be closely observing how this regulatory shift inﬂuences the availability of housing stock and property prices in their area. While it remains too early to draw deﬁnitive conclusions, it is clear that the regulations will reshape the short-term letting landscape. This may carry future implications for property owners and will certainly change market dynamics in Scotland’s short-term letting market. n

Joe Rome

Eadidh Monteith

07768 542 698 joseph.rome@galbraithgroup.com

01786 434 600 eadidh.monteith@galbraithgroup.com

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| Rural Matters | Autumn 2023

The ability for a 1991 Act Tenant to be able to sell their tenancy back to the Landlord (Relinquishment) or to a new entrant or progressing farmer (Assignation) was enacted in February 2021. Michael Halliday from our Castle Douglas office offers his experience of the new legislation.

RELINQUISHMENT Scotland has experienced a signiﬁcantly higher volume of land sales over the last couple of years than we’ve been used to, with factors such as retirement, succession and lack of certainty over the future of agricultural support being quoted as the reason for sale. The same factors apply equally to the tenanted sector, and with the Relinquishment and Assignation provisions of the Land Reform (Scotland) Act 2016 having now been in force for over two years, the sector is seeing an increase in the number of landlords and tenants reaching deals to relinquish or assign tenancies. While the vast majority of deals are being agreed by negotiation, there have been a few that have gone through the formal process. The formal process is very much the option of last resort, as it is a statutory process that leaves no room for negotiation between the parties and must take place within a rigid timeframe.

undertaken without the complexity of negotiating with the agricultural tenant as well as a developer

Beneﬁts of negotiation •

Not constrained by the tight timelines of the formal route

•

Deals can be tailored to suit the parties – a relinquishment might contain a property element as part (or full) payment to the tenant

•

Payments by the Landlord can be timed or split to assist with cash ﬂow or ﬁnancial year ends

Beneﬁts to the Landlord of relinquishment & Assignation •

The relinquishment of a secure 1991 Act tenancy can have a number of beneﬁts for the landlord:

•

the property could be taken inhand and farmed, with potential tax and subsidy beneﬁts. Pre 1995 lettings only receive 50% Agricultural Property Relief (APR) instead of the 100% that is potentially achievable for post 1995 lettings or in-hand farming. Proﬁts would also be taxed as “earned income” rather than “investment income”.

As Assignation involves a new tenant stepping into the shoes of the outgoing tenant (same lease, same rent, same improvements etc.) the benefits to the landlord are less obvious – potentially a new tenant with a desire to invest and improve the holding could benefit the landlord. Additionally, if assignation is achieved by negotiation rather than utilizing the formal route, the landlord might be able to exert some influence on the choice of a new tenant.

•

a signiﬁcant increase in the balance sheet value of the property would be achieved – this could be borrowed against

•

the property could be re-let on a SLDT (Short Limited Duration Tenancy) or MLDT (Modern Limited Duration Tenancy) with a signiﬁcantly higher rental income achievable due to high demand

•

the property could potentially be sold to release capital for other projects

Beneﬁts to the Tenant of Relinquishment / Assignation

•

if there are opportunities for renewables on the holding e.g. wind turbines, this could be

The beneﬁts to the tenant are fairly obvious. The ability to achieve value for the tenancy, and not just the tenant’s improvements, is a game

As indicated above, a negotiated deal is likely to achieve the best results for everyone:

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& ASSIGNATION changer for many tenants and is allowing tenants to retire from farming, where they often would have been unable to afford to do so previously. Comment At the outset of the Relinquishment and Assignation legislation, it was generally considered that landlords would want to undertake Relinquishment due to the beneﬁts and that relatively few tenancies would be assigned. In reality, after an initial ﬂurry of relinquishments, including many before the legislation was actually enacted, we are now seeing a number of assignations starting to take place. Some landowners are comfortable that their core business is the long-term letting of land and are happy to allow tenants to assign the lease to a third party.

There is a growing body of anecdotal evidence in relation to the assignations of tenancies. Generally, they are taking place privately between the outgoing tenant and a neighbouring farmer after a negotiation between the parties or after a private tender process. Assignation (sale) of a tenancy is restricted to a “new entrant” or “progressing farmer”. In reality, a genuine new entrant is unlikely to be able to afford purchase a 1991 Act tenancy and the purchaser will be a “progressing farmer”. The deﬁnition of a progressing farm is very broad, and while it restricts who might be able to purchase a tenancy slightly, it will not signiﬁcantly reduce the value. It is likely that the expected changes to agricultural support in 2026 and beyond will see an increasing number

of secure tenants (without successors) look to utilize the Relinquishment & Assignation provisions to exit the industry. If they have not done so already, a prudent landlord should look at the age demographic and likely succession plans of their secure tenants to help identify potential Relinquishment candidates. Any tenant thinking of utilizing Relinquishment & Assignation would also be well advised to have an early word with their landlord to let them know that they are thinking about this, to give the landlord time to plan. n

Michael Halliday 01556 505 346 mike.halliday@galbraithgroup.com

Pre 1995 lettings only receive 50% Agricultural Property Relief (APR) instead of the 100% that is potentially achievable for post 1995 lettings or in-hand farming. Michael Halliday

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| Rural Matters | Autumn 2023

PREPARING FOR SUSTAINABLE FARMING Funding from Scottish Government Most farmers will be aware of Preparing for Sustainable Farming (PSF) funding from Scottish Government, but possibly not by name.

PSF was introduced by the Cabinet Secretary in October 2021 through the National Test Programme, with the aim of supporting “farmers and crofters to play their part in becoming a global leader in sustainable and regenerative agriculture”. There is quite a bit of cynicism from farmers on what “sustainable and regenerative agriculture” looks like, but we’ll leave that to the side and look at what PSF has to offer farming businesses. There are currently three options within PSF: • • •

Carbon Audits Soil Sampling and Analysis Animal Health and Welfare planning

Additionally linked to PSF, Suckler beef producers can access MyHerdStats through ScotEID.

Carbon Audits Carbon Audits have been ongoing for a little while and are becoming increasingly more important. Recent Capital grants from Scottish Government have required a Carbon Audit (or nutrient management plan) as a requirement of funding. The payment rate from Scottish Government is £500 for an eligible claim.

The Carbon test may be by a Loss of Ignition (LOI) or by a Dumas test.

Soil Sampling & Analysis In order to take advantage of soil sampling and analysis funding, the business must ﬁrst have completed an eligible Carbon Audit within the last three years and also claim Region 1 land on its SAF.

Animal Health and Welfare Interventions Animal Health and Welfare Interventions are the new kid on the block, being ﬁrst announced by the Cabinet Secretary at the NFUS Conference in February this year.

Each business is allocated a maximum soil sampling allowance, which is calculated by taking 20% of the business’ Region 1 area and multiplying it by £30. For a farm with 100Ha of Region 1 land, the maximum soil sampling allowance would be £600 (100Ha x 20% = 20Ha. 20Ha x £30 = £600).

Any farmer or crofter with an active BRN number who is also registered with Rural Payments and Services and has a ﬂock/herd number can claim.

Soil analysis must include details of pH level, Phosphate (P), Potash (K) and Carbon, with recommendations that will allow the business to plan nutrient applications for the next crop year. It is recommended to sample for Magnesium and trace elements, but it is not essential.

Additionally, a Development Payment can be claimed in the first year of sampling. The payment is designed to encourage applicants to spend time researching best practice for soil sampling and nutrient management. A standard cost payment of £250 will be paid with the first soil sampling claim if eligibility is confirmed.

In total, livestock keepers can claim up to £750 in the ﬁrst year, and £500 in the second year, giving a maximum of £1,250 per keeper over the two years. Two interventions can be claimed per year at £250 each plus an additional £250 Development Payment for researching animal health and welfare best practice in the ﬁrst year. A Carbon Audit is recommended, but not mandatory.

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Peatland ACTION Project Development Support Scheme The Scottish Government has set a target of restoring 250,000ha of degraded peatlands by 2030. Peatland restoration principally aims to reduce the carbon emitted from exposed and degrading peat soils by re-wetting and re-vegetating sites that have historically been drained and eroded through land-use practices. In addition, restoration can improve biodiversity, water quality and ﬂood prevention on blanket bogs and raised bogs.

The list below gives a brief outline of the interventions that can be undertaken: 1 2 3 4 5 6

7 8 9

Bull fertility Calf respiratory disease Cattle: liver ﬂuke Cattle: roundworms Sheep scab Sheep iceberg diseases (targeted disease investigation screen cull ewes) Sheep lameness Sheep: liver ﬂuke Sheep: roundworms

More details for all the schemes can be found at: www.ruralpayments.org/topics/allschemes/preparing-for-sustainable-farming-psf-/preparing-for-sustainable-farming-psf--full-guidance/ Many farmers and land managers will be undertaking a number of these measures already. While the funding ﬁgures are not huge, every little helps! n

Michael Halliday 01556 505 346 mike.halliday@galbraithgroup.com

The Government’s target is ambitious and is closely aligned with its wider climate change legislation, which has set a target date for net zero emissions of all greenhouse gases by 2045. To support peatland restoration projects, NatureScot’s Peatland ACTION fund has been allocated a budget of more than £250 million up to 2030. To date, this has provided support for restoration activities (such as hag re-profiling and drain blocking) and some of the project development costs (such as feasibility studies and peat depth surveys). However, another significant element of every restoration project is the planning and coordination stage. This involves applying for grant funding, designing the restoration scheme, obtaining the necessary planning and statutory consents, and outlining health and safety procedures. NatureScot has acknowledged that the resource required to implement this stage, particularly for large scale projects, has presented a challenge in meeting the 2030 objectives to date. The industry has therefore welcomed the launch of the Project Development Support Scheme, which will provide a significant contribution towards project development costs on a pilot basis from 2023/24. This scheme is aimed at supporting organisations with the necessary skills and experience to develop a pipeline of projects at scale to help meet the Scottish Government target, from discussions with landowners and land managers to the submission of grant funding applications. This new source of funding should give landowners and land managers increased confidence to explore restoration opportunities, particularly where the scale of projects requires agents with the necessary skills and resources to implement them. At Galbraith we are experienced in peatland restoration through our involvement in several large-scale projects on sites across the Scottish Highlands and Western Isles, and we are able to draw upon our wideranging expertise in rural land management, project management, planning and funding applications to assist landowners and land managers seeking to deliver restoration projects via Peatland ACTION and register projects for Edward Fletcher 07990 130 753 carbon credits under the edward.fletcher@galbraithgroup.com Peatland Code. n 25

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| Rural Matters | Autumn 2023

Having grown up on a busy family farm I have always loved all things rural and agricultural. The care farmers take to provide the UK with food, jobs and a beautiful landscape is second to none. I am a qualified teacher but I am keen to investigate other possible career options that would give me a chance to work in the rural sector. I enrolled at Harper Adams University in September 2022 to begin the REALM Rural Estate and Land Management Masters course. At the same time, and after helpful discussions with David Corrie, I applied for Galbraith’s summer work experience programme to gain more insight into the land management sector. I patiently waited to find out if my application would be successful and luckily for me it was. Following an interview, I was offered two weeks’ work experience at the Castle Douglas branch. The Galbraith team has been very accommodating and allowed me to complete my work experience in my summer holidays. In the first week Katie Marr took me under her wing and I helped her to carry out a number of different duties; rent review paperwork, valuations, soil grading, mapping, visiting a property to discuss drainage, checking vacant properties and discussing new electricity lines over a client’s property. I was also able to attend a house appraisal and estate viewing

with the estate agency side of the business. In Week 2, it was Rose Nash’s turn to show me the ropes. I helped with another valuation, beginning the paperwork and collecting appendices. I attended a SAAVA Scottish Agricultural Arbiters’ & Valuers’ Association field training day over in sunny Kelso where we valued equipment, crops and fertiliser. I was lucky enough to visit a local estate where we were considering new forestry options for the landowner with the help of Galbraith’s head of forestry Athole McKillop. On my final day Rose and I completed viewings with possible new tenants at an estate cottage near Dumfries. A wonderful two weeks filled with plenty of variety, seeing what a wonderful array of services Galbraith has to offer the public. I would like to thank all the staff at Castle Douglas branch for making me feel so welcome and for being so helpful during their busy working days. A special thanks to Rose and Katie for looking after me so well and going above and beyond. I am excited to consider my future in land management and I hope this will be the beginning of a new chapter uniting my interest in inspiring the next generation with my love of all things rural. Watch this space! n Laura Kirkpatrick, Castle Douglas.

Work experience case study:

A new career crops up for Laura

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Group Life Insurance A safety net for employees and their families Group life insurance is also commonly known as ‘death in service’ insurance. It is set up by an employer with their insurer to cover their staff should they die in the course of their employment. This is not just for accidents that result in death at work but covers all deaths. A payment will be made be as long as the employee is still on the company’s payroll. The policy can be for as little as double the annual salary of the employee but is usually for 4x the annual salary, although it can be higher. The rate is decided between the employer and their insurer. Once decided the lump sum is paid to the employee’s next of kin, or whoever has been nominated by the employee via a nomination document, in the event of their death. It should be noted that the employers/Trustees make the final decision regarding who the money is paid to, not the underwriters or insurers. The payment is tax free (so long as it doesn’t exceed your lifetime tax-free allowance) which is unlikely for most. The policy can only remain active until employees reach the age of 65. How is this beneficial? Unfortunately, over the last few years, we have had several occasions where a group life insurance policy has been paid out to an employee’s family and also instances where an employee has died without any policy in place. We have experienced firsthand what a significant impact a lump sum payment can have on a family that has lost a loved one.

Often the employee that passes away is the main breadwinner of the household. Their family often live on the estate or farm, sometimes in tied accommodation. In many cases that employee has been working in that position for many years and has a significant connection with the land and its wildlife . When this family member passes away, not only is there a significant emotional toll on the family, there is the added stress of finding somewhere else to live, replacing the lost income and the administrative burden that accompanies this process. While no lump sum payment can efface the grief that the family feels, it does reduce the stress element and allows the family to plan for the future. What does it mean for the employer? Group life policies are a relatively lowcost insurance to establish yet they often remain forgotten about in the wider estate/farm policy. The rural sector is well known for its poor record of fatal injuries, with 27 people killed as a result of farming and other agricultural related activities in 2022/23 according to the Health and Safety Executive.

Ensuring your employees are covered by a group life policy demonstrates a level of understanding of their job role and the dangers that it entails, as well as a level of respect and appreciation for your employees whilst offering them reassurance in the event of a death. It also demonstrates the employer’s understanding of their duty of care to the employee and their family. In addition to group life policies, employers can also establish a Bodily Harm insurance policy. This is appropriate for signiﬁcant accidents in which an employee may suffer lifechanging injuries. All employers should consider a group life insurance policy, as the beneﬁts to the family receiving the payment can be profound. n

Alex Davies 01463 224 343 alex.davies@galbraithgroup.com

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Update

| Rural Matters | Autumn 2023

Market Update Autumn 2023

Jack Marshall

Christina Smith

07899 980246 jack.marshall@galbraithgroup.com

01292 268 181 christina.smith@galbraithgroup.com

Introduction

Dairy Update

- Jack Marshall

- Christina Smith

As we write our update for the latest edition of Rural Matters in late August 2023, we are heading into a welcome warm and dry spell. August has been an awkward month for harvest and silage alike, with patchy weather windows hampering progress.

According to AHDB, Defra announced the average milk price in the UK for June 2023 was 36.48ppl (price per litre), down 0.45ppl (1.2%) from the previous month.

The knock on effect of this has seen a significant lack of hay being made, with prices being quoted as high as £170 per tonne delivered by merchants. The harvest year has looked to be much the reverse of 2022, as those forward buying have endured expensive inputs, while grain prices have fallen from the highs of last year. Dairy markets have fallen back significantly from last year, with the silver lining being that grain prices falling should mitigate the milk price drops. A more positive picture is being demonstrated in both the beef and sheep sectors, with prices still holding strong. A common theme for all sectors is a shortage of labour, ranging from a lack of seasonal labour to farm managers. Galbraith has run several successful recruitment campaigns for clients this year to help alleviate these issues. Following on from our last edition, our experts across the wider firm provide an update on the markets.

The 5-year GB average price was 33.99ppl in June up 11.2% from the same month in 2022, when it was 30.56 ppl. It is important to note that this average is based on standard milk price but in reality, many producers do not hit the ‘standard litre’ requirements which generally require constituent values of 4.2% butterfat, 3.4% protein and milk volumes over 1 million per annum. Milk price announcements were relatively steady in July and August, with the exception of aligned liquid contracts. Most retailers within the AHDB league table dropped their milk price for August with Tesco making the largest reduction at 1.68ppl. M&S and Waitrose dropped their prices -1.34 & -1.40 respectively. Sainsbury’s made the smallest change of the retailers at -0.57ppl. There were fewer and smaller modiﬁcations on non-aligned liquid contracts with Graham’s Dairies announcing no change to their milk price for the second month in a row. From the Farmers Guardian Dairy Farmer magazine milk prices of the latest conﬁrmed milk price in August

2023 ranged from 48.50p Muller Milk Group, M&S liquid contract (with 4% butterfat & 3.3% protein) to Arla food direct manufacturing with 32.67p (4.2% butterfat and 4.3% protein). It looks like there may be greater stability in milk prices for September & October based on the forecasted prices which have been reported so far, with price holds from buyers been announced. Milk buyers are also driving producers to use more sustainable and regenerative practices which in some cases is being incentivised via a small increase in the ppl received. Many milk buyers are also continuing to push for producers to invest in renewables and ‘green energy’, resulting in pressure to outlay a significant initial investment into these projects. Producers continue to face legislative pressure, including incoming 22-week slurry storage requirements which will require significant investment for some businesses in order to ensure compliance. Both labour and interest rates will be of significant concern for producers. The mixture of reduced milk prices, high borrowing & labour costs and cull cow prices remaining strong may mean we could see many farmers reducing their dairy herds.

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Beth Dandie 01224 860710 beth.dandie@galbraithgroup.com

Beef Update - Beth Dandie The beef trade continues to show good averages from strong, big cattle across the board, with prices from mid-spring proving to be the highest. Once again, lower quality carcasses and smaller animals are less successful. Future grain volatility continues to drive some uncertainty in the market with ﬁnishers taking the biggest hit. In the ring, prime cattle were reaching a peak of 300ppk (price per kilo) live

Beef Update

weight with prices falling week on week. Bullocks however were averaging as low as 234ppk. Things are starting to recover though, as in the last week through the prime ring, prices are up 22.8p on the week, with numbers tightening nationally. Store cattle have seen sales as high as 321ppk average in the spring with a low of 276ppk average in July. The prospect for future trade is positive as prices for store cattle are back up to 289ppk averages in the ring. Furthermore, the price is up 34ppk on the year from the same sale in August at Thainstone. The strong spring trade has been partly due to English buyers travelling north of the border for large carcassed cattle. They are looking for bigger, heavier

bodied animals for which they are prepared to pay a premium. The demand is also met with a shorter supply of cattle. When cull cows were at an all-time high last year, many farmers reduced their herd numbers and ‘cashed in’ when the price was right, resulting in less store cattle coming through the markets. Through abattoirs, dead weight has seen prices up to 515ppk in the height of spring with that dropping to 460ppk. With this in mind, cattle prices are still up on the year with this time last year dead weight cattle were making around 430ppk. Irish imports are still entering the market, with numbers slightly up from June 2022 on the year. Demand for British Beef in the supermarkets has declined on the year, with cuts like mince and roasting joints seeing the largest decline. This has been linked to consumers reducing their out-of-home spending and choosing to buy cheaper proteins. According to European Commission forecasts, we can expect this to continue for the rest of the year. On a positive note, the campaign ‘Eat like a lioness’, has been launched with English football player, Anita Asante. She has partnered with AHDB to promote eating red meat as part of a healthy, balanced diet. Making sure that the public know and understand about the huge beneﬁts of eating beef and incorporating it into our diets will be crucial in securing the demand and future for our premium product.

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| Rural Matters | Autumn 2023

Ian Armstrong 01224 860710 ian.armstrong@galbraithgroup.com

Lamb Update - Ian Armstrong The spring 2023 Old Season Lamb (OSL) trade was under great threat from New Zealand imports and the cost-ofliving crisis affecting the customer’s buying habits. Equally, the enormous lamb feed cost of near £400/ tonne resulted in a reluctance to push lambs causing an extreme supply of late lambs from 29,000 OSL in the last week of March 2022 to 46,000 in 2023. This was reﬂected in the price achieved in March 2022 being £5.87/kg while £5.06/kg was observed in 2023, amounting to a 13% drop on the year. OSL producers report an overall positive outcome as the price of OSL recovered greatly to the heights of £6.87/kg for the mid April 2023 market where many producers were able to cash in native store lambs. Since then, the price has slipped in the usual manner as supply returns. Autumn is often a tense time for lamb producers as they predict a downturn in prices due to the annual glut of lambs reaching condition in the later months of the year. This year the annual crash has not materialised, and producers expect lamb prices to remain at strong levels for the time of year. In late August 2023, the recorded price was £5.67/kg, an increase of 5% on the 2022 price of £5.36. While this is not a signiﬁcant uplift, this year is a very different economic climate which favours a lower cost of production. The weather has

Sheep Update

been favourable with good lamb growth from grass. Importantly, grain prices are significantly lower than 2022 with the 2023 feed barely price reported to be £157/ton in late August 2023. With this being a significant ingredient to lamb finisher feeds, it will be interesting to see what contracts the feed companies will offer later this year.

Harry Gaisford 01738 451 111 harry.gaisford@galbraithgroup.com

Arable Update - Harry Gaisford Wheat Since the last Rural Matters, harvest is in mid-flow, and prices have decreased and currently remain at the £190200/tonne mark at time of writing. Globally, the war in Ukraine continues to impact the UK wheat market with markets remaining reactive to news on Ukrainian grain exports – ongoing conflicts and attacks on Ukrainian grain terminals have caused UK feed wheat futures (Nov-2023) to fluctuate regularly. Meanwhile, increased Russian exports, particularly of wheat, have also had knock-on effects to the wheat futures prices. However, Ukraine is considering using its newly set up ‘humanitarian corridor’ for grain shipments, which should see prices steady. Spring Barley The 2023 harvest has been very stopstart which has tightened supplies of barley, helped support markets and reduce its discount to wheat. At the

time of writing in August 2023, feed barley was priced at £152.40/t which at the time was a £16.80/t discount to feed wheat. On the other hand, although there have been good prices received for feed barley, the stop-start harvest has had effects on malting barley because maltsters are hesitant to adjust their specifications for quality until most Scottish spring barley is harvested. Oilseed Rape An unusually hot summer in the United States has aided growth of oilseed rape markets in the United Kingdom. The extremely hot summer in the US has impacted the soya bean market, which has in turn impacted the rapeseed market. Because rapeseed doesn’t trade at a significant premium to soyabeans, this favourable weather news sent rapeseed futures higher because of their increased resilience. As a result, Paris rapeseed futures (Nov-23) closed at £406/t at the end of August, the highest of the harvest. Maize Like oilseed, the maize market has been affected by the very hot summer in the US. The US has had the largest area of maize impacted since 2012, when 80% of the planted area was affected. As the drought in the US persists, global maize markets are likely to react, with domestic prices following suit. Oats The bottom line is that the global oat supply will be reduced in 2023/24 due to the stop-start harvest, the planted oat area down for harvest and early GB yield results somewhat below the fiveyear average. n

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GREAT GLEN CHALLENGE 2023 A team of five from Galbraith took part in the Great Glen Challenge in August to raise funds and awareness for RSABI. RSABI is a charity which supports people in the Scottish farming sector dealing with financial, health and practical challenges. Their work is wide-ranging and includes operating a 24/7 telephone helpline, providing business reviews, and carrying out workshops to train industry professionals on mental health first aid awareness. The challenge took place in the Great Glen's spectacular setting in the Western Highlands between Fort Augustus and Fort William. The event has four timed stages: •

49km mountain bike from Fort Augustus to Fort William

•

6km kayak on Loch Oich

•

18km walk from Invergarry to Clunes

•

17km run from Clunes to Fort Augustus

25 teams took part representing organizations from across the rural sector. The Galbraith team featured Philippa Orr from the Cupar office (Driver), Edward Fletcher from the Edinburgh office (Mountain bike), Harry Burton from the Inverness office (Kayak), Christina Smith from the Ayr office (Walk) and Will Blair from the Morpeth office (Run). Given the complex logistics of getting four team members and their equipment to various start and ﬁnish points along the Great Glen, each team’s driver faced a challenge equal in difficulty to the other four stages! Despite torrential downpours in the afternoon and the ever-present threat of midges, Team Galbraith had a successful and enjoyable day out placing 4th overall, with Edward Fletcher winning the mountain bike stage, Harry Burton placing 4th in the kayak stage, Christina Smith placing 10th in the walk and Will Blair placing 12th in the run.

We would like to thank RSABI for putting on an excellent event and everyone who has supported us in our fundraising efforts. RSABI exceeded its fundraising target of £50,000 and the team members from Galbraith collectively raised £1,270, with the ﬁrm’s Corporate Social Responsibility Team matching these contributions to bring Galbraith’s total to £2,335. The Corporate Social Responsibility Team’s work is focused on supporting employees in their endeavours outside of work, particularly with fundraising for employees’ chosen charities. We look forward to attending next year’s event and have the podium in our sights!

Edward Fletcher 07990 130 753 edward.ﬂetcher@galbraithgroup.com

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| Rural Matters | Autumn 2023

MILES, MEGAWATTS Ian Thornton-Kemsley on the complex issues behind rebuilding the electricity grid for the green-energy era.

Remaking the way electricity is transported to homes, factories and offices is a project you didn’t hear discussed until recently – yet it’s crucial to Britain’s transition from reliance on fossil fuels for energy production to embracing renewable energy. Transforming the grid — the network of cables, substations and transformers that carries electricity around regions and countries, and across borders – is among Britain’s biggest infrastructure projects, coming with a £54bn price tag. This is similar to the HS2 original budget of £55.7bn in 2015 (it is now between £72bn and £98bn). It is estimated that some 4,500 miles of overhead line and more than 900 miles of underground cable will be required. The UK is legally committed to reducing greenhouse gas emissions by 100% of 1990 levels, i.e. to ‘net zero’ carbon, by 2050. Much of this will be delivered via wind power. To meet the Government’s target of 50GW of offshore wind by 2030, the electricity industry must deliver more than ﬁve times the amount of transmission infrastructure in the next seven years, than has been built in the past 30. Recently, war in Europe and consequent higher energy bills have hit householders and businesses, prompting the Westminster Government to step up its plans for boosting energy independence, a promise that can be delivered only with a properly functioning system of supply. Currently, due to a Borders bottleneck, only 6GW of electricity can be

transmitted from north to south, despite Scotland having 10GW of wind capacity and accounting for 10% of British electricity demand. Due to be operational in 2029, components such as Eastern Green Link 2, a proposed 2GW high-voltage direct current (HVDC) undersea cable connecting Peterhead in Aberdeenshire to Drax in North Yorkshire will unlock Scotland’s renewable energy capacity to deliver clean energy for around 2m homes. Grid projects can take up to 8 years in pre-application planning processes and 18 months in the planning application stage. These periods have been increasing in recent years. Such delays frustrate the achievement of the zero carbon goals and inhibit investment. Currently there are some 230GW proposals awaiting connections. Further objectives include 50GW of offshore wind by 2030, 8 new nuclear reactors by 2030 and a ﬁve-fold increase in solar generation to 70 GW by 2035. Competition and possible shortages in supply chains for high voltage cables, power transformers, high voltage direct current equipment and skilled people are another barrier. A recent report by Nick Winser, the Electricity Networks Commissioner, points out that while we are able to build the generating capacity we need to double the delivery of grid connectivity. His report presses for a major national public information campaign backed by London, Cardiff and Edinburgh to explain the need to “refresh” the grid, communicating this to the

whole population so that, when individual proposals for reinforcement are made, communities have some context in which to view them. The argument is that public resistance to proposals is driven by a bewildering and protracted process, lacking explanation and appearing an external threat. In tandem with this Winser proposes a centralised 12 month fast-track approval process, with the need for schemes being answered by a strategic plan set out in National Planning Frameworks (Statements in England). This may disenfranchise those directly affected by such proposals. There has been considerable concern raised about new pylon projects, such as a new Kintore-Fiddes-Tealing 400kV link through prime agricultural land in the Howe of the Mearns. SSEN plans to put up pylons to support overhead wires in the controversial project but have failed to explain why a new line is being promoted rather than other routes or the upgrade of existing lines. The new line could affect agricultural productivity and property prices. Under the

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AND MONEY Winser proposals, the local planning authority will have little say. The Government is consulting about a proposal to make a payment to households affected by new pylons. The Winser report recommends that this proposal be adopted quickly and generous compensation be made available but at the moment house owners in the vicinity of new routes are blighted by such proposals. Electricity storage will also play a big role in reshaping the grid, as it is needed to address intermittency – the problem of what to do with excess energy generated by wind and solar at times of little relative demand. One difficulty is the multitude of storage types which are mostly in the early stages of technical development, and grid administrators are

generation is deliberately capped to prevent turbine damage. Worse than the wasted energy is the fact of curtailment – paying windfarm owners to turn them off. Aware that some measures will cause disruption and likely involve higher utility prices, National Grid, the company with primary responsibility for Britain’s transmission and distribution network, is making a virtue of what it calls the Great Grid

To meet the Government’s target of 50GW of offshore wind by 2030, the electricity industry must deliver more than five times the amount of transmission infrastructure in the next seven years, than has been built in the past 30. Ian Thornton-Kemsley

delaying investment decisions pending the emergence of winners – whether advanced pumped-hydro, green hydrogen, gravity storage or one of several battery types. The need to boost grid capacity and achieve balanced distribution will only grow with the move to renewables. Onand offshore wind power has provided a tremendous boost to UK green energy supply and to the Scottish economy in particular. Yet on the windiest days,

Upgrade, partly to persuade the public of the need for change but a top down approach from a seemingly unaccountable public company may alienate some among its target audience. n

Ian Thornton-Kemsley 01224 860710 Ian.Thornton-Kemsley@galbraithgroup.com

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| Rural Matters | Autumn 2023

ACTIVE KIDS ON SNAIGOW ESTATE park on Snaigow Estate, in Perthshire. Situated amongst 11 acres of parkland, amidst surrounding farmland, the site has outdoor play, farm animals, and a newly developed indoor play area, café and toy shop. Ailsa Baird discusses the new development with the business manager, Rowland Thomson, the challenges faced to date, and what is next for the business.

The Active Kids business was purchased in 2015 as a small, predominantly outdoor children’s play and animal park. The site was very popular in the summer months with schools and families, but struggled to make a proﬁt and remain open all year round due to the vagaries of the Scottish weather, exacerbated by the subsequent closure of the main A9 access while it was undergoing dualling works. We were very keen to ensure that the business didn’t close permanently, as it provided employment for the local community and a play/educational facility for families across Scotland. However, it required redevelopment to improve the indoor offering and ensure the business remained viable, all year round. How was the new building designed? It was important to us that in carrying out this development, the building was designed to be as ‘green’ as possible. Working with Mill Architects and Galbraith, we looked at a number of low to zero carbon technologies, including rainwater harvesting and solar PV panels, though we were restricted to some extent by the existing building that we were extending. We opted for an air source heat pump, and lighting and water sensor controls to reduce consumption, and designed a ground mounted solar PV scheme to be installed as ‘Phase 2’, when the business was up and running and once we had an idea of

as also important ed the oots of the business, which is why we opted for timber play. As well as being energy efficient, the new building was designed with inclusivity in mind, in extending the age of children which the play could accommodate (now suitable for children aged up to 12 in the indoor area). We also installed specialist amenities, including a changing places facility, to support children with disabilities. The building design has been particularly helpful, post-development, in hosting our charity partner, Perth Autism Support. What were the main challenges pre and post-development? The development planning was on-going throughout Covid, when the future of indoor facilities and cafes was relatively uncertain and we had also lost a number of staff over the period of Covid closure. The build itself commenced in February 2022, as the war in Ukraine began and there was a signiﬁcant increase in material costs and availability. There was also difficulty throughout the build with limited A9 access due to the on-going dualling works. It was important for the business to remain open and trading throughout the build, using the outdoor park only, in order to retain staff and the existing customer base of schools

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and families. This proved challenging at times but the contractor, Algo, worked incredibly hard to ensure the safety of all customers, staff and the build team, and it meant that when the business did re-open, it had the staff to do so, and an existing customer base to use the new facilities. Re-opening the business after the development has been great, having families through the door again and using all of the play equipment that we had spent so long looking at on paper! It was difficult increasing our staff numbers again after a period of closure, having reduced the staff to 4, we then had to increase it to 20 before the summer, but having the right people in place has meant that operationally the re-opening has gone very well. We are now able to provide longer term employment for staff all year round which, we hope, is of beneﬁt to the surrounding area. What is next for the business? Now that we are past our busy summer period, and having experienced 6 months of trading (and electricity consumption- the build completion coinciding with peak electricity rates so the contract we secured with SSE at the time was particularly high), we are now about to start phase 2 of the development which includes a 75kW

ground mounted solar PV scheme and electric vehicle charging points. Whilst the business is centered on children’s play, we think it is really important for children to learn about renewable energy resources and want to incorporate this into the play experience. It is also important, considering the nature of the estate farming business, that the children understand about the farm to fork process. We hope that the renewal of the outdoor animal park, which will take place in spring 2024, will help with this, as well as the farm shop that we also hope to host on site. As the nearby village of Stanley expands and more families move t area, the business has great potential and we hope to be able to continue t expand and provide educational, pla and other facilities for children and families across Scotland. n Snaigow Active Kids Adventure Park is a ﬁnalist in Scottish Land and Estat Helping It Happen Awards, in the Rur Property Award category.

Ailsa Baird 07917 464 262 ailsa.baird@galbraithgroup.com

Re-opening the business after the development has been great, having families through the door again and using all of the play equipment that

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| Rural Matters | Autumn 2023

We are what we eat Georgina Weston reﬂects on the symbiotic relationship between our landscape and our diet

The United Kingdom, with its patchwork of landscapes ranging from lush farmlands to moorland, hill and rugged coastlines, holds a unique blend of natural beauty. Beneath this visual splendour lies a fascinating relationship between the food we consume and the land from which it is produced. It is clear that our food choices shape the landscape but what is the interplay between a ‘good’ diet and a sustainable and desirable natural environment?

Sustainable diets are those diets with low environmental impacts which contribute to food and nutrition security and to healthy life for present and future generations. Sustainable diets are protective and respectful of biodiversity and ecosystems, culturally acceptable, accessible, economically fair and affordable; nutritionally adequate, safe and healthy; while optimizing natural and human resources. FAO, 2010, Sustainable Diets and Biodiversity.

Through history, the land has been a key factor in determining the diet of its inhabitants. The varying climates and terrains inﬂuenced the crops that could be grown and livestock that could be raised. Taking Scotland’s national dish - haggis,

neeps and tatties, provides a brilliant example of this intertwined relationship. Although the potato is native to South America, it grows well in the damp, cool weather and loamy soils of Scotland, as does the native neep or turnip. The lamb from which the haggis is made is perfectly suited to being raised outdoors in the hills and glens. The foods available to the subsistence crofter were those which developed in to the dish we know today. A more modern Scottish classic, the chicken tikka, born in Glasgow and well suited to a Scottish palate, requires a very different landscape to produce the chicken, along with imported rice and spices.

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cropping. This diversity of cropping not only has the potential to affect the beauty of the landscape, but also its potential to support biodiversity. In the early summer, ﬁelds of oilseed rape with their bright yellow ﬂowers are a welcome addition to our surroundings.

The landscape required to produce haggis, neeps and tatties is one that we traditionally associate with arable cropping in low-lying more fertile areas and sheep farming on the higher hills. The fuel required to cook the haggis would in bygone times have come from the extracted peat and dispersed woodland, which form part of the traditional landscape. In contrast, the landscape which would provide the ingredients for our chicken tikka would require poultry farming, at a relatively intense scale to be commercially viable, dairy farming to provide the cream, again likely to be relatively intensive and if we are to imagine that all is produced in Scotland rather than being imported from abroad, polytunnels to provide tomatoes. This landscape would be one of sileage ﬁelds, arable ﬁelds of wheat and maize to provide chicken

feed, livestock sheds with associated potentials for slurry production and the white polytunnels, more commonly associated with soft fruit. This stark contrast demonstrates the reality that the choices consumers make about their diet has a profound impact on the landscapes around them. As discussed in previous articles food security is an important factor and the link between landscape design and diet, provides scope for improving our food security. A landscape designed by the food we would like to consume may be attractive and desirable. The importance of a varied diet is well known, and a more varied diet is likely to include elements which come from different sectors of the environment. A monoculture is generally considered to be poor for biodiversity and the more plants grown the more biodiversity potential is available and the more beneﬁt will be felt by any environmental measures included in

A variety of meat consumption, including fish, game and cattle and sheep, with a level of dairy produce require a variety of landscapes all of which bring their own set of characteristics and support for nature. The production of these products completes the cycle by supporting the maintenance of the landscape itself. Deer control is a key part of woodland management and produces a ready supply of venison while protecting the forestry and the landscape. In choosing more Scottish venison consumers are supporting the stalker, the rural economy and Scottish woodlands. The dynamic interplay between the UK's cuisine and its landscapes is a complex tapestry of influences. From age-old culinary traditions to present-day dietary shifts, the choices we make regarding food resonate not only through our health but also the health of the environment. As we savour the richness of the UK's gastronomic heritage and adopt sustainable practices, we play an active role in conserving its magnificent landscapes for generations to come. Just as the land shapes the food, our choices mould the land – an interdependence underscoring the exquisite beauty of the United Kingdom's natural mosaic. n

Georgina Weston 07909 978 645 georgina.weston@galbraithgroup.com

A more modern Scottish classic, the chicken tikka, born in Glasgow and well suited to a Scottish palate, requires a very different landscape to produce the chicken, along with imported rice and spices. Georgina Weston

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| Rural Matters | Autumn 2023

Mind your P’s and Q’s to make best use of farm buildings

The Department for Levelling Up, Housing and Communities and Defra are considering changes to Class Q Permitted Development Rights. Kitty Campbell provides an overview.

The rationale behind the proposed changes is they will provide more freedom for landowners to increase the availability of affordable rural homes by making use of underutilised or disused buildings in the countryside, and align the maximum Class Q area with the maximum area permitted under Part 6 (Agriculture and Forestry) permitted development (1,000 square metres). Key aspects of the proposed changes to Class Q Permitted Development Rights 1. Size •

Maximum internal ﬂoor area per unit of either 100m2 or 150m2. (Current limit is 100m2 for smaller dwellings, or 465m2 for larger dwellings).

•

Up to a maximum of 5 – 10 dwellings, totalling 1,000m2. (Current maximum of 5 dwellings, possible through a combination of larger and smaller dwellings.)

•

The maximum possible ﬂoor area that can currently be achieved is 856m2 by 4 smaller dwellings plus 1 larger dwelling.

•

Minimum internal ﬂoor area of 37m2 (in line with national standard).

Kitty Campbell 07385 930 697 kitty.campbell@galbraithgroup.com

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storage (also, to apply on article 2(3) land).

•

No building without “existing suitable access to a public highway” will be able to beneﬁt from the amended Class Q rights.

•

• Proposal to allow rear extensions up to a maximum depth of 4m, single storey.

•

Could span the entire rear length of the building.

•

Likely height limit (to align with Part 1 Householder Permitted Development rights, other restrictions within this part to apply).

•

Only possible on previously developed land (deﬁned as hardsurfaced area, which must have been developed prior to the date that the consultation was published (24/07/2023) or a minimum of 10 years after the date the amended permitted development right is enacted).

Consultation asks for views on which types of buildings should be eligible.

•

This will only apply to buildings which were constructed prior to the date that the consultation was published, or a minimum of 10 years after the date the amended Permitted Development right is enacted.

•

Also, the consultation considers whether other rural buildings i.e. equestrian and forestry buildings should be included within Class Q or become a new, distinct, permitted development right.

6. Highways •

The legislation notes that: “The design and external appearance of any extension could be considered by the planning authority during the prior approval process”.

3. Prior approval

2. Rear extensions •

Restrictions on Part 1 householder Permitted Development will continue to apply (it is not possible to extend the building under PD rights subsequently).

•

Consideration for neighbour ‘amenity’ (e.g. overlooking a neighbour’s property, affecting their privacy or light) to be introduced.

4. Article 2(3) land e.g., AONBs and National Parks (but not World Heritage Sites) •

Class Q right to be extended to these areas.

•

No rear extensions (as discussed above) to be allowed within article 2(3) land.

5. Use of buildings proposed for conversion (current or last use) •

Potential for Class Q right to be extended to buildings not used solely for agriculture e.g. buildings on farms, rented for

No building without “existing suitable access to a public highway” will be able to beneﬁt from the amended Class Q rights. Access must have been installed prior to the opening date of this consultation (24/07/2023) or a minimum of 10 years after the amended permitted development right is enacted.

7. Works permitted •

Consulting to establish whether the existing legislation is ﬁt for purpose.

•

Currently “any building operations are limited to the installation or replacement of windows, doors, roofs, exterior walls, or services (to the extent reasonably necessary for the building to function as a dwelling house), along with “partial demolition” (to the extent reasonably necessary to carry out the building operations)”.

Changes to other classes of Permitted Development also under consideration The DLUHC and Defra’s wide-ranging consultation, which concluded on 25 September, also encompasses other classes of permitted development. As such, there may be changes to Class MA, Class M, Class N, Class G, Class R (of Part 3: Changes of Use), Class B (of Part 4: Temporary Buildings and Uses), Class A and B (of Part 6: Agriculture and Forestry) and Class A and Class H (of Part 7: Non-domestic extensions, alterations). n

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| Rural Matters | Autumn 2023

Land sales in the North of England The market for equipped farms and bare farmland in the north east of England is strong and in many cases, prices being paid are still close to record levels in absolute cash terms.

Update While the fortunes of arable farming have fluctuated since 2016, many arable operators enjoyed record profitability (at least in cash terms) over the 2022-23 accounting year. Very good 2022 harvest yields for most combinable crops, together with record high prices for cereals and oil seeds, largely as a result of the Russian invasion of Ukraine, led to very good results for many arable farmers. The exact level of profitability depends heavily upon the price at which variable costs had been purchased and the dates and corresponding prices at which the produce was sold. While arable commodity output prices have dropped over the last few months, the price of fertiliser and other input prices have fallen too, and a decent level of prosperity for good operators can be reasonably anticipated for the coming year or two, notwithstanding the de-linking of Basic Payment and its anticipated end in 2027. Quite apart from this, the other perceived advantages of owning farmland, including tax breaks, appears to have helped to further support the market. Nevertheless, in late summer/early autumn 2022, the market received a significant shock with the adverse reaction to the Truss/Kwarteng “growth planmini budget” announcement of September 2022. Since then, higher interest rates, higher energy prices and concerns about future government support for agriculture in England have contributed to a slightly weaker picture. Prospective buyers and their lenders have become increasingly wary and mortgage availability has become more difficult over recent times. We have also noticed that this year compared to previous years there have been many more farms/bare land parcels brought to the market in the north east. The main factors contributing to the increase in supply are retirement, financial restructuring, death of the main landowner and other personal reasons. Due to the higher number of properties coming to the market, buyers have more choice, which may result in less punchy offers being

made. This trend is starting to emerge for the north east market overall. It is also evident from the longer marketing period for farms / bare land on the open market compared to previous years. There are four types of buyer currently active in the market. Number one is people with CGT rollover relief. This is a major factor in the farmland market, as the rules require the replacement asset to be purchased within three years of selling. However, the recent drop in house prices is likely to lead to a fall in development land sales. The second type of buyer is investors, who see land as an attractive investment opportunity to diversify their portfolio. In more recent times we have seen much more interest geared towards environmental aspects in the form of Carbon Credits, Biodiversity Net Gain and Nutrient Neutrality. The third type is farmers with well managed businesses. Having a well-managed business will help provide greater ﬁnancial resilience which will allow such operators to expand, under the right conditions. The last type is lifestyle purchasers who are still active within the market. This type of buyer is generally looking for a dwelling and a modest landholding with attractive amenity elements. In summary, equipped farms and bare arable land capable of growing cereals/vegetable crops remain highly desirable to a range of purchasers. Mixed farms or predominantly grassland farms have started to appear more frequently to the market, giving greater choice to purchasers. The level of interest received on openly marketed properties has started to dip compared to previous years. Having said that, purchasers see land as a low risk asset with a number of additional beneﬁts which will always help to sustain demand. n

William Blair 07584383864 william.blair@galbraithgroup.com

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Update

Land sales in the South West Scotland The summer of 2023 has seen many farms brought to the market, especially in the south west of Scotland. Farmers, agents and potential purchasers have been debating the reasons for this and in my view a variety of factors are involved.

Firstly, the land prices achieved in sales that completed during the Covid-19 years were high. The market was operating with limited supply of farms and bare land, but demand from different pools of purchasers was high. Forestry investors were snapping up farms with planting potential and neighbouring farmers, often large dairy enterprises, made use of low interest rates to seek out nearby land to expand their enterprises. Farming enterprises have scaled up in order to increase proﬁtability in recent decades, so Special Purchaser transactions (often where a party has an interest in neighbouring land creating a special value because of the advantages arising from ownership) often complete at premium rates in order to achieve this. As such, land prices were driven up across the board – from hill land and rough grazing, to silage and arable. Coming into 2023, evidence of these land prices acted as a catalyst to farmers and land owners who may have considered selling in the future as they wanted to capitalise on the strong market. The farming industry has undergone signiﬁcant change with more to come. Brexit has meant that Basic Payment Entitlement, often a lifeline for many faming businesses, is going through a period of change. Many farmers feel left in the dark about the direction of travel and ever increasing red tape has taken the joy out of farming for many. At the same time, reliance on politicians to provide alternative markets for British outputs has left many feeling uneasy. Further global and political pressures continue to change the landscape for UK farming – the war in Ukraine’s impact on the cost of inputs and the prices achieved for outputs. Many of these factors are UK wide, with the exception of the omnipresence of a drive towards another Independence debate in Scotland adding to the uncertainty.

However, it is not all doom and gloom, these pressures have brought about a change in attitude for farmers which has long been required. Farming is a unique ‘job’ where selfidentity and occupation are intrinsically linked. On a practical level, this has meant that retirement planning often takes a back seat, and alternatives to selling and moving are adopted. However, when considering the strength of the market in recent years, the ever increasing administrative requirements, and profitability and scale often coexisting, many farmers have seized the moment to sell up and enjoy retirement without the ties involved in farming. When it comes to purchasers, Dumfries and Galloway sees a real mix. Where it isn’t a neighbour or a forestry investor, purchasers can come from Northern Ireland and England in search of value for money, compared to other parts of the UK. However, 2023 has seen a reduction in farms ‘flying off the shelf’ at strong prices. Forestry investors have tightened up on their due diligence for planting and an increase in interest rates have made purchasers, including neighbouring farmers, carefully consider the affordability of borrowing. Nevertheless, purchasing a farm or land represents an investment in heritable property which will inevitably fluctuate in value as the property market ebbs and flows, but has historically outperformed many other asset classes as an investment, with 200% growth recorded between 1950 and 2020. With this in mind, the market for farms and land tends to attract purchasers, even when the external market influences are working against the grain. n

Katie Marr 07824 435 087 katie.marr@galbraithgroup.com

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| Rural Matters | Autumn 2023

Making the Grade on Energy Efficiency Under the Minimum Energy Efficiency Standard (MEES), an Energy Performance Certiﬁcate (EPC) is a measure of how energy efficient your property is, giving it a rating from A (very efficient) to G (inefficient). It also outlines recommended improvements and estimates the savings you’ll make when the changes are implemented. EPCs are valid for 10 years from the date of issue.

EPCs are required when selling a property, and a minimum EPC rating (or valid exemption) is required in order to lawfully let a property. In many cases, rural properties are typically serviced by fossil fuel ﬁred heating systems, often single glazed and constructed of stone without any internal or external wall insulation. Properties of this nature can be expected to have poor EPC ratings, and may not be of a lawful standard to let under a residential tenancy. Currently in England, residential properties must have an EPC rating of ‘E’ or above in order to be lawfully let. Until the UK Prime Minister’s

announcement on 20th September 2023, there were proposed changes to current legislation which would mean that from 2025 all newly rented properties will need to have an EPC rating of at least C and from 2028 for existing tenancies.

Although the deadline has moved, the target remains the same. Climate change is a contentious subject, and with the next general election around the corner, there is potential for legislation surrounding energy efficiency requirements to change.

This is no longer the case; it has been announced that new policies forcing landlords to upgrade the energy efficiency of their properties will be scrapped. However, the UK government is still committed to its net zero target by 2050 and grant funding is still expected to be available for those who want to make energy efficiency changes now.

This leaves Landlords of residential properties, which currently have poor EPC ratings (F or G), with two options: 1

Obtain a valid exemption

Make energy efficiency improvements to the property

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Obtaining a valid EPC exemption In England, it is free for landlords to register for an exemption. When doing so, they must provide proof of their reason for exemption. Types of exemption include: •

High-cost exemption.

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7-year payback exemption.

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All improvements made exemption.

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Wall insulation exemption.

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Consent exemption.

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Devaluation exemption.

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New landlord exemption. Making energy efficiency improvements

An accredited Domestic Energy Assessor (DEA) will be able to recommend measures to improve a property’s EPC rating. If you are planning to make any alterations to a property, it is recommended that you ask your DEA to prepare a draft EPC based on those changes so that you can ensure the required standards are met. All accredited DEAs are listed at https://www.gov.uk/get-new-energycertiﬁcate. Measures which are typically recommend in EPCs include:

property must meet the eligibility requirements. The occupier of the property must be receiving qualifying beneﬁts, or if not in receipt of beneﬁts, but your home is still energy inefficient, a person might be eligible for the scheme through the Local Authority Flex program that some councils participate in. Galbraith manage a number of rural estates with properties which are part way through the ECO4 scheme process. The process of applying to the ECO4 scheme was: •

Identify the property as an EPC rating of D or below.

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Requesting an inspection by a registered installer.

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Receiving conﬁrmation that the property and tenant qualiﬁed.

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An application was submitted by the registered installer on behalf of the tenant, after receiving written consent from the landlord of the speciﬁed works to be installed.

One such property includes a cottage in Northumberland, the EPC rating of this property is currently E50. It is a semi-detached stone cottage with oil central heating, partially double glazed with minimal loft insulation. This property and tenant met the eligibility requirements, the measures which are to be implemented with 100% funding under the scheme include:

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Upgrade the lighting to LED light bulbs.

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Wall insulation.

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Install a smart meter.

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Room in roof insulation.

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Install wall and roof insulation.

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Install double or triple-glazed windows.

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Upgrade the boiler.

Air Source Heat Pump (ASHP) This will replace the existing oil boiler heating system, including new and more efficient radiators.

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Solar Panels.

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Install underﬂoor heating.

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Invest in renewable energy. The Energy Company Obligation 4 (ECO4) Scheme

There is currently a government energy-efficiency scheme in the UK, designed to address fuel poverty and contribute to reducing carbon emissions by improving the energy efficiency of residential properties. The ECO4 scheme which provides 100% funding for certain measures, is due to run until 31 March 2026. A property must have an EPC rating of D or lower to qualify, and the tenant or owner occupier of the

When the above works are completed, the property will have an improved EPC rating of C. The ongoing maintenance for the heating system of this property will be different, instead of requiring an annual service by an OFTEC (Oil Firing Technical Association) registered engineer, the ASHP should be serviced by a MCS (Microgeneration Certiﬁcation Scheme) registered engineer. n

Sarah Hall 07718 523 048 sarah.hall@galbraithgroup.com

There is currently a government energyefficiency scheme in the UK, designed to address fuel poverty and contribute to reducing carbon emissions by improving the energy efficiency of residential properties. Sarah Hall

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Aberdeen 01224 860 710 aberdeen@galbraithgroup.com

Inverness 01463 224 343 inverness@galbraithgroup.com

Ayr 01292 268 181 ayr@galbraithgroup.com

Kelso 01573 224 244 kelso@galbraithgroup.com

Blagdon 01670 789 621 blagdon@galbraithgroup.com

Moray 01343 546 362 elgin@galbraithgroup.com

Castle Douglas 01556 505 346 castledouglas@galbraithgroup.com

Morpeth 01670 331 500 morpeth@galbraithgroup.com

Cupar 01334 659 980 cupar@galbraithgroup.com

Penrith 01768 800 830 penrith@galbraithgroup.com

Edinburgh 0131 240 6960 edinburgh@galbraithgroup.com

Perth 01738 451 111 perth@galbraithgroup.com

Hexham 01434 693 693 hexham@galbraithgroup.com

Stirling 01786 434 600 stirling@galbraithgroup.com

Expertise Galbraith operates from 13 offices across Scotland and Northern England, bringing our clients a wealth of experience in: • Building consultancy • Commercial forestry & woodland management • Commercial property sales & management • Estate, farm & forestry sales & acquisitions • Estates, farming & land management • Natural capital & carbon • Property lettings • Renewables and utilities • Residential estate agency