Galbraith Rural Matters Winter 2021 by Galbraith

n The route to Natural Capital n The drive to Net Zero n The changing face of the

modern estate buyer n A year in the life

of a Land Agent n Why consider Carbon Codes?

Winter 2021

Contents 4

The route to Natural Capital

To Fix or not to Fix? That is the Question

Contractors you can trust

The drive to Net Zero

10 Diversity of opportunity underpins strong market for land in Scotland

Welcome to Rural Matters Winter 2021 If there had been any doubt, the hosting of the COP26 summit in Scotland underlined the need for us to intensify our efforts in tackling the myriad challenges that climate change presents.

12 Shaping the Future of British Agriculture 13 Agri-Environment Climate Scheme 14 Setting up Base Camp 15 Construction Update 16 The changing face of the modern Estate buyer 18 Timber by Boat 19 Valuable venison 20 Building for Generations to come 22 Natural Capital... Is it really a new concept?

Rural businesses are no exception and are grappling with the move to net zero. In these pages my colleagues outline some of the key concerns and opportunities facing us all, from the potential offered by carbon codes such as those established for woodland and peatland to the emerging codes expected for soil, hedgerows and wetlands. Regenerative farming may also have a role to play in delivering the ‘public goods’ which are a cornerstone of political thinking. Maximising the potential of these and other opportunities may constitute a key element in developing more productive

23 Why Consider Carbon Codes?

and proﬁtable farm businesses going forward, while simultaneously developing new markets and reducing carbon emissions. As the year draws to a close, the market for land and rural property continues to witness exceptionally strong demand. The opportunities for landbased businesses are diverse and enduring. I hope these articles will generate some food for thought and inspiration. Ian Hope.

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

24 Full Market Analysis 27 Different routes into Surveying 28 A year in the life of a Land Agent 30 They may be the bees’ knees. But they are not the best house mates

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.

33 Is British Beef really to blame for climate change? 34 Rules are becoming clearer as work progresses on upgrading mobile networks

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Carbon from the ground up

Wielding carbon codes to leverage change Carbon codes are much discussed just now, but they can be like marmite – people have strong and emotional responses to them. We come at them close-up, and out of context. So let’s take a step back.

Carbon codes are growing. At present we have codes for creating woodland and restoring peatland. It’s been recently announced that soils, hedgerows and saltmarshes are on the way, and there is arguably room for more, wherever carbon benefit can be demonstrated over-and-above business as usual. There’s also a Woodland Water Code in development, but note that’s not about carbon, but about paying for other ecosystem services such as flood prevention. Carbon codes have a number of features which make them an attractive policy tool for landowners, businesses, and governments. They are a tax that isn't a tax – redistributing income towards decarbonisation. They are regulation that isn't regulation – raising land management standards by creating audited requirements for good practice in aspects such as soil and water management, biodiversity enhancement, or amenity benefit. The buyer has reassurance that their carbon credits are creditable. The government controls the standard, but the expensive business of auditing it is funded by the carbon market. The landowner has control of the whole process, and can make an income from natural capital investment which was previously impossible. But as with any new, complex and big economic opportunity, there are plenty of people ready to take advantage of

both buyers and sellers, so getting the best advice is essential to keeping that control.

If careful woodland management enhances carbon storage, that can go on the balance sheet too.

So how do you wield a carbon code? You need to know what you want to do with the land, and what you want to do with the carbon.

So going back to our big picture, we shouldn’t just be looking at selling carbon units. The land shouldn’t be playing a minor role, ‘bailing out’ the wider economy from its carbon sins.

Generating and selling carbon credits is a great opportunity: the important thing is to understand the risks and obligations, and how to get the best price. Yet there are other options. If you have other business activities, it might make more sense to retain the carbon units for your own low-carbon journey, now or in future. Decarbonisation is going to be required of all of us, and buying in carbon is going to become increasingly expensive. On the positive side, going net-zero ahead of the game can be a great way to get ahead, whether by ensuring market share for commodities like milk, or adding value to specialist products such as weddings or cheese. Sometimes the expensive process of registering carbon units may not even be required. Carbon codes can be used to treat carbon sequestration internally as you would diesel or nitrate use: to simply measure it accurately and put it on the balance sheet. Sometimes even a carbon code may not be required: new technologies are emerging, for example, to provide robust measurement of the carbon stored in existing broadleaf woodland.

Wielding carbon codes is about positioning farming and forestry at the heart of a regenerative bioeconomy – which is where we urgently need them to be. We also need to be looking wider than carbon: taking climate change adaptation seriously, tackling biodiversity decline, providing the wellbeing beneﬁts of nature to the population of our crowded islands. This is why our focus at Galbraith is on looking at the whole natural capital picture which you can read about elsewhere in this edition of Rural Matters. So if you come to us asking about carbon credits, we can certainly help you, but we might also suggest you take a huge step back, to be sure you see them in the full context of the rapidly-changing world in which we live. n

Dr Eleanor Harris 07585 900 870 eleanor.harris@galbraithgroup.com 3

The route to Natural Capital We’re all hearing about how important natural capital is, and what a range of opportunities it presents for the rural sectors. But what is the route? Where are we trying to get to? How do we even begin?

The answer should lie in natural capital assessment. There are many ‘assessments’ around, but too often they become a report which sits on a shelf. So the natural capital team at Galbraith set out to develop our own inhouse assessment which would pass the ‘usefulness test’. There are a wide range of reasons to measure, monitor and manage natural capital. These include increasing income or asset value, taking advantage of changing markets, adapting to changing policy, building resilience to changing climate, monitoring change over time, improving integrated land management, providing evidence base for stakeholder conﬁdence, and adding value to products or services. This is a complex list in itself, so a useful natural capital assessment should help you prioritise and clarify these on your own land. Galbraith has developed a GISbased assessment tool which enables us to synthesise information in a form which is rigorous, comparable across sites

Athole McKillop 07718 523 045 athole.mcKillop@galbraithgroup.com

and repeatable over time. Many similar tools are available, based on similar data, research and general methodology. However, the factor which differentiates ours is its development in-house, combining the skills and experience of our expert natural capital and GIS teams, with close working at every stage with our rural and forestry professionals. The result is an assessment informed by, and informing, our ongoing professional work on the ground. Our natural capital assessment brings together frequently ‘siloed’ land uses, such as arable, pasture, moorland and forestry, to view land in more integrated ways: habitat networks, river catchments, regenerative production systems. This provides a transparent overview for clients, and makes it easier for farm managers, foresters, gamekeepers and ecologists on different sites to see the full picture, communicate on the same terms, and collaborate for the best outcome. No natural capital assessment can be expected to provide ‘magic bullet’ answers, or to supersede

Dr Eleanor Harris 07585 900 870 eleanor.harris@galbraithgroup.com

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Third, the mapping of opportunities. These highlight the potential for the business to beneﬁt from enhancing natural capital and ecosystem services on the estate, through interventions such as woodland creation, soil and peatland carbon, regenerative agriculture and biodiversity net gain.

Galbraith Natural Capital team.

An important element of our report is that it will not simply arrive in the post. The results of the assessment are interpreted by our team, to be presented and discussed with you in the light of traditional strategic and on-site management.

Thanks to the unique combination of talents and experience in our in-house team we have mapped an ambitious programme of development over coming months to measure and model an increasing range of ecosystem services and opportunities, including many not available elsewhere. traditional expertise and management. Too often, assessments are expected to achieve this and instead become a report that sits on a shelf, a ‘natural capital box’ ticked with no outcome on the ground. The design test throughout our assessment is usefulness: it is not a ‘decision-making tool’, but a decisionsupport tool, providing insights and data to adapt and enhance traditional management, both at strategic board level and on the ground. So what does a Galbraith natural capital assessment actually involve? First, the collation of data on natural capital assets, such as climate, geology, soil, water and vegetation.

Strath Slater 07917 327 738 strath.slater@galbraithgroup.com

Much is available as open-source and proprietary data made available by research institutions such as the Met Office, NatureScot, Ordnance Survey and British Geological Survey. This can be enriched with data provided by the client such as rural payment data, forest management plans, and biodiversity surveys. Second, the modelling of ecosystem services, for example carbon storage, pollination, provisioning or air quality improvement. Our models are developed by our team, based on published scientiﬁc research supplemented by professional experience.

Another important element is that it is not a final report but a first report. Its replicable methodology means it can be re-run regularly. The release of successive reports, for example annually, provides an opportunity to review progress and direction with our expert team. In addition, methodologies for natural capital assessment are continuously improving, new data is made available, and policy drivers including grants, regulations, and assessment requirements are evolving. Thanks to the unique combination of talents and experience in our in-house team we have mapped an ambitious programme of development over coming months to measure and model an increasing range of ecosystem services and opportunities, including many not available elsewhere. Finally, in-house development enables us to work with clients to develop tailored tools for specific management aims, and to translate natural capital visions into projects on the ground, such as Biodiversity Net Gain, registered carbon units, or innovative partnership projects. Our assessment is now in the final stages of testing and we are excited to roll it out to clients. So if you are thinking about natural capital and wondering where to begin – give us a call. n

Tom Warde-Aldam 07718 523 032 tom.warde-aldam@galbraithgroup.com

Forecasting interest rate movements is never easy but Alistair Christie discusses how in which AMC can help future proof your rural business.

To Fix or not to Fix? That is the Question... Since 2009 the Bank of England base rate has remained at 1% or below with an all-time record low of 0.1% being introduced in March 2020. This would be unimaginable to those who had borrowings in November 1979 when Bank of England base rate went to a record high of 17% a rate that would be absolutely crippling to most businesses today. The reality is that since the recession in 2006/2007 Bank of England base rate has predominantly remained under 5% and has generally been on the downward trend with a slight exception in 2018. At the time of writing the Bank of England’s Chief Economist Huw Pill has suggested that UK inflation is likely to rise close to or even slightly above 5% in early 2022 and some have suggested that it is likely the base rate may well be increased in the Bank’s November 2021 meeting. Inflation has been increasing rapidly for much of 2021 because of the strong economic recovery from the Coronavirus crisis, surging energy costs and global supply chain disruption. With the inflation forecast of around 5% and the central bank’s budget of 2% this leaves them in an extremely uncomfortable place and it is likely that the Bank of England will use a lift in base rate to control inflation. Whilst the Bank of England has not provided a forecast figure many within the financial sector would not necessarily be surprised if base rate lifted to

0.5% or thereabouts. Whilst this is a moderate increase on current base rate it is still a historically low level and a knee jerk reaction should be avoided. That being said, understanding the impact of a rise in base rate on profit margins and existing borrowings is absolutely critical to the management of any rural business. We are forecasting a large volume of enquiries from new and existing customers regarding the ability to fix existing variable rate loans or indeed restructure existing debt or take new borrowings on a fixed rate of interest to protect themselves against any future increases. Although fixed rate borrowings can protect businesses from increases in rates the borrowers need to completely understand the impact that this might have regarding early repayments of loans and any associated breakage costs. The Agricultural Mortgage Corporation (AMC plc) is fortunate in that it can provide a full range of borrowing structures to include interest only, variable rate and fixed rate borrowings with terms ranging from 5-30 years. We are seeing an increasing trend in new applications with borrowers requesting split loans with for example 50% variable rate and 50% fixed rate offering flexibility with regard to the variable rate loan and early repayment options without any breakage costs while also benefiting from a proportion of fixed rate borrowing providing security to their business and cash flow. We are also

| Rural Matters | Winter 2021

We are forecasting a large volume of enquiries from new and existing customers regarding the ability to fix existing variable rate loans or indeed restructure existing debt... witnessing an appetite for medium term fixed rates on long term borrowings for example a 20 year loan with an initial 5 year fixed rate to protect against any increases in the short term. In times of national financial uncertainty banks tend to get nervous themselves and often raise margins on new loans and any loans which are due for renewal even within a term could be increased. Banks are required to have a certain amount of capital behind them and when providing loans they can only do so by raising margins. Should the country dip back into a recession then the likelihood is that the cost of borrowing will increase. So is now the time to fix long term if your business can afford it? Farmers always have to think long term and farm as if they will live forever. With AMC offering up to 30 years fixed money it will be hugely tempting to lock in at an exceptionally low rate guaranteed not to change and without any breaks or renewals for the long term. So what should you be doing if you have existing borrowings or a requirement for new funding? There is certainly no harm in seeking advice regarding fixing all or a proportion of your borrowings in a calculated manner providing a base on which you can budget and forecast. n

Alistair Christie 07500 794 201 alistair.christie@galbraithgroup.com

Contractors you can trust Hiring a new contractor is often fraught with uncertainty, especially when work is required urgently. It is difficult to gauge the reliability of an unknown company or individual, with many property owners relying on word of mouth when deciding who should carry out work on their property.

Owners are sometimes forced to place their trust in contractors to carry out work safely and often as cost effectively as possible. Unfortunately, if a ‘bad’ contractor has been instructed to complete the works, the situation presents itself too late wherein the owner ﬁnds themselves left with a poorly ﬁnished job and an expensive bill. As managing agents, Galbraith oversees a diverse range of property on behalf of our clients and are trusted to arrange various contractors to carry out works on client’s properties. As a result, we have developed a database of ‘Conforming Contractors’ spanning the entirety of Scotland and Northern England. Ranging from gardeners to chimney sweeps, a Galbraith agent has access to a list of known, trusted and accredited contractors who have the skills, and importantly the insurance to carry out works. Any work instructed by a Galbraith agent must come from our Conforming Contractors Database which requires external contractors to provide their current Public

Liability Insurance and, before any work can begin, an appropriate Method Statement and Risk Assessment for the potential job. This process leaves property owners at ease that the work will be completed safely, and if complications do arise their assets are protected. Instructing work on behalf of a wide variety of clients, Galbraith has developed a relationship with many of the contractors on their ‘Conforming Contractors’ database. Managing agents commonly deal with the same contractors in their area and we learn who is best suited for the different types of job at hand. This provides our clients with an additional comfort that when they instruct works to a property through a Galbraith agent, they really know who will get the job done. n

Calum Chalmers 07917 220 785 calum.chalmers@galbraithgroup.com 7

THE DRIVE TO NET ZERO In the face of rising electricity prices and the drive towards net-zero, renewable energy has never been more important. What are the main factors to consider before installing a renewable energy development on your land? Crawford Mackay offers his views.

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Clean energy will play a key role in the drive to meet net-zero; be it wind, solar, hydro or battery storage. Renewable energy installations also have the potential to provide new income streams to a rural business or offset existing overheads and household expenditure. Given the recent increases in wholesale gas and electricity prices, this can be a signiﬁcant saving. Therefore, what factors do you need to consider before proceeding with a renewable energy development, and how can you make the most of your land's renewable energy potential?

By marketing your land to selected developers through a tender process, you can ensure best value and achieve complete transparency in the process.

Many farm-scale renewable energy installations will help to reduce an organisation’s carbon footprint, whilst mitigating the cost of energy utilised by the business. Solar panels are common on farm buildings, and they are becoming increasingly viable in a subsidy free world as their efficiency increases and costs reduce. The most common method of developing solar on a commercial scale is to enter into an option and lease arrangement with a developer. This is where a developer will be granted an option for a period of time in which to pursue planning consent for a proposed development. If planning consent is granted within the speciﬁed time period, the developer can then call for a lease of the land. Typically, a developer will have identiﬁed an area of land that has suitable characteristics for a renewable energy development. The key factors which determine the suitability of any site will include: 1. Grid Connection Grid Connection is most likely to be the single biggest constraint to any renewable development. Do you know where the closest grid connection point is, who owns the land in between, and is there capacity?

land for a renewable energy development may not be possible. This will require specialist advice and a good channel of communication with the occupier. 5. Title Do you have clean title to your land? Are the Mineral Rights reserved to a previous owner or have they imposed a Burden, Restrictive Covenant, Overage or Development Clawback which may prevent development on the land? 6. Designations Is your land subject to any designations such as a Site of Special Scientiﬁc Interest (SSSI) or similar, which may be a constraint to development? 7. Lenders Does your lender have a standard security or charge over the property, and is their consent required to the proposed development?

2. Access Do you own the access to your land, or will you be required to negotiate with a neighbouring land owner? The same will also apply for grid connection with the possibility of having to negotiate with a neighbour. 3. Topography Does the site lend itself to a particular development, such as wind turbines - is it an elevated site with good wind ﬂow, or will site topography present challenges in development?

8. The Future What is the strategic direction of your business and how might it be affected by a renewable energy development? Developments such as onshore wind require signiﬁcant Wind Protection Zones (WPZs) which can restrict other activities (such as forestry) on adjoining land and sterilise areas up to as much as 1 km from each turbine. This has to be taken into account when considering the future strategy of your business.

10. Negotiating Terms How can you be sure you are dealing with a reputable developer, and that you are achieving the best possible terms? As an organisation that has represented landowners in negotiations over a number of years, we have a comprehensive understanding of the main players in the market and what to look for in development terms. Whilst a particular developer may have approached you ﬁrst, why not consider who else is in the market? One means of doing this is to conduct a renewable energy tender exercise. By marketing your land to selected developers through a tender process, you can ensure best value and achieve complete transparency in the process. Our experience is that when developers know they are part of a competitive tender process, they improve their terms signiﬁcantly beyond those initially offered, in some instances by as much as 100%. Clean energy sources have a key role to play in the drive to net zero and have the potential to provide a new source of income for landowners. However renewable energy developments should be methodically approached in order to realise their full potential. n

9. Taxation 4. Tenure Firstly, is the land that you own occupied by you or a third party? If it is occupied by a tenant then resuming

Specialist tax advice at the outset can be key and may require land to be transferred into an SPV (special purpose vehicle) for tax purposes.

Crawford Mackay 07909 978 641 crawford.mackay@galbraithgroup.com

The market for land and farms remains very strong across Scotland. Demand continues to outstrip supply in most areas. The vast majority of land holdings are either selling at a competitive closing date or offers are being received and accepted before the property hits the open market.

Diversity of opportunity underpins strong market for land in Scotland

The market fundamentals remain robust, with a long-term positive outlook for agricultural land, combined with a relatively benign attitude to development in many areas of the country, continued interest in forestry from a variety of buyers and relatively low costs of borrowing. These factors have in some instances lifted prices and have led to some exceptional premiums being paid for certain type of landholdings. The most sought-after landholdings Good and versatile areas of arable land still remain highly sought after, with demand driven by existing agricultural businesses looking to expand or indeed in some cases relocate. Some blocks of arable land in parts of central Scotland have achieved in excess of £5,000 per acre recently. The east coast has also seen some higher-thanaverage prices being paid, with land in parts of Perthshire and Fife achieving well in excess of £10,000 per acre for bare arable land. This can be very sitespecific, and prices can vary hugely within the same Parish. Aside from existing farming businesses, there is now significant demand for land for afforestation purposes and more specifically from buyers looking to acquire land for ‘natural capital’ interests. This trend has contributed to the significant increase in price for land which is deemed not to be suitable for arable cropping over the past 18 months, with values of £2,000-£5,000 per acre now being achieved for hill ground and marginal permanent pasture. Again, pricing varies 10

signiﬁcantly between sites and areas. However in general demand for land which would have historically been classed at the lower end of the market in terms of value, is now being underpinned by forestry interest and investors looking to make a return on land for planting and carbon sequestration purposes in the longer term. There are however a number of key factors which will determine whether a block of land is suitable for tree planting, such as the presence of deep peat, statutory designations (Sites of Special Scientiﬁc Interest, Scheduled Monuments and Special Protection Areas for example), depth and quality of the soil.

If more commercial planting is being considered, ease of access for planting and harvesting timber is also a material consideration which will inﬂuence demand and consequently pricing. Who’s selling? We have a number of farm and land sales recently brought to the market with further areas of land still to come on later this winter and into the New Year, but predominantly the land is being sold by existing farming businesses downsizing or individuals retiring and looking to take advantage of the premiums being paid for land and also larger agricultural units over the last 18 months.

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Restricted supply Supply issues have been a notable factor - less land has been brought to the market over the last 18 months than normal, which has created an upwards pressure on prices. The number of acres of land on the market this year was approximately 40% lower than last year.

Aside from existing farming businesses, there is now signiﬁcant demand for land for afforestation purposes and more speciﬁcally from buyers looking to acquire land for ‘natural capital’ interests.

Who’s buying? Typically, the majority are existing agricultural businesses within the local area, but following the outbreak of Covid-19, there has been an increased number of amenity buyers coming into the market. Normally these types of buyers have been interested in smaller units or smallholdings but some amenity buyers are now offering on units of up to 250 acres plus. In the last 18 months, the more marginal arable and pasture land has experienced a signiﬁcant increase in interest in land from forestry type investors. These types of buyers have historically been focused on the more

marginal and upland land holdings, but some forestry investors have also acquired bare arable land due to the shortage of available planting land on the market.

However, we expect that more landholdings will be brought to market in the New Year and into early spring 2022. The immediate future It is likely that more buyers and sellers will come from further aﬁeld now including some overseas buyers now that there is reduced uncertainty in terms of travel for viewings. We expect that some farming businesses may now decide to sell in 2022, whilst the relatively strong land market conditions remain, and having taken time to reﬂect on their own position, during the backdrop of the prolonged periods of lockdown in the last 18 months. n

There has been an increase in the number of purchasers in Scotland beneﬁting from roll over money following the sale of residential, commercial or renewable developments elsewhere in the country. As in previous years, generally there are more potential buyers than the land available, with multiple offers at closing dates being the norm.

Duncan Barrie 07766 250 798 duncan.barrie@galbraithgroup.com

Shaping the Future of British Agriculture

According to the Programme Director for the Future Farming and Countryside Programme, Janet Hughes, the co-design of Defra’s process has been, and will be, fundamental in ensuring that future policies work for all stakeholders: farmers, landowners, other land managers, the government, taxpayers, and the environment. Whilst the true policy trials are beginning as we go to print in November 2021 with the launch of the Sustainable Farming Incentive’s (SFI) pilot agreements, Defra have already made some noteworthy changes to the way current policy is regulated and enforced. Following their collaborative working approach on cross compliance, concerns were raised by land managers about how proportionate the payment reductions for non-compliance were, and about the inspection experience as a whole. As a direct result of the co-design process, Defra have: • Increased the amount of warning letters they send, rather than automatically reducing payments. • Removed the need for subsidy reductions to be generally 3%. • Introduced lower severity options. • Released an inspection records checklist to ensure farmers are more prepared for reviews. • Streamlined their reporting system and improved the speed of post inspection and payment processing. • Simplified customer guidance. Such immediate change suggests that Defra are indeed willing to adapt their policies to fit with the suggestions made by those participating, however as quoted by Janet Hughes co-design is “not a panacea, it won't solve every problem.” In a recent webinar, Janet explained that whilst the general direction of ELMS has already been predetermined by those within Defra, many defining aspects are yet to be set in stone. The upcoming pilot schemes have been designed to allow for experimentation on finer elements such as the calculation of payment rates, the application process itself, and the external support available to land managers.

The Environmental Land Management Scheme’s (ELMS) Test and Trials programme was ﬁrst launched in autumn 2018 with the aim of allowing English land managers to have their say on the future of agricultural policy post Brexit. So far, around 3,000 land managers have been involved in 78 small scale projects to help shape our new subsidy regime.

With this in mind, Defra have already agreed to test out quarterly payment rates with their 938 SFI pilot participants, with results due to be published before Christmas. It is worth bearing in mind however that the Rural Payments Agency have come under ﬁre in recent years regarding late payments, and as such the newly proposed quarterly payments may prove a step too far in the co-design process. Whilst it is now too late to enter into the SFI pilot scheme, you can still have your say on the future development of the Landscape Recovery Scheme and Local Nature Recovery Scheme through their own pilots which open for applications in early 2022. It’s not too late to join the co-design process and help shape the future of British agriculture. n

Heather Warburton 07792 503 685 heather.warburton@galbraithgroup.com 12

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Agri-Environment Climate Scheme The Scottish Government has recently outlined its plans to open a full round of the Agri-Environment Climate Scheme (AECS) in 2022, with the funding extended up to and including 2024. At the time of writing there has been considerable uncertainty surrounding the future of subsidy support for Scottish farming with the devolved Government remaining relatively silent on the direction they are wanting to take post-Brexit.

The AECS 2021 round involves a spatially targeted scheme whereby a restricted list of management options and capital items were available to landowners, with the options available dependent on what schemes were deemed to be most effective in that location. These options included: • The conversion to, or maintenance of, organic farming systems. • The management of existing designated environmental sites within a farming enterprise. • The management of a reduced list of priority bird species such as Corncrake, Waders and Corn Bunting. • The provision of slurry storage facilities in priority water catchments. • Improving public access throughout rural Scotland. Whilst all details for the full 2022 round are yet to be released it is likely the above 2021 options will be available to applicants alongside the more comprehensive list of options seen in previous years. Government press releases notably mention a target of doubling the amount of

organically farmed land in Scotland. Whilst the importance of carbon capture, and promoting the vast natural assets Scotland boasts in this respect, is becoming a headline environmental policy it would be safe to assume the capital items and management options made available will support farmers in developing these natural assets. The English farming industry has had a glimpse of the new direction they are to follow with the recently launched pilot of the Environmental Land Management (ELMS) scheme, which could act as an approximate guide to the future agrienvironmental policy we are to see in Scotland. Whilst the English scheme is still in its infancy, with the ﬁrst pilot schemes commencing as we go to print, the goals outlined in the various subschemes indicate environmental funding will target landscapes at both a localised and a holistic level. Small scale activities include the provision of hedgerows or bird cover in arable rotations which are similar to our domestic environmental management options. There are also two larger scale schemes, named Local Nature Recovery and Landscape Recovery, which will focus on more holistic

environmental activities encouraging collaboration between neighbouring landowners in projects such as the creation of woodlands or the restoration of peatland. The schemes for Local Nature Recovery and Landscape Recovery are to pilot in 2022 with a view to officially beginning in 2024. Despite AECS 2021 having a restricted funding pot, Galbraith’s network of agents across Scotland have continued to provide guidance and support for farmers and land managers who have proceeded with applications. AECS 2022 is likely to open in January. Beginning a new application is a detailed process so if you are considering entering into an AECS contract I would urge you to get in touch with your local Galbraith office as soon as you can so we can get the ball rolling as we enter the New Year. n

Calum Chalmers 07917 220 785 calum.chalmers@galbraithgroup.com 13

Setting up Base Camp Roaring ﬁres, a hot cup of tea and plenty of cakes and biscuits welcome you to Green Aspirations when you visit their base camp at Cardross Estate. “We can't guarantee the weather, but we'll always provide a warm welcome.”

Green Aspirations is a community interest company who look to inspire the local community and a new generation to care for the environment by connecting them with like-minded people. Whilst the workshops are open to all that are interested in developing new skills, Green Aspirations aim to work with vulnerable groups and young people who have struggled with the traditional schooling system, helping them to gain conﬁdence by teaching traditional skills in wood-based crafts and woodland management and opening them up to employment options in the rural sector. After ﬁve years at their previous site, Green Aspirations were looking for a new site where they could look to expand their project. They were directed to Cardross Estate where they quickly found that the estate, near Port of Menteith in Stirlingshire could provide them with the perfect place to set up camp.

Since moving to Cardross Estate, they have connected with the tenants and the local community by trading skills and getting to know other organisations.

There were a few locations on the estate that were presented to Green Aspirations. Initially interested in the Pinetum at the heart of the estate, they found that it would have been “too high proﬁle for day to day working” and as such they moved to a small parcel of young woodland on the west of the estate. This new site was “just tucked away and allowed for a gentle ease into the site”. Settled between a mature softwood plantation to the north and an estate road to the south which is lined with mature broadleaves; the site was covered in various stages of natural regeneration. This

provided “an amazing blank canvas to think about what we do, add in new activities, and develop as the site grows”. Speaking to expert green woodworker, Paul “it took a while to ﬁnd the right site but it was worth it, we totally love it here”. Green Aspirations have transformed an area of land which would normally have sat dormant into a thriving hub of activity. “We have loved to watch the site change with the seasons and the wildlife that visits the camp.” At present the Pinetum is in need of some revitalising and it is the estate’s hope that over the next year they will be able to work with Green Aspirations and their volunteers to open up the magical space and show off the amazing old trees that are currently hidden away within its walls. Since moving to Cardross Estate, they have connected with the tenants and the local community by trading skills and getting to know other organisations. In October 2020, once the base camp was set up, they held a welcome gathering to introduce their new location to the local community. The volunteers with Green Aspirations help with the site maintenance and upkeep of the site as well as the preparation for events and workshops. In return, they are able to learn new bushcraft skills and becoming part of the GA family whilst chatting round the campﬁre and enjoying the great outdoors. All new volunteers are encouraged to join and in recent months, the “Axe Maidens” have been formed to encourage women to build their

| Rural Matters | Winter 2021

Construction Update It’s safe to say 2021 has been busy across the construction industry.

conﬁdence in woodland skills using axes and other tools.

Construction output in the private repair and maintenance sector alone was up 7.7% between February 2020 and March 2021 according to the Office for National Statistics – a 7.7% increase with the economy largely closed for ﬁve months.

The workshops that they provide are for everyone, whether they are complete beginners or have experience with bushcrafts. They are focused on adults and cover a wide range of activities from axe crafts to spoon carving. They also work with community groups to teach them how to utilise their own woodland areas, hosting family friendly events with a variety of projects and skills.

As lockdowns lifted again in 2021, and business forecasts and ﬁnancial plans were no longer staring into an abyss, new and mothballed projects came forward. Perhaps the beneﬁt of time for building owners and occupiers to consider their options with renewed optimism as vaccines started to make a dent on Covid-19 cases, together with the economy opening up and stock markets bouncing back strongly all spurred people on.

During the summer months they hold a holiday club for under-12s and various school groups called the Wee Skelfs.

And then….materials & supply hysteria!

This year marked the ﬁve-year anniversary of Green Aspiration’s annual festival, the Great Scottish Spoon Hoolie. Due to Covid restrictions, the event was moved online which allowed them to really broaden their horizons with workshop trainers from across the United States, Sweden, France, Germany and Israel, as well as right across the UK. It also meant that they had participants from all over the world. Green Aspirations have truly transformed the site at Cardross and settled well into the close community on the estate who are like-minded. Cardross Estate looks forward to working with them further on future projects. n

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

Imported plywood prices rose 30% in a year, concrete reinforcement bars were up almost 43% in the same period, prefabricated steel prices jumping 6% in a month, the list goes on: cement, aggregates, tiles, plasterboard, insulation, slates were all similar. And this was if you could even get the material in the ﬁrst place. At one point there was no Spanish slate in the UK for general small order distribution. The factors that created this situation have been well publicised: Brexit changing supply chains and tariffs; labour and skill shortages; distribution disruption at ports, roads and even canals hindering material arrivals and Covid adding to all of this. For those committed to construction contracts, in most instances the contractor took the brunt of the cost impact initially. However, for those planning and procuring new projects it has been an equally challenging time. With demand for contractors high and materials costs even higher, ﬁnding a contractor that can provide an affordable solution has been difficult.

Circumstances don’t always allow you to pause and hope the market settles and costs fall back to something more palatable. But even if you could, can anyone say with certainty material costs will reduce to 2020 levels when fuel costs, wages and taxes are also rising, and even if they do, when? As I write this article, material supply has improved but the high prices have remained; reinforcement steel bars are still 40% higher than at the start of the year. For those persevering there has been tendering, value engineering, more tendering and then negotiating. We have even seen clients buying materials directly and supplying them to contractors to cut out some of the cost uplifts across the supply chain to guarantee the supply of materials when they are needed. It has worked but it’s risky and has other implications. It is essential to plan ahead and be well informed of the risk and ﬁnancial implications if you do pause a project or seek to procure in an alternative manner. Whilst 2021 brought a huge amount of different challenges to the construction industry, there has been a signiﬁcant amount of output, and delivery of superb projects within Galbraith and across the sector generally. A walk near our Edinburgh office with the striking new St James’ Centre swirling skywards is testimony to that. The outlook does remain uncertain but there are great opportunities for those looking to diversify and be at the forefront of a return to, hopefully, a steadier and less frantic 2022 and beyond. n

James Taylor 07766 250 796 james.taylor@galbraithgroup.com 15

The changing face of the modern Estate buyer The expansive and wild lands of Scotland have for generations had great romantic appeal; rugged mountain ranges, extensive coastlines, rolling countryside of the lowlands, picturesque rivers, complemented by a wealth of historical houses and buildings. Many corners of the Scottish countryside have been forged from the traditional Scottish estate, centred on the “big house” with the extensive grounds and policies designed and enhanced to provide the perfect setting for the numerous outdoor activities enjoyed and offered by so many estates. These include the traditional sports of ﬁshing, shooting and stalking, not to mention many having strong farming and forestry interests, together with many estate houses providing homes to all that worked on the estate. The Scottish estate has always been of great interest, predominantly driven by the potential buyer’s interest in the traditional sports the estate has to offer, together with the desire to “get away from it all”. The demand, without doubt, has generally outstripped supply, with only a handful of estates ever offered for sale each year, either privately or on the open market. However, with the accelerating and very tangible understanding of climate change, the growing desire by many to offset carbon usage and the now increased need by

businesses and corporations to not only be visibly “green” but to try and meet their own net zero targets, the traditional estate, together with the hill and stock farms, are now of increased interest from this new buyer, looking to use the land for a modern purpose. Some call it rewilding or habitat creation and expansion, or more simply woodland creation. The buzz phrase is natural capital and whilst the language may be new, the reality is that this is just about managing the land to meet the demands of the market, with the market moving towards society rather than individuals. Some buyers look to plant well designed productive forests, others native woodlands or indeed a diverse mixture of both, with the newer peatland restoration also now coming into the mix. We should perhaps also be asking “what will be the next ecosystem service to be drawn upon”? There is now a range of buyers with varied interests coming forward. Thus on purchase an estate may cease to be a traditional sporting estate and be more orientated around natural capital/ re-wilding/ tourism or a mix of all. Consequently valuing and marketing estates is also changing. As a ﬁrm, we have specialised in the sale,

Most recently we presented an extensive stock hill farm to the market on a strictly private basis and without exception, all the interest was in the potential to manage the natural capital. 16

| Rural Matters | Winter 2021 purchase, valuation and management of estates for many decades. For some of us this is the point where we look forward to how we will value an estate in the future, not just based on its potential for shooting, stalking and fishing. We have embraced this change, and we are investing in people with the necessary skills and expertise to ensure our clients get the very best up to date advice. The rise in values of estates with potential to embrace delivery of ecosystem services has been fascinating to observe, as indeed has the changing face of the buyer. Hill ground, which until very recently, may have had a capital value of something in the region of £600 to £800 per acre, can now see prices nearly double these figures and in some cases more. In most cases a number of bidders have come forward at a closing date and this has successfully helped drive sale prices up to their maximum achievable level. During the recent sales of Glenlochay Estate in Stirlingshire and Auchavan Estate in Angus, the changing face of the buyer started to become more apparent with a small number of natural capital buyers coming forward. However, the recent sale of the Kinrara Estate in Inverness-shire saw much more evidence of this with an increased number of buyers looking to invest in woodland creation potential and associated natural capital outputs. This new modern buyer can be wide ranging from corporations, institutions, investment houses, business owners to private individuals with their own personal environmental motivations and interests. More recently we presented an extensive stock hill farm to the market on a strictly private basis and without exception, all the interest was in the potential to manage the natural capital. Private, off market sales are increasing in number, principally driven by some owners keen to retain their privacy and achievable due to a strong mailing list of active buyers. Thus it is advisable to register and share your “wish list” with us. However, there are also new owners who of course wish to continue to enjoy the traditional sports, whilst at the same time perhaps introducing some native or even productive woodlands for a future income, potentially installing a hydro scheme, turbines or maybe generating further income from holiday letting units, farming or the more bespoke ideas of a distillery or wedding venue. Thus such an acquisition can be seen as a “win/win” investment as it can allow Environmental and Social Governance (ESG) requirements to be met whilst providing a financial return from other parts of the estate. We have just successfully acted for a client in purchasing a traditional sporting estate which is continuing to be managed as

Auchavan Estate Glenisla, Angus

Challenger Estate Lairg, Sutherland

such but with investment into the properties, expanding conservation elements including hedgerow establishment and the intention to install a hydro scheme. The clear observation is that those looking to buy an estate have increased in number, they come with a much wider variety of interests than previously seen but the supply remains tight and limited. So for those considering the sale of either a traditional estate or stock farm, there couldn’t be a better time. Galbraith is currently marketing Challenger Estate near Lairg in a beautiful and dramatic setting in Sutherland. Extending to about 937 acres, Challenger is a delightful mixed estate, offering native woodland, permanent pasture, two substantial trout lochs and hill grazing and is

Emma Chalmers 07899 877 732 emma.chalmers@galbraithgroup.com

centred on the principal residence, Challenger Lodge, together with a separate Bothy and farmhouse. Conservation has been the principal management focus over recent years but it offers the opportunity for upland livestock farming, traditional country sports, woodland creation and further conservation management focus. Offers over £1.7m are being sought for the whole. For those looking to either sell or buy an estate, Galbraith are extremely well placed to assist with its network of offices throughout Scotland and the north of England and a team of highly experienced professionals to advise, not only on the sale or purchase but once secured on a range of further services including forestry, management, renewables, building surveying and planning. n

Athole McKillop 07718 523 045 athole.mcKillop@galbraithgroup.com 17

Timber by Boat The timber industry in Scotland plays a massive part in beneﬁting communities and the local economy, with approximately nine million tonnes of timber harvested every year. The £1 billion sector has recognised the need for sustainable transport planning, with modal shift to sea being the obvious choice on the west of Scotland with its proximity to the Irish sea and associated lochs and waterways.

In many coastal areas of Scotland the road networks are fragile and commonly have restrictions on heavy haulage. This is especially true in the North West Highlands where many of the roads are built over peat and were never designed for such heavy traffic. Tourism adds to the traffic volumes and the great success of the NC500 has its own impact on the carriageways. Many of the north western woodlands we manage are also distant from markets, 80 to 120 miles being the norm. Despite greatly increased market values of both chipwood and sawlog material, road haulage can have a significant impact on profit margins. In 2020 we were harvesting a mature timber crop within 22 miles of the Kinlochbervie harbour. Kinlochbervie is on the 58th latitude and about as far north and west as you can get – it is more used to fishing boats than timber vessels but fits the modal shift strategy well. Support from John Scott Transport (JST) was invaluable, as they were able to liaise with ourselves, the harbourmaster and the crew, as they work in co-ordination with Great Glen Shipping. Neil Stoddart of JST organised the stacking protocols, risk assessments and made

sure all the relevant documentation was in place. Cowan Ltd carried out haulage over three days to bring 850 tonnes of spruce and larch saw log to the harbour, ensuring communication with the boat so it could leave before high tide. The boat had a crane on board and made short work of loading the timber. The ﬁnal step was clearing the harbour of any brash and bark, which we were able to deliver to a local resident to utilise as mulch in their garden. We are planning a subsequent boat load of 1000T of spruce log within the next month. We estimate a reduction in road miles with this operation being close on 7,000 miles and our ability to deliver timber to more specialist new markets has really opened up. The associated impact on air quality, noise, visual amenity and a substantial reduction in greenhouse gas emissions should not be overlooked. n

Heather Coyle 07825 382 084 heather.coyle@galbraithgroup.com

Valuable venison The Covid pandemic brought many challenges to Highland estates, not least the cancellation of valuable sporting bookings and a sharp fall in the price paid for venison by game dealers, both of which had considerable impact on estate incomes.

For Attadale Estate, located in Wester Ross, this led to a rethink in how they market and sell their venison, which has created an opportunity to sell venison directly to local businesses and visitors. Joanna Macpherson of Attadale Estate explains how they made the change: “With last year’s lockdown and the closure of the hospitality industry across Scotland, the price for venison fell dramatically. Here at Attadale, we applied for a licence from the Highland Council to sell our venison directly to the public. Thomas Watson, our stalker has taken to the challenge and now creates venison burgers in a variety of ﬂavours, which have gone down well locally. With support from Roddie MacLennan, former butcher in Lochcarron he has developed various ﬂavours of venison burgers and they are now on sale in the Attadale Gardens Gatehouse.

Not only do visitors to Attadale Gardens have the chance to take them home, but Thomas has been selling them very successfully to local food outlets including Sean Boswell’s Lochcarron Bistro, the Kishorn Seafood Bar and the Rockvilla Hotel in Lochcarron. Everyone is delighted and visitors to Attadale Holiday Cottages now have the chance to order burgers ready for when they arrive for their holiday. We can also send holiday visitors home with their own venison burgers and sausages to enjoy later. I even took some venison down to London to cheer up a one-time Lochcarron resident who now lives down South - she’d read about it on Facebook and wanted some for herself. From estate to plate. n

Claire Acheson 07824 413 559 claire.acheson@galbraithgroup.com 19

BUILDING FOR

GENERATIONS TO

COME Over the past 18 months, the Galbraith building surveying team has worked on two major construction projects which have been celebrated by the local community and proved a draw for visitors to the Highland region.

The Highland Cinema

| Rural Matters | Winter 2021

The Highland Soap Company

Galbraith prepared initial plans for a light-filled, high-specification building in keeping with the architecture of the region, modelled on the typical design of a whisky distillery. Extensive use of glass would provide a first-class experience for visitors as well as allowing the views of Ben Nevis to be fully enjoyed. The elements of the design needed to meet the brief – the practical considerations included facilitating increased production and accommodating accessible tours for visitors, while at the same time reflecting the ethos of the company, which is intrinsically of the Scottish Highlands and is proud to source and use natural ingredients from the immediate area and recyclable packing wherever possible. With the proposed design approved by the client, the process of securing planning permission began.

Galbraith offers a broad expertise and a single point of contact for a complex project that encompasses design, consents and project management. Their multidisciplinary advice has been wonderful. For both projects the client was the entrepreneur and author Angus MacDonald OBE, who hails from Fort William. The first was the construction of the new, independent Highland Cinema. The project was the brainchild of Angus MacDonald based on his desire to ‘give something back’ to the town of his birth. Bucking the trend of closures of many independent cinemas in the UK in recent years, the vision for the Highland Cinema was to become a hub for the local population, screening blockbusters and classic Scottish films as well as hosting musicians and events. The proposed design, a traditional Highland stone bothy with a red corrugated tin roof, was inspired by the village hall in nearby Onich. The esteemed Skye-based Dualchas Architects were joined by experienced construction firm 3b Construction to work with Galbraith to deliver this beautiful building in the heart of the town centre. The site was steeply sloping, which presented a challenge at the outset, particularly given the short timeframe set for completion of the project. In order to overcome the challenges of the site, the schedule of works was revised to bring forward demolition of the existing building on the site thereby allowing more time to properly plan the specifics of design and construction. As with the Highland Soap Company, the impact of Covid meant all construction activities were halted for a period of several weeks.

The completed venue comprises a two-screen cinema with 109- and 62seat auditoriums, an 84-seat café and wine bar with a Douglas Fir ceiling and tables, and a terrace. The main auditorium also houses a red Lotus sports car for two lucky customers. The completion of the building in September 2020 proved particularly gratifying, given the hurdles to be overcome and the commitment of the client to deliver an iconic venue for the beneﬁt of the local community. The second Fort William project was a new multi-million pound factory and visitor centre for the Highland Soap Company, on the northern edge of Fort William, on the site of the former British Alcan Recreation Club, itself part of Old Inverlochy Farm. In keeping with the rich farming heritage of the site, the desire was to create a mixed-use space combining the factory with a visitor experience, shop and premium café. Fort William is a popular tourist location and creating an attractive destination showcasing the artisanal method of production was thought likely to appeal to visitors and residents alike. The popularity of luxury handmade soaps has led the Highland Soap Company to grow rapidly – more than doubling sales in the past two years. As a result, the local ﬁrm needed larger manufacturing premises to accommodate this ever increasing market. The company was keen to retain its prestigious Highland base and loyal workforce.

The site is in close proximity to Inverlochy Castle, dating from the 13th century and lies within the bounds of the Battle of Inverlochy battlefield site. For these reasons Galbraith worked closely with Historic Environment Scotland as well as the local authority, to meet their criteria. Ecological surveys were commissioned and the resident bats rehomed, under strict licence. Planning permission was granted in October 2019. Initially it was hoped that some of the original farm building could be retained but a detailed investigation and survey noted numerous defects resulting from decades of modifications to the original structure. Asbestos was also present in the building, which was removed by a licensed contractor. The entire building was razed to the ground in late 2019. Following the demolition, Ayrshire contractors 3b Construction were appointed to build the new facility, project managed by Galbraith. The Coronavirus pandemic brought the building works to a standstill at a critical stage, but the project was completed in 13 months, and has already proved to be a popular retail destination and a fitting showcase for the Highland Soap Company. Both of these projects have provided a major boost to the regional economy and the local community. When we began the process of applying for planning permission in the halcyon pre-pandemic times, we didn’t realise just how valuable that sense of a thriving rural community would prove. n

John Pullen 07557 163 140 john.pullen@galbraithgroup.com 21

Natural Capital Is it really a new concept? All of us are reading new buzz words & sayings in the rural economy on a daily basis… “Biodiversity Offsetting”, “Biodiversity Net Gain”, “Carbon Capture”, “Natural Capital”.

They seem to have an aura about them that seems to require every landowner, farmer and their professional advisors to sit a new module at University! Is this really the case? For years farmers and Landowners, via Countryside Stewardship Agreements and Environmental Stewardship Agreements, have been leaving stubbles as set-a- side, seeding nonproductive areas with wild ﬂower mixes and replanting hedgerows. Moorland owners have been undertaking grip blocking on their moors to rewet moors and restore peatlands. There are numerous other examples but what I am trying to point out is that the concept is not new… it shouldn’t be a headache for anyone. Biodiversity offsetting will be coming in as a requirement in planning law in the next few years. The simple concept is that what a development takes away in terms of biodiversity must be compensated for elsewhere. Wholesale changes to a ﬁeld parcel at a receptor

site appears to be a possible way to meet the requirement and it would look like conversion of conventional arable field to grassland will score well in terms of biodiversity units. The use of Grass Leys in an arable rotation is well known but the “creation” of a low input lowland flower meadow is not so well known. At Blagdon Estate in south Northumberland, the owner of the estate elected to create one after surface mining on the estate. The surface coal mine secured planning permission in 2004 and a condition of the planning was the reinstatement would require the land restored as low input grassland rather than the arable land previously found at the site. Blagdon Estate was agreeable to this and also offered to have one of the fields restored as a lowland flower meadow. In 2014 after the land had been restored and the soils put down it was drilled with a carefully designed species rich flower and grass mix. The spring/summer of 2015 saw the meadow burst with colour.

The ongoing management of the meadow has seen varying techniques used with mixed results – late mowing, late mulching and cattle grazing have all been tried but then last winter some upland sheep grazed the ﬁeld. This appears to have had a positive impact on the species mix and is planned again this winter to ensure that in each spring/summer the meadow bursts with colour again. Insects love the meadow which sees numerous species of ground nesting birds using the meadow – Biodiversity Net Gain at its best! In conclusion, these new environmental concepts might appear daunting but it is likely that most land managers will have been involved in habitat creation but under a different name… the opportunities that Natural Capital offers should not be feared. n

Matthew Williamson 07824 437 940 matthew.williamson@galbraithgroup.com

| Rural Matters | Winter 2021

Why Consider Carbon Codes? The opportunity offered by carbon codes is exciting, particularly considering the current challenges and changes facing UK agriculture. For example, there has been a general rise in input costs over the last twelve months with fertiliser costs rising signiﬁcantly. Furthermore, direct subsidy payments are under threat and forward markets look set to be volatile considering the current trade negotiations taking place. Overall this will lead to a pressure on farm proﬁtability and therefore alternative options and income streams will need to be considered. Selling carbon credits has the potential to add a further income stream to a business by way of the current woodland and peatland carbon codes, but also through the codes which will be released in the forthcoming years, via soil, hedgerows, wetlands and many others. Carbon codes are in their relatively early stages, but at Galbraith we have clients who are actively involved in the carbon markets via the established codes for woodland and peatland. Moving forward we are already having discussions about the potential via other codes, with the soil carbon code looking to be an exciting opportunity for UK farming. This code not only has the potential to generate an

Ian Hope 07968 209 543 ian.hope@galbraithgroup.com

income stream through selling carbon units, but provides investment into, and de-risks, the transition to lower-input, regenerative farming techniques. These lower both costs and carbon emissions by reducing diesel and nitrate use. Regenerative methods can also help climate change adaptation by improving soil structure, water retention and permeability. This provides resilience to drought or waterlogging, helps prevent flooding downstream, and protects water quality in rivers. The hedgerow carbon code could provide similar opportunities for grassland. At Galbraith we are actively involved in assisting landowners and farmers to maximise this opportunity. It is important to understand all the risks, liabilities and pitfalls from going into the carbon market and to identify how carbon credits fit into the existing business as well as how that may impact the future generation. They cannot be simply treated as a replacement for direct payment, but they could provide a key element in developing more productive and profitable farm businesses going forward. n

Martin Rennie 07899 923 138 martin.rennie@galbraithgroup.com 23

Full Market Analysis The Galbraith Perth team examines the ﬂuctuation in commodity prices over the last six months.

With generally favourable weather conditions, commodity prices in general have held strong, however some sectors have experienced signiﬁcant labour and Covid-19 challenges.

Lamb (Fig 1) Calum Chalmers Reports Lamb prices have enjoyed a strong year in 2021 with a booming start in the ﬁrst quarter, peaking at a 5 year average high of 662 p/kg in May. Unfortunately this momentum faltered as we entered the tail end of the year with a sizeable price drop from June’s average of 637p/kg to 547 p/kg in July – the ﬁrst time this year 2020’s average prices were higher. This faltering can be attributed partly to national supply issues that are being experienced across all domestic sectors. A shortage of lorry drivers have constricted supply chains reducing lamb exports, July saw a 26% reduction in fresh and frozen meat exports. The EU remains the largest recipient of exported meat; AHDB report a 25% drop in the Yearto-July exports to the EU in comparison to 2020.

European cousins for agricultural labour being exposed. As a result throughput has been falling with lambkill reducing by 20% in August. AHDB have established that the English lamb crop for the year is down 4%, whilst data is not yet available for the rest of the United Kingdom they believe there is a chance the 2021 lamb crop could be the smallest it has been for 10 years. Whilst prices took a rather harsh downwards turn it is worth noting the September average price of 514 p/kg is still considerably higher than the prices experienced for the majority of 2020. Uncertainty across the UK has been gradually building, with national fuel supply issues and emptier supermarket shelves exacerbating post-Brexit fear. In what could be described as unprecedented market circumstances the average deadweight price of lamb has been relatively kind to producers. As we approach the New Year there appears to have been a slight resurgence in price with a slightly bolstered October average price of 523 p/kg indicating a potential strong ﬁnish to what has been a very turbulent year for producers.

Another outcome of our secession from Europe has been a lack of operating staff in the slaughter line, with our over-reliance on our

Fig 1

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| Rural Matters | Winter 2021

Beef (Fig 2) Martin Rennie Reports Beef prices continue to thrive as we enter the tail end of 2021, with steer prices reaching a new monthly average high of 411 p/kg in September 2021. Support for domestic beef has been strengthened by higher retail demand in combination with an overall lower supply of ﬁnished cattle entering the supply chain. AHDB predict a 4% reduction of beef production across the United Kingdom in 2021 primarily due to lower cow kill numbers and a marginal reduction in carcase weights. As COVID-19 restrictions relaxed there was doubt that this momentum would continue with an increase in consumption in the hospitality sector, notably an industry often reliant on imported beef undermining this performance. It does seem, however, prices have rallied and continued to a strong ﬁnish to the year.

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Cereals (Fig 3) Andrew Sanderson Reports The Scottish winter wheat harvest has completed earlier than usual this year. Towards the end of August and the start of September, the UK as a whole, has experienced more stable weather patterns. Winter Wheat yields remained steady and close to average at between 8.1 – 8.3t/ha. This is against a ﬁve year average of 8.0t/ha, with milling wheat ranging between 6.2t/ha – 12.5t/ha. Protein levels have been found to be greater in eastern regions.

Fig 4

The picture is similar for winter barley (and winter OSR) and were complete by week 9 of harvest (7th September), with yields slightly improving on the ﬁve year average at 6.9t/ha -7.1t/ha, with the lower yields occurring on lighter land. Malting barley is experiencing yields of 6.5t/ha to 8.5t/ha. The timing of the harvest of spring barley has varied across the county with records showing yields of 5.0t/ha – 10.0t/ha. Malting barley is typically 1t/ha lower than feed. Like the cereal crops, oilseed rape is experiencing an increase in yield

Fig 5

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across the country with yields achieving between 3.3t/ha – 3.5t/ha, with a five year average of 3.3t/ha. The straw prices throughout the 2020/21 season were high, with this trend continuing at the beginning of this season. This continuation was likely caused by the reduced straw yield from the 2020 harvest. There has been a high level of bailing as farmers looked to take advantage of these higher prices. (AHDB, 27th July 2021). As of July 2021, the prices for barley and wheat straw have dramatically decreased back to levels seen in early summer last year with big square bailed barley straw at £60/tonne and big baled wheat straw at £50/tonne (British Hay and Straw Merchants Association, 2021). Between July and November, the straw prices have fluctuated yet remained stable. Wheat prices have shown a steady increase on last year. Each figure has been taken as close to the 1st of each month as possible. Now, at the tail end of November, the UK cereal harvest has reached its completion. UK wheat prices are continuing to rise at are currently at their highest at £232.15/t as of the 22nd November. These higher prices are a welcome sight especially considering the recent spike in fertiliser prices. According to AHDB, official figures show that in September, prices averaged

£395/tonne for imported ammonium nitrate with a sharp increase through the month. Figures for October and November are not yet available but reports suggest that this upward trend have continued.

Dairy (Fig 5) Jack Marshall Reports The UK average milk price for September 2021 was 31.72ppl, which is an increase of 2.71ppl (9.34%) from 29.01ppl in September 2020, (DEFRA, 2021). This makes it more than three consecutive months where the UK average price has been at 30ppl or higher, with the last time this happened was September to December 2018. Across the board for September most producers have held prices and some even announcing price holds into October (AHDB, 2021). As we come into the backend dairy production naturally begins to enter its trough period, many other sectors and industries are being hit a lack of HGV drivers, there have yet been no reported issues of milk pickups not being made. This however is a concern should the shortages last through into the spring when milk production increases. Dairy farms are expected to continue to enjoy the current milk prices and hope for them to continue over the winter. There is however concern, with the exceptional grain trading prices there are fears for the cost of

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animal feeds increasing moving forward. This raises the question is 30 pence per litre enough to with these rising costs of production. Demand for milk is expected to remain as it is as lockdowns ended over the summer months, but there is still uncertainty as to how the markets will react should there be any changes to restrictions over the winter months.

Conclusion Over the past 6 months we have been busy undertaking a range of consultancy work for our clients. This has ranged from analysing the costs of a low ground sheep operation to preparing diversification grants. The service covers a range of matters from general subsidy advice to analysing overall business profitability. One of the objectives of our service is to identify opportunities and look at avenues for a business to grow, develop and flourish. At the moment we are having several conversations in relation to natural capital and carbon storage. Both are interesting topics and pose new questions to a great deal of our existing farming clients. In terms of our perspective it is essential to understand the ‘big picture’ of a business, its objectives and what issues will be faced moving forward. n

Martin Rennie 07899 923 138 martin.rennie@galbraithgroup.com

| Rural Matters | Winter 2021

Different routes into Surveying The majority of surveyors join the profession through the traditional route of obtaining an RICS accredited degree, securing a graduate position at their favoured ﬁrm, and undertaking the two-year graduate training programme.

However, a number of Galbraith employees have taken a different route into the profession, offering a variety of different life and career experiences which informs their work as surveyors. Each of these employees have, or are currently, undertaking to study a RICS accredited postgraduate degree before sitting the RICS assessment of professional competence (APC). Here they talk about their experiences.

graduating, in need of a break from studying, I travelled to Australia and New Zealand and worked on farms, whist trying to decide on my next move. I very much enjoyed my degree and the work that it entailed but, having grown up in a rural area of the Highlands, I wanted to ﬁnd a career that combined my degree and interest in property with being outdoors. Surveying seemed to tick both of these boxes.

Gill Young, I grew up on a sheep and beef farm in Dumfries. I graduated with a ﬁrst class LLB in Law with Honours from the University of Aberdeen followed by a year for my diploma in legal practice – I actually loved studying law but I never wanted to be a lawyer.

After attending a couple of the training days at Galbraith, I applied to the graduate training programme. Though my law degree did not constitute a ‘RICS accredited degree’, which is required in order to qualify as a Chartered Surveyor, I was fortunate enough to be able to study an accredited masters in Rural Estate and Land Management at Harper Adams, part-time, whilst training as a graduate surveyor with Galbraith. Now qualiﬁed, I work in our Edinburgh office, carrying out a variety of estate management, valuation and professional work. Before joining, I was worried I would lack a surveying background but Galbraith attracts people from all backgrounds and professions, providing the training required and allowing graduates to work in the areas they ﬁnd most interesting.

When I was offered a traineeship I decided it was a good opportunity. I started my traineeship with Ledingham Chalmers in Aberdeen for one year which was split between commercial property and private client. Then I moved to Stirling and did 18 months’ agricultural law - for 6 months of which I was a qualiﬁed solicitor. I didn’t particularly enjoy any of the departments in law. In Stirling I worked frequently with Galbraith and wanted a change to something more varied, practical and enjoyable. I then spoke to a partner at Galbraith and successfully applied to become a graduate rural land agent. Gill is currently studying a postgraduate degree in Rural Estate and Land Management at Harper Adams University and will thereafter sit her APC. Ailsa Baird, I joined Galbraith in August 2018, after taking a slightly indirect route to surveying. I originally studied law at the University of Edinburgh, specialising in property law, amongst other subjects, and working during the summer break in solicitor’s and estate agent’s practices to gain more experience. After

Annie Lane, I grew up in rural Aberdeenshire and was always unsure what career to follow.

pursue. I moved home and joined Galbraith in 2014 on a temporary basis. I loved the variety that the job entailed so when the opportunity arose to continue working at Galbraith and study an accredited postgraduate degree alongside my work, I took it. The course at Harper Adams was well structured to allow study alongside work, with lectures for each module condensed into a one week block. Twelve modules are undertaken over a two (or three) year period. Working alongside the course allows experience to be gained towards the APC which I sat in the November following completion of the Rural Estate and Land Management course at Harper Adams. Rachel Urquhart, Farming, wildlife management and the outdoors were my passion from a young age. I studied Biochemistry at the University of Glasgow. Following University I knew a career in a research laboratory did not appeal to me as I enjoyed getting outdoors too much. When I came across the Rural Graduate Programme with Galbraith I decided it would be the perfect job. It has given me the opportunity to research and follow changes in land management practices in response to climate change & ecosystem services.

I obtained an undergraduate degree from Oxford Brookes University in Education and Child Development and worked in a nursery for a number of years, working my way to Assistant Manager.

I am currently in my second year of the Rural Estate and Land Management course at Harper Adams, which has been a great experience. It has taught me all of the key concepts involved in my every day work whilst gaining valuable experience on the job.

I was then offered the opportunity to work in Kenya, teaching in an orphanage school during the week and exploring Kenya and Uganda at the weekends. Whilst the experience was tremendous I also realised that teaching was not a career I wanted to

The skills I acquired through my previous degree, such as interpreting and summarising experimental results have helped on many occasions and will continue to be of beneﬁt in my new career path, as I progress to become a Rural Surveyor. n 27

A year in the life of a Land Agent Throughout history, scientists, intrepid explorers, great inventors, activists and artists have recorded their thoughts and observations in journals and diaries. Charles Darwin, Leonardo Da Vinci and Anne Frank are just a few examples of diarists whose unique insights and perspectives on the world around them have resonated for generations.

While I am not comparing myself to Leonardo da Vinci, I feel that the diary format best illustrates the cyclicality and seasonality of the job. Over the course of the last ten years I have worked as a land agent across Scotland, from Bute in the West to Edinburgh in the East, Stirling in the North and Dumfries and Galloway in the south. The following article is loosely based on the diary format, but I think that as a land agent, a seasonal approach provides an overview of a year in my life, hopefully with enough detail to avoid boredom and enough ambiguity to avoid libel! Spring Despite media hype about a ‘new start’ this return to work from the whirlwind of Christmas is often irksome to navigate. The worst weather of the winter is very often still to come, so property maintenance and management in bad weather and limited daylight hours is challenging. Leaks, damp, cold, windblown trees, slipped slates, and storm damage all require attention, and a lot of the work at this time of year can be reactive and require some quick thinking and diplomacy as well as the requirement to get waterproofs on. I ﬁnd the start of the year is one of very marked highs 28

and lows. The lows are often characterised by jobs which lingered on, getting sucked unresolved into the Christmas vortex. The highs come from existing or potential new clients who seize the new year with vigour and want to make a start on their own ‘to-do’ lists with some positive action, which may come in the form of enlisting the assistance of a new advisor, or in the case of existing clients, kick starting new projects – both of which give the January blues a healthy run for their money! Once January and February have blown through, glimmers of the year ahead start to open up. Lambing, calving and cultivations make clients and tenants impossible to get hold of, which is perhaps welcome as this is very often the time of year when estate management budgets need to be finalised, with clients clamouring for figures. I find that if you don’t grasp March hard, the year can start to slip away, so with winter behind you, and the last few years in Scotland having notoriously dry springs, it is time to start getting to the outside maintenance jobs which may have been waiting since October the previous year. One of the difficulties of property management is finding contractors who can deliver. The days

of estates employing maintenance teams are now largely gone, and there is a bit of a void which was once filled by the ‘handyman.’ It can be frustrating that small domestic jobs such as changing light bulbs or pulling leaves out of gutters have been upgraded to areas of specialism. As such, if you find good contractors, treat them well and pay them promptly. Negotiations for Whitsunday agricultural rent reviews will be well underway by this stage in the year, with the aim to agree before the 28th May being paramount. Over the last few years, the need to undertake rent reviews in good time, and ideally, in accordance with the guidance issued by the TFC (Tenant Farming Commissioner) has become increasingly important if conflict or confusion are to be avoided. April and May are good times of year to take stock of things. Once SAF submissions are safely completed, and with the new year and new budget in their infancy, it is always helpful and inspiring to get out on the ground with clients and take another look at buildings, fields, forestry to see what potential they hold. Renovation, renewables, planning, planting, environmental schemes all look more

| Rural Matters | Winter 2021

hopeful in the early spring sunshine, and it is our job to see where the opportunities lie, and explore these to ascertain whether potential can be turned into reality. Similarly, opportunities and irritations may arise in the form of land access. Water, electricity, transport links and telecoms companies all generate large quantities of admin and potentially large sums of money for landowners, although one of the challenges is managing expectations here! Summer As the year moves on, getting the outside jobs completed is imperative. The drainage jobs in ﬁelds or leaks in houses which were your biggest headache over the winter and spring, are now distant memories, but unless they are dealt with, they will rear their heads again come the autumn. Just as January can spark an energy spike, so can September as people heave a sigh of relief at the school gates, return from holiday, or start their new job. Projects that had become static in August gain momentum again. Flurries of meetings, and a renewed determination to get jobs done before the end of the year. The pace of work life in September is invigorating and catching up with colleagues who are embarking on new projects or exploring different avenues of income or diversiﬁcation for clients is always inspirational. I have been involved in tendering for solar sites this year, as have others within the company, and the sharing of information is imperative to ensure our clients are getting the

Projects that had become static in August gain momentum again. Flurries of meetings, and a renewed determination to get jobs done before the end of the year. best deals. I have also been looking into the potential for obtaining planning permission for residential properties on a few rural sites, starting the process by submitting preapplications with high hopes and fairly low expectations! Autumn and Winter Autumn remains one of the busiest times of year, getting out to do inspections and surveys or meet clients and contractors on the ground before the shortening days and colder weather set in. I have pictures on my phone, taken of buildings, woods and ﬁeld boundaries, which are barely discernible through blizzard and dusky light – they paint a picture of life as a

rural surveyor in themselves! One issue which is inevitably unavoidable, is the necessity of leaving the warmth of the car in an icy downpour. Memorably, this has seen me, watched in horror by a graduate colleague, 5 months pregnant, wedging stones and loose fence stobs under the truck wheels and digging with an electric fence post in an attempt to escape some Dumfriesshire quagmire. We eventually got out, had a quick wash in the policy burn, before heading on to the next meeting! In the main, it is not a glamorous life, but it is by turn, satisfying, amusing, frustrating and always interesting. Near the beginning of the odyssey that has been my career in rural surveying, I experienced a period of frustration, perceiving that my life centred around achieving goals for others, while creating no landmarks of my own. A colleague at the time reminded me that many of the recognisable features of our ever changing landscape, both rural and urban are the result of hours of work and ingenuity put in by land agents and surveyors. It is perhaps not the lot of the land agent to be a trail blazer and adopting high risk strategies on behalf of clients is not for the faint hearted, but there are times when you need to take the lead and the initiative, and this is when life can be both exciting and rewarding. n

Poppy Baggott 07557 973 220 poppy.baggott@galbraithgroup.com 29

THEY MAY BE THE BEES’ KNEES BUT THEY ARE NOT THE BEST HOUSE MATES

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During the summer of 2020 a colony of bees swarmed, ultimately deciding to take access through a small gap in the slates to the roof space of a Gate Lodge in Dumfriesshire. After the initial panic from the tenants, they began to love hearing and seeing the bees at the property and adjusted to life with them around.

When the heat of summer passed and the autumnal months arrived the bees disappeared and we never gave them another thought. At the beginning of summer of this year, the bees became active again, and the tenants vacated the property, relocating south for reasons unrelated to vigorous insect life. We marketed the property, and on ﬁnding a tenant asked if the bees would be a problem, and unsurprisingly, we were asked if they could be removed. We thought this would be a simple task, completed by a call to pest control asking them to treat or move the colony. We discovered that as with many things in life – nothing is that simple. Pest control services are generally reluctant to handle bees that are causing a nuisance in a residential setting and they recommended we contact the Environmental Health team at the local council. Upon phoning the council, they asked us to contact pest control – and so telephone ping pong began. Eventually, after discussions with colleagues and locals in the area, we found an expert within the Scottish Beekeepers’ Association, John Mellis, who was immensely helpful and lived locally to the Gate Lodge. John met us at the Lodge to carry out an initial assessment, where he advised that we had two options; cut access to the eaves through the internal ceiling or remove slates and cut away the sarking. As we had a tenant living in the property, we opted for the latter which required a joint operation with a beekeeper and a brave joiner! Upon John’s second visit to the property, he and the joiner removed the slates, allowing access for as many of the bees to be removed as possible. At this stage he realised that it was a huge colony, extending at least 6 feet up the roof and would not be a simple removal. On top of this, there was a large mass of honey which was slowly eating away at the structure

of the eaves and could have led to significant damage if not removed. John managed to remove all of the combs containing brood and honey but there were still several thousand bees crawling around in the space. The final visit took place in the evening, where John gathered up the forager bees which has been out in neighbouring fields during the day. He managed to vacuum up the majority of the bees, including the queen, and the joiner then revisited the following day to replace the sarking and re-lay the slates.

When the queen leaves the hive, a consensus is shortly reached, and the whole mass of bees move to the new location...

Over the course of the next couple of days evidence of the bees reduced and we were pleased to report that John’s efforts had been a huge success – although not the simplest task he had been asked to assist with! Despite the positive outcome, John reported that it is very difficult to remove the scent of bees from the place where a colony has been and this makes the site attractive to future swarms. With this in mind, we decided to put a cap on the disused chimney pot at the property as it seemed an easily accessible area for the bees to gather. We also made an inspection for any obvious entry points such as cracks or holes in brickwork or faulty roof tiling. Unfortunately, without blocking every crevice in the property, situations like this are hard to avoid, but having a general understanding of why bees swarm is of huge beneﬁt. John Mellis has very kindly provided a concise overview of the process. This is worth including here for anyone who has had a colony recently or manages a property on behalf of tenants: • Honey bees are one of the insects which reproduce by rearing new queens and allowing the old queen to leave the hive accompanied by up to half the bees in a colony. The bees which leave form what is known as a swarm. In January and February an overwintered colony of bees will have perhaps 10,000 20,000 bees and one mature queen - and the numbers will increase as eggs are laid. • By early May (in Scotland) the colony will have built to between 30,000 and 50,000 bees and there will be mature drones within the hive. They may have stored a lot of honey and are feeling 32

constricted for space - these conditions can lead to preparations for swarming. At this time a few bees may be noticed taking interest in a chimney or the eaves of a building. They may also investigate hollows in trees and other natural cavities – a space which has previously been occupied by bees is generally more desirable. When the queen leaves the hive, a consensus is shortly reached, and the whole mass of bees move to the new location. • At this point removal is fairly straightforward, the bees have little investment in the new spot with no combs or brood to encourage them to stay. A wellestablished colony may be a different proposition and there can be combs extending over several feet and rather a lot of honey. • The key to successful removal is to ﬁnd the queen or at least to ensure she is within the mass of bees removed. If she cannot be found, the bees will keep returning to join her. • Because the colony will most likely be within a void in the wall or roof it is useful to use a heat detecting camera to identify which part of the wall or roof needs to be cut away - cutting holes speculatively can lead to

signiﬁcant additional remedial work. • A word on using poison to kill the colony. It will be very effective but the combs containing honey will still be there and bees are opportunists - robbing a weak or dead colony is easier than collecting nectar, so the robbers will enter the cavity, load up with honey (and poison) and carry it back to their own hive. On the basis that swarms are always going to happen it would make sense to develop a commercial arrangement with a local beekeeper or beekeeping association who could be called on when required. Therefore, if a colony of honey bees were to swarm to a property the ﬁrst port of call should be your local Beekeeping Association. In return for a donation to the association they may be able to relocate the bees to one of their hives or provide advice on the best course of action. We hope this is useful and we are grateful to John Mellis for his invaluable advice. n

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

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Is British Beef Really to blame for climate change? There have been many campaigns over the past few years, such as ‘Veganuary’, that push for individuals to reduce the amount of meat they eat as a means to lessen the environmental impact of our diets. Due to the greenhouse gas emissions produced by livestock, a large proportion of our environmental concerns are pinned on cattle but is the blame really warranted?

Cattle produce methane, which is a powerful greenhouse gas which when in the atmosphere has a higher global warming potential than carbon dioxide. Without getting too scientiﬁc, although methane is very bad for the environment, its time in the atmosphere is ﬂeeting in comparison to other greenhouse gasses like carbon dioxide. When methane is released it only stays in the atmosphere for a decade as it is broken down by hydroxyl radicals. Whereas carbon dioxide is a stock gas and accumulates over time because it stays in the environment.

Scottish or indeed British meat is not going to destroy our planet. Cattle are an important source of local food with low food miles and British beef is produced to some of the highest welfare and environmentally sustainable standards in the world. An avocado from Mexico and almonds from California travel approximately 5,000 miles to get to the UK, which is adding more carbon dioxide into the atmosphere, that will never disappear.

Every time we make a journey in our cars, we are increasing the amount of carbon dioxide in the atmosphere. However, if cattle numbers stay the same, the amount of methane produced from cattle in the atmosphere stays the same as methane produced ten years ago has been removed from the atmosphere.

This is not to mention the deforestation that is occurring to satisfy vegan or meat-less diets of those living in countries miles away. In Scotland much of the landscape is unsuitable for growing anything except beef and lamb. Well-managed farms in the UK are able to use productive grassland management to capture carbon in our grass which our livestock in turn are able to convert into high quality meat, which is important for a balanced human diet.

Despite releasing methane, eating meat does have its advantages and eating

Although British beef is some of the best quality meat in the world, our farmers

can still make changes to reduce the methane production of our cattle. Be it through farming strategies, grass management or by what we feed our cattle. Recent research has shown that introducing small amounts of seaweed in the diets of our cattle herds, can reduce the amount of methane produced. The way in which farming and the environment is perceived is changing due to the need to reform our approach to land use to help deliver NetZero by lowering emissions from production whilst maintaining quality and efficiency. With subsidies changing, farming businesses need to start thinking about the natural capital assets their farming practices beneﬁt from and what can be done to help with carbon capture and NetZero. n

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

There were speciﬁc beneﬁts to the tenant granted in the lease, such as entering onto the landowner’s other land for temporary works, rights to install an emergency generator and to carry out trimming to the landowner’s trees...

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Rules are becoming clearer as work progresses on upgrading mobile networks The UK Government introduced the new Electronic Communications Code in December 2017 to make it quicker and cheaper to roll out new telecommunication sites and upgrade old ones. These objectives have not been achieved as the mobile operators took the opportunity to, in some cases, try to reduce rents by over 95% which was met with resistance from landowners, so a period of stalemate set in.

Cases were taken forward to the Lands Tribunal for Scotland and the Upper Tribunal (Lands Chamber) for English and Welsh cases. We have seen more tribunal cases in the three years since the new code came in than under the previous 30 years but we are starting to see clarity on some aspects of the new code.

Three-stage approach to assessing rental values On Tower UK Limited V J H & F W Green Limited 2020 (the Dale Park Case) was the ﬁrst to consider the renewal of a rural mast agreement in England. The tribunal adopted a three-stage approach to assessing the rental value taking into account the individual characteristics of the site: Stage 1 Assess the alternative use value of the site This site was in woodland on a rural estate with an estimated alternative rental value of £100/annum. However, where a site has genuine prospects for an alternative use, such as a yard or car parking, a higher ﬁgure may be appropriate.

Stage 2 Consider the additional benefits to the tenant There were specific benefits to the tenant granted in the lease, such as entering onto the landowner’s other land for temporary works, rights to install an emergency generator and to carry out trimming to the landowner’s trees. The tenant also benefited from a rolling break clause after five years. The Upper Tribunal awarded £600/annum for these rights. Stage 2 highlights the importance of agreeing the specific lease terms in conjunction with the site payment and not separately. Different lease terms or other circumstances would result in a different stage 2 figure. Stage 3 Consider the adverse effects on the landowner In this case, these effects included the impact of third party access into the heart of a rural estate in close proximity to let residential properties, the occasional use of a temporary generator, increased access during upgrading activities and loss of amenity from the mast itself. The tribunal awarded £500/annum for these impacts but other sites may vary depending on their individual circumstances.

The three stage assessment produced a rent of £1,200/annum, and while applying the same approach to other sites would result in a different ﬁgure, this does start to set a benchmark for other sites to follow. In reaching its conclusions, the tribunal recognised that the level of a consensual rent might feasibly be double that of a strictly no network assessment allowing for an element of incentive given to the landowner and to avoid the cost of formal proceedings. The Dale Park case may help some parties move closer to a consensual agreement but with tribunal cases ongoing and the Government consulting on whether further changes are needed to the code, full clarity on code agreements is still some time away. n

Mike Reid 07909 978 642 mike.reid@galbraithgroup.com

Elgin 01343 546 362 elgin@galbraithgroup.com Inverness 01463 224 343 inverness@galbraithgroup.com Aberdeen 01224 860 710 aberdeen@galbraithgroup.com Perth 01738 451 111 perth@galbraithgroup.com Cupar 01334 659 980 cupar@galbraithgroup.com Stirling 01786 434 600 stirling@galbraithgroup.com Edinburgh 0131 240 6960 edinburgh@galbraithgroup.com

Kelso 01573 224 244 kelso@galbraithgroup.com Ayr 01292 268 181 ayr@galbraithgroup.com Castle Douglas 01556 505 346 castledouglas@galbraithgroup.com Hexham 01434 693693 hexham@galbraithgroup.com Blagdon 01670 789621 blagdon@galbraithgroup.com Penrith 01768 800 830 penrith@galbraithgroup.com

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