Rural Matters Winter 2020 by Galbraith

Land of opportunity and resilience Smallholdings deliver the rural dream Oh to get back to show time!

Contents 4

Turning Dreams into Reality Shake-up for phone mast leases

Government Grants Prepare for the best

Oh to get back to show time!

Energy Efficiency Regulations Update

10 A ﬁne balance qualifying as a surveyor while working from home 12 How to see the wood from the trees ..And the sheep! 15 Helping you make the right connection 16 Smallholdings. Deliver the Rural Dream 18 Green shoots out of the blue 18 Scotland v England. The pricing puzzle... 20 Making the most of the Cottage Industry

Welcome to Rural Matters At the time of going to print the events of this year are proving difficult, not least the disruption to our local communities and impact on our business.

here are however several bright spots that demonstrate the continued resilience of the agricultural sector. Firstly, 2020 has proved beyond any doubt that agricultural businesses can and do adapt when times are tough. Our clients have not only complied with rapidly imposed regulations but have also embraced new ways of working, new models of delivery and have taken advantage of opportunities such as the growth in domestic tourism driving demand for holiday cottages. Some micro-businesses have pivoted to supply an emerging need at very short notice – proving their agility in a changing world.

The rural business sector is as innovative and adaptable as any city centre business. We look forward to greater public investment in high-speed broadband for all rural areas to enable continued growth. Another very notable feature of the past four months has been the surge in the rural property market, with post-lockdown demand at an all-time high. Buyers are motivated by the desire for privacy, space, tranquil surroundings and an increased interest in land and smallholdings, whether that means keeping a few sheep and hens or even just growing your own vegetables. At Galbraith we have also adapted, making greater use of online services and working remotely with the aid of software and services for collaboration. Our commitment to our clients remains the same whether we are meeting in person or online. Whilst the future remains uncertain, we are here to guide and advise our clients through these tricky times. Our best wishes to all our clients for a safe and prosperous Winter. n Ian Hope Head of our Rural Department 07968 209 543 ian.hope@galbraithgroup.com

23 Rural – land of opportunity and resilience 26 Market analysis Rural Matters 28 Build Back Better A successful site restoration at Blagdon Estate 28 The code for enjoying the countryside 30 Walled Gardens A Labour of love and a force for good

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

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

Helping buyers with the lie of the land You would expect a property consultancy to know their bricks, mortar - and land when it comes to selling property.

e have a strong and knowledgeable agency team working across Scotland and the north of England who have been achieving a high level of success in the recent - and very active - COVID-19 dominated market. What is less well known is that we also buy properties on behalf of existing and new clients. While the majority of sales happen on the open market, each year exciting and prestigious properties are sold through private marketing campaigns. This type of transaction occurs for a number of reasons, either personal or professional. We provide a

personalised service for both selling and purchasing properties. In addition, we have made a number of successful approaches to the owners of properties which are not on the market but which ﬁt our clients’ requirements.

alongside providing advice on the various enterprises on the estate. This gave our client a better understanding of the existing and potential ﬁnancial returns of the estate and helped us to advise on a future estate policy.

In a recent purchase during 2020, we acted on behalf of a client who acquired a substantial estate close to the West Coast of Scotland. Our client had enquired about another property Galbraith was marketing but that was under offer. However, we were able to use our network of contacts to introduce our client to agents of a property that was just about to be launched to the open market. Both vendor and purchasers expectations were aligned, resulting in our client getting early access and subsequently exclusivity to the property sale.

Where we have successfully purchased estates and farms on behalf of our clients, we have on a number of occasions been retained to manage these properties. In the case of our above client, we now manage in excess of 28,000 acres of land on their behalf. The intrinsic nature of the purchase meant we understood our client’s objectives and a good relationship was formed at an early stage. Part of this success has been the ability to work with co-professionals along the journey, forming a progressive and trustworthy team. n

As part of acting on behalf of our new client, we are able to offer our land agency services by reporting on the current and potential management and subsidy position of holdings prior to purchase,

Lucie Howatson lucie.howatson@galbraithgroup.com 07557 263 723

Turning Dreams into Reality

We can all identify with the frustration of losing out on a property deal - especially when it may thwart your business ambitions.

unencumbered (unsecured) property grants a bank security over an area of land or farm in order for the borrowers to meet their loan to value requirements.Â In my experience acting as an agent for the Agricultural Mortgage Corporation plc (AMC) this has been absolutely vital in a number of purchasing situations where the eventual owner did not think they had a chance of acquiring any land.

owever, prospective land purchasers in the farming sector do have some help at hand.

A prime example of this relates to a farm purchase in Ayrshire where the purchaserâ&#x20AC;&#x2122;s relatives owned a farm which was not secured to any bank and by granting AMC a security over the Title the new farm was purchased without any cash deposit.

The ability for some lenders to use third party securities in relation to the purchase of land has proven to be a key factor in recent years providing land buyers with restricted cash deposits the opportunity to secure land.

It is, of course, a requirement for all purchasers to meet affordability criteria at stress test levels and there is every likelihood that legal fees will be elevated as a result of the additional securities work and separate legal representation.

The concept of third party security is used where a family member or other connected party with

The concept of third party securities is relatively straightforward once understood and has proved to

the necessary legal process to allow banks to call on their security and we offer the property to the open market in the event of a loan defaulting. At present, the Scottish Government is working with the Crofting Commission to try and alleviate this but it has been a longstanding issue for many years. Secure agricultural tenants on a 1991 Act holding could, in theory, ask their landlord to offer up their farm as security which would constitute third party security, but to the best of my knowledge this has never happened. There would, of course, have to be a very strong connection between tenant and landlord with the landlord keen to see the tenant operating a successful business and improving the holding for example by building new sheds, ﬁnanced long term by AMC and hopefully providing mutual beneﬁt to both parties. The risk of course is that the tenant defaults on the loan and the landlord’s security is called into question.

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Since 2008, all banks have taken an extremely cautious approach when valuing development opportunities... be invaluable during a number of recent transactions. We have come across instances in the past where elderly retired members of a farming family, who still have part ownership of farming assets, are being asked to become joint borrowers on any new lending. This of course has huge implications not only in terms of time and cost but also potentially tax liabilities further down the line. A retired partner could be construed to still be part of a farming business having previously beneﬁted from agricultural property reliefs in the past. This can sometimes be a deal breaker for customers who do not wish to go down this route and this is where AMC comes into its own. AMC would not require an elderly relative who is a part owner to become a joint borrower but will recognise the connection to the overall picture. Sadly, tenant farmers and crofters are unable to offer security freely. Crofting, whether it’s on an owner occupier or tenanted basis, does not provide

Loan to value is a criteria that all banks look at as to the potential risk and bare land usually offers the best option. Some intensive farming systems such as pigs, poultry and in certain instances dairying have large investments in specialist equipment which in reality is a depreciating asset and the bank could restrict the loan to value if the weighting of the asset is more geared towards plant and machinery. Banks also take an extremely cautious approach when looking at renewable energy structures whether it be wind, hydro or biomass as again these specialist machines have a shelf life irrespective of what guaranteed feed-in tariff or RHI payments are available. Since 2008, all banks have taken an extremely cautious approach when valuing development opportunities whether they be houses or commercial enterprises. Prior to the crash in 2008 banks lent heavily against planning consents which literally overnight became almost worthless and there was no tangible asset from which the bank could recoup its loans. A simple house plot or new farmhouse must be built up to damp course level prior to any value being attributed to the planning consent. This is to enable the bank to sell a development site in theory with planning in place in perpetuity. Developing farm businesses is a complex area and given the challenges that the sector faces today, more farmers will have to explore myriad options on how to make progress. We offer advice to landowners and farmers throughout Scotland and the North of England and we are there to help smooth the path of turning land acquisition ambitions into reality. For assistance in fulﬁlling your business ambitions please contact me to discuss your requirements. n

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

Shake-up for phone mast leases A Scottish Lands Tribunal case conﬁrms radio mast lease renewals need to be justiﬁed by operators.

legal ruling on whether telecom companies can impose new lease terms on landowners looks set to shake up negotiations on the siting of phone masts in Scotland. In EE Ltd/Hutchison 3G Ltd v Duncan & Others 2020 the Scottish Lands Tribunal considered whether an operator had the right to a new lease, instead of continuing an existing agreement on ‘tacit relocation’ – a Scots law principle whereby leases continue on a year to year basis on the same conditions as applied previously. The operators had served a notice under paragraph 33 of the Electronic Communications Code requesting a new code lease where there was already a lease in place for an existing site. The tribunal concluded that the operators had not put forward a relevant case as to why they should be granted a new code lease at renewal and, therefore, the tribunal dismissed the application.

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Some landowners will have already signed up to new leases on renewal...

The tribunal noted the code gave it discretion to determine certain rights, such as to modify an agreement instead of replacing it. However, as the application was for a completely new lease, the tribunal concluded it must either approve or reject the application. The tribunal was required to consider all the circumstances including the business and technical needs of the operators, whether any existing agreement is unduly onerous or restrictive together with all other matters. The tribunal also conﬁrmed there is nothing wrong with an operator who can’t justify the replacement

of an old code agreement remaining bound by that agreement. The operators are now appealing this decision to the Court of Session so we will need to wait for the results of this appeal. if the Supreme Court in England conﬁrms that an operator already in occupation can obtain code rights under paragraph 20, this approach is likely to be used for lease renewals, although that would reverse the Court of Appeal decision in CTIL v Compton Beauchamp Estates Ltd, so isn’t guaranteed. This decision currently means that a code operator needs to provide appropriate justiﬁcation for a new lease at renewal and it can’t just propose a new lease because that’s what it wants. Some landowners will have already signed up to new leases on renewal as a result of an approach from a code operator threatening tribunal action if they don’t agree to the terms proposed. Those owners will probably now be receiving substantially less rent and poorer lease terms than their previous lease as a result. Landowners approached about a lease renewal should be asking the operators to justify why the existing lease, which may have been operating successfully for 20 years, needs to be changed. n

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

• Historic Building Restoration Grant– 80%(!) grant funding for farm buildings in National Parks • Hedgerow and Boundary Grants – Providing up to £10k of capital grants for dry stone wall repairs and hedgerow gapping up • Mid-Tier Countryside Stewardship – A whole raft of capital and area based payments • Higher-Tier Countryside Stewardship - A whole raft of capital and area based payments

Government Grants Prepare for the best Grants. Like them or loathe them, you’re going to be seeing more of them. The trouble is, they come with strings attached, they’re complicated and have an irritating habit of being ‘just closed’ for applications by the time you get a look at them.

he trick is to plan ahead. Take stock now. Whilst the future of government support for the rural sector is still very uncertain we know enough to make some informed ‘guesses’ as to where it is headed. Support for woodland planting, natural capital, farming productivity, energy efficiency improvements, rural tourism projects and carbon capture are all going to be there in some form… (I think we can say that with some certainty?!).

So why not start thinking now about the traditional buildings worthy of restoration and secure planning consent for the barn you might want to convert. Apply for the Woodland Creation Planning Grant and get an approved planting scheme. Identify the central heating boilers in your cottages that are old and inefficient. You don’t have to start these projects but at least you are in the starting blocks ready for any funding opportunity that comes along. Anticipate the starting gun. All too often the decision to go for a grant is last minute and rushed. If you’re at the back of the queue you are not giving your asset its best chance. Think it through in advance, secure the necessary consent and make sure it is deliverable. When margins are tight (which they might be after Brexit) you don’t want to miss out when the planning consent hasn’t come through in time. Sticking my neck on the line, I think it is fair to say the following grants will stick around in one form or another. This list is not intended to be deﬁnitive, nor are they all available at the time of going to print, but I hope to give you a ﬂavour of what might be out there if you know where to look:

• Woodland Management Plan Grant – Often 100% of cost of developing an approved management plan for existing woodland • Woodland Creation Planning Grant – Up to £30k per project (depending on size) to assist with getting a new woodland planting scheme approved • Woodland Carbon Fund – Up to £6,800 per hectare for woodland planting (large sites) • Woodland Creation Grant - Up to £6,800 per hectare for woodland planting (small sites) • RDPE Growth Programme – 40% grant towards rural tourism projects • RDPE Growth Programme - 40% grant towards food processing • RDPE Growth Programme – 40% grant towards farm diversiﬁcation or new equipment • Green Homes Grant – Up to £10k grant towards energy efficiency improvements for residential properties • A whole raft of Covid-19 related support. • Gigabit Voucher Scheme - £1,500 and £3,500 grant to connect fast internet to rural homes and businesses respectively. • RDPE Countryside Productivity Scheme – 40% grants for machinery and equipment for farmers and foresters Farms and rural estates are full of opportunities to be more efficient and to diversify income streams. If your business isn’t taking full advantage of the grants to do so, don’t complain to me when the Basic Payment is gone! n

Mark Smith 07917 230 066 mark.smith@galbraithgroup.com

Oh to get back to

show time! The rural and farming community has not been immune to the many impacts of the COVID-19 pandemic and one of the many joys of life we have largely had to forego is meeting face to face.

ot long after lockdown in the spring of this year the Royal Highland Show was one of the major events to admit defeat and cancel this year's show. It is the pinnacle of achievement, success and holidays for many farming families as well as associated businesses such as Galbraith. We have attended the Royal Highland Show with a trade stand for a number of years now and it forms a huge part of our connection to rural businesses and is enjoyed by everyone within the ﬁrm from graduate surveyors up to partners.

Local shows have all followed suit and been cancelled and even the winter events such as AgriScot and Border Live Expo. Many show quality livestock have been purchased in the previous autumn and in the spring of this year to compete at the various shows and sadly they will pass their sell by date and never have the opportunity of gracing any show circuit. The day to day commercial trading of livestock through markets is hugely important to maintaining values and keeping the food supply chain going. Thankfully the auction markets up and down the country have taken the problems with Covid extremely seriously and have adopted very strict rules speciﬁc to the sales. In most instances this only allows potential purchasers to attend the sales with sellers having to say goodbye to their stock at the loading banks or farm gates.

The abattoir and food processing sector has seen instances of Covid outbreaks not only domestically but across the world causing subsequent problems in food supply further down the line with short term shortages in certain sectors and conversely a backlog in the supply of livestock and fruit & veg produce on the other side.

If anyone was ever in doubt as to the importance of the auction mart trading system then they should recall back to 2001 when foot & mouth disease devastated the UK farming livestock sector. It broke out at Longtown Mart on the Scottish/English border in March of that year and livestock sales by public auction never took place until the end of the year. Finished prime stock were sold direct from farm to abattoir and with no pricing mechanism available through the auction system the abattoirs took every opportunity to lower prices where they could which had a knock-on effect on an already crippled industry. Large gatherings such as Kelso Ram Sales have already been reorganised with the various auction companies hosting their allocated "rings" normally held at Kelso Show Field to their own premises. Early indications of the autumn sales are that prices are well in advance of 2019 but this is primarily down to increased demand from domestic markets partly due to the number of people remaining in the UK rather than travelling abroad. Galbraith has sponsored the Stirling Bull Sales for a number of years and

Energy Efficiency Regulations Update The majority of landlords in Scotland will be aware of the minimum standard Energy Performance Certiﬁcate (EPC) Regulations that were due to come into effect at varying stages from 1st April 2020 – 31st March 2025, with the news in January that the start of the phased changes were setback until the 1st October. However, due to Covid-19 the government has decided to postpone implementation indeﬁnitely.

Callum Woods 01334 659 983 callum.woods@galbraithgroup.com

S this is an incredible showcase for the beef sector but sadly this year the bulls will be simply paraded with no rosettes being handed out. Hopefully there will still be plenty of buyers in attendance making sure the commercial end is maintained and bulls can ﬁnd a new home at a price to suit both purchaser and seller. No-one knows what the outcome will be in 2021 of this devastating virus but one thing is for sure, farming needs shows and sales to take place not only for the commercial aspects but just as importantly the social beneﬁts to the rural community which can be a lonely and detached place to work at the best of times. We offer all farming businesses our best wishes and look forward to seeing you when the agri show season gets fully back up and running. n

Robert Taylor 07585 901 847 robert.taylor@galbraithgroup.com

imilar schemes have been established in England and Wales and so it is highly likely that the Scottish Government will set another date as soon they feel it is safe to do so – reducing the nation’s energy expenditure is still a priority. It would be advisable if you already have a budget and plan set aside to update your properties particularly if you have more than one that requires improvement to start work towards meeting the required standards regardless of this delay to the introduction of the regulations. Before the postponement there was a £5000 cost cap per property to reach a level E (for properties not exempt from the regulations), with a further £5000 to reach a level D for all private rental sector properties. If you have a number of properties, particularly traditional rural estate/farm cottages, it is easy to see that costs may soon mount up.

issues could have been rectiﬁed at the same time. Having EPC’s in place will allow you to address each property individually thus giving the opportunity to spread costs over a 5 year period (or longer if works are undertaken now). In a portfolio of properties it is likely there will be buildings of varying condition and styles; whilst one property may simply require energy efficient lighting and/or additional loft insulation to achieve the required standard, another may require a new heating system and double glazing. The latter may require the property to be empty; if there is a change in tenancy then carrying out the works during this time would be preferable to avoid disruptions. Making use of this legislative delay by being proactive and methodical is certainly the way to avoid headaches and panic months before any future deadline. n

An EPC remains valid for 10 years, however, it is a good idea to obtain an up-to-date EPC for all properties; an EPC with 2-3 years remaining may have changed rating since the date of issue. Relying on an older rating may lead to work being undertaken that ultimately falls short of the required level, resulting in further call out charges and wasted time arranging further works, when the

A ﬁne balance - qualifying as a surveyor while working from home The work, life and study balancing act of completing the RICS (Royal Institute of Chartered Surveyors) Assessment of Professional Competence (APC) exams is something all surveyors have experienced. However, come the 23rd March 2020 a new working, living and studying model was conﬁrmed as Scotland was declared ‘locked down’, and working from home was the instruction for the foreseeable future.

s a final year graduate, with five months to the submission date, the initial reaction was that COVID-19 would have blown over and life would be back to ‘normal’ by APC submission time. Fast forward six months and we now understand the naivety of those early lockdown predictions. These six months of working from home have presented a range of challenges and also benefits which have affected the way in which we work, live and study. The initially striking realisation was the free time created when my 30minute commute twice daily was removed from my day. In an instant, I had an additional five hours a week, time that I could spend focussing on APC prep, granted some days more

efficiently than others. This reduced my carbon footprint, alongside the financial benefit of spending little to no money on fuel. So on first reflection, working from home was going to be super, and a huge help to completing my APC. Many of us APC graduates headed home to parents’ houses when deemed safe to do so, quickly reassuming the family dynamic of years gone by. Home comforts included a ready supply of home baking which would be placed beside me quietly if on a Teams call, much to the dismay of my colleagues on the other end of the call! Lunchtime runs became part of my working day, as I did not need to worry about changing back into workwear for the office. A burst of

fresh air that beneﬁtted my afternoon of work, something not always possible in the office environment. It is often stated that working from home provides a quieter and more focused work environment, certainly for us graduates this I think is true. Setting out your plan for the day, and getting your head down to focus is much easier when there are no distractions or colleagues popping in to discuss new jobs or updates. As a result, I could set my mind to one task, and complete it efficiently and thoroughly. This proved to be beneﬁcial on days when a deadline is fast approaching and I found my productivity pick up as a result. As the months ticked over, the disadvantages of working from

Kate Michie 07919 182 802 kate.michie@galbraithgroup.com

home whilst working towards the APC became more apparent. The general hubbub of the office environment is hugely informative. I have learnt a great deal from being part of quick 5 minute discussions with colleagues in the office, and listening to colleagues dealing with issues and conundrums. On reﬂection, this is an element of office life that provided me with updates to knowledge and understanding which has now been removed. In addition to this, I can no longer turn and ask a colleague a quick 30 second question, although all available by a phone call or via Teams video calls, it is not the same as in person. The same is true of the conversations and information that I gain from site visits with colleagues. The practical nature of this job is a

hugely important aspect, indeed you must demonstrate in the APC your experience of on-site practical learning, something that was completely halted at the commencement of lockdown. In addition to the site visit itself, car journeys with senior colleagues can be hugely informative. They allow us time to discuss the job at hand, and other topical rural issues often related to the environment and businesses we pass on the car journey. To return to the ‘home’ of working from home, as graduates we did not choose our ﬂats and houses with any thought that we might need a home office. This has meant that many are working, living and studying in one room. The volume of work that is required for the APC is rather

daunting, and the prospect of finishing your working day and then returning to the same desk to study in the evening is not one that fills most with joy. As restrictions lifted through the phases, we have been able to carry out site visits and pick up the crucial experience that these bring. While the APC submissions are now in, and the final push of preparing for the interview is upon us, the socially distanced theme continues. The RICS has stated that all future APC exams are to be conducted over Teams which has become the communication tool of our profession, and one we are all well versed in by now! n

How to see the wood from the trees ...And the sheep! Understanding the drawbacks of the Sheep and Trees Initiative

There is a host of potential benefits of tree planting for land owners from carbon credits and tax benefits to shelter for livestock and amenity. Many of these benefits go beyond the commonly understood ecological benefits, and offer financial benefits to upland farmers who choose to plant trees. The forestry grant scheme can increase this financial benefit and one part of it, the Sheep and Trees initiative, is specifically aimed at upland farmers.

aunched at the Highland Show in 2017 the Sheep and Trees Initiative aims to promote upland tree planting, increase farm diversiﬁcation and meet the Scottish Government’s sustainable development objectives. The initiative is part of the wider forestry grant scheme and offers upland sheep farmers funding for planting of small blocks, between 10ha and 50ha of commercial forestry species such as Sitka spruce. In addition, capital funding for access tracks was included in a single simple application form. The idea was that these forestry blocks and access tracks, when properly positioned would provide shelter for sheep and cattle on the hill, reduce feed and winter housing costs, provide timber at harvesting and improve access for stock and forestry management. Designed to promote integrated forestry in upland farming across Scotland, the initiative has, to date, had a very low uptake. As shown by Morgan-Davies et al., (2008; 2012) a Scottish upland silvopastoral system, combining sheep and native woodland, was an achievable and beneﬁcial system. They found that 23% of farmers were willing to diversify, with half already having made changes

and 11.5% having diversiﬁed through afforestation. The integration of farming and agroforestry was shown to have positive results, increasing overall productivity by 20% when tested in Perthshire. If, as shown by this research, farmers are keen to diversify and integrate trees in their business why has the initiative had such low uptake?

from planting trees on the landlord’s property, and a legacy of the poorly designed upland planting of the middle 20th century. This negativity to all trees is still evident amongst the farming population and extends more widely when commercial conifers such as Sitka spruce are considered.

Through research and interviews with upland farmers the reasons for this low uptake have become clearer.

These negative attitudes towards conifers go part way to explain the lack of uptake of the Sheep and Trees initiative which focused primarily on commercial conifer planting. In many upland situations a reduced number of commercial species are suitable for planting. This also contradicts the desire of farmers to plant in less productive areas of the farm. On an upland farm, especially in marginal areas, the most appropriate and more desirable species for planting may be native upland trees such as birch and mountain willow. These species are unable to offer a commercial timber return but can be useful for biodiversity and providing shelter. Despite the potential of these species, they are not supported by the Sheep and Trees initiative, reducing its appeal.

Farmers have traditionally held negative attitudes towards tree planting especially in the uplands. This is partially a result of historic conditioning when tenants were legally prevented

The initiative allows for planting of small blocks of forestry, with partial integration into the farming system, through on farm management and the provision of shelter for livestock.

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Farmers have traditionally held negative attitudes towards tree planting especially in the uplands...

This planting is at standard forestry densities of 2500 stems/ha. The farmers questioned expressed preferences for more integrated planting, which is supported by previous research which showed positive attitudes to integrated woodland systems are held by farmers across Europe. Many interviewees in Scotland expressed a preference for woodland styles with greater integration that those available within the initiative. Greater integration can take a range of forms including woodland grazing, silvopastural agroforestry, shelterbelts and creative planting at lower stem densities.

Some of these types of planting are represented in the diagram below.

grazing, extensive use of hedgerows and planting of shelterbelts. More practically, it is also believed that although these types of integrated woodland do not provide a commercial timber crop they could provide material for biomass and provide increased shelter for stock. This reﬂects the poor design of the sheep and trees initiative, as one of the key beneﬁts is not well provided by the tree species required in the initiative. With many upland farms being a solo enterprise, some farmers lack the capacity to provide tree management labour from existing resources and looking ahead may feel they cannot afford to pay for the labour required to manage their trees, deterring participation in the initiative. This is not exclusively a problem of the Sheep and Trees initiative but of farmers planting trees more generally, however the focus on producing commercially viable timber and the large amount of trees required under the forestry grant scheme have perceived greater labour and maintenance requirements than native planting. The majority of a small sample of interviewees who expressed interest in integrated farming had not heard of the initiative and were unaware that funding was available for upland farmers to plant small forestry blocks. It would be expected that those with an interest in integrated farming would be prime candidates for the initiative. From this it appears that there was a lack of advertising of the initiative amongst the relevant groups. The species of trees and styles of planting supported by the Sheep and Trees Initiative appear to be misaligned with the preferences of farmers wishing to adopt an integrated forestry system, this along with the lack of awareness appears to be the main reason for the low uptake of the scheme. Having seen that the initiative has not proved popular what would be a better example of a scheme for upland farmers to encourage integrated farming and forestry?

Although the initiative represents one form of integrated farming, more highly integrated systems such as hedgerows, silvopasture, and shelterbelts are highly desirable amongst farmers. These types of systems often reﬂect more historic land use patterns such as orchard

The positivity towards integration shows that a scheme to support integration on upland farms has the potential to be successful. However the scheme needs to provide support for the correct types of integration in order to achieve a good amount of applications.

Moving the focus from commercial conifer to native broadleaf species would likely increase uptake. The type of Schemes which were considered desirable by interviewees were overwhelmingly those which included high levels of integration. Empowering farmers and land managers to make decisions about the types of integration which will work best and ensuring any initiatives are well designed and advertised would help to ensure high levels of uptake. Giving greater flexibility would allow farmers to benefit from productive commercial species where they are appropriate in an integrated farm model. This increased flexibility would offer wider possibilities for landowners to plant trees to meet government goals with government support, while providing options which are desirable for landowners. This demonstrates the importance of practical research and consideration on the views of participants in informing policy. Support to help upland farmers and landowners

Helping you make

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The positivity towards integration shows that a scheme to support integration on upland farms has the potential to be successful.

overcome the practical barriers has the potential to provide positive beneﬁts for all involved. The poor uptake of the Sheep and Trees initiative shows the importance of funding being focussed on the right type of support. There are other grants within the forestry grant scheme which may prove more compatible with the desires of farmers for greater integration. These include the agroforestry initiative which offers capital payments for individually protected trees and support for woodland grazing. The Galbraith Forestry Team are able to offer support with the design and management of integrated woodland projects at a range of scales. Please contact us for further information. n

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

the right connection Sitting comfortably in my home “office” I write this alongside the 25 neighbouring properties forming what could be described as a quaint little village found nestled at the foot of the Sidlaw Hills, Perthshire.

espite the rural location. we are very fortunately only 800m from a long established telephone and internet exchange. The Scottish Government’s target of meeting superfast broadband speeds were easily ticked off the list here. Connectivity to good communication links has been a vital part of our lives over the last two decades especially as technological advances have changed the way that we socially interact and work not to mention adapting to the challenges of 2020. A global shift from capped data allowances on both mobiles and internet service have meant most families utilise unlimited data packages meaning the focus is now purely around price and speed. Time after all is money and there are doubtless many frustrated people sitting at home behind their makeshift desks cursing slow download speeds. How many of us have been somewhere remote and either leaned out the window or climbed the nearest rock to stand on one leg to try and get signal? Galbraith currently acts as an advisor to three separate utilities companies who are leading the provision of superfast broadband cabinets, electricity and water connections. Our advice generally relates to securing the rights required over third party land to achieve these connections and deal with the ensuing reinstatement or ﬁnancial compensation. Equally, we assist hundreds of clients with their own issues of connectivity for rural estate properties and manage telecoms mast portfolios.

However, as our agency department continues to deal with daily inquiries from prospective buyers and sellers in rural areas (although this time with more emphasis on possible office space!), there will no doubt be greater due diligence carried out on service connectivity. Whilst a lot of this information can be found online, there are some aspects that are a little harder to determine. Galbraith has vast experience of dealing with the practicalities of connectivity issues having advised on electricity connection routes, negotiated wayleave with neighbours, assisted with water borehole establishment but also helping spread ﬁbre broadband throughout Scotland. Whilst the Scottish government states that they have met their target of 95% of premises having 24Mbps by 2017 this remains below the superfast “30MBps”. In our experience, we have found that, despite the apparent proximity of services if you are looking to establish new connections for your property, this can be far from straightforward and could involve paying all or part of a share to improve the network capacity before this can happen. Thankfully, this isn’t news to us and we have worked alongside many other experts with the necessary engineering expertise to provide bespoke alternatives to assist with off grid resources including microgeneration which has an added appeal as we each strive to decrease our carbon footprints. n

Nick Morgan 07717 227 404 nick.morgan@galbraithgroup.com

Smallholdings

Deliver the Rural Dream The demand for smallholdings has been strong and rising across Scotland and the North of England over the past few years.

V programmes advocating the benefits and personal joys of growing one’s own fruit and veg, having a few hens, making jam, bee keeping and even keeping sheep, pigs, goats and cattle, not to mention interest in green energy, conservation and flower farming, have resonated with many people from all walks of life. Typically a smallholding will attract significant interest as soon as it comes to the market and in most cases will sell in a matter of weeks. This year has seen the market rise to new heights and there have been two factors acting as a catalyst. Firstly, many people have wanted to get on and realise a long-cherished ambition to own land in order to achieve a better quality of life, following all that this year has brought. Secondly the experience of working from home has demonstrated that connectivity is less of an issue in rural areas. In most parts of the UK either broadband speeds already provide comfortable access to remote servers in the office or there are workable alternatives – via satellite or a mobile connection. Whether the desire is for a cottage with a few acres of land or a small farm extending to perhaps 20 or 30

acres will depend on the desired location and available budget. A good location, usually within about an hour of a large town or city, peaceful surroundings and an attractive rural setting are the prerequisites for most buyers. For those purchasing land for the ﬁrst time Galbraith provides a onestop shop for bespoke advice – from selling the property itself to advice on agricultural subsidies, woodland creation, renewables, planning applications, connectivity, natural capital and more. So, what are the key points that those new to smallholding should consider?

“

The desire for self-sufficiency often extends to an interest in creating a small renewable scheme on your landholding

The ﬁrst priority is to register with the government as a landowner and a keeper of livestock – this can be done online and is relatively straightforward. In Scotland registration is via the Rural Payments and Inspections Division and in England via the Rural Payments Agency. Galbraith can advise if you

are registering a smallholding for the ﬁrst time. The landowner must then register as a keeper of livestock with the Animal and Plant Health Agency; this is required to ensure that livestock movements are recorded, for the obvious management of any animal disease outbreaks. Anyone who owns cattle, deer, sheep, goats, pigs, and poultry if you have 50 birds or

smallholding and having the necessary entitlements. In some cases capital grants for infrastructure such as trees, fences and hedges may also be available, subject to speciﬁc conditions. The desire for self-sufficiency often extends to an interest in creating a small renewable scheme on your landholding, whether that takes the form of installing solar panels, or investigating the potential for a small hydro turbine or wind turbine. Galbraith has extensive expertise in this sector and can offer tailored advice. We advise prospective purchasers not to be too concerned if the property lacks sufficient sheds or outbuildings for their plans. For those new to smallholding or small scale farming, it may seem a challenge to construct a shed but in many cases it is relatively straightforward and it can be an advantage to create something to your own speciﬁcations. more, must register. Bee hives are also subject to periodic inspections and should be registered with the authorities. The Basic Payment Scheme (BPS) is the scheme for those who are actively farming and offers an annual return per hectare, for landowners owning 3 hectares or more. Most smallholdings will be eligible, depending on the size of the

There are however planning considerations that should not be overlooked. At the time of writing one client has just asked if planning permission is required for a horse ménage. Perhaps surprisingly the answer is that planning consent is indeed required. Galbraith has a planning team who work hand in hand with our agricultural consultancy team to advise clients.

Increasing interest in where our food comes from and in supporting local producers and local farmers has been much in evidence this year. Galbraith clients are typical of many in the countryside seeking high quality locally-sourced produce. The interest in growing your own goes very much hand in hand with supporting local producers, suppliers and outlets. Properties with an established orchard are in great demand however the planning and planting of your own orchard can give the opportunity to be harvesting your ﬁrst crop within two or three years, depending on the weather and varieties selected. There is great joy in watching your fruit trees grow, harvesting your own crop and enjoying the fruit either straight from the tree or made into jams, jellies or chutneys. This article only scratches the surface of the full range of considerations and issues that may be pertinent to smallholders. For land sales or purchases please contact Emma Chalmers or Martin Rennie for bespoke agricultural advice on a speciﬁc concern. n

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

Green shoots out of the blue

An exciting new partnership on the West Coast is delivering environmental and commercial beneﬁts.

lenshiel Estate is located in Wester Ross, on the shores of Loch Duich. The Estate has recently started working with Seawater Solutions, an innovative farming company using saltwater to grow a variety of saline vegetables, including samphire, sea kale, aster and blite. Produce is sold both direct to consumers and to businesses and restaurants across the UK and overseas. By-products also include natural salt substitutes, biofuels and oils suitable for cosmetics. Using coastal land which was previously under-utilised on the estate, Seawater Solutions have in a short time established planting areas on foreshore and pasture land, all irrigated by sea water from the loch. As well as producing niche and valuable food crops, the farming system is designed to bring a range of environmental beneﬁts, including ﬂood mitigation and carbon capture. Director of Seawater Solutions, Yanik Nyberg explains: “Globally, climate and market threats are impacting the way in which land is used. This is true of land affected by rising sea levels in Bangladesh, as it is in Scotland. Over the last 30 years, the concept of ecosystems-based approaches to land management and

Scotland v England. The pricing puzzle... The discrepancy between property prices north and south of the border has always perplexed selling agents as to why, not only houses but land appears better value for money in Scotland. This is not a new phenomenon but why is this the case? 18

opulation is clearly the main driver with more people chasing property in England at any given time - this obviously creates a higher demand and drives values. The argument that Scotland is remote with less amenities / services / infrastructure etc is not correct as the fourth largest city in the UK is Greater Glasgow. North of York and across to Preston and further north is as remote as any part of south west or north east Scotland with large areas of unproductive moorland. So the argument that infrastructure is the driver is incorrect.

The UK wide tax regime was partially devolved when the Scottish Parliament was established. Up until then, all properties in the UK had the same tax laws so that does not fully explain the difference. The new LBTT (Land and Buildings Transaction Tax) is devolved and whilst there are differences between Scotland and England, these are not substantial. In any event, you could argue that Scotland’s tax is more favourable for property purchasers particularly in the lower price bands. There are factors that illustrate the difference between our respective economies, for example: deprivation

agriculture has surfaced, with the intention of harmonising climate resilience with the productivity of marginalised land. That serves as the basis of our activities in the Global South as it does in the Highlands. By utilising marginalised land and converting it into healthy wetland ecosystems that serve a number of environmental and economic benefits, we are able to tackle the imminent climate-focused threats along with the need for green recovery activities and job creation in rural settings. On the beautiful Glenshiel Estate, our third project in Scotland in two years, we are redeveloping underutilised land in order to create commercially viable farms that touch on many of the climate threats in question, including rising sea levels, biodiversity loss, carbon emissions and soil health. The Highlands, with a rich history of agriculture over many centuries, highlights a significant opportunity to bring back this lost culture of agricultural innovation in the present climate and tech context. In this light, Seawater Solutions is focused on promoting natural land-based strategies involving natural wetland and saltmarsh ecosystems which tie in peripheral objectives such as local job creation and community engagement. The Glenshiel site is the first in the UK to use intertidal land for agriculture. Sea water represents a significant resource as it is virtually limitless and full of nutrients that can sustain highly-nutritious and high-value crops without any external inputs. This allows us to introduce invaluable ecosystems on new terrain. On

in Scottish inner cities is greater than in cities in England whilst English business rates are also signiﬁcantly lower than in Scotland. Grade 3(2) land on the outskirts of Carlisle has traditionally been worth 25% more than Grade 3(2) land on the outskirts of Gretna, which is hard to comprehend. The subsidy scheme in Scotland latterly has been seen to be more favourable towards farmers so that is not an explanatory factor. This takes us back to the only reason being the volume of interested parties. There are of course differences in land values between different regions of Scotland also Grade 3(2) land in Ayrshire compared to Grade 3(2) land in

Glenshiel this involves the introduction of saltmarshes on rough grazing land, marsh soils, and others. New and novel crops are grown to facilitate the gradual creation of wetlands, such as Samphire, Sea Aster, and reeds, all grown with seawater. These are used for vegetables, oils, textiles and herbal extracts. Glenshiel is also the first site in the country which is growing barley with seawater, highlighting the historical significance of grain production in the Highlands, with the intention of creating the first seawater-grown Scottish Whisky. The entire farm is run on renewable energy. Solar energy is used to deliver seawater all around the expansive site through traditional and new irrigation canals, allowing for a natural mimicry of tidal movements.” James Baillie, a member of the family that own Glenshiel Estate, states: “This is an exciting project, which has only been underway for 6 months. There have of course been challenges, be it the global pandemic and associated lockdown measures or the

Berwickshire - the value could be double in Berwickshire simply due to the climate, although the soil quality is arguably better. For many years, headline ﬁgures for arable land in south east England have been the benchmark for the rest of the country but in the last ten years east coast Scotland arable land has reached and breached the heady levels seen in the south east of England partly driven by potato, vegetable and berry farmers. One point of interest about growing blackcurrants in Scotland is that the longer autumn nights assist with the ripening of the fruit, so much so that 80% of Ribena’s berries are grown in Scotland.

erratic and high West Coast rainfall affecting salinity levels, but Yanik and his dedicated team have dealt with all that has been thrown at them. There are obvious economic benefits, whether it is bringing marginal land into agricultural production in a sustainable way or creating employment for the local area, however it was the environmental benefits that primarily interested us. We are not only re-establishing the salt marsh and wetland ecosystems but the project also has valuable carbon capture properties.” The family have entered into an initial 5 year joint venture arrangement with Seawater Solutions, though it is hoped that this will be the start of a long and fruitful partnership between the businesses. There are plans for expansion of the growing area and range of crops within the site over the coming season and subsequent years, with the opportunity for local longterm job creation. Local hotels and restaurants will also be able to take advantage of serving the home grown vegetables to add variety to their menus. While agriculture has been at the forefront of the family’s land holdings for many years, it is particularly exciting to be involved in the adoption of such new and inventive farming methods, and they are looking forward to seeing how the project evolves and monitoring the environmental benefits over the coming months and years. n

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

Perhaps the underlying issue is the weather (and the midges!) but given the way in which people now work from home following the pandemic of COVID-19 - Scotland has become a much more desirable place to live and work and this is simply down to fewer people per square mile. It is possible that in the future the price differential between rural property in Scotland and England will diminish. We look forward to assisting clients with land and property purchases whatever the future holds. n

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

Making the most of the Cottage Industry

Most farms will have at least one former farm-worker’s cottage. Typically these are either let long term on a residential tenancy, or short term as self-catering holiday accommodation, providing useful diversiﬁed income.

n a previous edition of Rural Matters, we examined the pros and cons of both these options, but this article focuses on properties made available for self-catering holidays. In light of the current health crisis, holiday accommodation providers have had to adjust to signiﬁcant new routines and procedures. So what exactly are providers facing? We asked Fiona Campbell, chief executive of the Association of Scottish Self Caterers (ASSC), and Melinda and Robert Kennedy of Supercontrol, a company which provides management software and expert guidance for those in the self-catering business. With holidaying abroad facing restrictions, and an increasing number of countries joining the quarantine list, holiday accommodation providers across the UK are experiencing increased demand from British tourists. However, it is not quite as simple as greeting eager holidaymakers as they arrive. The self-catering industry dried up completely during the lockdown, meaning that many lost out on at least three months of income, on top of having to refund those who could no longer come. So, when the self-catering sector cautiously re-opened, many providers were met with a surge in demand, while also adhering to cleaning and Health and Safety measures which have increased immeasurably compared with previous standards. The role of the Association of Scottish Self Caterers (ASSC) has arguably

never been more important. The ASSC has been around for over 40 years, and its members maintain the principles of “quality, integrity, cleanliness, comfort, courtesy and efficiency” offering visitors to Scotland consistently high standards of accommodation. The self-catering industry is a £723 million sector in Scotland, and therefore a signiﬁcant part of the national economy. The crisis will have reduced this contribution, however, it may serve as an opportunity for change, and innovation. Fiona Campbell of the Association of Scottish Self Caterers commented: “We’re optimistic about the future and welcome the incredible demand for staycations, which adds signiﬁcantly to that atmosphere of positivity and determination.”

“ We’re optimistic about the future and welcome the incredible demand for staycations...

“The ASSC continues to undertake critical activities to support its members against threats to the industry, such as the Short-Term Lets Regulatory Framework, Transient Visitor Levy/Tourist Tax, Business Rates Review and the increasing ‘cost of doing business’.” Guests can rest assured that the accommodation on offer through ASSC members is not only comfortable and clean, but that it is also compliant with government guidelines, and that guests are offered flexibility and the promise of a refund in the face of ‘force majeur’ cancellations. As bookings and cancellations now need to be managed so quickly and frequently, property owners are looking to technology to help them stay one step ahead. For this reason Robert and Melinda Kennedy of Orroland Farm founded Supercontrol in 2007. Supercontrol is a platform designed for the self-catering market, providing an online management system enabling more bookings with less work. The software has specific tools to analyse turnover and occupancy rates. Supercontrol recently introduced its Master Cancel software. Robert Kennedy explains: “The owner or agency changes their terms to offer flexible cancellation terms to their guests. They will offer a full refund of any accommodation costs up to two days prior to arrival. If the cancellation falls between 60 and 2 days prior to arrival then they can make a claim to Master Cancel”.

Undoubtedly this has been an invaluable procedure during the last few months. Robert continues: “Making a claim is a simple process. If the dates aren’t rebooked, or if they are re-booked at a lower price, then Master Cancel will reimburse you 90% of the accommodation value.” With this simple system, it is clear to see why there has been a significant increase in owners engaging Supercontrol’s services through the Covid-19 period. Another area where Supercontrol can help self-caterers is through their price optimisation packages. The key software for this is Beyond Pricing, which sets prices for individual properties, based on local market data. This software has been proven to increase revenue by 10-40% and enhances flexibility for owners. Robert concludes: “Despite months of lockdown and the inevitable hit on revenue, we are extremely optimistic for the future. Covid has already brought a boost to selfcatering since the market re-opened and demand is higher than ever. Overseas travel is likely to be impacted for some time, making UK self-catering the first choice for many. This will include a large number who haven’t used self-catering previously, driving yet more opportunity to our sector in 2021 and beyond.”

Covid has already brought a boost to self catering since the market re-opened 22

So while the debate remains whether to enter into the short let holiday market, or to let longer term, with the inevitable pros and cons of both options, there is assistance available from the Association of Scottish Self Caterers and Supercontrol. If you are considering changing from letting a property long term to a holiday rental, or vice-versa, or for advice on any aspect of letting a property please contact your local Galbraith office. n

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

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

Rural – land of opportunity T and resilience

COVID-19 has undoubtedly had a devastating impact on a number of sectors, from ﬁnancial markets to tourism and leisure. Yet what of the impact on the rural sector, and the outlook for rural land and property?

he rural sector has traditionally been a countercyclical asset class, performing well when others have faltered during times of economic uncertainty. It has not only weathered some of the most severe economic downturns in history but has done so whilst providing excellent financial performance, most recently following the 2007/08 global financial crisis. In times of economic uncertainty, private, institutional and corporate investors have been attracted to the rural sector due to its relative safety, transparency and potential for capital growth. This has led to the sector being considered a relative safe haven, on par with gold and precious metals. For the private investor, rural land and property can also provide tax efficiencies, lifestyle and recreational benefits. What remains true of land today, as in previous years, is that they aren’t making any more of it. In recent times, scarcity of supply and historically low costs of borrowing have sustained land values and competition remains strong in most regions of the UK. It remains to be seen whether rural land values will enjoy the same levels of exceptional capital growth that they have over the last 30 years, however the market fundamentals remain robust and the long term outlook is positive for agricultural land. However, increasing land values are not the only reason for the sector’s strong performance and resilience. A large proportion of the strong counter cyclical performance is attributable to the diversity of the sector and the income that can be generated from it whether through development, forestry, renewables or commercial property. The rural sector has the potential to deliver a number of these objectives, whilst generating returns for landowners from new and alternative land use. As part of the recovery from COVID-19 the sector is now, more than ever, in the spotlight from all corners of society to deliver economic, environmental and social objectives. The UK Government has recently adopted the mantra to “build back better, build back greener” with additional support for housing and infrastructure projects, whilst promoting a green, clean recovery. The rural sector has the potential to deliver a number of these objectives, whilst generating returns for landowners from new and alternative land use. However,

a sustainable long term strategy is key. ‘Build back better’, alongside reforms to the planning system, provides the opportunity for landowners to promote, or work alongside developers, to deliver land for valuable residential, commercial and employment uses. The approach has also been echoed by the Scottish Federation of Housing Associations (SFHA), who believe that the delivery of 53,000 affordable homes between 2021 and 2026 “can build recovery from the pandemic”, generating 200,000 jobs, boosting the economy by £2 billion whilst raising £100m in tax revenue. New infrastructure projects, such as improvements to the road, rail and broadband networks, also have the potential to open up rural areas, reducing travel times whilst increasing desirability and consequently value. Alongside possible reforms to the planning system, this illustrates how landowners can aid the economic recovery whilst generating potentially signiﬁcant returns. An increasing requirement to demonstrate biodiversity net gain for new developments could also provide opportunities for rural land owners. Biodiversity net gain is where the impact of a development on biodiversity is assessed and any loss is mitigated or offset through on site or offsite measures. Whilst this is an additional cost which must be taken into account by a developer, offsite measures have the potential to provide an alternative income stream for landowners. As well as providing land for residential development and infrastructure projects, we should not forget about what lies beneath the surface. Minerals, and more speciﬁcally those required to construct the developments and infrastructure projects envisaged by the Scottish and UK Governments. By promoting potential mineral sites, and working alongside operators, the

rural sector is once again supporting government targets whilst providing returns for landowners. A key element of a well-diversified rural estate is residential property. Following the easing of lockdown restrictions and the requirement to work from home, Galbraith has witnessed a noticeable shift in tenant demands, with a greater emphasis on gardens and outside space as well as home offices. Initially, the holiday letting market was adversely affected by lockdown measures, however an increase in staycations has seen many holiday lets booked out until the end of the summer season. The market is currently buoyant, and is providing a valuable income stream for many private and rural estate owners. The residential sales market has also been reinvigorated post lockdown, with an increase in enquiries for countryside properties. Following the announcement of the SDLT and LBTT holidays enquiries for countryside properties have increased, with purchasers keen to take advantage of what is a significant cost saving. In many cases, we are seeing properties sell significantly in excess of asking price. Whilst the COVID-19 pandemic has been the principal concern in recent months, we cannot overlook Brexit and the challenges it poses to the rural sector. The UK’s withdrawal from the European Union (EU) has presented unprecedented challenges to the rural sector, not least subsidy reform following the exit from the Common Agricultural Policy (CAP). However, alongside the challenges sit opportunities; with an ever increasing shift towards Natural Capital and the concept of Public Money for Public Goods in England. Whilst the Scottish Government currently favours a more direct replacement to the existing subsidy regime, both concepts will undoubtedly result in a change in management practices.

“ Renewable energy also has a role to play in the reduction of carbon emissions and the delivery of a green economy. As a signatory to the Paris Agreement, the UK, along with a number of countries across the world, has committed to reduce its carbon emissions to net zero by 2050. The Scottish Government has gone one step further and has committed to net-zero by 2045. Governments and companies are therefore rapidly turning their attention to how they can reduce their carbon emissions. In some instances in advance of the deadlines set by the Scottish and UK Governments. Many organisations also have ambitions to become net sequesters of carbon and see this as a potentially lucrative and valuable income stream. There is a clear opportunity for the rural sector, with household names committing signiﬁcant capital to acquiring land for carbon sequestration purposes. Yet there is still some way to go for the accreditation and trading of UK

schemes to develop, and there are a number of competing accreditations across the world, which adds complexity to the market. For landowners, it has the potential to provide a valuable income stream from land with limited agricultural productivity, whilst also complementing existing commercial investments such as forestry. Renewable energy also has a role to play in the reduction of carbon emissions and the delivery of a green economy. With the cost of renewable infrastructure now at a point where onshore wind, solar and hydro can be a viable subsidy free opportunity, it remains a key component of the diversiﬁed income stream of the rural sector. Additionally, the change in focus towards offshore wind can still provide windfall receipts and additional revenue streams for landowners whilst delivering sustainable green objectives. The move towards electric vehicles, and the infrastructure that goes into

supporting them, will also be an interesting development for the sector. The rural sector has undeniably been affected by the COVID-19 pandemic, however when compared with other asset classes, it has been relatively resilient. There are certainly challenges on the horizon, however the rural sector is well placed to meet them and there is signiﬁcant potential upside for rural land and property owners. The robust fundamentals which have historically made the rural sector an attractive investment in times of difficulty are likely to prevail. The only difference is that on this occasion, the diversity and breadth of opportunities which have provided resilience and attractive returns in the long run, are more abundant than ever. n

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

Market analysis Rural Matters September 2020 Farm commodity prices remain strong in 2020 across the board which has reduced pressure on farming, but uncertainty remains.

ith harvesting and the auction marts entering the annual rush, Martin Rennie reports on the farm produce prices with an eye to last year’s prices, trying to avoid the dreaded Covid-19 and Brexit topics where possible.

Cereals and OSR Harvest 2020 has been challenging for many with weather conditions causing havoc, but thankfully conditions improved in the last 2-3 weeks of September which allowed progress to be made. The impact of the weather conditions is already becoming apparent on yield: Crop

Wheat Winter Barley Spring Barley Oats Winter Oilseed Rape

2020 GB National Yield Estimate (AHDB) tonnes per ha 7.3 6.7 6.1 5.3 3.0

Like yield, quality has also been impacted as a result of the August weather with larger proportions of crop failing to meet the milling and malting criteria and instead making its way to the feed pile. The potential tariffs for exporting barley and importing wheat from the 1 January are likely to put further pressure on the grain market, as a result of the likely large volume of feed barley and one of the lowest wheat stocks in many years. Straw yields for the majority of farmers are also lower this year and it will be interesting to see how prices react through the winter period. At the moment clients are certainly discussing forward cropping plans based on this year’s weather and the current Nov 21 wheat price of £152.45 (28th September 2020).

5 year average GB National Yield (AHDB) tonnes per ha 8.4 7.0 5.8 5.6 3.5

Sheep The Lairg sheep sale often viewed as a barometer for Scottish sheep prices took place on the 11th of August 2020. Some 14,365 lambs entered the ring which saw a healthy trade for wedder lambs, the 10,258 wedder lambs sold averaged £59.29 (+£7.22 on 2019). Ewe lambs were also up in the year with 3837 selling to an average of £73.04 which was up £13.53 on the year.

-1.1 -0.3 +0.3 -0.3 -0.5

Lamb (deadweight) p/kg 600.0 550.0 500.0 450.0 400.0 350.0 300.0

Lamb prices have been relatively stable given the current world climate. In the week ending 19 September, the GB deadweight price was 464 pence per kg, which is up 90 pence per kg compared to the same period last year. On a 19.5kg lamb this equates to an increase of £17.55 per lamb.

Difference

Jan

Feb

Mar

Apr 2019

May

Jun 2018

The improved lamb prices has led many farmers to take advantage of the higher prices and sell out at lighter weights with the greatest proportion of sales taking place between the 25.5kg to the 45.5kg weight range. Several clients have

Jul 2017

Aug

Sep 2020

Oct

Nov

Dec

Source: AHDB, 2020c

been discussing the potential of selling out lambs earlier to take advantage of the lucrative store market. The main driver is to reduce stocking rates and avoid the need to ﬁnish lambs of bought in concentrates.

As the graph shows there has been an increase in steer prices which mirrors that of the beef market as a whole. This is partly attributable to the decrease in the production in Ireland and the still open food service market. The GB all-prime deadweight average stood at 368.0p/kg, 1.0p down from the week before. Despite this, prices remain 13.8p above the 5-year average. Estimated prime throughput totalled 33,200 head, an increase from the previous week by 1,000 head (+3.3%). However, estimated prime kills remain lower compared to the same week last year, with a decrease of 2,400 head (-6.6%), as prime cattle supplies remain tight.

Steer (deadweight) pence/kg 400.0 390.0 380.0 370.0 360.0 350.0 340.0 330.0 Jan

Feb

Feed prices tend to have a large impact on dairy margins, but there is little variation in concentrate prices year on year with prices in June 2020 at £220 per tonne, compared to £218 per tonne in the previous year. There was also little variation in heifer purchases with Friesian/Holstein heifer sales for August 2020 averaging £1534 per head, compared to the previous year of £1544 per head.

Apr

May

2020

Jun 2019

Cull cow prices also fell again, with the GB average down by 3.0p on the week to 244.7p/kg. Prices for those meeting the O4L speciﬁcation also fell to average 262.70p/kg, 3.5p

Dairy The GB average milk price for July 2020 was 27.56ppl which is up 0.41ppl on the previous month (AHDB). Total production for the year to date is down by 0.7% in the year, which is partly down to the request by processors to reduce production in the early part of the year. In addition the dry spring is likely to have impacted total production in the year to date and moving forward silage quality could also have an impact on production.

Mar

Jul

Aug

2018

Sep 2017

Oct

Nov

Dec

Source: AHDB, 2020d

down on the week. Estimated throughputs remained steady, declining just 20 head on the week to 11,900 head (AHDB, 2020b).

Average farmgate price (excl bonus) 33.00 32.00 31.00 30.00 29.00 28.00 27.00 26.00 25.00 24.00 Jan

Feb

Mar

Apr 2017

May

Jun 2018

It was interesting to review the consumption trends for dairy during the lockdown period. For example butter sales rose by 29% during the lockdown period as a result of more home baking and yoghurt sales rose by 4%. Other sectors have struggled, for example speciality cheeses which tend to relay on the food service market which has obviously been

Jul 2019

Aug

Sep 2020

Oct

Nov

Dec

Source: AHDB, 2020e

restricted for the last few months (AHDB). Like other sectors, dairy farmers will be monitoring the Brexit negotiations closely because of the reliance on the export market due to current production levels. Clients are now analysing their enterprises very closely to monitor production and more importantly, cost.

Conclusion The Galbraith farm consultancy service continues to grow and has been very busy over the last 6 months. A proportion of the work we are undertaking for clients at the moment are as follows: • Whole farm reviews • Farm business consultancy work preparing budgets and budget v actual analysis • Subsidy advice and grant applications

The last 6 months have been challenging for clients and we are being asked more and more to suggest options to try and change the performance of the farm. With the future of farming subsides remaining unclear it is important farmers understand their current position and look at options to try and strengthen farm performance. If you have any farm consultancy queries please don’t hesitate to make contact with your local office. n

• Looking at diversiﬁcation opportunities • Management of contract farming agreements

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

Build Back Better – A successful site restoration at Blagdon Estate The restoration of land formerly used for open cast mining at Blagdon Estate in Northumberland is a prime example of how to achieve a successful outcome, creating habitats for wildlife and conserving the beauty of the estate for future generations to enjoy.

lagdon Estate has been owned by the Ridley family since 1698. The estate is ﬁrmly embedded in the local community, acting as host to charitable organisations which fund-raise through open days held regularly during the year. Blagdon welcomes public access through maintained public and permitted footpaths. Typically, the estate welcomes around 4,500 visitors each year. The estate’s business interests include an in-hand farm, tenanted farms, woodland and residential and commercial properties; its tenants provide around 240 full and parttime jobs. Its Milkhope Centre has become a popular destination for visitors with a number of small privatelyowned retail businesses, including the Blagdon Farm Shop, which sells local produce from the Home Farm and the surrounding area.

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

The code for enjoying the countryside A one hour walk in the countryside can boost the brain’s performance by a ﬁfth through improving memory and concentration levels.

ature also has a restorative effect by reducing stress, enhancing mood and replenishing mental agility. It’s no surprise the countryside has seen an increase in walkers, runners and cyclists enjoying the health beneﬁts that nature can provide. The right to roam, under the Land Reform (Scotland) Act 2003, allows everyone to access most land and inland water in Scotland for recreational and other purposes but both landowners and members of the public have

The estate has had a long business relationship with the coal mining ﬁrm H J Banks dating back to the 1970s and the National Coal Board before then. As a consequence, there have been a number of surface mines located across the estate. Since 2000, Blagdon has had three surface mines at sites known as Shotton, Brenkley and Delhi. The Delhi Mine was found on the listed parkland to the south of Blagdon Hall where the Ridley Family has lived since 1698. In the past, parts of the Dehli land had been surface mined and had hence been reinstated as arable land - that reinstatement work was carried out at a time when our understanding of landscape restoration was less advanced. Despite the proposed Delhi mine being located in close proximity to Blagdon Hall, the Ridley family saw an opportunity to have the parkland restored to a similar condition to what it was before the ﬁrst surface mine on the parks – grass parkland rather than arable land. Working with H J Banks, a restoration scheme was designed that would see tree roundels being planted, rolling parkland created and a number of ponds and lakes for wildlife. The aim of the restoration was to improve on what was found there previously which has been and still is a key aim of every generation of the Ridley family. Planning permission was secured for the site from Northumberland County Council and operations began in 2004. While the mine was in operation and during the restoration process a key consideration was to ensure that the nearest neighbours were not adversely affected. These neighbours included tenanted cottages and The Milkhope Centre. Noise monitoring and dust suppression measures were ongoing throughout to minimise any disruption.

responsibilities and a duty of care under the Scottish Outdoor Access Code. Landowners and managers should not obstruct or discourage others from exercising their public access rights. Landowners remain liable for injuries sustained by members of the public on their land and therefore landowners should have reasonable precautions in place to prevent injury. Individuals enjoying public access have a duty to act responsibly by not interfering unreasonably with the rights of others and to act lawfully and reasonably, taking account of the interests of others and the land. Anyone accessing the countryside should be following the Scottish Outdoor Access Code. Unfortunately, the increase in visitors has given rise to conﬂicts between landowners and walkers and an irresponsible small minority have been causing problems. Farming did not stop during lockdown, as there was still a requirement to look after livestock and grow crops. Many farmers became concerned about the large number of people walking through ﬁelds with pregnant livestock or

Numerous archaeological artefacts were uncovered on the site, including an Iron Age ‘meare’ glass bead dating from the first century BC and flints dating from about 2,000 to 10,000 BC. By 2014 the land was restored with the ponds, tree roundels and parkland firmly established along with what the estate believes to be one of the largest lowland wild flower meadows in England – of about 25 acres – providing varied habitats for a variety of wildlife. Fences where required have been positioned to ensure that the vista from key viewing points on the estate is uninterrupted. The restoration has been a big success with estate tenants and the Ridley family now able to enjoy the views that the open parkland provides along with wildlife ranging from newts to roe deer being able to use the new wildlife habitats created.

Images Google Earth

June 2009

August 2012

July 2017

June 2018

Two other mines on the estate known as Shotton and Brenkley are now in the restoration process and Galbraith continues to work with H J Banks to ensure that the restoration process runs smoothly and delivers a successful outcome similar to the Delhi site. If you are considering a site restoration and would like advice please contact Matthew Williamson or Peter Combe at Galbraith on 01670 789621. n

through farmyards where machinery was in use. Within less than a month of lockdown, NFU Scotland received almost a hundred complaints about people irresponsibly accessing land during the pandemic. There have been reports of roads and field entrances being blocked by parked cars as their owners go for walks, dogs running loose and worrying livestock, an increase in litter and dog waste, gates left open and access taken into newly sown crop or grass fields. For the public taking access in the countryside it is important to remember the following: • Keep away from farmyards and buildings • Avoid fields of young livestock and arable crops • Keep dogs on leads and take litter and waste home • Stay two metres away from all farm workers • Leave gates as you find them - if you have to touch gates or stiles use gloves or hand sanitiser • Stick to paths wherever possible. Throughout the lockdown, Scotland has also seen an increase in fly-tipping, of both domestic and commercial

waste, as local authorities closed their recycling centres and our countryside became a dumping ground. This has unfortunately continued even with recycling centres opening. Fly-tipping causes a wide range of issues including harm to wildlife and livestock, soil contamination, disease transmission and not to mention the substantial costs to remove the waste. Land managers and farmers are proud to work and live in Scotland’s beautiful landscape and it is hugely frustrating for many to see litter and illegally dumped rubbish and waste on the land. ‘Scotland is Stunning Let’s Keep It That Way’ is a new campaign launched by The Scottish Government, Zero Waste Scotland and Keep Scotland Beautiful to help encourage everyone to take pride in our outdoor space and keep it litter free. We should all take pride in and responsibility for our countryside so that farmers can work in peace and to preserve the beauty and tranquillity for everyone to enjoy. n

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

Walled Gardens A Labour of love and a force for good

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

This is the second article in my walled garden series, and while the first focused on my own tea garden project at home, as a hands-on and fairly labour intensive method of utilising the space, I wanted to look at another option for garden owners, where the garden is commercially let out, but is maintained as a traditional walled garden. The walled garden at Amisfield Tower Estate just outside Dumfries, although not vast, is still perhaps a daunting prospect in an age where employing a full time gardener is not always a viable solution. It is often the case that walled gardens are situated at a distance from the main house, but the walled garden at Amisfield is right next to the house and very much a part of the immediate policy gardens. 30

While the estate owners do not live at Amisﬁeld full time, they are there regularly and have always enjoyed the gardens as an extension to the house. As such, the requirements were that the garden be maintained and used traditionally, whilst also retaining access for the family and their friends and privacy at weekends. Potentially a tall order, but where there is land, there is opportunity, and by the time Galbraith took over the management in 2019, Cloverglen Support Services had held a lease over the walled garden and greenhouses for over ten years. Cloverglen is a care service providing for those with learning difficulties from the age of 16 upwards, and it was founded by Eric Bridgwood in 2003. He had tried to get something very similar up and running in 1995 but was prevented as a result of local planning difficulties. Eric had the original idea in the late 80s while working as a learning disability nurse, becoming aware that task related experiential learning was a more achievable way of working around learning disabilities.

“ Like all Landlord and Tenant relationships, communication is key here, as well as a level of understanding and management of expectations from both parties.

Cloverglen was originally based at Barjarg Tower, where they had the use of the walled garden and the former game keeper’s cottage. The garden at Barjarg was little more than a wall in the woods and was very overgrown with mature trees, so when the estate at Barjarg was put up for sale Eric was faced with finding a new base for Cloverglen. Chance would have it that the walled gardens at Amisfield were being advertised at this time, and Eric made contact and met with the estate owner to discuss whether the Cloverglen project could work at Amisfield. On agreeing terms, a lease was put in place, and Cloverglen moved to Amisfield. At the start of the lease, Eric remembers that the garden was mostly grass, the box hedges, fruit

trees and the area around the rose garden were the only areas with any plants. It was the perfect project, with the walled gardens providing a safe enclosed work space for Cloverglen’s service users with the added advantage of a micro climate environment. Eric states that ‘It is a marvellous therapeutic mini world that is very relaxing for the people attending.’ He goes on to suggest that ‘there is a need for more people to reconnect with the outdoors especially with the current COVID-19 epidemic and walled gardens provide the ideal environment to do that.’ Cloverglen has continued to operate throughout the pandemic, providing a much valued space for the service users, and also continuing to maintain the gardens. Eric is hopeful that ‘in 10 years Cloverglen will still be putting a smile on the faces of the service users, and helping them to maintain their mental and physical health.’ Like all Landlord and Tenant relationships, communication is key here, as well as a level of understanding and management of expectations from both parties, and Galbraith as managing agents are responsible for maintaining this good relationship. As could be predicted, the greenhouses and walls are old and showing wear and tear in some places. The tenants cannot be expected to renew or rebuild these

structures, so Galbraith have been examining options and liaising with both parties to ascertain how best to ensure the structures can be repaired and maintained in an affordable way. Our first thought was to look into what funding might be available, and while there is potential here, it is not, as is often the case, straightforward. We are also examining the possibility of a phased repair and maintenance approach with the finances handled in house. With regard to minor renewals or larger repairs, the landlord and tenant have generally managed to agree to shared costs thereby ensuring the continued enjoyment of the gardens by both parties. With regard to the lease terms, different parties and situations will have their own requirements peculiar to each individual circumstance, but the terms that work for Cloverglen and Amisfield are that the onus for the care of the gardens lies with the tenants, who are responsible for pruning fruit trees, buying and planting flowers, bedding plants, fruit and vegetables and for weeding flower beds and vegetable patches, and also for maintaining the greenhouses, walls and paths. They also carry out all mowing and hedge cutting, which considering there is an intricate box hedge maze, is no mean feat. The Estate owners agree for their part to ensure that the walls, greenhouses and potting sheds are maintained in good order. The tenants do not use the gardens at weekends, and have their own parking facility to the rear of the gardens, so both parties manage to get along in fairly close proximity without getting under each other’s feet. Fundamentally, this arrangement shows that it is possible for a garden owner to continue to enjoy the space, whilst also creating opportunity for others, the key being the management of expectations, transparency and a good understanding and acceptance of the condition of the garden infrastructure and how this will be managed going forward at the commencement of the lease. Galbraith, with considerable experience in assisting with landlord and tenant liaison are well placed to manage this sort of arrangement, and so if you are looking for a new venture or a diversification, then please do give us a call and we would be happy to discuss options. n 31

Offices across Scotland & Northern England

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: • Residential estate agency • Property lettings • Commercial property sales & management • Estate, farm & forestry sales & acquisitions • Estates, farming & land management • Renewables and utilities • Building surveying • Commercial forestry & woodland management

Rural Matters Winter 2020

Articles inside

Making the most of the Cottage Industry

Smallholdings. Deliver the Rural Dream

Energy Efficiency Regulations Update

A fine balance - qualifying as a surveyor while working from home

Turning Dreams into Reality

Oh to get back to show time

Shake-up for phone mast leases

Government Grants Prepare for the best

Helping you make the right connection

How to see the wood from the trees ..And the sheep