Future Agricultural Support in Scotland as at June 2023

The Scottish Government have provided some further clarification on the future agricultural policy we are expecting to see from 2025, as well as clarification on the future of other support schemes.

While Mairi Gougeon has promised there will be no cliff edges as businesses transition into the new support mechanisms, further detail outlining how some of the proposed measures and standards will be implemented remains outstanding. As anticipated, we are beginning to see further clarity on which direction agricultural support is going, with focus on the environment and climate change, and a move to more regenerative farming methods.

Basic Payment Scheme and beyond

New conditions for receiving Basic Payment Scheme (BPS) support will be introduced from 2025, before a new support mechanism replaces the existing scheme in 2026. We understand that essential standards will have to be met in order to receive BPS in 2025. These essential standards are focused on farming activity; climate response; biodiversity gain; whilst also safeguarding animal health and welfare standards and workers’ rights.

In 2025 farming businesses will need to start the transition to the new support scheme which is considered as a ‘stepping stone’ to 2026 and beyond, with the compliance requirements for 2025 BPS linking to Tier 1 for the new support framework. In practice, these conditions will include the following, but may have other items added.

  • the maintenance of existing cross compliance requirements as a minimum for future support;

  • the introduction of new protections for Peatlands and Wetlands as a new condition on basic payments;

  • the foundations of a Whole Farm Plan, including soil testing, animal health and welfare declaration, carbon audits, biodiversity audits and supported business planning;

  • the introduction of new conditions to the Scottish Suckler Beef Support Scheme linked to calving intervals to encourage livestock keepers to reduce the emissions intensity of their cattle production systems.

2026 support is likely to be structured on a tier mechanism, with Basic Support and Enhanced Support available as outlined below.

Tier 1: Base  – This will be the closest thing to a direct payment, guaranteed to all farmers and crofters who meet essential standards in farming activity; climate response; biodiversity gain; whilst safeguarding animal health and welfare standards and workers’ rights, as well as existing cross-compliance conditions

Tier 2: Enhanced – This tier will build on the standards established in Tier 1. It will focus on measures to reduce greenhouse gas emissions, adapt to climate change, and protect, restore and improve nature. These measures will also incentivise more sustainable and regenerative farming practices, with focuses on farming for a better climate and nature restoration.

Tier 3: Elective – This tier will be ‘optional’ and likely to be more specific to targeting a certain species or habitat, and will focus on reducing greenhouse gas emissions, adapting to climate change, and protecting, restoring and improving nature.

Tier 4: Complementary – Funding in Tiers 1-3 will be complemented by providing applicants with access to support and advice, as well as continuous professional development (CPD) to help achieve the aims of the future support model.

Payment Regions

The Regions model will remain, but will be reviewed prior to 2027 to ensure it is fit for purpose within the new scheme guidelines.

Greening (for arable/other cropping)

Greening will continue into 2025 and from 2026 will remain, but may alter to better integrate into the new tier system.

Voluntary Coupled Support

Scottish Suckler Beef Support Scheme (SSBSS) and Scottish Upland Sheep Support Scheme (SUSSS)

Both of these schemes will continue in 2025 and 2026, with consideration still being given to how Voluntary Coupled Support will be delivered in 2027

New conditions will be introduced to SSBSS in 2025 linked to calving interval performance.

Less Favoured Area Support Scheme (LFASS)

This scheme is expected to continue to 2026 but changes may be introduced from 2025 to support the transition towards a more economically and environmentally sustainable model. Consideration is still being given to how this type of support will be delivered from 2027.

Agri Environment and Climate Scheme (AECS)

This scheme is expected to continue to 2026 to deliver elements of Tiers 3 and 4 until new Elective and Complementary Support is implemented from 2027. Some the options currently available through AECS are being considered for inclusion in Tier 2 so that more people can implement them.

Forestry Grant Scheme (FGS)

This Scheme is expected to evolve and continue to deliver elements of Tier 3 and 4 until new support is implemented from 2027. Some of the options available under this scheme are being considered for inclusion as eligible measures/activities in Tier 2 so that more people can implement them.

Planning for the future

Preparing for Sustainable Farming

This new grant scheme is already open for applications for helping businesses prepare for changes, with support for conducting carbon audits and soil sampling, support for animal health and welfare activities and access to herd data for Suckler beef producers through MyHerdStat.

Put simply, the scheme allows businesses to claim £500 for an eligible carbon audit, up to £600 per 100Ha of Region 1 land for soil sampling and £250 as a development payment alongside the first soil sampling payment for farmers and crofters to spend time on things that will widen their understanding of Nutrient Management Planning. In addition, there is funding available for businesses to select up to two (per year) animal health and welfare interventions, which include bull fertility, calf respiratory disease, liver fluke (sheep or cattle), roundworm (sheep or cattle), sheep scab, sheep iceberg diseases, and sheep lameness.

Applications are already open for the carbon audit and soil sampling, with funding for the animal health and welfare interventions expected to be available shortly.

Whole-Farm Plans

Whole Farm Plans will be introduced from 2025 as a tool to help farmers and crofters integrate food, climate and biodiversity outcomes on their holdings and inform where they can seek support from the future support framework. The intention of the Whole Farm Plan is to help businesses become more environmentally and economically resilient and sustainable, with productivity baselines for soil testing, an animal health and welfare declaration, carbon audits, biodiversity audits and support for business planning.

To discuss any of this further and what it might mean for your business, please contact a member of the Bell Ingram Rural Land Management team.

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Bell Ingram announces string of senior promotions with Rob Whitson stepping up to Executive Board

Independent land and property specialists Bell Ingram have announced a raft of senior promotions, with Head of Land Management Rob Whitson stepping up to the Executive Board.

Rob will work closely with Managing Partner Mark Mitchell and Executive Board members Neal Salomon, Gordon Thoms, Geoff Brown, Iain Cram, Steve Parlett, Malcolm Taylor, Mike Thompson and Derek Tyson to set strategic direction for the business, overseeing land management across a wide range of Bell Ingram clients.

Mark Mitchell, Managing Partner, says: “Rob’s well-deserved promotion follows his adept management of many of our top tier clients. During his career at Bell Ingram, Rob has proven to be a fantastic mentor and manager to staff members, and his calm focus has proven invaluable to clients no matter the challenge.”

Elsewhere, the company has made a string of promotions across its 10 UK offices. Architect Murray Fleming, Land Agents Catherine Lawson and Alex Morrison (both Forfar) and Compliance Manager Sam McDonald (Perth) have been promoted to Senior Associate.

Meanwhile Land Agent Gregor Dalziell (Ayr), HR Manager Kirsty Watson, Land Agent Borzo Taheri (Northwich), Land Agent Waldo Serfontein (Morpeth), Digital Marketing Manager Eleanor Mackay, Finance Partner’s Assistant Sheona Ross (both Perth) and Senior Architectural Technician Scott Ramsay (Forfar) all become Associates.

Mark Mitchell, Managing Partner, adds: “All these colleagues have played a crucial role in our firm’s continued growth. These well-deserved promotions demonstrate the depth of talent and experience within Bell Ingram, and I’d like to offer a heartfelt congratulations to each of them and look forward to their continued success within the firm.”

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Forest Manager Stuart McArtney shares his top tips on buying Scottish woodland

Stuart McArtney, Forestry Management expert at Bell Ingram, explains that buying your own section of Scottish woodland can be made much easier by having the correct professional guidance.

He said: “Buying your own Scottish woodland is clearly not as common a practice as someone buying a home, therefore it’s crucial that you have the right expert advice in your corner.

“Our team of Chartered Foresters provide management services and investment guidance for every type of woodland owner or potential buyer.

“These can be everyone from corporate clients to rural estate owners or individuals wishing to add forestry to their investment portfolio or pension fund. Our Forestry Managers provide a bespoke woodland management service that’s tailored to meet the client’s unique requirements.”

Bell Ingram provide a range of services including woodland budget management, valuations of woodland areas and digital mapping.

Stuart continued: “We have a vast experience and knowledge of different issues regarding woodland ownership and are well placed to help guide buyers through the challenges of today’s forestry industry.

“We are able to take clients through the process of buying Scottish woodland step-by-step and ensure you get the most appropriate advice and are able to take advantage of every opportunity.”

To find out more about buying Scottish woodland or to view any areas currently for sale, visit www.bellingram.co.uk

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Article posted on 15/12/2022

Legislation Freezing Rents & Evictions Passed in Scotland

The Cost of Living (Tenant Protection) (Scotland) Act 2022 was been passed by the Scottish Parliament last week.

The Scottish Government says the Act temporarily:

  • Restricts landlords from increasing the amount of rent they can charge private and social tenants, as well as for student accommodation.

  • Places certain restrictions on enforcement of evictions from residential tenancies.

  • Balances these restrictions with safeguards for those landlords who may be facing particular cost pressures or financial hardship.

The rent cap, which applies to in-tenancy rent increases, has initially been set at 0% from 6 September 2022 until at least 31 March 2023. Ministers have the power to vary the rent cap while it is in force.

Enforcement of eviction orders resulting from the cost crisis are prevented over the same period except in a number of specified circumstances, and damages for unlawful evictions have been increased to a maximum of 36 months’ worth of rent.

The measures can be extended over two further six-month periods.

You can view more information on the Act here

https://www.mygov.scot/rent-cap-landlords

https://www.mygov.scot/eviction-pause-landlords

If you are landlord speak to your Bell Ingram Land Manager about how the emergency legislation will affect you.

Article posted on 31/10/2022

Carl Warden gives us the latest on markets and mortgages

It was inevitable that the fall-out from the mini budget and its controversial tax cuts would manifest itself in the housing and mortgage markets because the cost and availability of credit is a significant driver of the market.

Therefore, it comes as no big surprise to see mortgage lenders suspend many rates and deals as they gather their breath before attempting to reprice the market.

It goes without saying that any big jump in the mortgage rate is a major concern for those who are buying houses at the moment. But, if you like the house, you can afford it and are confident you can continue to afford it, then there is no reason not to go ahead with your purchase.

What is fairly certain is that we can wave goodbye to the historically low interest rates that we have grown used to and brace ourselves for a return to the higher levels we last saw in 2012.

There’s also been much speculation that we could be facing a housing market crash. But while prices could fall over the longer term, there is no evidence that they will collapse like they did during the global financial crisis of 2007/8. The market in Scotland is still functioning well despite the uncertainty.  I am seeing a small number of buyers pulling out of deals as we wait for this immediate uncertainty to pass, but I don’t see this continuing and especially so at the top end of the market.

From a Scottish perspective, it will be interesting to see if the Cabinet Secretary for Finance, Kate Forbes MSP, replicates Kwasi Kwarteng’s Stamp Duty cuts for the Land & Buildings Transaction Tax (LBTT) bands in Scotland.

On September 23, the UK Government announced a permanent cut to stamp duty in a bid to boost economic growth. The announcement means that in England no stamp duty will be paid on the first £250,000 of any property, up from £125,000 previously.

For first-time buyers in England the threshold is now £425,000, up from £300,000. The maximum value of a property on which first-time buyers’ relief can be claimed will also rise from £500,000 to £625,000.

While first-time buyers in Scotland do not pay LBTT on property purchases up to £175,000, a 2% LBTT rate is paid on property valued between £145,001 and £250,000.

It would be a big worry for the property sector should the Scottish Government not bring us more into line with the rest of the UK.  A reduction in LBTT would go a long way to giving the Scottish housing market a boost, particularly for the lower bands, as we navigate this period of economic uncertainty.

For advice on your house move, or for a free market appraisal contact Carl Warden, Head of Estate Agency on 01738 621121 or email carl.warden@bellingram.co.uk

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Article posted on 03/10/2022

Guest Blog: Managing trees and vegetation whilst being mindful of sustainability

By James Morrison, Senior Asset Engineer at Network Rail Scotland

It is a significant and ongoing challenge to manage the many risks that trees and vegetation can pose on our long, but generally narrow, infrastructure corridors. We cover the varied geography of Scotland which requires our teams, supported by specialist contractors, to be based strategically. Local knowledge of the infrastructure and asset condition, plus the ability to respond quickly to any issues is fundamental.

We make management decisions using data and imagery collected during multiple inspections undertaken by trains, people on foot, drones and manned aircraft. This is combined with additional information from our passenger and freight customers, neighbours and multiple key stakeholders. We then generate risk based workstreams so we can best deploy people and equipment to deliver this work efficiently and cost effectively on behalf of the taxpayers who fund the railway.

We also have to balance our operational responsibilities with those of being a large landowner, as the railway contains significant flora and fauna and in turn natural capital. We employ professional (in house) ecologists to advise our teams on how to protect this biodiversity based on site observations, historic records or legal designations. Not all trees and vegetation are a risk to trains so we can, where safe to do so, retain, pollard or prune trees. Every site has specific requirements, and it takes the work of many professionals from across Scotland to manage the lineside areas that flank the tracks.

First and foremost, Scotland’s Railway fulfils a variety of travel needs from business and leisure to daily commuter services, including cross border services. 

However, we equally have a responsibility to appropriately offset our tree and vegetation works that support this primary function. Our approach is governed by railway standards that reflect targets from our regulators and funders. But more importantly, it is the right thing to do.

Replanting is only one aspect of improving biodiversity on the railway. Mitigating the impact of our work takes many forms such as the habitat piles of cut woody material or standing and lying sections of dead wood. Raptor perching poles, crevice creation and veteran feature mimicry (via cutting incisions in trees) and provision of bird and bat boxes are some other methods deployed. Where appropriate and access to maintain is available, we plant native grass and wildflower areas, high wildlife value hedgerows and even small ponds can be considered. 

Mitigation can take place on railway land (where space allows) or alternatively in locations adjacent to, or even remote from the railway (offsetting). We are currently working to establish suitable partnerships with other landowners where offsetting would be appropriate. Locations on such land and where public access is possible have an added advantage to the people of Scotland as they can potentially visit these locations and enjoy them.

As a large landowner, we feel we can have a tangible and positive impact on biodiversity and sustainability and the changes we are making are also being acknowledged and welcomed at a local level by communities.

Article posted on 29/09/2022

The Property Expert: Portsonachan lodges hit the market

Scotland’s tourism industry is thriving and no more so than the country’s stunning west coast. One particular sleepy village near the banks of Loch Awe is pulling in visitors from across the globe for its picturesque location, and outdoor credentials including ample walking and cycling trails and water sports. Located just a short drive from Dalmally in the county of Argyll and Bute, Portsonachan is home to the impressive Portsonachan hotel and its nearby chalets where our Oban Estate Agents are marketing nine beautifully presented lodges.

These 1–4-bedroom lodges present an opportunity to purchase a holiday home for leisurely excursions with family and friends, or to run as a successful holiday let business. Here is a flavour of the properties on the market.

Stirling Lodge

Stirling Lodge at Portsonachan offers buyers an opportunity to acquire a beautifully presented three-bedroom wooden chalet, complete with built in sauna and external hot tub. With its modern open plan kitchen, stylish bathroom and spacious bedrooms, the lodge is perfect for entertaining family and friends. Stunning views across one of Scotland’s most picturesque locations will be sure to impress.

Offers over £325,000.

See more: Stirling Lodge, Portsonachan, Dalmally, PA33 1BJ | Bell Ingram

Carrick Lodge

This three-bedroom lodge has many of the outstanding features as Stirling Lodge, including built-in sauna and hot tub. Set just a little further back from the loch, Carrick Lodge enjoys a pleasant tree-lined vista, enjoyed from its expansive balcony, the perfect place to sit and take in the glorious surroundings.

Offers over £300,000.

See more: Carrick Lodge, Portsonachan, Dalmally, PA33 1BJ | Bell Ingram

Eilean Lodge

This two-storey semi-detached wooden chalet offers two ground floor bedrooms complimented by a spacious upstairs living area, with a balcony that enjoys far reaching views across to Loch Awe. The downstairs decking area is home to a welcoming hot tub.  

Offers over £215,000

See more: Eilean Donan Lodge, Portsonachan, Dalmally, PA33 1BJ | Bell Ingram

Duart Lodge

The smallest, yet one of the most popular lodges available, this semi-detached one-bedroom lodge is the perfect couples’ retreat. Offering a blend of rustic and modern living, the kitchen is traditional farmhouse style, while the open plan living space provides ample space to sit and unwind. A large decking looks out across the gardens towards Loch Awe.

Offers over £195,000

See more: Duart Lodge, Portsonachan, Dalmally, PA33 1BJ | Bell Ingram

For more information on the lodges, or our Estate Agency service on the West Coast contact our Senior Associate Andrew Fuller on 01631 567 791, or email andrew.fuller@bellingram.co.uk

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Article posted on 27/09/2022

What’s next for Scottish Agriculture? ScotGov’s vision for Scottish agriculture is light on practical detail

By Head of Rural Land Management, Malcolm Taylor

The decision to bring forward BPS payments a month earlier from October to September 2022 has received a positive reception from Scottish farmers facing the triple whammy of rising fuel, fertiliser and feed costs.

However, farming businesses are still awaiting further clarity on what future support payments will look like following the Scottish Government’s publication of its vision for Scotland to become a ‘global leader’ in sustainable and regenerative agriculture.

The statement, which was published in March, promises a ‘robust and coherent framework’ to underpin Scotland’s future agriculture support regime from 2025 onwards. This will, it says, deliver high quality food production, climate mitigation and adaptation, and nature restoration.

The statement also outlines a “twin-track” National Test Programme designed to enhance knowledge exchange and improve environmental measurement tools.

Malcolm Taylor, Head of Land Management at Bell Ingram, has broadly welcomed the programme. He said: “Any strategy that promises to develop sustainable and regenerative farming alongside greater environmental protection has to be seen in a positive light. However, the statement is light on practical detail and reads more like a wish-list at this stage.

“Track two of the National Test Programme, for example, needs the fine print fleshed out so that farming businesses can ensure their environmental performance stacks up ahead of any future public support package coming into force.”

“If we are to plan and invest in the long-term future of our businesses, farmers and land managers need further clarity, especially around what future BPS payments might look like.”

Track One

Track One encourages farms to improve their knowledge of current environmental performance and efficiency. Support will incentivise businesses to engage with and adopt measures that will create a baseline of information and understanding in sustainable agriculture. This is an opportunity open to all farmers, crofters and land managers, to enable their businesses to gain an understanding of their own baseline at an individual farm level.

Track Two

Track Two is short on details, but ScotGov says its purpose is to design, test, improve and standardise the tools, support and process necessary to reward farmers, crofters and land managers for the climate and biodiversity outcomes they deliver.

This will create a robust understanding of how new conditions or activities could be applied to future support and ensure delivery of environmental outcomes in a way that supports sustainable businesses.

Track 2 will include detailed testing of more involved tools and advice that will establish a robust method through which farmers can record the benefits to climate and nature they deliver through their businesses. Once tested these can then be rolled out to all farmers and crofters.

Programme rollout

The Programme began earlier this year with a phased approach to rolling out measures for current recipients of farm support payments, with the aim that these measures will become a mandatory requirement for accessing support.

By 2025, the plan is for at least half of all payments within current schemes to become conditional on farmers meeting the new government measures. This is being referred to as farmers needing to meet ‘enhanced conditionality’.

The statement promises: “We are also committed to ensuring that information and data will flow smoothly and securely through a future payments system which allows for benchmarking, national baselining, assessment and analysis of success and further learning opportunities and individual business decision making.”

If you would like to talk about any aspect of how changes in agricultural policy might affect your farming business, contact Malcolm Taylor, Bell Ingram’s Head of Land Management, on 01307 462516 or email malcolm.taylor@bellingram.co.uk

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Article posted on 14/09/2022

Crown Estate tenants express interest in buying farms

Twenty-two tenant farmers have expressed an interest in buying the holdings they currently lease from Crown Estate Scotland.

The farms are on the Applegirth Estate in Dumfries & Galloway, and the area around Auchindoun in Moray, which are both part of a pilot initiative to increase diversity of land ownership in a planned and managed way.

The tenants have now been advised they will move to the next part of the process and have been given an anticipated timescale for this stage which will involve the preparation of detailed sales reports, setting out what they can expect if they go ahead with the purchase. 

The initiative provides an opportunity for tenant farmers to own their own farms and has the potential to generate funding to help Crown Estate Scotland deliver on its commitment to invest £70m over the coming years to generate lasting social, economic, and environmental benefits for communities across Scotland.

Sarah Tyson, Bell Ingram’s Head of Valuations and AMC Agent, said: “Crown Estate Scotland is the first landlord of this size to give tenants this option and the sector is watching with interest to see if this pilot will be rolled out across their remaining rural estates.

“The opportunity to buy your farm can be an exciting prospect, especially if you are offered a discounted purchase price as a sitting tenant. However, there are a number of areas you must consider before making such a major financial decision and I would recommend tenants always take good professional advice on the options being offered, particularly when negotiating the purchase price or agreeing a settlement for relinquishing the tenancy.”

Buying your farm tenancy? Find out how Bell Ingram’s AMC agents can help and the funding options available. Contact Sarah Tyson on 01738 621 121, or email sarah.tyson@bellingram.co.uk.

Article posted on 12/09/2022