Land expert advises caution before entering a contract farming agreement

A leading land expert is warning farmers to beware of the potential pitfalls when entering a contract farming agreement.

Malcolm Taylor of Bell Ingram Land and Estate Agency warns that despite being seen as a positive way to maximise flexibility for the farmer or land owner, those looking to enter an agreement with contractors must do so with careful consideration.

Most commonly used on arable units, farmers will benefit from such an agreement as they are guaranteed to obtain a first payment out of the contracting account whilst keeping an active role in the farm.

Some may also be drawn to the potential for retaining subsidy payments while the contractor will also reap the benefits from economies of scale, a contracting and management fee and prospects of a profit from the divisible surplus share – if there is one.

However, many of these shared farming agreements are partnerships, with all of the difficulties and complications that often go alongside these types of business arrangements.

Malcolm, Partner, based at the Bell Ingram Forfar office and immediate past chairman of the Royal Institution of Chartered Surveyors said: “Anybody contemplating a contracting arrangement should consider why they are doing it carefully.

“It is all very well retaining the Basic Payment Scheme (BPS) and a first charge on the contracting account, but the question arises as to who pays to maintain and improve the fertility and quality of the soil.

“If a contractor is being pushed to increase output, then the first things to suffer are soil structure and ultimately, the wider environment.

“Farming simply cannot continue the way it is at present. If we choose to ignore environmental issues, it is at our own peril.”

As the popularity of these types of farming agreements increases, Malcolm believes landowners must be sure they are entering a deal which is right for them and their current situation, whilst also considering the potential long-term effects.

Malcolm added: “For some, contracting is a way of holding onto land while they decide what to do with it if there are no obvious family members looking to take on the farm.

“If this is the driver, the option of selling now when land values are still relatively strong should be a serious consideration.

“As the farmer, ask why it is being considered and as the contractor, make sure that you are not just taking on more land for the sake of it or to secure potato ground. Read the contract and take professional advice.”

 

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Malcolm Taylor

Malcolm Taylor

Senior Partner, FRICS ACIArb
Rural Land Management, Valuations
Tel: 01307 462 516

About: Malcolm is Bell Ingram's Senior Partner and heads up the company's Forfar office, where he specialises in farm and estate management, including the provision of agricultural rental advice and acting as an expert witness. He is the immediate past chairman of the RICS in Scotland and remains actively involved with the Institution. Malcolm is also head of Lettings within Bell Ingram. Interests: AMC Agent, Corporate Estate Management, Rural Land Management, SRDP Applications, FRICS Registered Valuer.

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    Article posted on 11/05/2018

    Technological advances in mapping make light work for leading land agency

    Bell Ingram has been working closely alongside Registers of Scotland to test and aid development of their new Land Information Service, ScotLIS.

    ScotLIS allows both business users and the general public to search the map-based Scottish Land Register at the same time as searching for information on the Sasine Register – a chronological list of land deeds, which contain written descriptions of properties.

    Designed to be fully responsive and interactive, the new ScotLIS service is accessible on both desktop and mobile and provides users with a wealth of land and property information.

    Highlighting the importance of working alongside its stakeholders, Registers of Scotland has used customer interaction as a key part of the development of new features and improvements to the service.

    Geographical Information System (GIS) Technician at Bell Ingram, Marcus Humphrey said: “ScotLIS is incredibly useful and much more user-friendly than previous services.”

    “It has already brought savings in terms of both times and costs, and this should only increase over time”

    Bell Ingram has been integral in the early development of this service, providing feedback which has been taken on board by the ScotLIS team at Registers of Scotland, such as suggesting the addition of an option to search by grid reference.

    Marcus added: “As surveyors the map functionality is a brilliant addition. It allows us to see the area surrounding our searches – this contextual information is often very helpful.

    “Another great feature is the ability to save a whole Sasine search sheet, it lets my colleagues and I note important information for later use.

    “Moving forward, ScotLIS will greatly improve how we access Registers of Scotland data, and deliver cost and time savings as well.”

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    Technological advances in mapping make light work for leading land agency

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      Article posted on 03/04/2018

      Land Agent Catherine Lawson urges young farmers to see industry bigger picture

      It’s vitally important that young farmers ‘look beyond the farm gate and step out from behind computers’, according to leading rural experts

      Catherine Lawson, Land Agent at Bell Ingram, feels young people need to see the bigger picture to make use of all opportunities within the agriculture sector.

      Following her attendance at the prestigious Oxford Faming Conference (OFC), which ran from January 3-5, Catherine – a farmer’s daughter herself from Yorkshire – feels farmers need to adapt to the changing landscape.

      She said: “Young people are the future of the industry. We need to have as much knowledge as possible in order to gain experience and understanding of a changing industry.

      “It’s important that you look beyond your farm gate or computer and see the bigger picture so you can grow and expand both professionally and personally.

      “While it is important not to always do something just because someone else is doing it, you also need to know what opportunities are available and keep up-to-date with what is happening in the industry in a wider context.

      “I think we are a generation that is going to see a lot of change in the industry within our lifetime and, by broadening our knowledge, it will enable us to embrace those changes – whatever they may be.”

      The Oxford Farming Conference (OFC) is an annual conference for UK farmers that takes place every year and allows the farming community to discuss and exchange ideas.

      Catherine believes the event is a great way to discover how fellow farmers are preparing for the year ahead.

      She continued: “The event gave me the opportunity to meet new contacts and listen to some very inspiring and engaging presentations.

      “I have come back to the office with a more realistic and also positive insight into the future of the agricultural industry.

      “While I am under no illusion that the next few years won’t be without their challenges, I feel much more prepared for what may be ahead. It has reminded me how fortunate I am to work in the industry.”

      OFC is a charity with a remit to educate and transfer knowledge in the agricultural sector, with the mission to ‘Inform, Challenge and Inspire’. For more information on the annual conference, visit https://www.ofc.org.uk.

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      Catherine Lawson

      Catherine Lawson

      Senior Associate, MRICS FAAV
      Rural Land Management, Valuations
      Tel: 01307 462 516

      About: Catherine is a highly qualified RICS Chartered Surveyor and Registered Valuer working across Perthshire and Angus advising on all aspects of rural estate management, farm management, residential property management and lettings. She joined Bell Ingram in 2014 working in the Perth office before moving to the Forfar office in 2019. As a farmer’s daughter from Yorkshire and now living on a farm in Angus, along with a degree in rural tourism management, Catherine can offer assistance on a variety or rural matters. Interests: Lettings, Rural Land Management, Tourism.

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        Article posted on 28/02/2018

        Now is the time to spark your interest in electric vehicles

        Ditching your petrol or diesel car in favour of an electric alternative could make you significant savings with the help of Government incentives.

        According to experts, the cost of owning an electric vehicle (EV) even without this support is set to come in line with that of traditional fuel-driven cars by 2025.

        By purchasing an EV now, drivers can take advantage of both the incentives and very low running costs and enjoy the near-silent power and extended ranges of the latest models.

        Joe Fergusson, Microgeneration Consultant at Bell Ingram, is a specialist in the sector and has developed a methodology for auditing the use of vehicles of all kinds, from quad bikes and cars to delivery vehicles, thereby illustrating the feasibility of substituting EVs.

        He said: “The time is right for those whose vehicle use patterns match certain criteria relating to daily mileage and payload requirements to join the electric revolution.

        “It’s projected that the total cost of ownership of new EVs will match those of equivalent internal combustion engine vehicles by about 2025. By then the financial incentives offered now should no longer be required.

        “At the moment grants to dealers of £4,500 (£2,500 for hybrid EVs) for the growing list of eligible vehicles and, in Scotland, interest-free loans to purchasers, plus subsidised electricity at most public charge points in Scotland and grant-assisted charge point installation, will bridge the gap for many.”

        At the end of 2017 Scotland had over 900 public, free-to-use charging bays, although over 95% of all charging is reported to take place at home overnight.

        Around £80m was recently allocated to support the expansion of the UK’s charge point infrastructure, with £7.8m offered to businesses to get chargers installed in their car parks, depots, farmyards and homes.

        By making the switch to EVs drivers can massively reduce their running costs, to around 3-5p compared to 10-20p per mile, as well as providing cheaper servicing, protection from future air-quality-related tolls, tax incentives on purchase and benefits-in-kind and zero road tax. Owning an EV will also reduce poisonous emissions in built-up areas and your carbon footprint.

        However, alongside the benefits of battery-fuelled vehicles Joe believes that there are some concerns about the demands on the National Grid.

        He said: “There are fears about the National Grid not being able to cope with charging demand as EV numbers rise. However, these are probably unfounded and in time the combined battery capacity of the nation’s fleet of EVs will become an integral and crucial part of the power grid.

        “The daily consumption of most EVs will be between 4 to 20kWh whilst having about 50kWh of battery capacity, so with plenty to spare to top up the grid through short bursts of peak demand. A premium tariff will be paid to EV owners for providing this facility. 

        “Some electricity suppliers are now also offering special lower supply tariffs to users of EVs. Other technologies such as hydrogen-fuelled fuel cell vehicles and wireless charging will tweak the landscape over time but anyone buying a current-model EV should not be disappointed.”

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        Joe Fergusson

        Joe Fergusson

        Consultant
        Microgeneration
        Tel: 01292 886 544

        About: Joe has more than 20 years’ experience advising private and corporate clients on all aspects of renewable energy systems. From pre-feasibility advice to project management, his remit includes hydro, biomass, wind, heat pumps, solar, biogas, battery storage, electric vehicle charging, heat networks and combined heat and power. Joe also has a broad knowledge of sustainable building design. Appointed in 2002 as Scotland’s first Community Renewables Development Officer, he developed the Scottish Community & Householder Renewables Initiative (SCHRI) in South West Scotland, reporting to the Energy Saving Trust. Joe is a qualified National Home Energy Rating surveyor with a broad and deep knowledge of building-scale renewable energy systems and grant support schemes. Interests: Low Impact Building Design, Renewable Energy, Sustainable Development.

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          Article posted on 29/01/2018

          Brexit could result in more Scottish farmers switching their attention towards organic production

          Brexit could result in more Scottish farmers switching their attention towards organic production, according to a leading land expert Malcolm Taylor.

          Malcolm Taylor, Head of Land Management at Bell Ingram, believes that continuing uncertainty caused by the Brexit vote, coupled with the likely elevated environmental constraints introduced post-EU breakup, will make organic farming a more attractive option.

          He feels that the growing evidence of consumer-led demand for organic and ‘superfood’ products will lead to more farmers focussing on the attractions of organic production.

          Malcolm said: “There is no secret that organic farming is not for everybody, but with Brexit uncertainty, budget cuts and pressure on inputs, there might be an opportunity for increased organic production.

          “There has already been a rapid growth in the establishment of blueberries in Angus, which reflects the interest in so called super fruits and healthy living.

          “I am not advocating a complete swing to alternative production but with careful marketing, it might be that there is an expanding niche for organic production.”

          Malcolm recently spent two weeks in Minnesota, and explored how other farmers employed different techniques in their areas.

          Organic sales in Minnesota rank ninth in the US, with huge growth in the sector which is reflected across the country.

          Back across the pond, in the UK, sales of organic foods grew by 7.1 percent in September.

          The growing trend for health foods, coupled with the fact that farmers are likely to have to pay far more attention to environmental issues to qualify for subsidies post-Brexit, mean that many may consider cultivating organic produce.

          Water quality rules are likely to become stricter, so a reduction in fertiliser and sprays will make organic production a more attractive option. In addition, good sward management will be the key to profitable cattle and sheep finishing.Malcolm continued: “Cost control is going to be ever more important post-Brexit.

          “We are going to have to be more creative and adventurous, and if organic production grows, who knows what might follow?

          “More free-range poultry and pigs, GM crops, minimum tillage for crops? What is clear, is that we can’t do something simply because it’s always been done that way.

          “What Brexit has created is the drive for all of us to need to look at what we do and how and why we do it.”

          Our people

          Malcolm Taylor

          Malcolm Taylor

          Senior Partner, FRICS ACIArb
          Rural Land Management, Valuations
          Tel: 01307 462 516

          About: Malcolm is Bell Ingram's Senior Partner and heads up the company's Forfar office, where he specialises in farm and estate management, including the provision of agricultural rental advice and acting as an expert witness. He is the immediate past chairman of the RICS in Scotland and remains actively involved with the Institution. Malcolm is also head of Lettings within Bell Ingram. Interests: AMC Agent, Corporate Estate Management, Rural Land Management, SRDP Applications, FRICS Registered Valuer.

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            Article posted on 09/01/2018

            Traditional Tain farmhouse and land for sale at offers over £250,000

            Househunters seeking a tranquil country lifestyle with plentiful land and stunning views will find the perfect home in Bogbain Farm.

            The property is a spacious traditional three-bedroom farmhouse located in approximately 2.5 acres of grazing land set in beautiful countryside on the outskirts of Tain.

            Bogbain Farm is in need of some refurbishment but would make the ideal purchase for any DIY savvy buyer keen to make their personal mark on and transform a property into a dream family home. Set in stunning gardens, it would also make the perfect rural getaway for anyone seeking a secluded haven.

            Included in the sale are two large stores, extensive outbuildings and two paddocks all of which offer multiple opportunities and new projects.

            Subject to consents, the outbuildings offer development potential or could be altered for stabling. The two fields offer good grazing and would be ideal for horses or other livestock.

            Bogbain Farm is being marketed through Inverness-based land and estate agents Bell Ingram and is for sale as a whole for offers over £250,000.

            Joanne Stennett, of Bell Ingram’s Inverness office, said: “This unique property offers buyers the chance to purchase their dream farmhouse and truly personalise it.

            “There are endless opportunities within Bogbain Farm and, with the right consent in place, the two large stores could be expanded to make up part of the property. Alternatively, the multiple outbuildings could be renovated.

            “I highly recommend anyone who is in the market and looking for a new project to view the property and the beautiful land it is situated in as it truly is a dream family home in the making.”

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            Joanne Stennett

            Joanne Stennett

            Associate
            Estate Agency
            Tel: 01463 717 799

            About: Joanne heads up the Estate Agency team in our Beauly office and is focused on ensuring her clients have a positive experience when they list their property with Bell Ingram. From country houses to farms and estates, she has been marketing prime residential property in the Highlands and Islands for over 17 years. Joanne is well known in the local area, having developed excellent relationships with buyers and sellers. Interests: Residential Estate Agency, Rural Property Sales.

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              Article posted on 05/09/2017

              A-listed Scottish historic castle with two private island for sale at offers over £3.75 million

              An A-listed Scots baronial mansion which looks fit to feature in a Hollywood fairy tale blockbuster or period drama and comes complete with two islands is now on the market.

              Dating from 1902, Glenborrodale Castle is a five storey, 16 bedroom property set on the southern shore of the idyllic Ardnamurchan Peninsula, Lochaber in the heart of the Scottish Highlands.

              The castle is set in a vast 133 acres of land and the sale includes the Isle of Risga and Eilean an Feidh – meaning the new owner can take a boat trip to these uninhabited islands.

              The palatial property also boasts a beautiful feature staircase with marble steps, three expansive public rooms and a turret with panoramic views of Loch Sunart and the Isles of Carna and Oronsay.

              To add to the whole attractive package, it also comprises an adjoining tennis court, gym and sauna, games room, a boat house complete with jetty and staff accommodation, as well as having many beautiful original features including marble fireplaces, cornicing and sandstone arches.

              The property is on the market with Perth-based Chartered Surveyors, Land and Estate Agents Bell Ingram for offers over £3.75 million.

              Carl Warden, of Bell Ingram’s Perth office, said: “Scotland is famous for its castles but it’s rare that any come onto the open market – particularly one which also includes two unoccupied islands in the sale.

              “Glenborrodale has previously been run as a hotel and could continue to be used for this purpose or could equally make a romantic wedding venue, presenting the ideal business opportunity to the buyer. It would also make a stunning and unique private home.

              “As the fixtures and fittings of the castle are also included in the sale, it is in walk in condition and ready to go. We would encourage any interested buyers to organise a viewing as soon as possible, as this is a truly must-see property.”

              The Ardnamurchan Peninsula area offers some of the most outstanding coast line scenery together with an abundance of wildlife. Outdoor enthusiasts will also not be disappointed, as sailing, angling, kayaking and whale watching are just some of the activities on offer.

              Local amenities, including a primary school, doctor, dentists, shops and hotels, are available in the nearby villages of Saln and Acharacle. 

              Viewings are strictly by appointment only and can be arranged through Bell Ingram’s Perth office on 01738 621 121.

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              Carl Warden

              Carl Warden

              Partner
              Estate Agency
              Tel: 01738 621 121

              About: Carl heads up the Residential Estate Agency division for the company and has a proven track record within the Scottish property sector. He has been marketing property in the Perth and Kinross area for over 35 years and has vast and detailed practical experience and knowledge of selling prime residential property: from period homes to contemporary developments. Carl is well known in the local area, having developed excellent relationships with buyers and sellers. His wider role involves looking after and supporting our Agency teams and colleagues in Oban, Beauly, Ayr and Forfar. Interests: Estate Agency, Market Valuation, Negotiation.

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                Article posted on 02/08/2017

                Stoer Lighthouse, designed by the father of Robert Louis Stevenson, is up for sale in Sutherland

                Those looking for the ultimate retreat – as well as a truly remote and historic living experience – need not look any further than the Stoer Lighthouse in Sutherland.

                Dating back to the 1870s, the lighthouse was designed by the father of Robert Louis Stevenson.

                But in addition to the famous historical connection, the property is nestled in one of the furthest most peninsulas of Assynt – with the nearest neighbour in a small scattering of crofts two kilometres away.

                Stoer Lighthouse – which was automated in 1978 – comprises of two two-bedroom apartments and an external bothy all within the walled grounds.

                The two apartments were renovated in 2015 and 2016 (they previously had no electricity) and offer the opportunity to continue the holiday letting business or to convert into a larger home in a stunning and unique location.

                Each apartment has fantastic views to the south and west and on a clear day it is even possible to Harris and Lewis, North and South Uist, and south to the Torridons and Skye.

                The property is currently on the market with Inverness-based Estate Agents and Surveyors Bell Ingram for offers over £371,500.

                Alternatively, each apartment can be bought separately, with the ground floor apartment available for offers over £175,000. The first floor apartment is on the market for offers over £170,000 and the external bothy for offers over £22,500.

                Joanne Stennett, of Bell Ingram’s Inverness office, said: “The property is ideal for those looking for a superb family home as an ultimate get away or a really brilliant holiday home.

                “But it also has tremendous potential for those looking for a business opportunity, providing a really stunning ‘look-out’ holiday rental accommodation.

                “The location is truly breath-taking, plus there is the chance to say you are living in a place built by Robert Louis Stevenson’s father.”

                Both apartments have two double bedrooms, bathroom, lounge, kitchen with dining area, and store room. The lounge is light and airy and has the original fireplace which houses an electric fire. The walled gardens offer further privacy and there is also a parking space for each of the apartments.

                The Bothy sits within the walls of the lighthouse and has an entrance hall, WC and one room which has a sink. It has electric heating and is ideal for backpackers or could be used as additional accommodation for guests.

                Stoerhead is also one of Scotland’s best places to spot whales, dolphins and porpoise, and if weather conditions permit, basking sharks can be seen during the warmer summer months.

                This section of Scotland’s West Coast has an abundance of activities perfect for outdoor enthusiasts, such as fishing, sea kayaking, walking and for keen climbers, the sea stack known as the ‘Old Man of Stoer’ is a stone’s throw away.

                Closer to hand there are fine views of Suilven, Canisp, and Stac Polly situated south of Lochinver.

                Viewings are strictly by appointment only and can be arranged through Bell Ingram’s Inverness office on 01463 717 799.

                 

                Our people

                Joanne Stennett

                Joanne Stennett

                Associate
                Estate Agency
                Tel: 01463 717 799

                About: Joanne heads up the Estate Agency team in our Beauly office and is focused on ensuring her clients have a positive experience when they list their property with Bell Ingram. From country houses to farms and estates, she has been marketing prime residential property in the Highlands and Islands for over 17 years. Joanne is well known in the local area, having developed excellent relationships with buyers and sellers. Interests: Residential Estate Agency, Rural Property Sales.

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                  Article posted on 12/05/2017

                  Land Agent Catherine Smith awarded highest mark in Scotland in the prestigious CAAV exams

                  Farmer’s daughter Catherine Smith of Bell Ingram has been awarded the highest mark in Scotland for a sought-after agricultural valuers exam.

                  atherine and colleague Hugh Maclean, who both work in the Perth office of Bell Ingram, Scotland’s biggest independent land agents, have passed their Central Association of Agricultural Valuers (CAAV) exams.

                  Catherine, originally from Easingwold in North Yorkshire, achieved the highest exam marks in Scotland, earning her the coveted ‘Martin Hall SAAVA President’s Prize’.

                  This prize is awarded annually by the Scottish Agricultural Arbiters & Valuers Association (SAAVA), who are affiliated to CAAV. Catherine was presented with her cup by Nick Millard, CAAV President, at the 2017 Annual General Meeting of SAAVA, which was held at the Hilton Dunblane Hydro.

                  Delighted bosses at Bell Ingram were full of praise for the pair, who are part of the firm’s next generation of Chartered Surveyors and Valuers.

                  Sarah Tyson, Head of Training at Bell Ingram, said: “It is so rewarding to see the next generation of chartered surveyors and valuers showing such dedication and commitment to succeed.

                  “Catherine and Hugh are already an important part of our Perthshire team assisting and advising on a broad range of rural issues across Scotland. These latest qualifications give our clients further confidence and reassurance that they really are getting the best advice possible.”

                  Catherine joined Bell Ingram in 2014 after studying at the Scottish Agricultural College and completing a Post Graduate Diploma through the College of Estate Management. Securing the President’s Prize provided a double reason to celebrate, since Catherine also became a Member of the Royal Institute of Chartered Surveyors (MRICS) in November after sitting both professional exams only a week apart.

                  She said: “It was a relief to pass and I was absolutely thrilled to have received this award, it is such a tremendous feeling when all the hard work pays off”.

                  “Given the practical nature of the exams, getting out onto farms to consolidate my knowledge was really useful. On top of that Hugh and I were part of a great study group with others also sitting the exam.”

                  Hugh, originally from Elgin, achieved his MRICS status in 2014 and is delighted to have added the CAAV accreditation to his list of achievements.

                  He added: “The exams were very challenging as the syllabus is very broad so I am now looking forward to putting my qualifications to good use  supporting farmers and landowners in my day to day job.”

                  As CAAV members, both Catherine and Hugh provide professional advice and valuation expertise on issues affecting the countryside from tenancy matters to sales and purchase, and from conservation issues to farming structures.

                  Graham Lumby, Managing Partner at Bell Ingram praised the efforts put in by both Catherine and Hugh to achieve their latest successes and said: “This really is testament to their hard work and professionalism. Catherine has worked tirelessly to pass both her CAAV and MRICS within just a week of each other and can be particularly proud of receiving the award for the highest placed Scottish student in the 2016 CAAV exams.”

                   

                  Our people

                  Catherine Lawson

                  Catherine Lawson

                  Senior Associate, MRICS FAAV
                  Rural Land Management, Valuations
                  Tel: 01307 462 516

                  About: Catherine is a highly qualified RICS Chartered Surveyor and Registered Valuer working across Perthshire and Angus advising on all aspects of rural estate management, farm management, residential property management and lettings. She joined Bell Ingram in 2014 working in the Perth office before moving to the Forfar office in 2019. As a farmer’s daughter from Yorkshire and now living on a farm in Angus, along with a degree in rural tourism management, Catherine can offer assistance on a variety or rural matters. Interests: Lettings, Rural Land Management, Tourism.

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                    Article posted on 11/04/2017