farm news
Scottish farm land attracts buyers from across the UK
According to rural experts, despite the uncertainty cause by the Referendum and CAP reform, buyers are now turning their attention to holdings north of the border where good quality pasture land is at least 40% cheaper than the rest of the UK. Simon Brown of CKD Galbraith (pictured) explains: “Demand will continue to hold prices up in the Scottish counties and we remain optimistic and expect competitive bidding to continue. Farmers and those looking to invest are aware what excellent value Scottish farm land represents, especially good arable land.
Demand for Scottish farm land remains strong and continues to be better value per acre than in other parts of the UK according to the latest RICS/ RAU Rural Land Market Survey. The average UK price per acre during the final six months of 2014 was £10,067, a record high for 11 months in a row. Although land prices in the Scottish counties have risen steadily over recent years, it remains significantly cheaper to purchase farm land here at an average of just £4,375 per acre, a figure reflecting the fact that a broader range of land types have been offered for sale.
“CKD Galbraith has been instructed and sold some 55 agricultural properties over the past year, totalling 11,950 acres of land. We are finding purchasers coming from south of the border more frequently due to the short supply of agricultural land on the open market and the high price of land in both England and Wales.
“English farmers are now taking a keen interest in Scottish units and are principally focussed on farms which can operate as stand-alone units with good infrastructure and fixed equipment.”
Landowners call for cross- industry goodwill on tenant farming issues
Scottish Land & Estates, which represents land-based businesses across Scotland, has urged all farming industry bodies to work together constructively in the aftermath of the Scottish Government- led review of agricultural legislation.
David Johnstone, chairman of Scottish Land & Estates, has asked NFUS and the Scottish Tenant Farmers Association to join Scottish Land & Estates in discussions with Andrew Thin, a key member of the Review Group, on how best the sector can operate while legislation is being considered by the Scottish Parliament.
Mr Johnstone said: “We think it would reflect well on the industry if we can get round a table and deal with immediate concerns. Despite recent
criticism of landowners, the fact is that - for some time now - we have been urging all organisations to develop their thinking on the successor to the industry rent review panel and the potential to introduce a temporary ombudsman before legislation comes into force. We would like to underline our commitment to addressing this. “The Review was exhaustive, all important topics were given very detailed consideration and all stakeholders were given their say. As a result, legislation will take its course through parliament. There are, however, measures that the industry can make a start on and - if there is goodwill on all sides - progress can be made. It should not be forgotten that what we should all be trying to achieve is the revitalisation of the sector and creating a sound platform for the next generation of farmers.”
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Government continues support for AD power
“The UK Government believes that energy from Anaerobic Digestion (AD) is here to stay”, says Victoria Lancaster, H&H Land and Property’s renewables consultant. That’s according to its third and final Annual Report into AD – and the Anaerobic Digestion Strategy and Action Plan, which has just been published by the Department for Environment, Food and Rural Affairs. Victoria (pictured) adds, “We welcome the positive approach shown by Government to the growth in AD schemes – especially farm scale ones. These can provide dairy farmers with a much-needed alternative source of income, as well as a supply of both hot water and electricity for the next 20 years. AD is often seen as a complex option but with the right support and careful consideration in the initial phase of the scheme, it can prove to be a very good investment.” The three-year Action Plan has helped to encourage considerable growth in AD since 2011. Then there were 68 sites. This has grown to 140, with a further 200 already having planning consent and about to be built. The largest growth is in on-farm systems. Farmers who are interested should contact Victoria about the AD Ask the Expert day she is planning for those who may be thinking about investing in a scheme. This involves visits to two Cumbrian AD sites and a chance to talk to owners and to the installation company responsible. “Dairy, pig and poultry units are prime targets for anaerobic digesters,” Victoria adds. “Or any farm which has surplus crops or silage, or access to food waste.” The Government estimates continued ‘active growth’ in the sector up to 2017 and hopes that, ultimately, AD can become non-tariff dependent in future. Their report clearly identifies the green credentials of these schemes, which produce hot water and electricity. ‘Larger AD plants are looking at innovative uses for their hot water, over and above farm use’ said Victoria. ‘This has included a bottling plant and creation of drying floors, as well as selling heat to local hotels and public buildings like schools and homes. Planning for this in the early stages of the scheme is clearly important if the full value of the RHI payment is to be obtained. Electricity can be used on site or sold into the Grid. Victoria points to the advantages experienced by farmers who decide to look into the feasibility of AD. She continues, “the Govt continues to support feasibility
studies with the £10m WRAP grant fund, which provides support to farmers wanting to investigate whether their site is suitable for an AD system. A loan scheme for the construction phase is also available. Needless to say, you should seek professional advice from ourselves to see which options are right for you. With schemes of different sizes available it is only sensible to get things right, early on.”
The Government supports waste food and manure-based inputs. Victoria is keen to point out that they acknowledge the benefits of using on-farm crops/silage in smaller schemes (under 250kW) as well as waste feedstocks. The recycling of digestate – the liquid left over from the process- is also acknowledged as a significant benefit from AD schemes. Over a million tonnes went on to the land in 2012-13, reducing reliance on inorganic fertiliser, and demonstrating its usefulness as a soil enhancer. In fact 90% of the digestate was recycled in this way. Other uses for the digestate are still being researched, to further enhance the financial returns of the whole scheme.
Banks and lenders are also getting on board, with forward- looking institutions seeing the advantages of schemes and judging them as equal to other forms of alternative energy investment. Finally, Victoria confirms that even planning departments are getting behind schemes, as Government does its best to removing the barriers to development where it can. Smaller AD schemes may not require full planning permission, as they can often apply through the permitted development route instead. Planners often find the visual impact of AD developments to be much less than that of other renewable technologies and feel that they are more naturally integrated into the existing farm steading.
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