Galbraith Rural Matters Summer 2020

Rural

Issue 9 suMMer 2020

MATTERS

Farm subsidies in Britain after Brexit

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Making the most of a walled garden

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Outlook for the salmon season

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Changing the guard on an award-winning farm

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Beavers: bane or beneďŹ t

WELCOME as I write, the covid-19 restrictions are causing unprecedented disruption for rural businesses across the board.

Farmers have had to cope with sudden changes in consumer behaviour resulting in increased sales of fresh products such as meat, poultry and potatoes but reduced sales of milk. Livestock auctions have become private sales or held via video conference, the royal Highland show was cancelled and our daily activity has been adapted to comply with physical distancing requirements.

The full extent of government support for rural businesses is currently unclear, although public pronouncements are very encouraging.

Amidst this gloom there are certainly some bright spots. The weather over the spring season has been exceptionally dry and fair, enabling arable farmers to make good progress and ensuring the safe arrival of livestock offspring.

We have several clients who are investing in their farms and making significant upgrades for the future – some with a view to creating greater efficiencies and economies of scale now, others looking to help the next generation of the family. sales of farms and land continue apace, with strong demand and continued competition between potential purchasers.

All of this suggests that there is great confidence in the future of rural business. I share that confidence and I hope that the current crisis will clarify the importance of land-based businesses.

With best wishes to all our readers, Ian hope, head of Rural

CONTENTS

4 COVER STORY: What will happen to farm subsidies after Brexit north and south of the Border.

6 Walled gardens are a delightful remnant from another age, but how do you bring them back to life?

Rachel Russell is a Galbraith associate based in cupar, but, as well as being a chartered surveyor, she keeps busy away from the office as a partner in a deer farming business.

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she and her husband Fergus started east Fife Venison in 2017. Now in its fourth year, the business is gaining momentum in an industry that is flourishing throughout scotland. Here rachel answers some questions about the business:

Contract farming: Passing the baton on an award-winning hill farm.

11 The rise of net-zero farming.

12-17 Making sense of the decline in salmon numbers.

Securing the future of salmon in the Brora.

Tracking the smolts on the Conon and its tributaries.

18 Changes for Scottish tenancies.

19 A day in the life of a livestock auctioneer.

20 Beavers: Bane or benefit?

22 Market trends.

24 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 240 people in offices across scotland and Northern england.

Students get estate experience.

We provide a full range of property consulting services across the commercial, residential, forestry, rural and energy sectors.

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Galbraith provides a personal service, listening to clients and delivering advice to suit their particular opportunities and circumstances.

Challenges of redeveloping a church as a home.

25 Converting a listed cartshed.

ABZ and the Brent Crude bubble.

27 Looser planning controls on the way?

Like us on Facebook: www.facebook.com/GalbraithRural/

Join us on LinkedIn: www.linkedin.com/company/galbraith

Why red deer?

It’s something different! We have always had an interest in deer and the venison market has been growing significantly in the last 10 years. We had the opportunity to make use of some marginal land at home, so farming red deer was the obvious option for us.

A large proportion of venison sold in supermarkets throughout the uK continues to be imported from New Zealand, where deer farming has long been part of their farming sector.

It may seem surprising given the number of red deer that are culled throughout the scottish Highlands and the ever-increasing interest in reducing food miles, but wild venison doesn’t offer the same consistent product to the consumer as farmed venison.

Venison also offers a healthier alternative to other red meats as it is naturally lean, low in cholesterol and high in vitamins and minerals.

What’s your aim?

The purpose of our business is to give our farmed deer the best conditions in which to breed and grow while producing high quality breeding stock and venison for the consumer. We now have 85 breeding hinds which spend most of the year outside grazing on a mixture of improved and rough grassland.

There is plenty of cover to provide shelter as well as ponds and wallows to play in, all of which help to ensure a happy and healthy herd.

The calves are at foot until early autumn when the rut starts, at which point they are weaned and housed inside for the winter months. In doing this, we are able to ensure they are given optimum conditions to develop and grow before being turned back out in early spring.

Our animals either enter the food chain at around 18 months of age or are sold as breeding stock to other deer farmers.

We aim to manage our herd to the highest standards, with welfare, carcass quality and sustainability being our key objectives. Our herd and produce have quality assured status and all of our animals are entered into a tailored health plan in order to maintain the highest health and welfare standards.

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Red deer farming was the obvious choice when Rachel and Fergus Russell were looking for a way to use some marginal land on their holding near St Andrews.

Challenges?

rural Matters is produced by Galbraith and designed by George Gray Media & Design, st Andeux, France. © CKD Galbraith LLP.

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Deer are inherently wild! Two meter high fencing and purpose-built handling facilities are key for safe stock management. Although the deer maintain a wild instinct, they are inquisitive and intelligent animals and this makes them fun to be around. Through day-to-day stock management,

Venison venture: an alternative use for marginal land

you get to know their individual characters and can slowly earn their trust, which is very rewarding for us.

yearlings and calves are fed twice a day when they are in the shed over winter months and we both fit this in around our day jobs.

Like any new business, start-up cost for fencing and handling facilities takes some financial management, but we’re now starting to see the benefits of our initial investment as we enter into another year of the business.

The cyclical nature of caring for stock from birth and striving to maintain optimum condition in the breeding herd is hugely rewarding. It’s also so different from our day jobs, which makes it feel less like a second job and more like a hobby!

How do you find the time?

We’re fortunate in that we are in the business together. The stock are checked at least once a day when they are outside, and the hinds, stags,

rachel.russell@galbraithgroup.com 01334 659989

galbraithgroup.com | Rural Matters | summer 2020 | Page 3

The future of farm subsidies ENGLAND Agriculture in England is set for a major shake-up when a new system of subsidies replaces the EU’s Common Agricultural Policy. Tom Warde-Aldam reports. afteR three years of delay, last December’s general election result means the english agriculture Bill, first published last year, is set to sweep away the current subsidy system.

The eu-inspired CAP regime of area-based payments which has been in place since 2005 through the single Farm Payment (sFP) scheme and the Basic Payment scheme (BPs) will disappear. The legislation is, however, only an enabling bill and the framework details to follow are still uncertain.

The plan is to phase out BPs completely by 2028, and replace it with an environmental Land Management scheme (eLMs) from 2024. Farmers face the prospect of moving from a very simple areabased scheme which requires minimal ‘crosscompliance’ to having to deliver ‘public goods’ to earn any subsidy.

There has been a growing consensus that the BPs is not producing good results either for the general public or for agriculture, a sector which is unique and

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A great number of existing farm businesses would trade at a loss with even a 50% cut in subsidies.

vulnerable as the only remaining major industry to attract direct subsidy payments. However, there is only limited agreement on the detailed objectives and mechanisms for future payments. In response to industry pressure, the relaunched Bill now includes the need to monitor food security, an aspect that had been overlooked in its first incarnation. The fallout from the coronavirus outbreak may help to highlight the importance of this factor.

The main merit of the current BPs regime is the simplicity of its mechanism, an annual acreage payment based on occupation. Nevertheless, it has taken many years of experience to refine the process.

It is highly likely that eLMs will need to be modelled on current agri-environment schemes such as the Countryside stewardship scheme (Css), but before this can happen Government has to surmount a challenging process to refine objectives, develop appropriate measures, design a nationwide scheme, deliver it to farmers and monitor the outcomes.

On past record, this is a mighty challenge in four years. Pilot schemes covering a panoply of geography and farming systems are underway, but they are hardly off the ground. Many questions

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remain: What exactly is a ‘public good’ and what are the priorities? Will the focus be on insects, public access, carbon, animal welfare or soil management?

The level of bureaucracy needed for delivery will be immense since whatever we end up with will be far more complicated than the current system. even if the headline annual figure of about £3 billion is sustained, the logistics of delivery will take a significant bite out of this and the net figure to farmers will be lower. The operations required to deliver public goods will undoubtedly cost farmers money and eat into profit margins.

Climate change has had a major impact on public sentiment and the environment is now centre-stage for policy. special interest groups with wellorganised social media have the potential disproportionately to influence policy and are determined to do so.

The much discussed Knepp Castle estate rewilding project in sussex has been a fascinating experiment, but it is full of unexpected consequences, suggesting that trying to understand, let alone manage, the outcomes is fraught with difficulty.

A great number of existing farm businesses would trade at a loss with even a 50% cut in subsidies.

Many family farms may be sufficiently resilient to be able to adapt to new rules, but there can be little doubt that the intellectual and physical challenges of adapting to the new regime will force many more into retirement. A major shake-up in agriculture is inevitable, even before taking into account the even greater uncertainties posed by trade deal talks where agricultural products are a minor pawn in the bigger game.

Necessity has always been the mother of invention and both existing farmers and new entrants with different visions will step into the void.

The certainty is that there will be radical change; the uncertainty is what sticks and carrots will be applied to engineer public goods. some aspects may be unpalatable, but all farmers need to take stock of their current position to assess their strengths and weaknesses. They then need to be nimble enough to adapt to survive.

The rationale behind the Agriculture Bill has its attractions, but the processes and mechanisms which need to be developed are an immense challenge. Political history suggests the result will be a compromise which will change but not be allowed completely to disrupt the farming community.

All sorts of value systems, whether for land, for livestock, for input or labour will be uncertain and volatile for many years, and well-developed businesses will need to adapt quickly.

But for all the challenges, there should also be immense opportunities.

tom.warde-aldam@galbraithgroup.com 01434 405960

in post-Brexit Britain SCOTLAND What will the Scottish agricultural landscape look like after Brexit and coronavirus? Poppy Baggott and Claire Wilson report. the farm subsidy framework in scotland differs from the rest of the uK, but the variances are currently limited under the eu’s common agricultural Policy.

speculation has so far emerged from the halls of Holyrood. so, where does this leave the future of agricultural subsidy in scotland?

Gut feeling and common sense would point in the direction of natural capital and environmental stewardship, with public funding being awarded for the provision of public goods.

In these uncertain times for agriculture there are two certainties: that change is afoot, and that the relentless march of nature cannot be halted. The farming calendar, driven by the environment and seasonal

However, the view of agriculture in post-Brexit Britain is already starkly varied depending whether you look north or south of the Border, and with the Covid-19 pandemic absorbing the lion’s share of government resources, it is inevitable that there will be further delays.

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The level of agricultural subsidy that each devolved administration receives is based on historic values, reflecting what each nation received in previous allocations dating back to the early noughties. This method has been criticised for its failure to reflect the different agricultural conditions across the uK, in particular the Less Favoured Area (LFA) split. Most of the uK’s LFA are in scotland, where 86% of the country is designated as LFA.

requirements, makes it impossible for those whose businesses depend on the land to sit on the fence; they must continue to manage the land to their best ability. The nature and direction of that management may have to change, but this cannot happen overnight. As ever in farming, this is a long game.

One of the driving factors for the scottish Government in the postBrexit agricultural landscape has been the controversial division of subsidy following the eu’s external convergence system which was aimed at supporting lower agricultural output countries.

so while the whirlwind of change that has been wrought by coronavirus has been devastating in its rapidity, the steady and reliable nature of agricultural production should serve as a reminder that the value of farmers should not be underestimated.

scotland’s low payment rate per hectare ensured the uK received about £190 million, of which scotland initially received a rather paltry £30 million, fuelling the scottish Government's desire to review the allocation of funding post-Brexit. A number of scottish farmers are now in receipt of convergence payments in acknowledgement of this.

It is already clear that while the rest of the uK is progressing transitionary steps from 2021 towards an environmental Land Management scheme (eLMs), aiming to deliver a range of public benefits, little other than

Little other than speculation has so far emerged from the halls of Holyrood.

Faced with empty supermarket shelves and worldwide transport approaching lockdown, who will be the first port of call in a food shortage? We suggest that we should be careful before taking too much British land out of production and turning farmers into park keepers instead of food producers.

poppy.baggott@galbraithgroup.com 01556 505005

claire.wilson@galbraithgroup.com 01556 505009

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NEW SERIES REVIVING WALLED GARDENS

Where there’s tea, there’s hope...

Walled gardens have a long and fascinating history, but some have fallen into disuse.

Poppy Baggott launches a new series focusing on ways they can be brought back to life.

the uK is home to a huge number of walled gardens – both private and open to the public – some of which are still glorious testaments to a different age of architectural and horticultural frivolity, and some which time has forgotten.

There are many different styles and sizes, and while some are still used as they were originally intended, others are now providing opportunity for diversification.

There is a certain something about walled gardens, and Frances Hodgson Burnett’s protagonist Mary Lennox puts her finger on it in the novel The Secret Garden: “sometimes since I've been in the garden I've looked up through the trees at the sky, and I have had a strange feeling of being happy as if something was pushing and drawing in my chest and making me breathe fast.

Magic is always pushing and drawing and making things out of nothing.”

Owners of walled gardens will also be familiar with the sensation of sentimentality battling practicality when faced with the financial burden of ongoing maintenance to a largely impractical relic of a bygone time.

However, those facing the walled garden dilemma should take heart; in the next few issues of Rural Matters, I will be looking at walled gardens and the opportunities which they have presented to those willing to think outside the box.

Galbraith is involved in the management of a hugely diverse property portfolio of which walled gardens form a part. As ever, where there is land, there is opportunity, and Galbraith is well placed to assist with marketing, negotiating leases or simply putting parties together.

When I started on this series of articles, my thoughts naturally turned towards a garden close to my heart. It is a few years now since I wrote, brimming with amateur excitement, about our own diversification into growing tea in a walled garden in south-west scotland. At the time I sagely predicted that the road to the first cuppa might be a long one, and I was right. Three years in, and that cuppa is still proving elusive.

Like many start-up businesses, we have met frustrations along the way and the learning curve has been steep, but we have been encouraged by the expanding community of tea growers in scotland who are willing to share their own experiences and wisdom – even more so as a result of meeting Beverly Wainwright, an award winning tea maker and tea consultant with a wealth of practical experience in tea growing and processing, and a back-story worthy of film rights. she gave up a successful career in edinburgh and embarked on an adventure to sri Lanka where

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she helped the then struggling Amba tea estate to find its feet. This involved setting up a smallscale tea factory, creating a line of rare hand-made teas which are now in demand worldwide and also ensuring that it contributed to the community via a workers’ share scheme. returning to scotland, Beverly decided to put her faith in her expertise, and created the scottish Tea Factory, located at Comrie Croft in Perthshire.

The building is small but picturesque with breathtaking views and was the result of backing from a mix of funding sources, including a grant from LeADer and Beverly’s own savings.

In addition to processing tea for independent scottish growers at the factory, Beverly is a licensed trainer for the uK Tea Academy and also runs courses on making and tasting tea.

Last summer we contacted Beverly, who came down to Auchencairn and spent the day with us providing advice on pruning to promote maximum leaf growth. she also advised us to contact the scottish Agricultural College (sAC),

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I sagely predicted that the road to the first cuppa might be a long one, and I was right.

now part of scotland’s rural College, about soil and leaf sampling, so as to be able to address any deficiencies in the soil and give the plants the best chance possible. Fortunately, because Beverly had submitted samples previously, the sAC was able to conduct appropriate analyses for tea plants, which included testing for significantly more elements than a basic agricultural soil test.

This has been very valuable in providing us with a basis on which to move forward.

We took the results of our soil samples to a local agronomist, and following his advice have purchased some fertiliser from the local agricultural merchants to give our plants a boost for 2020.

For many starting out growing tea – or indeed in any new enterprise – the assistance of a mentor can be invaluable, but this inevitably comes with a cost. realising this, Beverly contacted the Farm Advisory service, which offers mentoring grants for those new to agriculture. The FAs confirmed that tea growing would be classed as an

agricultural enterprise for which the mentoring grant would be available.

The grant would go towards the costs incurred over four days spent with Beverly as a mentor and can cover a variety of topics such as learning about tea cultivation or how to process it to achieve the best end product. We are in the process of applying for this grant, and if we are successful we will be able to enlist Beverly's help over the summer.

There is still a lot of work to do, but it does feel like one day soon I will wrap my hands round that first cup of Auchencairn tea.

The past few years have been hard work, but one very significant plus is that the walled gardens which were slowly being reclaimed by nature are now in use again and we hope will one day be returned to their original splendour.

poppy.baggott@galbraithgroup.com 01556 505005

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Family succession gives young a chance to spread his wings

A contract farming agreement was the way forward for an awardwinning hill farm when the time came to pass the reins from one generation to the next.

Lucie Howatson reports.

clOQuhat estate has been owned by the Dunphie family since 1946 and sits in an elevated position overlooking Bridge of cally in Perthshire.

Plan for the business in order to assess its financial and productive performance while also identifying ways in which it could adapt to the upcoming changes.

Brigadier Christopher Dunphie inherited the estate from his late uncle in 1988 and his son, Major Charles Dunphie, is the regional director of ABF The soldiers’ Charity in scotland. Both live with their families at Cloquhat, which comprises around 640 acres of grazing that supports a herd of 99 Limousin cross cows and 127 Lleyn cross ewes.

Correctly positioning the business for succession between Christopher and Charles was of paramount importance. Our advice, along with guidance from the family’s solicitor, identified that entering into a contract farming agreement was the best way forward.

Christopher, along with former stockman Neil Drummond, has made the Cloquhat name synonymous with high quality commercial Limousin cross cattle. The farm produced the champion pen of eight calves at the united Auctions stirling calf sales for five consecutive years to 2019, commanding top prices from buyers who return year after year.

Cloquhat was advertised as a contract farming opportunity in the summer of 2019 and this generated significant interest, both locally and further afield, with more than 70 notes of interest received.

After throwing open the doors to Cloquhat for an unprecedented five viewing days, followed by two rounds of interviews, a new contractor in the form of Matthew McOuat was appointed.

Matthew, 25, had a flock of sheep on a small area of ground he leased on a five-year short limited duration tenancy near Dunblane and was looking for an opportunity to take the next step in building his business.

In 2017, an inevitable change was dawning at Cloquhat when Neil was looking to retire after 27 years at the helm. It became apparent to the family that a clear change in the direction of the business was needed; Christopher, who is in his eighties, was looking to take a step back from the business while Charles was unable to pick up the reins due to existing work commitments and a young family to support.

Matthew moved to Cloquhat with his flock in November 2019 and has since settled in well to life at Cloquhat. The business, the Dunphie family and Matthew are all thriving.

With this in mind, Charles approached Galbraith to undertake an Integrated Land Management

In light of the success of this new partnership, we asked Christopher, Charles and Matthew to share

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responsibilities that I have. I am now in my mideighties and I need to step back a bit. Charles doesn’t have the time to take over my responsibilities as he has a full-time military position and a young family to consider.

farmer

When I arrived here I had a military pension and I was in the financial position to dedicate my time to the business; the next generation is unfortunately not in the same position.

Matthew is a classic example of someone who comes from a farming background and has older siblings already involved in the family business.

The opportunities at home just aren’t there sometimes. They need to go out and find the opportunities themselves. We were delighted to provide this opportunity to Matthew.

What sort of person were you looking for to fill the position?

Christopher: The quality of the person was of paramount importance and that is what we focussed on during this whole process but, all things being equal, we wanted to offer the position to someone who had the knowledge and enthusiasm of youth but lacked the opportunity to realise their full potential.

Matthew stood out to us on all counts and he was encouraged to apply by both the family and Galbraith. We were delighted when Matthew accepted our invitation to join us at Cloquhat.

It is a very reasonable question for a young person to ask themselves; should I apply? But the answer is yes, they absolutely should. every farm needs, from time to time, a fresh pair of eyes to offer a different way of looking at things. the application process started with initial viewings of the farm followed by first and second interviews. Why such a long application process? their experiences of the process that led Matthew to being chosen as the new contractor at Cloquhat.

Why did you consider coming to cloquhat?

Matthew: Cloquhat offered something different to what I was already doing and allowed me to work full time at Cloquhat, decrease the amount of contracting work I was doing, work with more stock and take an important step forward with my business.

It was very important for me to be able to work under my own steam and to be responsible for the day-to-day running of the business. This particular farm also suited me as it was livestock focussed rather than arable.

I remember the encouragement given to me to apply by both the family and Galbraith, despite being young, which gave me a lot of confidence.

I believe there are benefits to recruiting a young person into a business. Naivety can be a good thing as it makes you try something new rather than doing something the way it has always been done.

Why were you looking for a contractor rather than an employee?

Christopher: I thought the overall process was right. We needed to refine the list of possibles to a short list of those who might best fit into life at Cloquhat.

The raw material of my earlier career as an Infantry soldier was 'people'. Judging their potential and encouraging them to realise it was a key part of that life. Galbraith presented us with a number of splendid candidates whose visits we much enjoyed. Of course the detail of the written applications was important, but the quality and potential of the person was paramount. Matthew seemed to tick all our boxes.

Charles: The character of the person is just as important as their technical abilities. Like my dad, my experience of soldiering was that, whilst someone may be outstanding at their job, if you can't work as a team things simply fall down.

Amongst many strong candidates, Matthew’s application stood out to me and this was proven when I got the opportunity to meet him at the first interview stage as I didn’t meet him during the viewing days. Matthew even came out to the farm between interviews to visit the cattle, which showed a genuine interest and commitment.

As an industry we need to encourage people not to shy away from looking at the contract farming route and undertaking the process of appointing a contractor. Cloquhat is proof that even at a smaller scale such as this, it can be viable for everyone involved. Farmers like Matthew are the next generation and it is important that as an

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Christopher: We preferred a contractor as they would be involved in the everyday running of the business and take over some of the

The Cloquhat team, from left: Major Charles Dunphie, Matthew McOuat and Brigadier Christopher Dunphie.

galbraithgroup.com | Rural Matters | summer 2020 | Page 9

industry we offer them that chance to grow and develop.

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It is an exciting time for all of us.

A great relationship has developed quickly and harmoniously.

What are your reflections on the application and interview process as a candidate?

Matthew: The process was surprisingly straightforward as I only had to submit one application rather than there being multiple requirements. Lots of information on Cloquhat was provided by Galbraith which gave me a good idea of what was being offered. The viewing day was a great opportunity to view the farm for myself, see the quality of the livestock and meet the family I would ultimately be working with. how did you feel about prospective applicants coming and viewing the farm?

Christopher: We were delighted to welcome those who wished to investigate the opportunities offered at Cloquhat. We are an almost ideal small hill farm, with south facing slopes and a herd of top quality cattle. Galbraith warned us to expect a high level of interest, and that certainly happened. I doubt that we would have generated that level of interest and been able to invite an outstanding applicant to join us, without the advice and marketing skills of the Galbraith team. how did you find the process of getting started in the first few months of the contract?

Matthew: Things have been pretty seamless so far. It is an exciting time for all of us. The communication between the three of us has been very good and we discuss problems to find a solution before they grow arms and legs. A great relationship has developed quickly and harmoniously.

Christopher: Matthew just slipped into the role almost seamlessly. Of course there will be changes as he set out to put his mark on the farm and do things his way. I get the feeling that he is delighted to be here, and we are certainly delighted that he is.

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I think the only frustration has been the unnecessarily extended business of setting up a No 2 account, which has nearly driven me to drink!

Charles: Due to my job I can't commit nearly as much time as my dad has, but that's been the strength of this process – we couldn't really have asked for a better start to the partnership, which means we can all continue to build on Neil's legacy.

What has been the single most productive achievement since the contract started?

Christopher: We needed a new bull. With the uA stirling Bull sales in February, just two months after Matthew's arrival, the timing was excellent.

Newhouse Oriental (a bit of a mouthful so shortened to Orie!), from the Adams family at Newhouse of Glamis, stood out at the sale and

The rise of net-zero farming Farmers have an essential role to play in the race to become carbon neutral, says Gareth Taylor.

as the world shifts to a lowcarbon economy, many businesses are assessing how they can become carbon neutral.

has taken up residence at Cloquhat. Like Matthew, he seems to have settled in quickly and well.

Matthew: Christopher spent a long time looking at the figures and I visually inspected the bulls in the show ring, then we compared notes.

Fortunately we came up with similar thoughts on which bull we would like to see at Cloquhat!

Orie is a young bull but has great potential. He has a bit of an attitude on him, but is goodnatured overall and is settling in well. has the ability to speak to Neil been helpful to you?

Matthew: Yes, it has been very helpful. I don’t feel under any pressure to approach problems in the same way that Neil did, but it helps to have a good understanding of the history of the farm and the livestock.

Charles: We need to develop what is here and move with the times. I could have tried to take the farm on myself but there is a danger that everything Neil and my father worked so hard to build would have gone downhill. That is something we desperately wanted to avoid and we feel that we have done that with the new business structure and Matthew joining our team.

lucie.howatson@galbraithgroup.com 01738 456085

As gatekeepers to the land, farmers have a crucial role.

The way land is managed can result in net emission or net sequestration of carbon, and how we use land to continue to feed a growing population is key to sustainability.

Agricultural activity and peatland erosion across the uK in 2017 emitted 28 MtCO2e (mega tonnes of carbon-dioxide equivalent).

That’s a lot of carbon – more than double scotland’s CO2 emissions for transport, including flying. There is general recognition that we need to reduce the amount of meat we consume, and the Government’s Committee on Climate Change has recommended a 20% reduction in stock numbers by 2050. It also suggests that 23,000 Ha of land be used for the growing of energy crops such as short-rotation coppice. This is in addition to the 30,000 Ha of forestry which we should be planting each year to meet current targets. Based on this, the farming sector is going to be facing serious competition for land. soil health has a considerable impact on reducing emissions and storing carbon. For instance, a 0.1% increase in soil organic matter levels (e.g. 4.2% to 4.3%) will store 8.9 tonnes of CO2 per year. However, there is a ceiling to this and, unlike afforestation, pastoral land cannot continually increase the amount of carbon stored.

A large number of clients are undertaking baseline carbon audits to see where their businesses currently stand, with the hope of being able to identify a few simple solutions.

We have seen a few examples of land

holdings as a whole being carbon focussed. For example, considering virgin soils, accessing overall efficiencies and reviewing tree cover are all being used to off-set the higher-emission elements of their business. unfortunately, electric tractors charged from the solar PV installed on the farm shed are still some way off.

However some clients are now using electric off-roaders as a means of checking livestock. subsidies for production are

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The farming sector is going to be facing serious competition for land.

likely to reduce over the short to medium term, but new opportunities will emerge.

We’re already seeing freemarket examples where businesses are looking to obtain carbon credits from woodland plantations or creating habitat for biodiversity for species affected by specific developments.

Identifying areas where ‘public goods’ can be created will be worthwhile for future environmental schemes.

Galbraith is actively completing carbon audits for farming businesses based on the current available calculators.

When new subsidy regimes are implemented, the businesses that have planned ahead are the ones that benefit, and those that apply for the new grants earlier in the regime often have a greater chance of success.

gareth.taylor@galbraithgroup.com 0131 240 6962

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Atlantic salmon: making sense of the figures

Hugo Remnant explores the many theories around declining salmon numbers.

cONceRNs continue to grow about the future of salmon in the North atlantic, particularly at the southern limits of its range with fish in france and spain now almost entirely absent and another poor run of fish in southern england and Wales in 2019.

I write this from Northumberland, where the river Tyne has been consistently good for the past 20 years. The river had an encouraging run of fish again last year until early-August, when the numbers declined dramatically to about 50% of the five-year average for the 2019 season.

In the past five years, there has been a trend to an earlier summer run of fish, with good numbers in June, July and August and fewer salmon entering the river in september and October, though still in substantial numbers. Now there is uncertainty about exactly what is happening to the run on the Tyne.

There is a parallel reduction in migratory fish

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counts on the neighbouring river Wear, where the 2019 numbers are down even more.

A number of theories are being offered to explain this. They include unusually high water for the second half of the summer so that the fish swam round the counter; alterations to the weir at the fish counter location acting as a barrier; and storm Desmond in December 2015 washing out that year’s redds (and so losing a year’s reproduction that would have shown up in the numbers of adult salmon returning to the river four years later).

Whatever the causes of the lower salmon run on the Tyne, the fact is that the autumn run in scotland has been largely absent since 2014 and in a worst case scenario 2019’s back-end Tyne fishing may become the new normal.

Wider theories about the general decline include speculation that certain rivers are transitioning from an autumn to a spring dominance in terms of their main run of fish. This has happened

before and it is a process that has historically taken 10 years or more, during which period catches are poor.

There are of course a significant number of factors at play, but, interestingly, it is also reported that our smolts are getting smaller. smaller smolts do not swim as fast as larger ones, so cannot escape predation so well and do not have the same reserves to see them through the first few weeks at sea.

There appears also to be a tendency towards an earlier downstream run of smolts going to the sea for the first time in the spring, arriving in the estuary when there is little food available.

However, our scientist friends are quick to point out that one year’s data does not constitute a trend.

Tyne rivers Trust continues to do great work at making the Tyne catchment more resilient, with a view to producing more smolts. If we are losing a

higher proportion of our smolts at sea, then we can offset this decline by ensuring that the river is as productive as possible; more smolts will lead to more returning adult salmon if the attrition rate at sea remains constant, albeit high. The new emphasis on the environment in post-Brexit agricultural policy should provide a valuable opportunity for farmers to improve the condition of the river at a catchment scale.

There is scope also for the research being carried out by the Atlantic salmon Trust – the Missing salmon Project – being undertaken on an english river so that we can safeguard the smolt run in future years. The Tyne has proven remarkably resilient for the last 20 years and we want to see its recovery continue in 2020 and beyond.

Planning for a more resilient river Page 14

Tracking smolts to help to cut losses Page 16

hugo.remnant@galbraithgroup.com 01434 405972

galbraithgroup.com | Rural Matters | summer 2020 | Page 13

A long-term plan for a more resilient river Neil Wright reports on efforts to secure the future of salmon in a Sutherland river in the face of climate change.

WheN the proprietors of the Brora District salmon fishery Board in sutherland decided to try to build climate change resilience into the river system, they commissioned a root-andbranch survey of the river and its habitat.

The Brora is a good salmon and trout river, and the survey, carried out in 2018 by Dr Jon Watt and Isabel Isherwood of Waterside ecology, mainly concentrated on salmon, but the results have been very interesting.

Arctic charr were also found to be present and these are likely to be the first fish to have colonised the river after the last ice age.

The survey showed the river system to be in a healthy state with good areas of spawning and juvenile habitat. There are about 108,000 sq m of fry habitat and 753,000 sq m of mixed juvenile habitat.

Healthy populations of salmon in the three main tributaries of the Brora have been shown in electrofishing surveys, which have increased since 2018, partly because of the scottish Government’s National electrofishing Programme which each district undertakes on behalf of Marine scotland science, but also as a health check on the river and to inform management practices.

Having found the population of juvenile fish and the in-river habitat to be in relatively good order, the board looked at the wider landscape to see what improvements could be made to create resilience for the future. river and habitat management needs to be considered holistically as actions in the water catchment can have an impact within the river – whether that be the detrimental effect of pollution or the positive impact of native woodland.

One of the major challenges for the river Brora is the water temperature in summer. Marine scotland science has been recording water temperatures in the Brora for a number of years. The upper reaches of the catchment have no trees and water temperatures have been recorded as some of the warmest in scotland.

Juvenile salmon and trout were captured and released un-harmed during survey work.

High water temperatures can stress fish and make them more vulnerable to disease, predation and other environmental fluctuations.

Temperatures above 23°C can be lethal.

Work on North American salmon has shown that ideal temperatures are between 13°C and 18°C, while winter temperatures above 11°C can cause genetic abnormalities and mortality in salmonid eggs. Higher winter temperatures can also cause eggs to hatch too early making alevins more vulnerable to winter spates.

Marine scotland science modelling shows water temperatures of 24°C are likely in the Brora headwaters in hot summers. To try to combat the

Page 14 | Rural Matters | summer 2020 | galbraithgroup.com

increasing water temperature, the board has been looking at native riparian tree planting to provide dappled shade on the water.

Planting trees on the south bank of a river flowing west to east creates the best shade. unfortunately, planting trees on a river flowing from north or south will not have the same impact because of the angle of the sun. The effect is greatest in shallow and slow-flowing areas. Habitat surveys found extensive reaches of shallow habitat in the headwaters of all three tributaries of the Brora, as well as long reaches of slow-flowing water in the upper Brora. This data will allow the board to identify areas that will provide the most benefit from planting. However, any proposals will need to take account of other interests, such as deer, farming and groundnesting waders, plus factors such as soil suitability. The overall strategy of improvement and tree planting requires consultation and analysis with various stakeholders.

Top: Widening and shallowing of the channel allows water temperatures to rise.

Middle: Trees stabilise the banks and provide cooling shade.

Bottom: Hagged peat. Peat fragments running off can cause fine sediment.

Further considerations are peatland restoration, which scottish Natural Heritage is keen to promote through its Peatland Action programme, which has seen more than 19,000 hectares of peatland improved. Previous estate management practices would involve draining large areas of hill, and this was also the case for older hydro schemes. reducing the number of drains can reduce the run-off speed and create resilience in the river. This will have the effect that rivers rise and fall more slowly. The potential benefits include reducing erosion (habitat damage and also potential risk to eggs, alevins and fry), reducing the length and severity of periods of very low water during dry spells, and reducing downstream flood-risk to property, farmland and livestock.

Peatland restoration grants will allow these old drains to be blocked. eroded peat hags, which can introduce fine sediment to the river, are also of concern in the upper catchment and they can cause issues with spawning grounds. It is possible to re-grade these and introduce matted vegetation from healthy parts of the moor, although this is not particularly severe on the Brora.

With larger scale catchment surveys it is possible to effect greater change quickly with more tree planting and peatland restoration. It is not a quick fix – it will take the trees 20 years to provide sufficient shade – but hopefully it will eventually increase the survival of juvenile fish so that they can migrate as smolts. The lower water temperatures will also help the returning adult fish by reducing stress and fungal infection.

Landowners can make small changes that affect the river, whether it is reducing fine sediment introduction to the river (reducing livestock poaching), riparian tree planting or barrier removal. such improvements do not need to be done on a catchment-wide basis, but if each owner does a little it can start to create more resilience for the river and the juvenile fish.

With the sea survival of salmon down to between 3% and 5%, ensuring that the river is healthy and able to produce enough juveniles will in turn ensure there are sufficient returning salmon and sea trout to re-stock these river systems.

neil.wright@galbraithgroup.com 01463 245368

galbraithgroup.com | Rural Matters | summer 2020 | Page 15

Tracking the smolts may help to cut losses The extent of hydro power installations on the Conon river system has sometimes made life difficult for salmon, but it has also allowed the river to be the subject of detailed study.

Neil Wright reports.

the conon catchment is one of the most hydrolysed river systems in Britain.

All four of the main tributaries of the Conon have been harnessed for large-scale hydro schemes. A total of seven main dams, three smaller dams, 32km of tunnels, 24km of aqueduct, 48km of new roads and six power stations were built with an installed capacity of 116Mw. The total fall from the highest point at Loch Droma to the last power station is 255 metres, with water passing through no less than three separate power stations on certain parts of the system.

The construction was one of the largest civil engineering works in the Highlands and took from 1946 to 1961 to complete. Two of the dams, Vaich and Glascarnoch, flooded the natural spawning grounds of salmon on the Blackwater river, which is part of the Conon system. To overcome this, a mitigation hatchery was set up and about a million eggs are planted into the Blackwater every year, producing an estimated 35,000 smolts.

With marine survival of salmon now down to between 3% and 5% the need to maximise smolt output and survival has never been more important. Little can be done at sea but if smolt migration can be maximised it will hopefully allow for a greater number of returning fish.

When the hydro schemes were built a lot of effort was put into upstream migration of salmon with Borland lifts being installed. These are effectively small lock systems within the dam, similar to those used to pass boats up a canal system but smaller.

However, the exit of smolts has always been a concern and work was carried out by the North of scotland Hydro electric Board in the 1950s and 1960s to see if migration could be improved. This mainly involved greater water flow out of the dams or creating directional surface water flow that smolts could follow to the exit.

Page 16 | Rural Matters | summer 2020 | galbraithgroup.com

smolt tagging work was undertaken on the river Meig in 2015 and this research identified that in that year only 30% of smolts tagged upstream of Meig reservoir were recorded passing through the fish pass at Meig Dam three kilometres downstream. It was found that, at the start of the smolt run, the loss of smolts was not significant but the losses increased as the smolt run went on.

In 2017 Glasgow university undertook further work on the Conon to investigate smolt migration using acoustic tracking technology. Again, the conclusion was that two thirds of the smolts were being lost before they left Meig reservoir and those that did survive suffered significant mortality descending through Loch Achonachie, the last reservoir on the system.

Above: Acoustic barrier used to divert smolts on the Meig.

Below, from left: The Achanalt Barrage with a wolf trap in the foreground; a rotary screw trap for smolt collection on the Meig; the Luichart Dam, where the River Conan leaves Lochluichart, is a barrier to downward smolt migration.

Glasgow university also carried out the exercise on Loch Garve, which is not hydrolysed and noticed a similar but less significant loss. The primary causes of these losses are thought to be predation in the loch or smolts being unable to find the exit.

To try to improve smolt survival rates on the river Bran, another tributary of the Conon, scottish and southern energy, the successors of the North of scotland Hydro electric Board, in the early 1990s built a wolf trap on to the Achanalt barrage which holds back water for the Achanalt power station. The smolts are trapped, tagged and then trucked down past all of the reservoirs and released below Torr Achilty dam to migrate naturally to sea.

As a result of the research on the river Meig smolt trapping was undertaken on the river Bran in 2019 with a count of 5,500 smolts captured last year using two rotary screw traps that are in the region of 25%-30% efficient. An acoustic barrier was also deployed to try to direct smolts into a channel for capture in the traps. The longterm plan is to build a demountable wolf trap on the river Meig to maximise the number of smolts that can be transported past the reservoirs.

The Conon was one of the rivers involved in the Atlantic salmon Trust’s Missing salmon Project and the initial results are interesting, showing high mortality in the river. These results mirror previous research carried out on the Conon for the Beatrice off-shore wind farm consenting process and also the river Meig study.

The cause of the losses needs to be better understood – it may be a natural process that has been happening for thousands of years. More work will be done on the losses next year.

The hydrolysation of the system has led to significant research over the years from various academic institutions and by the Fishery Board and scottish and southern energy, who have taken their responsibilities to fish stocks seriously.

Improving smolt migration in hydrolysed systems such as the Conon is important, but it also has to be done in conjunction with habitat improvements in and around key river sections.

neil.wright@galbraithgroup.com 01463 245368

galbraithgroup.com | Rural Matters | summer 2020 | Page 17

CHANGES FOR SCOTTISH TENANCIES

1. Landlord registration MaNDatORy private landlord registration has been in place since 2004 with the most recent changes coming into force on september 19, 2019, following a public consultation the previous year.

This consultation indicated broad support for requiring landlords to provide further information regarding compliance with specific legal duties, in particular relating to property condition and safety. There are currently in the region of 770,000 people living in the private rental sector in scotland – more than 14% of the population.

The scottish Government’s principal focus in making changes was to improve living standards in the private rented sector. After reviewing the responses from the consultation it was decided that a more robust application process was

2. Tenancy deposits all tenant deposits received by a landlord in scotland must be lodged with a tenancy deposit scheme, such as safe Deposit scotland, as governed by the tenancy Deposit schemes (scotland) Regulations 2011.

The regulations specify what information a landlord must provide to a tenant, which includes the amount deposited, date of deposit, contact details for the scheme administrator and details of the circumstances in which the deposit can be retained at the end of the tenancy.

The scottish Parliament has approved a series of amendments to the regulations in an effort to provide more transparency between landlords and deposit schemes, for the benefit of tenants. These amendments, highlighted below, came into force on November 11, 2019.

needed. The purpose of this was to raise awareness among landlords of their legal duties, provide better assurance of landlord competence and compliance, and highlight to local authorities where further advice and support is needed to help landlords meet the standards of registration.

Further information on both the landlord and their property’s compliance is now required upon application, the main points being that the landlord will be asked to confirm that any property they wish to rent meets the Tolerable standards and repairing standards, Gas safety (Installation and use) regulations and the Water Intended for Human Consumption (Private supplies) (scotland) regulations 2017 (where applicable).

The property must also have a legionella risk assessment and, where appropriate, a house in multiple occupation license.

Landlords will also have to confirm that the tenant has been provided with a copy of the energy Proficiency

tenants will be notified if their deposit has been lodged late Currently, a tenant’s deposit is required to be lodged within 30 working days of the tenancy commencing. If a tenant realises that the deposit has not been lodged within that time, they can take the landlord to the First-tier Tribunal for scotland. The amendment requires tenancy deposit schemes, at both registration and repayment stages, to communicate to the tenant if their deposit was registered late and inform them of their rights in respect of the First-tier Tribunal. Landlords could face a penalty of up to three times the value of the deposit and tenants can apply to the Tribunal up to three months after the tenancy has ended.

Certificate, annual gas safety record check and a copy of the electrical Inspection Condition report.

Currently landlord registration in scotland requires a principal fee of £65 and a property fee of £15 per property.

Failure to renew an existing registration after being sent two reminders from the local authority will result in a £130 late fee.

It is worth noting that this is not a new regulation and will have a minimal impact on those who are meeting current standards. Non-compliance can result in legal action and it is advisable to ensure steps are taken to meet these compliance standards throughout the tenancy. Galbraith has a depth of experience across the firm in this sector and are on hand to assist with all your letting needs.

callum.woods@galbraithgroup.com 01334 659983

amount of the tenancy deposit received by the landlord is returned to the tenant within 30 days then the landlord is not required to lodge the deposit with a tenancy deposit scheme. clarification on deposit protection when the deposit is paid in instalments some landlords may agree to receive the deposit from the tenant in instalments and, as with full deposits, deposits paid in instalments also need to be lodged within 30 working days of that instalment being paid to the landlord.

Landlords should also provide the tenant with the necessary information on each occasion of submitting a deposit or risk being taken to the First-tier Tribunal by the tenant.

Deposits do not need to be lodged if the duration of the tenancy is less than 30 days In the event that a tenancy is shorter than 30 working days and the full

Page 18 | Rural Matters | summer 2020 | galbraithgroup.com

philippa.orr@galbraithgroup.com 01334 658440

A DAY IN THE LIFE OF...

A livestock auctioneer Ross Fotheringham is an auctioneer and sales executive at United Auctions, Scotland’s leading livestock auctioneers and procurement specialist, which operates a network of auction markets across Scotland, including Stirling, Huntly, Lairg, Dalmally, Tiree, Islay, South Uist and Oban.

The company conducts auctions of both commercial and pedigree livestock, including the world-famous Stirling Bull Sales, and provides farmto-farm and farm-to-abattoir procurement services. Ross is based in the Stirling Agricultural Centre and covers the east of Scotland from Aberdeenshire to the Borders, as well as Islay, targeting new business.

WheN I first started selling it was scary. I’m still nervous stepping into the box in front of a thousand or so people, but it’s exciting and now I thrive on it.

I started as a trainee auctioneer at united Auctions when I was 17 and, like most people, I thought the role was simply standing in the auctioneer’s box selling animals. I didn’t realise there was so much work going on behind the scenes to make it all happen.

In a typical week, four days out of five are on the road canvassing, which means visiting current and potential customers on their farms to seek business. The day passes very quickly and I’m usually on the phone with customers first thing and doing farm visits from 9am.

This job is all about customer relationships and interaction so we speak with them a lot. I’ve been building my client base from scratch after moving to the cattle team three years ago and I’d say 70% of farm visits are to new customers. The key to building relationships, trust and loyalty is by being honest, reliable and delivering a good service.

learning at Harper Adams in shropshire but the biggest education was – and still is - on the job and learning from the team of experts you work with every day. I most enjoy doing the deals - be that on the farm, finding the buyer, or through the sale ring. That’s where you get a real buzz.

On my Wednesday sale day, it’s a 7am start and hands-on processing the cattle for the sale. We do this by sorting them into lots, checking ear tag IDs and matching them with their passports, which are scanned into the computer so the information, such as age and weight, is displayed correctly on the board when they go through the sale ring.

I sell the cows from 10am, ahead of the main sale which starts at 10.30am.

Cattle are sold per head and their value is determined by weight and conformation – the shape and size of the animal. I’ll sell about 150 cows in a couple of hours and we always sell more than 1,000 cattle by the end of the day.

Consistently good trade is vital to keep customers happy.

People usually want to know how we can spot who’s bidding – the secret is knowing who’s likely to buy so we know who to look to as each lot goes through the ring.

After I’ve finished selling, a good chunk of the afternoon is spent in the box with other auctioneers where we study the cattle to see what they make so we can accurately value them when we’re out canvassing.

That’s a typical week. I also do a good bit of selling at special sales, like the Galbraith stirling Bull sales, which is the uK’s biggest event of its kind and takes place three times a year in February, May and October at stirling Agricultural Centre. I tend to sell pedigree Aberdeen-Angus females. sellers like a consistent auctioneer selling their stock because we’ve got a rapport, they know how you work and you know how they work.

Apart from selling it’s all about networking. This is the time when we have the most people through the door – around 22,000 per year – and it’s a great opportunity to meet people and to give a good impression, so you need to be on your Agame. It’s hard work, but I love it.

I’ll go to Islay 20 times in a year for onfarm visits or selling at the 13 sales, so with the east of scotland canvassing I’ll easily clock up 40,000 miles a year. The car is my office, which suits me fine as I wouldn’t want to be stuck at a desk from nine to five.

The canvassing work is to build the weekly sale on a Wednesday. But the other aspect is to find the buyers and to get the market value for the cattle. We make hundreds of phone calls and when I’m not on farm visits or selling, I’m on the phone speaking to buyers to find out what stock they’re after and to new farmers to fill the sale.

I’ve always been interested in business and was brought up working with livestock, so becoming a trainee auctioneer wasn’t too much of a leap. I did four years of distance

galbraithgroup.com | Rural Matters | summer 2020 | Page 19

Beavers: the ups and downs of a reintroduced species Beavers have been back in Scotland for some years now, and the call for them to be re-established in England is getting louder.

Willy Inglis looks at the arguments surrounding their reintroduction north of the Border.

the reintroduction of beavers in scotland is one of the most significant changes to the environment in recent years, according to scottish Natural heritage (sNh) and there is a comprehensive website devoted to beavers where their return was greeted with huge excitement.

On the other hand, many Tayside farmers have publicly expressed concern about the damage the beavers cause, and privately they have lambasted the scottish Government and the environmental agencies involved about what they see as a short-sighted, destructive and ludicrous idea that causes extensive damage at a huge cost to the farmers.

How did beavers become locally extinct in the first place and what is the significance of this?

There is relatively little hard evidence about the beaver in scotland as it became extinct around the 16th century – the time of Mary Queen of scots and when witches were burned at the stake. It was hunted for its meat, pelts and scent glands; it is also likely that there was a certain amount of environmental protection as the beginnings of the agrarian changes took root.

“beaver tourism is giving a boost to the local economy as the presence of these animals is proving to be a strong draw for visitors to mid-Argyll”.

In Tayside, the beaver population started from an unauthorised release of beavers from an enclosure near Alyth in 2006. since then, beavers have spread throughout the Tay river system from Forfar Loch in the east to the river Lyon in the west. It remains a mystery to many land managers why this has been allowed to happen, considering the stringent controls on farming practices.

According to sNH, “wildlife crime officers from the former Tayside Police made an extensive investigation, liaised with the specialist wildlife crime prosecutor at Perth and submitted a case against an individual charged with unlawfully releasing or allowing beavers to escape in to the wild. The prosecutor made the decision that because of the wording in the Wildlife and Countryside Act 1981, the case was unlikely to be successful.”

This resulted in no prosecution. The beavers were not only allowed to stay, but also given protection as a european Protected species from 1 May 2019.

Why reintroduce beavers at all?

There has been a fair amount of research into extinction eras, the periods of time characterised by a widespread and rapid decrease in the biodiversity on earth. some academics believe we are now in the sixth extinction era as the number of species becoming extinct has increased rapidly in the past 200 years. The reintroduction of species is designed to counter this. rewilding, as it has been dubbed, must be seen in both a global and historical context. The idea has been around for some time, and in 2015, the John Muir Trust said: “rewilding is about inspiring and engaging people to restore natural processes. This means repairing damaged ecosystems and reintroducing lost species. It covers the restoration of native woodlands and high mountain habitats such as dwarf birch and montane scrub. It also covers the reintroduction of former native species such as the beaver, sea eagle, lynx or wolf.”

Beavers were introduced in Knapdale, Argyll and Bute, in 2009 for a five-year trial period. The trial has officially finished and in November 2016 the scottish Government announced that beavers could remain. According to susan Davies, director of conservation at the scottish Wildlife Trust, Page 20 | Rural Matters | summer 2020 | galbraithgroup.com

What benefits do beavers bring to the environment?

Beavers benefit nature, says sNH. They create wetland habitats, improve habitat structure and diversity and enhance biodiversity. They can also alleviate flooding, improve water quality and bring socio-economic benefits.

How do beavers damage the environment?

After centuries draining and improving farmland to improve production, farmers do not believe beavers do anything to help the environment.

Landowners find trees destroyed and watercourses regularly blocked. The damage may take several years to manifest itself – an old beech tree ring-barked by beavers may take five years to die.

Damage to water courses can also be serious.

Beavers burrow into the bank to create a lodge.

This weakens the bank so that when flood water rises they readily give way. In this way, low-lying fields are quickly damaged and flood defences washed away. Drainage ditches may be blocked – beavers love to stop the flow of running water – and fields are flooded as a result.

What can be done to control beavers?

There are two main reasons why the reintroduction of beavers has caused issues in scotland: 1. Beavers are prolific and destructive – or constructive, depending on your viewpoint – animals that alter the environment. They are generally secretive and nocturnal, so even if

shooting were an option, it would be a timeconsuming and expensive solution needing specialist equipment and a degree of skill.

2. The reintroduction was not been well organised and communicated. The trial in Knapdale was one thing – disagree with the proposal or not, the publicity was widespread and the information was readily available, but the Tayside experience has been quite different.

The release was not authorised; it has cost farmers tens of thousands of pounds, and the beavers have been afforded protection without any planning or control.

In May 2019 beavers became a european protected species. Before this they were controlled by land managers although this did not halt their spread. The protection means that in order to carry out disturbance to dams or sets and to carry out lethal control you must hold a licence from sNH. In most cases the licence holder will be the owner or manager of the land in question.

The licence permits “the disturbance and lethal control of beaver(s); the damage or destruction of dams and/or breeding sites and resting places; and the possession of beaver specimens or derivatives; for the purpose of preventing serious damage to prime agricultural land.” sNH will fast track applications concerning designated areas of Prime Agricultural Land (PAL). It can also issue emergency licenses for urgent situations. For land out with PAL, the licensing team will make a site visit to identify disturbances caused.

Lethal control can only be carried out by trained individuals (accredited controllers) and subject to agreed procedures.

Accredited controllers must hold a firearms

certificate and must attend a relevant sNH workshop.

What does the future hold?

A holistic view of the benefits and issues caused by reintroducing beavers must consider the future shape of the natural environment, subsidy schemes and farming practices.

During one night in May 2019 beavers gnawed their way through 32 young trees in a small plantation at Cossans, near Kirriemuir, and left them on site.

The scottish Government has intimated that the incoming system of farming subsidy will be centred on environmental land management payments for public goods. This may be a pivotal moment in the rewilding story as farmers may receive funding to reshape intensively managed agricultural landscapes to ensure greater flood resilience and carbon sequestration and to lessen diffuse pollution issues.

Beavers are being seen to play a role in this future ecosystem by re-establishing wetlands on agricultural land that has undergone years of management and drainage.

Following the protection of beavers in May 2019, one can assume that the government and sNH understand the impact that beavers will bring to the farming community. experience so far shows sNH has been pro-active in granting licences on areas of Prime Agricultural Land, highlighting its understanding of the negative impact of the beavers.

Moving forward, the collective understanding and processing of licensing, the subsidy system and holistic landscape management will be crucial in the management of beavers on a scotland and uK-wide level.

willy.inglis@galbraithgroup.com 01307 840242

galbraithgroup.com | Rural Matters | summer 2020 | Page 21

MARKET TRENDS

Uncertain times ahead THe farming sector is facing another period of uncertainty.

The future of subsidies is causing the most concern with every client asking ‘what next?’

Back in February, one told me ‘you need to plan at least three years ahead in farming’ and they are correct. But at this stage forecasting is a challenge.

Prices continue to fluctuate across most sectors, with short-term optimism in the sheep sector, but milk and finished beef prices continue to be a concern.

It will be interesting to see how a potential 28% increase in spring barley area impacts the arable sector.

Global markets across almost all commodities are coming under pressure because of the coronavirus pandemic.

It is likely that the uK and eu will experience a knock-on effect from New Zealand being potentially unable to ship product into China, and looking for other markets instead.

LAMB The sheep sector has experienced a short-term boost, particularly for those who bought store lambs at the back end of 2019.

The deadweight price for lamb in January 2020 was 457.7 p/kg whereas in January 2019 it was 430.6 p/kg.

On a 19.5kg lamb this equates to a rise of £5.28.

Australia and New Zealand have both increased red meat exports to China as a result of the African swine fever virus and have therefore reduced exports to the uK. This in turn has inflated uK prices (AHDB, 2020).

The coronavirus pandemic is having an impact on trade globally. New Zealand’s lamb continues to achieve higher prices in China than in europe, but if exporting to China becomes difficult the european market may be seen as a good alternative (AHDB, 2020).

Scottish lamb (deadweight) p/kg 600 550 500 450 400 350 300 Jan

Feb 2017

Mar

Apr 2018

May Jun Jul 2019 2020

Aug

Sep

Oct

Nov

BEEF In general, 2019 beef prices have been poor, leading to very small or negative net margins from finishing enterprises. The average deadweight price for steers in 2018 was 377.27p/kg whereas in 2019 it was 348.73 p/kg (AHDB, 2020). This equates to a drop of £99.89 on a 350kg steer.

Despite prime cattle prices remaining lower than last year, a reduction of store cattle in the marketplace has created competition and inflated store prices at the start of 2020. store steers have strengthened by 3% to 4% on last year and heifer prices have strengthened by 6 to 7% (QMs, 2020).

Coronavirus had not had a material impact on uK beef prices in February because the market is relatively self-contained, but as global markets continue to be affected by the pandemic, we can reasonably assume an impact.

Scottish steers (deadweight) p/kg 400 390 380 370 360 350 340 330 Jan

Feb 2017

Mar

Apr 2018

May 2019

martin.rennie@galbraithgroup.com 01738 451111

Page 22 | Rural Matters | summer 2020 | galbraithgroup.com

Jun

Jul 2020

Aug

Dec

Source: AHDB

Sep

Oct

Nov

Dec

Source: AHDB

Average price excluding bonus (p/litre)

MILK The price cuts in March will likely lead to cash flow pressure with forward production projected to increase.

Dairy businesses are likely to come under pressure.

Jan 2020

Dec 2019

% difference

Jan 2019

% difference 2019-2020

GB 5-year rolling average

27.14

27.11

0.1

27.60

–1.6

GB ‘all milk’

29.15

29.44

–1.0

29.92

–2.6

GB excluding aligned

28.48

28.78

–1.0

29.54

–3.6

UK ‘all milk’

28.77

29.32

–1.9

29.61

–2.9

NI ‘all milk’

26.82

26.69

–6.5

28.02

–4.3

Source: Defra, RESAS, DAERA

The uK average milk price for January 2020 was 28.77ppl, down 0.55ppl (1.9%) on the previous month. The prices paid on non-aligned contracts were 0.72ppl less than those for aligned contracts in December 2019.

The five-year average GB price was 27.11ppl in December 2019 which was a decrease of 2% from December 2018, when it was 27.66ppl. This indicates the relative stability of the five-year average over 2019.

Average farmgate milk price (ppl)

GB all milk

GB excl aligned GB all milk 5-year average

40 35 30 25 20 15 10 c De

17 17 17 15 15 15 18 18 18 19 19 16 16 16 14 14 14 13 19 20 pr 20 g 20 ec 20 pr 20 g 20 ec 20 pr 20 g 20 ec 20 pr 20 ug 20 ec 20 pr 20 g 20 ec 20 pr 20 g 20 c 20 A A A D A A D A D D D A Au Au Au Au Au De

Source: Defra, RESAS, DAERA, AHDB

ARABLE The arable sector is entering a period of uncertainty with a winter which has led to most farmers being behind on their winter work.

As of February 2020, the November 2020 wheat futures stands at £160 per tonne, which is being strengthened by global crude markets and data released from the us which fell below market expectations.

The increase in spring cropping is likely to have a material impact on the 2020 season with a projected increase in the barley crop of eight million tonnes. A proportion of this barley will more than likely end up in feed rations and it will be interesting to see how the markets react to this.

UK wheat prices (£/tonne) 190

Bread milling wheat

180

Feed & other wheat

170

Other milling wheat

160 150 140 130 120 110 19 19 20 20 3/ 4/ /0 /0 4 07 0

1 20 5/ /0 2 0

9

1 20 6/ /0 6 0

9

19 20 7/ /0 4 0

19 20 8/ /0 01

19 20 9/ /0 5 0

/1 03

19 20 0/

/1 07

1/2

9 01 /1 05

19 20 2/

0 02 1/2 /0 2 0

20 020 2 20 2/ 2/ /0 /0 6 0 2 0

Source: AHDB

galbraithgroup.com | Rural Matters | summer 2020 | Page 23

Students given a chance to experience life on estate Jennifer Jeffrey reports on a day to remember for undergraduates.

James Taylor looks at the challenges and opportunities of redeveloping a church building.

RuRal business management students from scotland’s Rural college (sRuc) were recently welcomed to Mellerstain estate, near Kelso. by George Bailliehamilton, the 14th earl of haddington. sruC had approached Galbraith to see if any of our clients would offer a visit to a rural estate as part of its land use and diversification module.

Mellerstain seemed perfect with its variety of traditional land uses including livestock farming, arable farming and forestry and a number of non-traditional uses such as an archery course, a sculpture park and a natural woodland burial site.

The Hundy Mundy woodland burial site was set up in 2005 by the 13th earl, John Baillie-Hamilton. It offers eco-friendly burials in natural surroundings. During their visit, the students spotted the estate’s lawn mowers (the sheep flock) which continue to graze the grass areas of the woodland to preserve the landscape naturally.

The afternoon included a chance to see the Borders sculpture Park, where contemporary British artists showcase their sculptures in the grounds of Mellerstain House. From its early days Mellerstain has been steeped in art and architecture and the sculpture park continues this tradition.

It has been open since 2016 and offers an impressive diversity of installations. scott Murray, lecturer and programme leader of rural business management at sruC’s edinburgh campus, said: “Many thanks to Galbraith for organising such an interesting and informative visit for us.

“All the information was very relevant to the coursework that has been set and you and your colleagues also covered other topics that feed into the wider course.

“Following the visit I’m sure some of the

Turning a church into a home

Mellerstain Estate.

class will be applying to Galbraith for work experience and your graduate programme over the coming year.”

Galbraith graduate programme Galbraith is delighted to support students studying at sruC, not least because a number of our current and past employees are sruC graduates. We hope our relationship with sruC will continue to prosper.

Applications open in November of each year for Galbraith's comprehensive graduate training scheme which includes many benefits and results in our graduates achieving consistently high pass rates.

With nine graduates joining us in our 2019 programme alone, we have a superb graduate community which you will become part of, enabling you to share your learning among your peers.

If you would like to apply for the Galbraith rural graduate recruitment scheme, please keep an eye on our website: galbraithgroup.com/careers/graduates.

jennifer.jeffrey@galbraithgroup.com 0131 240 6979

WheN considering converting a church into a domestic property, it is important to take into account the limitations of the building design, form and setting as well as its legal status.

Traditional church buildings are often listed and statutory consent will be required for the change of use and to ensure the conversion is sensitive to the building’s listing and design, as well as being able to comply with planning requirements such as accessibility and sustainable drainage.

Modern building regulations often require compensatory measures to be agreed or changes to the building to provide compliant accommodation which meets heating, ventilation and energy use standards. sometimes this comes at the loss of, or interference with, the historical building fabric.

A former church building may offer the opportunity to create wonderful open plan and clever double height spaces, but this needs sympathetic architectural design and adaptation to what are often cold and damp solid masonry structures with large window openings, stepped floor levels and insufficient power and utility supply. The setting of the building in its grounds may also have restrictions such as graveyards or access to public areas around.

The external fabric of church buildings is often of traditional construction and understanding the maintenance requirements of roofs, rainwater goods, leadwork, masonry and fenestrations are as important a financial consideration as the works inside.

If you are considering the purchase of a former church building and need advice, the Galbraith building surveying department would be pleased to hear from you.

SRUC students are given a tour of Mellerstain Estate.

Page 24 | Rural Matters | summer 2020 | galbraithgroup.com

james.taylor@galbraithgroup.com 01786 434610

Converting the cartshed at the Glen Jennifer Jeffrey reports on a scheme which aims to improve the stock of affordable rural homes. the lack of affordable homes in the countryside is one element of the wider housing crisis which a scottish Government scheme aims to address.

The rural and Islands Housing Funds provide funding to create affordable housing in rural areas through loans and grants to organisations and landowners.

Finance is available to build new affordable homes, convert existing buildings, or prepare empty homes for rent or sale. Private landowners and developers as well as community organisations and local councils can apply for funding. Once built or renovated, these homes can be sold at an affordable price or let at an affordable rate.

case study: Glen estate Glen estate is located in the very active Peeblesshire property market. It is continually looking to expand its letting portfolio while also restoring buildings within the listed group of the core village and benefitting the wider community.

The estate identified the listed cartshed building, which is now surplus to agricultural requirements, as a possible development opportunity.

All capital investments at the Glen are tested for business viability and the estate aims for a 5% per annum gross return for a project. Converting the cartshed to two residential units was costed at more than £200,000, and the achievable rents meant this did not represent an attractive investment.

This is where the rural Housing Fund (rHF) came in. The estate agreed to hold the rents on the two flats to mid-market levels in exchange for an outright capital grant of about £40,000 per unit. This came to about a third of the development cost and can be repaid at any time.

The Glen’s William staempfli said: “It is becoming harder to identify potential projects that meet our business criteria although many worthy and potentially at-risk structures remain to be addressed. Conversion of agricultural structures presents a particular set of problems and can be challenging to build a good letting portfolio around.

“We looked at converting the loft of the farm's listed cartshed into two onebedroom flats keeping the lower level’s open archway available for farm and estate use. While planning permission was easily obtained for the conversion, the anticipated gross return was not attractive.

“The team at rHF was enthusiastic about the project and encouraged us to apply.

We found the application process to be straightforward and relatively unencumbered. Having a ‘shovel-ready’ project and the structure of our midsized property portfolio managed by Galbraith no doubt helped rHF to take a positive view of our proposal.

“Adding a mid-market offering to our portfolio was also a plus from a demographic perspective. Being able to

exit the scheme at any time was also an important factor in our decision making.”

Applications to the rural and Islands Housing Funds can be submitted directly to the scottish Government. Please get in touch if you’d like to hear more about the scheme and how we can guide you through the application process.

jennifer.jeffrey@galbraithgroup.com 0131 240 6979

galbraithgroup.com | Rural Matters | summer 2020 | Page 25

ABZ and the Brent Crude bubb

the importance of Brent crude to the economy of aberdeen city and shire was established following the discovery of the forties oil field by BP in 1970.

Tom Stewart looks at the way North Sea oil has shaped even the rural economy in north-eastern Scotland.

The following year shell discovered the Brent field east of shetland, with the Piper field being discovered in 1973.

It took five years before the oil flowed from Forties and while the industry was lucrative it was not easy. The North sea is among the most inhospitable environments in the world, with the estimated survival time for anyone falling into the

HOW ABERDEENSHIRE PROPERTY PRICES TRACK BRENT CRUDE 130 120

Brent Crude ($)

110 100

Residential £575k

90

£550k

80

£525k

70

£500k

60

£475k

50

£450k

40

£425k

Agricultural £7k £6k £5k

£400k

30 2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Brent Crude oil ($/barrel) Farmland 3(2) (£/acre) residential (average price of 3, 4 and 5-bed detached houses)

Page 26 | Rural Matters | summer 2020 | galbraithgroup.com

£4k

water being a matter of minutes. It must also be remembered that in the Piper Alpha disaster, 167 men died. since that time the economy of scotland’s northeast has been transformed from being based on the traditional industries of fishing, farming and paper-making into the oil capital of europe.

Aberdeen International Airport has grown considerably and the heliport is the busiest in europe, handling 400,000 passengers a year, most of whom are heading offshore. since the 1970s the region's fortunes have been intertwined with the price of oil, to the extent that the local radio station’s final item in the news bulletin is the price of Brent Crude. Looking further afield, the discovery of oil was of national importance and its effect on the British economy cannot be understated as the by early 1980s Britain had become an exporter of oil and by the mid-1990s of gas.

Over the years property values have been heavily influenced by the fortunes of the oil and gas sector. The effect of this between 2010 and 2019 can be seen in the graph. The region ground to a halt in the 2015 oil crash and this had a huge effect on the residential market, which tracked the fall and partial recovery of Brent Crude.

From a rural perspective, what is particularly interesting is the effect the oil price has had on the farmland market. The price of grade 3(2), which makes up most of the arable land in Aberdeenshire, has also followed the fortunes of Brent Crude, albeit with less sensitivity.

The North sea is now regarded as a mature province on a slow decline – thanks to ever more

Looser planning controls may be on the way

le

Joanne Plant reports on the latest consultation from the Scottish Government.

Permitted Development Rights The recent independent review of the planning system in scotland concluded that “there is significant scope to remove uncontroversial minor developments from the system and use this to incentivise developments which support [scottish Government] policy aspirations”. since then, the scottish Government has signalled its support for greater Permitted Development rights (PDr) as part of wider measures intended to simplify, streamline and clarify procedures so that local authority planners can focus on activities that add most value.

sophisticated technology, important amounts of oil and gas could still be drawn for anything up to 50 years. New discoveries are still being made and the industry is now well established in the Atlantic west of shetland.

The recent crisis is not the first in the North sea and it certainly won’t be the last. However there has been considerable investment in the region to build a future outside the Brent Crude bubble.

Projects which have been completed or are under construction include the Aberdeen Western Peripheral route, contracted at a cost of £745 million, P&J Live (The events Complex) costing £333 million, Aberdeen south Harbour, which will cost £350 million and accommodate vessels 300 metres long, the £50 million Aberdeen International Airport expansion, the £30 million Aberdeen Art Gallery refurbishment, the £12 million investment in Aberdeen Football Club’s new training facilities and the unquantified investment at Trump International.

In addition, Opportunity North east (ONe), the brainchild of oil services pioneer and philanthropist sir Ian Wood, is leading the drive to stimulate, diversify and broaden the region’s economy. sectors of focus include energy, food drink and agriculture, life sciences and tourism with the thrust being to reduce dependence on North sea oil and preventing the region becoming a museum of the oil and gas era in 40 years time.

tom.stewart@galbraithgroup.com 01224 860710

The government recently consulted on a sustainability appraisal outlining possible future changes in PDr. It has not proposed any definite changes yet, although 16 development types are identified where changes to PDr will be considered. Those likely to be of most interest are: • Agricultural developments • Hilltracks • Peatland restoration • Digital communications infrastructure • energy storage (domestic and non-domestic) • Micro-renewables (domestic and non-domestic) • snow sports • Habitat pond creation Although no definite amendments have so far been published, some options have been mooted. These include no longer requiring formal planning permission for larger sizes of farm sheds and polytunnels, the conversion of agricultural buildings to residential or commercial use, the restoration of peatlands, and habitat pond creation.

Hilltracks have not been identified as a development type, although the government advises that this is to be reviewed in light of concerns which arose during the parliamentary debates on the Planning (scotland) Bill.

On digital communications infrastructure, planning

permission may no longer be required for a certain size, scale and location of equipment, and supporting infrastructure such as equipment housing. Nothing has so far been explicitly stated about masts.

The government also takes the view that the efficiency of the planning system could be improved by removing the requirement to apply for permission for a wide range of domestic and non-domestic renewables. This includes certain types of energy storage developments.

The effects of climate change are acknowledged in relation to the snow sports industry and the need for artificial snow-making equipment. This could mean that planning permission may not be required for certain types of associated development in the future.

In terms of priorities, the government has indicated that issues around agricultural and rural development will be considered at stage 1. A commitment has also been made to consult on each development type to determine whether change is desirable, and to define which types should be granted new or extended PDr. It will be of great interest to see the extent of the proposed changes and just how much permitted development will be allowed as part of the new legislation.

fees for planning applications and other services The government has also recently consulted on increasing fees for planning applications, with a new fee structure expected to come into force in June. The consultation also reviewed the scope for expanding charging for other planning based services.

This primarily relates to the provision of formal preapplication advice, planning condition discharge, etc. some local planning authorities already charge for such services and early indications suggest that fees will be at the discretion of the relevant authority.

joanne.plant@galbraithgroup.com 0131 240 3030

galbraithgroup.com | Rural Matters | summer 2020 | Page 27

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