Welcome to our first 2016 rural newsletter.

As we begin a new year, James Hervey-Bathurst, Consultant to Fisher German, gives his view on the biggest challenges and opportunities for the traditional country estate in 2016.

Loss of the Basic Payment Scheme

Although not an immediate danger, the BPS would disappear with Brexit. Much farming profit comes from Brussels, especially when prices are low. It is unlikely that any UK government would exactly replicate the BPS and we might be left with the environmental regulations without the cash.

Failure to stop bovine TB

The success of the badger cull so far has encouraged DEFRA to extend it to new areas, which is encouraging for the beef and dairy sectors. However, land managers do face threatening action from the antis, with collateral damage to other farm activities, such as shooting.

Improving the insulation of let houses

Let properties must comply with new insulation requirements of the Energy Act 2011 from April 2018. Existing tenants can call for their dwellings to be upgraded; any due to be re-let must comply with the minimum EPC “E” rating requirement. The costs will be considerable, but tenants will save money.

Possible ban on lead shot for game shooting

DEFRA’s Lead Ammunition Group (LAG) reported on the use of lead in ammunition, but the supporters of shooting on the LAG resigned as they said the report did not reflect the views of the group as a whole. A second group formed of those most involved in shooting with lead ammunition has now produced its own report and submitted it to DEFRA, though its findings have not yet been made public.

Possible ban on use of Glyphosate/Roundup

The Netherlands has banned it as have a number of other countries. The Soil Association has called for its use to be banned on wheat destined for human consumption.

Scottish Land Reform

It would be very unhelpful if the ideas around Scottish Land Reform, aimed at widening the ownership of land across the country, were to spread south of the border.

Immigration

Commercial vegetable growers want to keep access to Eastern European labour; a benefit of EU membership.

Planning Controls

Any decisions to extend National Parks or more designations of SSSI’s will cause problems.

Climate change

Fundamental challenges-as well as the opportunity to grow champagne grapes in Kent, it seems!

Possible action to take?

There is obviously little a land manger can do, though some may decide a vote one way or the other in the EU referendum would help. As ever, spreading the risk and diversifying should give better protection for the future, but watch the tax consequences.

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Yan Gittins based in our Worcester office has developed an “Estate Bible” for a number of clients.

A simple assembly of facts and information in an easy to understand format, the Estate Bible brings together key information relating to your property interests into a single document.

The Estate Bible combines historic records, the estate terrier, financial accounts and key legal documents with supporting plans and photographs to give a full overview of the diversity of an estate. From let farms and cottages, in-hand property, holidays lets and house openings, the Estate Bible outlines the details of ownership, together with the aims and aspirations for the Estate.

So often when a new advisor is appointed, they inevitably see just a snapshot of an Estate depending on their discipline. It takes considerable time for them to navigate their way around, but the Estate Bible is an opportunity to present the Estate as a whole; increasing awareness of issues and improving the understanding of opportunities and challenges from the beginning.

The Estate Bible can be made available to key individuals and advisors such as trustees, accountants, solicitors and insurers to ensure they are up to date and enabling them to work together as a team for the good of the client or estate giving cohesive advice.

Once compiled the document can be continually reviewed and updated depending on the level of detail required to provide current financial information and letting details.

Available for use in both paper and electronic form, the Estate Bible should be the primary data source for an Estate providing an invaluable tool to those who do not have on the ground, day to day exposure. Technology is currently being developed to allow joint access to information through a sharepoint arrangement.

For further information, contact Yan Gittins on 01905 459422 or email him here

Planning Consent was just the beginning for a redundant airfield at Wardle, Cheshire.

The Chester office has managed the Haughton Estate in Cheshire for many years. The Estate extends to about 1400 acres with 5 let farms and a number of farmhouses and cottages let under assured shorthold tenancies but very little in terms of diversified income.

A former Second World War training airfield at Wardle on the A51 has long been identified as a potential site for an employment based development and in June 2014 planning permission was granted by Cheshire East Council for what is to be known as Cheshire Green Employment Park comprising approximately 125 acres with 1,350,000 sq ft of buildings.

Whilst this represented the successful culmination of about 20 years of promotion and a complicated planning process, in many ways the hard work had only just begun as we have now moved into the phase trying to implement the planning permission which itself ran to 16 pages and contained 42 planning conditions.

Infrastructure

In order to open up the site a new roundabout on the A51 and spine road into the site will be required for which an option to acquire a neighbour’s land has been negotiated.

The existing electrical supply is at capacity necessitating a major reinforcement scheme and sub-station to be provided. Surface water drainage will require attenuation prior to discharge either into the Shropshire Union canal for which the Canals and River Trust will require payment or into balancing lakes and surrounding streams.

Mains water supplies will require upgrading and, with no mains gas in the vicinity, a tank gas installation is to be provided. In total, the infrastructure costs have been budgeted at &2.65m and the infrastructure has to be provided before any sales of serviced land plots let alone the construction of any buildings can be contemplated.

Finance

Traditional funders such as the High Street banks are simply not interested in financing a speculative development such as this and as a result an application to the Cheshire and Warrington Local Enterprise Partnership has been made for a loan from the Growing Places Fund. After a long and complicated process, a facility of approx. &3.2m has been agreed in principle but this is conditional upon the borrower demonstrating occupier interest in the site. Knowledge of existing requirements in the market place and responses to initial marketing activity gives significant cause for encouragement that this funding can be secured and that ground will be broken in 2016.

At times it has seemed questionable whether the planning permission would ever be implemented but through the collective work of the project team and a committed client the long term development and future of the Estate will soon be secured.

For further information about Cheshire Green Employment Park visit http://cheshire-green.co.uk/

Contact Ed Clark on 01244 409665 or email him here

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