Never Forget – Farming is Business

The rural and agriculture industry is under immense pressure. Regulation is ever-increasing, there are demands from all quarters for carbon neutrality, food security is high on the agenda, input costs are increasing, higher interest rates mean higher borrowing costs, and future support regimes are opaque and uncertain…the list goes on.

Pending legislation impacting the industry includes: Agriculture and Rural Communities (Scotland) Bill; Land Reform (Scotland) Bill; Visitor Levy (Scotland) Bill; Wildlife Management and Muirburn (Scotland) Bill; Housing (Scotland) Bill; and (in consultation) Heat in Buildings (Scotland) Bill. This is for a sector which is already heavily regulated.

Carbon neutrality underpins almost all government policy. In the agricultural industry this feels increasingly conflicting. Is the public ready for cows reared indoors on a monitored diet of minerals and corn? How do we balance demands for afforestation, energy crops and renewables with the need to grow food?

Many landowners supplement their income by using short-term holiday lets and agri-tourism activities. Compliance with ever-changing licensing seems designed to militate against that. Many holiday lets rely on wood-burners or traditional oil or gas fuel. Poorly conceived change makes that far less appealing.

Traditional country sports provoke particular ire and an often-hostile legislative environment to the land management requirements to keep a sporting estate successful. This seems unlikely to ease in time and will more than likely prove increasingly challenging as ever more restriction curtails the ability to rear healthy birds, manage game numbers, and keep the rivers and lochs stocked.

Too many politicians seem to forget that agriculture is commerce. Most farmers are SMEs taking high risk for low return. It is neither simple nor quick to implement even basic changes. Navigating what direction to take to protect past and future legacy is stressful. Choosing how to use your land in a way that ensure sustainable profits and resilience to market and legislative pressures can seem a monumental task. At Davidson Chalmers Stewart, we have experience and depth of knowledge of your sector challenges and offer tailored and efficient advice. We routinely work with multiple specialist advisors to support you through from inception to completion of key business decisions. We have on the ground experience of the sector and an ability to represent your interest in an unrivalled manner.

This article was originally featured in the Summer 2024 edition of LandBusiness magazine.

Disclaimer 
The matter in this publication is based on our current understanding of the law.  The information provides only an overview of the law in force at the date hereof and has been produced for general information purposes only. Professional advice should always be sought before taking any action in reliance of the information. Accordingly, Davidson Chalmers Stewart LLP does not take any responsibility for losses incurred by any person through acting or failing to act on the basis of anything contained in this publication.