This article appeared in the Scotsman on Monday 13 December 2021.
The financial challenges facing the agricultural sector are no secret. But a legal change is opening opportunities which should help landowners and farmers to modernise, diversify and create a healthier financial future.
And I, for one, am starting to see clients come forward with exciting proposals to take advantage of the shift which will allow them to, not only improve the resilience and sustainability of their estates or enterprises, but also create much-needed rural employment too.
What’s more, it is a change which reduces the red tape which may so often have been a barrier for farmers and land managers hard pushed to find the time for more paperwork and planning.
The opportunity stems from the updated Permitted Development Rights (PDR) for agricultural land across Scotland.
While this may, to the uninitiated, sound like a mundane piece of planning legislation, it actually unlocks ways towards diversification, converting redundant buildings or allowing environmental work. This, in turn, creates chances to develop new income streams.
In many cases, this is the type of income which could help secure the survival of a farming or land-based business, so many of them family concerns.
The move allows rural landowners to carry out minor developments or changes, such as erecting, extending or improving buildings without the need to submit a full planning application. It is little wonder, therefore, that the move has been welcomed across the sector.
In a nutshell, the main changes relate to the size limit on new agricultural buildings, the conversion of agricultural buildings for homes or commercial use, peatland restoration and digital telecoms infrastructure.
Previously, farmers could erect certain agricultural buildings - such as sheds - under PDR so long as they did not exceed 465m2. The limit on floorspace has now been extended to 1000m2, except in areas such as National Parks or conservation areas.
On top of this, the rules now allow for agricultural buildings to be converted into up to five dwellings, as long as the buildings had solely agricultural use prior to, or on 4 November 2019 and are not listed or located on croftland.
Under the same time limits, they also cover the conversion of agricultural buildings for ‘flexible commercial use’, which could include shops, food and drink businesses and ‘non-residential institutions’. Listed buildings are not included.
From my position, those changes offer opportunities around tackling rural housing problems - including those affecting growing farming families - encouraging tourism and showcasing the fantastic food and drink produced across rural Scotland. All avenues come with the potential to create - or at the very least - sustain jobs, whether they be in agriculture, food production or retail.
Given the intense environmental focus on the agricultural industry and its response to the climate emergency, it has never been more important for landowners to consider how land use can impact upon emissions management and make the most of natural assets.
With this in mind, it is also welcome that PDR now allows for work to restore peatland - such as stabilisation, revegetation, reprofiling and drainage - albeit with the scheme itself still requiring planning approval.
Elsewhere, the installation of telecoms infrastructure - such as masts - has become an important source of diversification income. It’s one landowners are keen to maintain.
PDR now permits changes including increasing the height limit for masts, increasing the size and number of antennas and introduces rules for the installation of equipment such as cabinets. This should make it easier for landowners to work with tech firms to modernise and secure ground rental income.
While these changes certainly do not create a free-for-all or dispense completely with the need for paperwork or certain approvals, it’s clear that they do reduce the bureaucratic burden and cost involved in diversification. That’s welcome for those I work with.
They may also go some way to easing issues around the likes of succession and retirement planning - a major concern in Scottish agriculture as ways of encouraging the next generation of farmers and land managers are sought.
Acted upon responsibly and in good spirit, the new PDR can be a positive force in securing the future of enterprises so vital for the health and sustainability of rural Scottish communities. Its potential should not be underestimated.
Susan Law is a Partner in our Rural Services team.