Rural Newsletter - February 2011

    Welcome to the first newsletter of 2011 – a year which promises to be positive for the rural sector, with plenty on the Scottish agenda.

    In these tough economic times, the agriculture sector remains buoyant. We expect demand for farmland to remain strong throughout 2011, sustaining average annual growth in values at 6% in the UK.  Meanwhile, banks’ willingness to lend to the rural sector provides opportunities for judicious reinvestment, while agricultural and residential rents are likely to increase.

    High up the agenda for 2011 are the proposals for CAP reform, likely to be tabled mid-year. Single farm payments will probably favour delivering environmental benefits and supporting the rural economies of poorer regions, with robust commercial rural businesses having their payments reduced.

    That is just one reason why you should consider restructuring your business now. With commodity prices rising, the need for efficiency savings is becoming increasingly urgent. Farmers should be controlling capital expenditure and reassessing their exposure to IHT in the light of the recent Balfour case, which confirmed that properties let to third parties qualify for Business Property Relief.

    This newsletter address some of these topics – the outlook for rents, the state of global farmland market and some news about the growth of our rural business in Glasgow and the central belt.  In addition, the article on mediation highlights a relatively new approach to dispute resolution. As ever, if you would like to discuss these or any other issues in greater detail, our teams will be happy to help.


    Key contacts

    Jonathan Henson

    Jonathan Henson

    Estate Management

    Savills Perth

    +44 (0) 1738 477 511

    +44 (0) 1738 477 511


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