The Agricultural Holdings Units of Production Order 2011 (which runs from 7^th November 2011 to 6^th November 2012) sets out the amount which is to be regarded as the net annual income when assessing the productive capacity of agricultural land.

In order for an applicant to gain succession of the aforementioned tenancy, the applicant must meet certain criteria in order to demonstrate that they are suitable and eligible to take on the holding and they must not be the occupier of another “commercial unit”.

Another “commercial unit” is defined as “land which, when farmed under competent management, is capable of producing a net annual income which is not less than the aggregate of the average annual earnings of two full time male agricultural workers aged 20 or over” (paragraph 3 of schedule 6 of the 1986 Act).

The annual Order is not subject to consultation and includes values for income from the Single Farm Payment Scheme.

Whilst costs relating to agricultural production seem to be ever increasing and this notional income can amount to a significant sum of money, improvements in prices over recent years do indicate that another “commercial unit” may be a more realistic consideration than it has perhaps been in the past.

For further details contact your nearest GSC Grays office:

Barnard Castle – Lucinda Clifford – 01833 637 000

Leyburn – Phil Scott-Priestley – 01969 600 120

Richmond – Guy Goggrave – 01748 829 210

Stokesley – Guy Coggrave – 01642 710 742

For further details please contact Guy Coggrave tel: 01748 829217.

First time buyers must act quickly, with less than six weeks remaining, to avoid paying Stamp Duty Land Tax on their first home purchase.  After the tax exemption has come to an end First Time Buyers will face a tax of 1% on house purchases between £125,000 and £250,000 and a 3% tax on house purchases over £250,000.

Figures released by the National Association of Estate Agents show that the number of sales to First Time Buyers increased slightly in November and December from 19% to 21% of sales per NAEA registered branch.  First Time Buyers represent a low percentage of overall house sales, yet are key to a healthy property market.

For any property enquiries, please call our agency teams:

Barnard Castle Office – Tim Leonard tel: 01833 637000

Leyburn Office – David Cooper tel: 01969 600120

Richmond Office – Guy Coggrave tel: 01748 829217

Stokesley Office – Chris Arundel tel: 01642 710742

If you are required to complete an SPR 2010 for the first time in 2012 or a later year:

When completing, updating and implementing your SPR 2010:

Post-harvest management of land

If your land has carried a crop of oil-seeds, grain legumes or cereals (other than maize) which has been harvested by either combine harvester or mower, then:

You will not be in breach of the post-harvest management of land requirement if you have prepared the land as a seedbed but are unable to sow the crop within 10 days because the land is too waterlogged to access or because severe weather conditions make this impractical. In either case, the land must be sown as soon as practicable.

Waterlogged land

The rules A to F do not apply:

for any agricultural land which is common land unless you own or occupy the land and rights of common are not exercised by anyone else; or

if your holding, excluding land subject to rights of common (unless you are the sole occupier of that common land), is less than 1 hectare. However, if you acquire additional land which means your holding becomes greater than 1 hectare, you must complete an SPR 2010 by 31 December of that year.

For more information please contact Lucinda Clifford at the Barnard Castle office on tel: 01833 637000

The statistics do not make encouraging reading with approximately 119,589 divorces recorded in 2010 an  increase of approximately 4.9% on 2009 albeit down on the 121,708 divorces recorded in 2008 and the high of 165,018 recorded in 1993.

Unfortunately divorce can result in farms/estates which have been in the same family’s ownership for generations being sold or crippled with debt which compromises the future viability of the farm/estate to operate in the future.

Court Orders are generally very inflexible and usually  stipulate rigid timetables which all too often do not reflect the farming season/harvest year or issues such as Single Farm Payment claim dates!

Divorce proceedings can often be acrimonious; however there is an alternative approach. Collaborative Law which is a relatively new method of dispute resolution for dealing with family disputes entails each party appointing their own lawyer and conducting meetings face to face with the intention of resolving matters without going to Court.

Collaborative Law in England has been available since 2005 and aims to provide a fair and amicable settlement between the parties through a series of meetings with their lawyers and professionals such as accountants,  valuers and financial advisers. The principles of Collaborative Law are that the parties retain control of the process and participate at every stage with support from their own legal advisers.

Collaborative meetings are often referred to as “four way meetings or joint sessions”, being a meeting between the two parties and their respective lawyers. Under the  process, an agreement will be signed between the parties confirming their intention to work out a settlement without going to Court.

The parties will discuss their objectives and the disclosure of information, including finances.  Subsequent meetings will address particular priorities and concerns of the parties with a view to reaching an agreement on the apportionment of finances and    arrangements for children. The Collaborative Law    process offers a number of benefits including flexibility over timescales and is not subject to the rigid timetables of Court proceedings.

One of the fundamental points of Collaborative Law, is that neither party’s solicitor can represent their client in Court, should the procedure fail. In such circumstances, both parties need to instruct different solicitors, and as such, this provides a further incentive for the collaboration process to succeed but can potentially result in escalating professional costs.

In collaborative cases the participation agreement is the key document and stipulates the rules for the process, which include:-

1. The lawyers will not litigate the case. In the event that a settlement is not reached and litigation is the only recourse the original lawyers must withdraw and new lawyers are appointed.

2. Neither party will take advantage of mistakes made by the other side.

3. The parties will disclose all pertinent information and will not conceal any material facts.

4. The settlement meetings will remain confidential.

5. All experts will be neutral and appointed jointly by both parties.

6. Everyone will behave in a courteous manner and in good faith.

Collaborative Law offers a non-confrontational alternative to litigation and is considered to be a more expedient and less expensive process with the parties encouraged to agree areas of common ground as the basis of forming a settlement.

Specialist Valuation Surveyors in GSC Grays regularly   undertake Expert Witness Valuations for a wide spectrum of residential, agricultural and commercial properties for matrimonial proceedings in accordance with the RICS Practice Statement and Guidance Notes ‘Surveyors Acting as Expert Witnesses’. Whilst, a large proportion of cases are resolved on an amicable basis a number are determined by formal Court proceedings.

Divorce will sadly continue to be a factor of modern life and whilst Collaborative Law is anticipated to become an increasingly popular method of dispute resolution it is not the panacea. Court proceedings will continue to be the route taken in contentious and acrimonious cases as exemplified by a number of recent high profile divorce cases with settlements increasingly determined on the  basis of a percentage share of the assets rather than a final figure.

As a company GSC Grays has a number of valuers with extensive experience of expert witness work and can  offer a holistic approach with specialist valuers in the Residential, Agricultural and Commercial property sectors, acting with complete professionalism and integrity at an emotional and sensitive time for the parties concerned.

For more information on the services available from GSC Grays please call: 01748 829210.

www.gscgrays.co.uk

Effective from 1^st  January 2012

As well as existing SMRs and standards of GAEC, this new requirement comes into effect under cross compliance from 1 January 2012.

The aim of these rules is to protect water against pollution and run-off from agricultural sources. They apply to you if you apply manufactured nitrogen fertiliser and organic manure (1).

A. You must not

1. apply manufactured nitrogen (inorganic) fertiliser within 2 metres of surface water (2);
2. apply organic manure within 10 metres of surface water, except on land managed for breeding wader birds or as species rich semi-natural grassland and under certain other restrictions;
3. apply organic manure within 50 metres of a spring, well or borehole.

If you apply organic manure

B. You must

1. Produce and keep a map (3) of your holding showing:

• all surface waters on your holding and land within 10 metres of them;
• all springs, wells and boreholes on your holding, and within 50 metres of the boundary of your holding, and land within 50 metres of them;

2. Update the map with any changes within 3 months from the date of the change.

If you have land in a Nitrate Vulnerable Zone and you are meeting the requirements under SMR 4 Nitrate Vulnerable Zones (NVZs) you will also meet the rules under this standard in respect of that land.

Lucinda Clifford, GSC Grays Barnard Castle Office Tel: 01833 637000

The first round of funding under the FFIS is currently open, the closing date for applications is 17^th January 2012.

The Rural Development Programme for England (RDPE) has set up the FFIS to provide financial support to help farmers, foresters, farming  contractors, woodland owners and horticultural businesses in England for:

-         Nutrient Management

-         Energy Efficiency

-         Water Resource Management

-         Animal Health and Welfare

-         Forestry

FFIS cannot be used to fund:

-         Direct replacement

-         Standard agricultural equipment

-         A legislative requirement, or

-         An industry obligation

The selection process for FFIS is competitive with the minimum grant rate for a single application being £2,500 and the maximum being £25,000.

For applicants in non-upland areas the maximum grant available is 40% and for those in upland areas the maximum grant rate available is 50%.

For more information in respect of FFIS please contact Lucinda Clifford at the GSC Grays Barnard Castle office on 01833 637000.

“We’ll do everything we possibly can to make sure farmers aren’t disadvantaged because of having been ahead of the game on environmental management. We’ve already told the Commissioner about this a number of times, and it seems he’s listening to our concerns,” Mr Paice said.

Speaking yesterday, Mr Paice also announced details of a Defra consultation on the EU Commission’s proposed CAP reforms. Interested parties will be able to answer questions in an online questionnaire, which will help determine the UK’s negotiating position over the next 18 months.

Farmers, environmental groups and others with an interest in the Common Agricultural Policy will be able to present their views on the European Commission’s proposed reforms, as part of an informal consultation in England launched by Defra on 13th December 2011.

The European Commission published proposals to reform the CAP two months ago, marking the start of at least 18 months of negotiations between all 27 Member States and the European Parliament.

To understand how these proposals will have an impact on a range of sectors in England, Defra is asking for interested parties to answer an online questionnaire.

Wales, Scotland and Northern Ireland are holding separate consultations, and all these views will inform the UK’s negotiating position.

Agriculture Minister Jim Paice said:

“We’re absolutely committed to being active participants in the negotiations to get the best possible deal for the UK, both on protecting the environment and encouraging an innovative and competitive agriculture sector. That’s why it’s crucial the people on the ground whose lives and professions will be affected are able to tell us their views.

“CAP covers so many areas of life that it’s important we take everything into consideration and bring it to the attention of the EU during the negotiation process.”

Mr Paice also pledged to make sure that English farmers who are thinking about entering or renewing agri-environment agreements could choose to opt out without penalty if they had to make changes to their  agreements as a result of CAP greening.

He added:

“We’ll do everything we possibly can to make sure farmers aren’t disadvantaged because of having been ahead of the game on environmental management. We’ve already told the Commissioner about this a number of times, and it seems he’s listening to our concerns,” Mr Paice said.

“We strongly believe that stewardship schemes are the best way to get better environmental protection from the CAP, but if changes do have to be made to them, at the very least farmers would be able to opt out.”

The informal questionnaire can be found at: www.defra.gov.uk/consult/2011/12/12/cap-reform-1112/

The 66 mw development is the largest on shore wind farm in England, located just north of Barnstaple in Devon and is large enough to supply electricity to three quarters of Devon’s population.  Calum Gillhespy and Mike Reynolds have represented all of the occupiers affected by the development since Calum renegotiated the terms for the site when the option came up for renewal in 2004.

Since then they have helped our clients to manage the change in ownership of Devon Wind Power when the company was purchased by ESB. Subsequently there have been a host of issues associated with construction to deal with including impact on Single Farm Payment claims, existing Stewardship and Woodland Grant Schemes as well as the practical physical work associated
with some challenging topography.  We have also negotiated the terms for the creation of mitigation habitat and are now dealing with the appointment of trustees to manage the de-commissioning fund.

If you have been approached by a wind farm developer and require assistance in the negotiation of terms with them or are interested in developing your own turbines, you should feel free to discuss your proposals with Calum (01748 829211).”

Jeremy Moody, secretary and adviser to the Central Association of Agricultural Valuers (CAAV) will present an update of the CAP Reform post-2014.  Jeremy has been involved in high-level discussions with government and European officials on reform of the CAP and his assessment will cover the direction he believes the reform will take, the pitfalls farmers should be aware of and the areas of their business they are best advised to monitor closely.

Head of Renewables and Director at GSC Grays, Calum Gillhespy, will cover anaerobic digestion and photovoltaics to convert solar energy.  Calum and his team of renewable energy specialists are at the forefront in offering independent expert advice on renewable energy and providing assessments and solutions to property owners and developers.

Bill Richmond, Director of Farmwind, will be discussing Feed in Tariff (FIT) wind turbines.  Bill has operated as a consultant to BT, British Sugar, WRG and Bernard Matthews on renewable energy matters and has been involved in the development of 14 wind farm projects in the UK and Europe for companies and landowners.

Allan Wilkinson is Head of Agriculture with HSBC Bank plc, the dedicated farming division of HSBC Bank plc and responsible for the Bank’s farming customers in the UK.  Allan took up the rol some 18 months ago and is only the sixth Head of Agriculture in the 45 years the team has been in existence.  Allan will be sharing his advice on financing renewables.

Please click here for an agenda and profile of the key speakers. 

Please note places are strictly limited and although the event is free, guests are asked to register beforehand by calling Karen Fallon on: 01748 829215