Scotland’s landowners and farmers are famed for the resilience ingrained in their characters. It creates a can-do attitude which sees many through most challenges. Some of the day-to-day tests of that character can be nigh-on impossible to predict, whether they be down to the weather, problems with livestock, issues with buildings - or all three at once.
But, if you were to embed that personal resilience into your business strategy, it may be that some parts of your working life become a little less of a strain. Admittedly, it can be difficult to know where to start.
Experience with modern farms and estates, however, points towards three pillars of building resilience with sustainability and success in mind: diversification, climate change and succession planning.
Diversification
Whether it’s a farm shop, holiday accommodation, pumpkin picking or a renewable energy development, creating new income streams through diversification has thrown a lifeline to many farms and estates. And it will continue to do so.
In considering any project, the most basic step is to ensure you know what permissions you need to make them possible and to get them in place.
When it comes to renewables and forestry, be sure to have taken proper advice about the long-term implications of any project, whether they be about supporting infrastructure, access or tenants’ rights.
Climate change
Landowners are playing a critical part in the nation’s drive towards net zero, not least through making land available for the likes of wind turbines and solar farms. And a great many people are watching as agriculture takes steps to reduce carbon emissions while protecting food security.
Charting your emissions is undoubtedly becoming a major part of farming businesses in particular, whether that be in demonstrating that journey to those who buy your products or in securing loans needed to help finance diversification projects.
Do you need to consider improving drainage or building flood defences to protect you from losses to livestock, crops or damage to assets due to flooding or storms?
Do you need to consider relocating water supplies because traditional sources are running dry? What legal rights might you need in order to do that?
Succession
While many will raise a smile at the subject thanks to the HBO drama starring Dundee’s Brian Cox, there is no getting away from the fact that succession planning for farmers and landowners can be complex.
Many issues are time-sensitive, and early legal, tax and financial advice is crucial. Discussions about the business’ goals and which family members wish to be involved are essential in preparing a strategic business plan. That makes succession not just about the future, but the present too.
Early planning can highlight flexible opportunities to transfer assets and land immediately, or to gift or sell assets in stages. It can also protect older generations, ensuring their future accommodation is secure even if they are no longer part of the business.
Is the current business structure still appropriate? For example, how are assets owned? Who occupies the land and on what basis?
Traditional farming partnerships, for example, are still an option. But other structures such as companies or limited liability partnerships (LLPs) may be appropriate.
Many succession plans need to provide for children who do not want to be part of the business. Pensions, life assurance and long-term investments are factors, as is considering who should look after your interests should you become incapacitated.
When you are caught up in the day-to-day, planning for the future can often be overlooked until issues are on top of you. Taking the time to make enterprises more resilient - securing considered advice tailored to your needs - is an investment which will pay off in the long run.
