Strategic Evaluation of Rawburn Farm Flashcards
How many residential properties do Roxburghe Estates have?
189 - let residential
38 - service occupancies
Why did the farm manager resign?
He found a similar job better suited from a geographical point of view, so that he could be closer to his partners parents. This aided childcare etc.
How many commercial premises do RE have?
4 shops
15 garages/units
How many agricultural tenancies do RE have?
40
What is the tenancy breakdown?
1991 Act: 28
LDT: 8
MLDT: 1
SLDT: 3
What is the main land classification at Rawburn?
- In bye: 4.2
- Hill: 5.2 - 6.3
Define land class 4.2
- narrow range of crops
- primarily on grassland
- short arable breaks of forage crops
Define land class 6.3
- rough grazing
- can sustain low quality plants
Give an example of a low quality plant
Bracken
What is a Livestock Unit (LSU)
A way of comparing the nutritional requirements and grazing impact of different grazing animals.
Why did the Estate make the decision to let the farmhouse on a PRT?
The newly employed farm manager at the time was young, and did not require a house the size of Rawburn. It made more economic sense to put the farm manager into Whinrig, a smaller property, and let Rawburn on a PRT.
What rent was achieved at the time?
£1,700
How did you define this rental figure?
Using local comparative evidence.
How is VAT handled on residential property?
Residential rental income is exempt from VAT.
When did the LDT between FFP and the 2nd Trust commence?
28th of May 2003
What was the initial term?
25-years
What is the maximum length an LDT can be?
When granted, the LDT at Rawburn could have been for a minimum of 15-years.
Now known as a Modern Limited Duration Tenancy as per Land Reform (Scotland) Act 2016, a LDT mas to have a minimum period no less than 10-years. There is no ‘maximum’ period.
The LDT comes to the end of its term in 2028, what will happen?
To terminate a LDT, the landlord must serve two separate notices as per the following:
Written intimation: giving the tenant 2-3 years notice.
Notice to quit: must give 1-2 years notice, and be sent out at least 90 days after the intimation.
If the agreement reaches the end of its contractual term without notice served, the lease will continue for a further period of 7-years.
What objectives were taken into account when conducting Rawburn farm analysis?
- to optimise and diversify income streams
- to retain core assets
- to act in a manner that best serves RE’s trustees and beneficiaries
- Preservation for future generations
When negotiating terms, how would this be done?
This would often be done orally, but I would ensure that I always followed up any negotiations with a letter or email to leave a paper trail of negotiation.
Why is the grouse moor seen as a key asset?
As well as being passion of the Roxburghe family, the grouse moor, when conditions allow generates a unique and staple source of income.
Why would a sale pose devastating impacts on the said sporting interest?
Upon sale, RE would lose all control of 788ha of grouse moor. Not only is this a large proportion of the moor, but the activities in which the purchaser were to carry out could not be dictated by ourselves.
What is an active farmers status?
In order to be eligible to apply for the Basic Payment Scheme, a ‘farmer’ must be seen to be undertaking ‘agricultural activity’. Thus deeming them an ‘active farmer’.
What is an agricultural activity?
An agricultural activity can include the; production, rearing or growing of agricultural products, including harvesting, milking, breeding and keeping animals for an agricultural purpose.
