Estate Policy
Statutory Smallholdings
In 2013 Defra’s Future of Farming Review recognised the value of County Farms to the agricultural industry and as a critical entry route for young farmers.
It is therefore important that the Estate is maintained as a Statutory Smallholdings Estate in order to provide the first rung on the farming ladder.
Policy
The Estate will be run and maintained as a Statutory Smallholdings Estate in accordance with Part 3 of the Agriculture Act 1970 and successive legislation.
Classification of farms
Previous Management Strategies have provided for a 2-tier classification system of starter and promotion holdings.
This system generally works well allowing new entrants to start on smaller farms with progression to a larger promotion unit where opportunities arise. However, it is dependent upon larger farms becoming available.
Policy
- core farms on the estate will be classified as either starter or promotion holdings
- the County Council will aim for a ratio of 1 starter holding to 2 promotion holdings
Length of tenancy
With the aim of encouraging new entrants into farming to progress through and off the County Farms Estate, it is necessary to offer starter farms on shorter-fixed term tenancies.
This sends out an important signal to new entrants that the tenancy is only guaranteed for a fixed period during which they are expected to develop their business and to actively seek another holding.
Promotion farms will normally be offered on a longer fixed term tenancy based upon good estate management and to reflect the specific circumstances of the letting such as the amount of investment required in the farm by the tenant.
If the system of encouraging tenants to progress is to work then there should be no automatic renewal of a tenancy.
This policy would encourage tenants to focus on seeking alternative farms. However, it is recognised that a tenant’s individual circumstances should be considered before a decision is made not to renew a tenancy and that where possible tenants be given at least 3 years notice that a lease is not going to be renewed.
Policy:
- all farms classified as starter holdings will normally be let for fixed terms of up to 10 years
- all farms classified as promotion holdings will normally be let for fixed terms between 15-20 years
- when setting the length of term due consideration will be given to the anticipated level of repair and maintenance and/or other investment for which the tenant would be liable
- the expectation will be that each tenant will have the benefit of one tenancy term save for tenants progressing from a starter holding to a promotion holding who will have one term on each type of tenancy. Tenants will be reminded of this at least 3 years before the end date of each lease. However, the County Council will consider requests for extensions to occupation in special circumstances. Such requests will be considered on the basis of the individual circumstances of each case, the farming performance of the tenant, the tenant’s forward plan and what is in the best interests for the management of the Estate. Consent to remain will normally be by way of a further fixed term tenancy. It is expected that the maximum term on the Estate would be no more than 35 years and only extend beyond the statutory retirement age in exceptional circumstances
Enhancement of estate
For the estate to fulfil its aims farms should be of the highest quality and productive as possible.
Ideally this means that the County Council would provide fixed equipment to enable a tenant to become established and therefore have the opportunity to build up enough capital to progress to a larger holding (on or off the Estate).
Since the introduction of the property Review in 1998 this policy has proved successful for both the County Council and the Estate.
This has resulted in significantly improved holdings, which command high levels of interest when available to let and an improved financial return to the County Council.
Policy:
- the County Council will continue to support the Estate’s improvements and reinvestment programme allowing the Estate to retain 100% of all capital receipts it produces below £15,000 and 50% of all capital receipts above £15,000
- that, where appropriate, farm management plans will be prepared in partnership with the tenant to identify both the landlord's and tenant's aims as to how the farm will develop during the tenancy
Repairs and maintenance
Historically repairs and maintenance on the Estate has been in accordance with the ‘Model Repair Clauses’ as introduced by SI 1473 of 1973 and as amended.
The Model Clauses split repairing and replacement obligations between Landlord and Tenant, with the provision for the Landlord to recover certain costs from the tenant for work carried out.
In recent years the Model Clauses have become outdated and there has been confusion as to which party is liable.
The way repairs and maintenance is dealt with for all future tenancies will now change.
The Model Clauses will be replaced with a simpler system where the Landlord will remain responsible for the main structural elements of all buildings, electricity and asbestos removal.
Tenants will now be empowered to take on the responsibility for all day to day repairs and replacements.
These changes will allow tenants greater independence.
A summary of the allocation of repair liabilities is shown in Appendix A.
It is acknowledged that these changes cannot be applied retrospectively to existing leases.
However, the County Council wishes to encourage as many existing tenants as possible to switch to the new system.
On this basis it may be necessary to incentivise this switch by offering a reduction in rent and/or an extension to the term of the lease to reflect the additional liabilities where appropriate on a holding by holding basis.
Regardless of which party is liable, both the County Council and its tenants need to ensure that the farms are maintained to a high standard. Poorly maintained farms create a bad impression of the Estate.
The tenancy agreement sets out standards of maintenance and husbandry and the respective responsibilities of landlord and tenant.
In order to ensure that the farms are maintained in accordance with the tenancy agreement a rigorous policy of inspection and enforcement where required will be adopted.
A tenant’s failure to comply with their maintenance obligations may lead to service of notices and ultimately to repossession.
Policy:
- for all new tenancies the Landlord will be responsible for major repairs to the main structural elements of buildings, electrical supplies and asbestos. Tenants will be responsible for day to day repairs and maintenance
- the Director for Environment and the Economy will take such action as is necessary to ensure that high standards of maintenance and husbandry are complied with
- the County Council will encourage and incentivise existing tenants to change to the new repairs and maintenance system by offering a rent reduction and/or an extension to the term of their lease where appropriate on a holding by holding basis
Dilapidations
A dilapidation claim can be made by the County Council against a tenant on vacating the farm for items which the tenant has not maintained in accordance with the terms of the tenancy agreement, e.g. weed encroachment, broken gates, poorly decorated farmhouse.
The County Council retains these funds until the in-goer has completed the outstanding remedial works.
The in-goer is then reimbursed the agreed sums.
Policy:
- only where an ingoing tenant can put forward a sound business case will a proportion of the dilapidation funds received from the outgoing tenant be made available to the ingoing tenant at the commencement of their tenancy. The amount will be at the discretion of the Director for Environment and the Economy
- dilapidation funds will normally be released to the ingoing tenant at such time as the works to which they relate to are completed to the County Council's satisfaction within the agreed timescale
- at the end of the tenancy dilapidation claims will be dealt with in accordance with terms of the lease and relevant legislation
- a schedule of condition of the holding will usually be prepared and agreed at the start of the lease
Acquisition of land
The strategy of reducing the number of holdings and selling surplus property to fund changes and improvements is a key part of improving the viability of the Estate.
However, the process of balancing the viability of the remaining holdings, maintaining rent levels and capital investment value, while realising capital receipts cannot be maintained indefinitely.
It is therefore considered good practice to actively pursue options for investment in land which offer significant improvement to the Estate and/or the possibility of substantial future capital receipts.
The Property Review approach to generating funds for re- investment from within existing resources would still apply, but should allow a proportion to be re-invested in land when suitable opportunities arise.
This could include the purchase of land close to existing holdings or with long term development potential. This land can improving holding viability, until such time as opportunities arise to maximise capital receipts from development.
Policy:
- the County Council will acquire land where it is in its interest to do so by establishing an opportunity purchase budget funded from a proportion of future surplus property sales
Diversification
Well-conceived diversification ideas can complement the primary agricultural business and provide useful additional income.
Policy:
- any diversification or additional business run on the holding must have the prior approval of the County Council
Case study – James Macpherson
James and Louise Macpherson moved from Staffordshire in 2012 to begin farming in their own right at Burley Road Farm.
Since taking the farm on they have not looked back. In a very short time they have developed the top herd of British Friesian cows in the country with 3 of their bulls standing at a leading international stud.
In addition to this they have won the title of best managed large dairy herd from their local agricultural society for the last 2 years running.
James said “We are first generation farmers, starting in 2012 from scratch with 5 heiffers. Now in a relatively short space of time we have established our business and expanded to 150 cows in milk, fulfilling our ambition to build a top quality dairy herd. “
Estate management
Selection of tenants
The existing policy is that there is no age limit for new applicants. Statute dictates that applicants must have not less than 5 years practical experience of farming of which 3 years may be on a full-time education course.
Applicants will be required to provide evidence that they possess sufficient capital resources to enable them to satisfactorily farm the holding.
Financial references will be sought before the applicant is interviewed.
In addition each applicant must submit a business plan for the interview panel to consider.
It may also be appropriate to see copies of any previous trading accounts and to visit the short listed applicants prior to the selection interviews.
Existing Dorset County Farm tenants on starter farms who are suitable, would normally be given preference for promotion farms, to encourage progression within the Estate.
An Interview Panel will be formed to assist the Director for Environment and the Economy in appointing tenants, comprising of:
- a representative of the Director for Environment and the Economy
- 2 elected members
- where possible (in an advisory capacity):
- a co-opted member from the National Farmers' Union
- Country Landowners Business Association
- Tenant Farmers Association
- or a Dorset County Council Tenant’s Representative
Applicants are required, in their applications, to state what level of rent they would be prepared to pay.
The Director for Environment and the Economy determines the rent for starter farms, as well as the length of term, based upon the data received and advises the applicants accordingly before the interview.
For promotion farms, subject to all other matters in the selection of the tenant being equal, the amount of rent offered should normally be the determining factor in the appointment of the tenant to ensure that the best consideration has been obtained. In applying this policy the Interview Panel will weigh up the level of rent on offer against an applicant’s experience of farming, business plan and other factors including willingness to improve public access and conservation value of the farm.
However, there may be circumstances where in order to secure the best available tenant it may be necessary to let the farm at less than the highest rent offered.
Policy:
- there will be no age restriction on applicants for farms, however the length of term granted will only be extended beyond the statutory retirement age in exceptional circumstances
- financial references will be obtained prior to interview and the interview panel must be satisfied that the successful applicant has sufficient capital resources available to farm the holding in accordance with the business plan
- existing County Farm tenants will normally be given preference for promotion farms
- rents of new starter farm tenancies will be market rents set by the Director for Environment and the Economy prior to interview
- the County Farms Interview Panel will comprise of:
- 2 elected members of the County Farms Liaison Panel and a representative of the Director for Environment and the Economy
- where possible in an advisory capacity one of the co-opted members representing:
- the Dorset County Farms Tenants' Association
- the National Farmers' Union
- Tenant Farmers Association
- the Country Landowners and Business Association
- for promotion farms all applicants will be required to state the rental figure which they would be prepared to pay and that subject to all other matters being equal the amount of rent offered will normally be the determining factor in the selection of the tenant;
- all members of the interview panel will be appropriately trained
Relatives Succeeding Tenant
Lettings by the County Council do not entitle relatives to any succession rights. However, legislation dictates that where a County Farm was let before 1984, close relatives must be considered for the tenancy should the tenant die. They will, however, have to meet the criteria for selection of tenants and be interviewed in the normal way, along with other candidates.
Policy:
- consideration will be given to existing County Farm tenants relatives but no preference will be afforded to them except where there are compelling reasons for good estate management
Tenants farming additional land and providing additional buildings
It is recognised that some tenants will farm additional land and erect buildings on the farms for their own use during the tenancy.
Policy
- that tenants will continue to be granted consent to farm or own additional land or to erect additional buildings providing that there is no detrimental effect to the aims and objectives of the Estate.
Financial hardship
It is recognised that the agricultural industry is of a cyclical nature and some tenants may therefore find themselves, from time to time, in need of support due to circumstances outside their control.
Tenants are encouraged to approach the County Council in the first instance should they require financial support.
Policy
- the County Council will fund independent financial advice where appropriate
- tenants will be encouraged to assist in contributing in kind to building projects on their farms
- payment of rent will be rescheduled where appropriate
- where further support is appropriate, a panel of members will be formed to interview the tenant and where appropriate the Director for Environment and the Economy may consider an abatement of rent
Payment of rent
Traditionally agricultural rents are paid six months in arrears. For farms let before 1995 i.e. Agricultural Holding Act tenancies, the rent must be paid within 2 months of the landlord serving a notice requiring the rent to be paid.
Failure to pay the rent within two months after a notice demanding payment has been served could result in an effective notice to quit being served.
For tenancies let after 1995, i.e. Farm Business Tenancies, rent must be paid within 7 days of the due date. Interest will accrue on late payment. Failure to pay the rent within 28 days could result in the tenant forfeiting the lease.
Farm Business Tenancies allow more flexible terms to be agreed between the parties. On this basis a number of tenants have requested that they be allowed to pay their rent by monthly instalments.
This has worked well for both the County Council and the tenants.
Policy
- for existing tenants with a record of prompt payment, the rent demand will be issued in accordance with terms of the tenancy agreement
- tenants of Agricultural Holding Act tenancies who persistently pay late will be served a 2 month notice to pay the day after the rent is due
- for late payment where the tenant has not sought or the County Council has not agreed an extension of time to pay rent (or where delayed payment continues beyond an agreed period) action will be taken to terminate the tenancy and to charge interest on the overdue amount
- provision of facilities for payment of rent by instalments will be encouraged
- rent for all new leases will be paid by monthly instalments in advance
Links with private landowners/estates
Tenants are encouraged to progress off the County Farms Estate on to privately let farms.
Promotion of the County Farms Estate and its tenants through the creation of links with private and institutional landlords helps to facilitate progression of tenants. Such links should be pursued by both the County Council and its tenants through their Tenants Association and via the Country Landowners and Business Association.
Policy:
- the County Council will continue to proactively establish links between private landowners and the County Farms Estate to assist tenants progression
Animal welfare
Both the County Council and its tenants have a responsibility to ensure that conditions are provided for livestock to be properly looked after.
Close links with Trading Standards, the County Council service responsible for Animal Health and Welfare, are maintained.
The County Council has approved a Farm Animal Health and Welfare Charter and this is attached at Appendix B.
The County Council will not tolerate poor standards of animal welfare.
Policy:
- all County Farm tenants will be expected to comply with the County Council's Farm Animal Health and Welfare Charter
Hunting/sporting/culls
Tenants are permitted to decide whether or not hunting/culling takes place over their holdings, provided the hunt/cull is within the law.
Fishing and sporting rights are let separately from the farms with the aim of improving income from the Estate.
Policy:
- only legal hunting/culling will be permitted on the Estate Illegal hunting/culling will not be authorised or condoned
- fishing and sporting rights will be reserved by the County Council and let separately from the holdings
- the County Council will not condone the use of snares on its land
Conservation
Good conservation practices e.g. creation and preservation of hedgerows, ponds, woodland and riverside habitats have a high importance, and will need to be included as a feature of any Farm Management Plan.
It is also recognised that the conservation of natural resources, such as water, play an important role in the preservation of the natural environment. The County Council will help and encourage tenants to apply for conservation grants.
Policy
- the conservation potential of each farm will be developed and, where appropriate, new conservation measures will be introduced in consultation with tenants
- at the change of tenancy a conservation assessment will be carried out for each farm and an implementation plan put in place
Bovine TB
The following motion was agreed at Full Council on 18 July 2013.
This Council recognises the serious and damaging impact which bovine TB has on animal welfare and the economics of farming. The County Council also recognises that dealing with the problem of bovine TB is a matter for the Government and Parliament at national
level and, locally, for the County Council's tenant farmers under the conditions of their tenancies.
The Council urges the Government to be led by the best available science in finding a solution to the problems associated with bovine TB and, when implementing a solution, to ensure that it is the most humane available.
Policy:
- the County Council will respect and support the individual wishes of tenants as to whether they wish to participate in any TB eradication scheme proposed by the Government.
Case study – Edward Goodfellow
Ed Goodfellow of Higher Silkhay Farm laid his first hedge when he was 12 under the watchful eye of his father. Since then he estimates that he has laid over 50 miles of hedgerows.
Along the way Ed has won numerous local competitions. More recently he has had success at the National Hedgelaying Championships, winning the Dorset style class.
Ed also uses his wealth of experience to teach novices through events run by the Melplash Agricultural Society.
Ed said “Although hedgelaying is hard work it is very rewarding to see what you have achieved in a day and the dramatic and positive effect you have had on the landscape.”
Public Image
It is important for both the County Council and its tenants that the general public have a good perception of the Estate.
The County Council is receiving increasing media interest and enquiries regarding the County Farms Estate as its reputation and that of its tenants continue to grow.
Tenants, who are successful when entering agricultural competitions, should be encouraged to advertise their links with the Estate.
At local agricultural shows prizes are often awarded by companies who are associated with the agricultural industry.
This generates useful publicity and the Estate might benefit from offering similar sponsorship.
National events such as Open Farm Sunday are a good opportunity to both educate the general public about farming and to raise the public profile of the County Farms Estate.
Tenants will be encouraged to participate in such events.
Policy:
- when entering agricultural competitions tenants will be encouraged to advertise their links with the County Farms Estate
- where appropriate , the County Farm Estate sponsors a prize at the main agricultural shows within Dorset
- tenants will be requested to assist with press enquires in order to help promote the County Farm Estate and its tenants
- the County Council will encourage all tenants to participate in national events such as Open Farm Sunday in order to educate the general public about farming and to promote both themselves and the County Farm Estate
Deer Management
It is recognised that deer management is an emotive and emotional subject. However, as a diligent landowner it is also recognised that a deer management plan is required for the County Farms Estate. Nationally deer numbers are on the increase and Dorset is no exception.
The County Farm Liaison Panel has recognised the increasing importance of having a deer management strategy in place and as such has advocated working with a national association specialising in deer management.
Policy:
- the County Council will seek to maintain deer numbers across the County Farm Estate to a sustainable level. Trophy hunting will not be condoned
- numbers of deer taken and disturbance to tenants will be kept to a minimum
- anyone carrying out deer management activities will hold appropriate third party liability cover and be appropriately trained or accompanied by someone who is
Communication with tenants
The farm walk, during the summer, and the winter meeting between Members and tenants are valuable as a means of communication.
Policy:
- a farm walk during the summer will be held each year and when appropriate a winter liaison meeting will be organised
Community
Parish allotments
There is currently a renewed interest from the public wishing to grow their own food. As such the demand for allotments around the county increasing.
It is recognised that allotments provide an important link between people and food production as well as facilitating the development of a sense of community.
The County Farm Estate can play its role in providing such opportunities.
Policy:
- that where appropriate and in the interests of the Estate and the County Council small areas of land will be leased to Parish Councils for Parish Allotments
Rights of way
Public Rights of Way are an important link between people and the countryside and provide a valued recreational activity.
The County Farm Estate has in the region of 63 km (39 miles) of public rights of way.
As the County Farms Estate sets an example to other landowners, farmers and the public, it is important that all rights of way across County Farms are maintained to a high standard and where appropriate accessible to a wide amount of user groups possible.
Policy:
- rights of Way on the Estate will be maintained so that access is available and of the highest practical standard
- rights of way will be inspected periodically to ensure they are accessible and all gates and styles are in good working order
- where appropriate, to work with local communities to enhance the rights of way network on the Estate
Affordable housing
The County Council recognises the difficulty caused by the lack of affordable housing in Dorset.
The Estate policy is to require a proportion of affordable housing to be allocated whenever appropriate land is sold for development.
As the Estate is restructured there may be more opportunities to identify land that could be declared surplus and which may provide affordable housing in sustainable locations, where development may not otherwise be permitted. Officers will continue to be pro-active in this area.
Policy:
- where land is surplus to the Estate’s requirements consideration will be given to making the land available for housing development and, subject to the terms of disposal, an element of the housing constructed will be affordable and available to meet local needs
Metal detecting
Dorset has a rich and unique heritage. Metal detecting can play an important part in making new discoveries and helping us to understand our past.
However, in order to ensure finds are properly recorded metal detecting should only be allowed on County Farms if it follows the County Council’s Metal Detecting Code of Best Practice (Appendix C), is in the interest of the County and is agreed by the individual tenants:
- any metal detecting carried out on the County Farm Estate must have the prior written consent of both the Senior Archaeologist and the Senior Estate Surveyor and have the agreement of the individual tenants
- any consent given by the County Council will be conditional upon the following:
- the detectorist is a member of the Dorset County Council Metal Detectorists Liaison Scheme, and agrees to abide by the Code of Best Practice for Metal Detecting in Dorset
- detecting is limited to land which has been ploughed recently (i.e. not pasture.).
- all finds are the property of Dorset County Council
- the dectectorist is able to demonstrate that finds will be recorded to archaeological standards
- the dectectorist should have reported at least 2 previous years finds to the Dorset Historic Environment Record
Apprenticeships
Apprenticeships offer a structured route into agricultural work, building skills and experience to the benefit of employee and employer.
It is recognised that County Farms can offer very good placement opportunities for apprentices as they will be working directly alongside the businesses decision maker and therefore have a greater degree of exposure to the decision making process.
The Future of Farming Review highlighted the need for the farming industry to take more responsibility for the education and skills development of the next generation of farmers and farm workers and encourages farmers to support and take up apprenticeship schemes.
By its tenants employing apprentices the County Farm Estate is widening its offer of providing a gateway into farming and also helping to increase the skill base of the local farming industry.
Policy:
- all tenants will be encouraged to employ agricultural apprentices. Where appropriate the County Council will provide the necessary support to facilitate this
Case study – Mark Ford
Although from a farming background Mark Ford’s farming career began in 1994 with an apprentiship opportunity offered by Greg Kellaway, a County Farm tenant at Cross Farm, Buckland Newton.
Greg said “ It is a pleasure and very rewarding to see young people develop through the apprentiship scheme. County Farms has helped me develop my career and so I was glad to help start someone else’s.”
Mark said “Apprentiships are a good way to learn practical skills that will set you up for life. You also make some useful contacts.”
Mark then when on to work for another local County Farm tenant before a twist of fate saw him awarded the tenancy of Cross Farm in 2005.
Mark is now milking 140 cows and farming additional land.
Case study – Holtwood Community Farm
Holtwood Community Farm was set up in 2010 by Nigel and Vanessa Pritchard to enable people of all ages with wide ranging additional support needs to take part in meaningful work activity.
The holding is stocked with pigs, sheep, cattle, free range hens giving those attending experience of working and caring for a wide range of animals. There is also a pony and domestic rabbits, a particular hit with the more autistic visitors for whom animal contact is very therapeutic.
As well as the animals there is an acre and half horticultural area where a wide range of produce is grown, for consumption and sale.
The farm employs 4 full time staff, providing the high level of support considered vital for people to achieve success.
60 individuals and 10 school groups attend each week.
The farm is a vibrant and thriving working environment always looking to expand the opportunities that are offered.
