Smallholdings

Proposal

We own an agricultural estate of 410 hectares (1,014 acres). The properties comprises of 24 holdings of between 4.31 acres and 90.01 acres.

The current policy relating to the farm estate was set in 2005 when the former Shropshire County Council, as the forerunner authority to Shropshire Council, took a decision to retain the remaining smallholding estate, but allow the individual smallholdings to be sold as they became vacant or were sold to the existing tenants. 

Given the present pressures on public sector funding and spending, we're having to review all activities we undertake in order to prioritise our expenditure. There is reduced funding available to us than in previous years and we need to ensure that the funds are used in a way that has the most positive impact for our community.

We've taken regard to Part III, Agricultural Act 1970 which states that a council:

Shall make it their general aim to offer opportunities for persons to be farmers on their own account.

We've also considered the view of DEFRA which (as MAFF) in 1999 wrote:

Advice from the Ministry's Legal Department to officials and to Ministers has been clear over many years: Section 39 does not impose the specific duty that smallholdings must be maintained at a particular level. Neither the policy nor object of Part III of the Act was to do so.

The express duty imposed by section 47(I) of the Agricultural Act 1947 on Local Authorities to provide statutory smallholdings was repealed by the 1970 Act and replaced by the general aim provision.

The aim of this consultation is to gather opinion on the options available to us with respect to the estate. We'll consider the responses to the consultation and take its outcome into account before making a final decision.  Following the consultation, we will prepare a paper to be presented to full council with a recommendation on the future direction of the estate.

This consultation sets out a number of options available.  They have been drawn up after much deliberation. Below, we've sought to outline the options we are considering, and identify the key advantages, disadvantages and potential impact of each option. You may be able to identify other factors which we have not identified below, and we would welcome views on what those additional factors are.

The consultation will run from 12 September until 31 October, and the paper will be considered at a council meeting on 18 December 2014.

Options for the future of the estate

Option 1: Continue the current policy

Continue our current policy of retaining the remaining smallholding estate, but allow the individual smallholdings to be sold as they became vacant, or to be sold to the existing tenants on request.

Advantages and disadvantages of Option 1

Advantages

• Option 1 allows the current tenants to acquire the smallholdings, giving security of ownership to them and their families if they wish to continue farming in the future.

Disadvantages

• Our current policy has to date seen a steady erosion of the estate and is restricting access to the next generation of farmers.

• Our funding allocations and spending pressures are increasingly resulting in a lack of investment in the estate, resulting in a backlog of repairs.

Impact of Option One

• The tenants' position will remain the same.

Option 2: Dispose of the estate on the open market

Option 2 would be to sell the estate on the open market to the highest bidder as a whole or in lots.

Advantages and disadvantages of Option 2

Advantages

•  Option 2 is likely to generate the highest amount of revenue for the council.

• The purchaser(s) could go further than we have been able to in recent times, due to reductions in funding, to address business critical maintenance.

• The tenants will have a level of protection under their tenancy agreements.

Disadvantages

• As the sale of the estate under Option 2 will be to the highest bidder we're likely to have only limited control over who the estate is sold to.

• A commercial landlord is likely to have a different focus for the estate. This could, for example, result in more or less investment into the estate and more or less support for tenants.

• Any new landlord may impose changes to the lease arrangements which are not in the best interests of agricultural farming.

• Option 2 provides no guarantee that the stock will be safeguarded for the future.

• The current tenants may not be able to acquire the smallholdings, removing security of ownership for them and their families if they wish to continue farming in the future.

Impact of Option 2

• Tenants will have a new landlord and, while their tenancies provide a level of protection, we'll have no means of guaranteeing the future of the farming estate.

Option 3: Sell the estate to an organisation who wishes to maintain it and secure access to farming for the future

Option 3 would be to dispose of the estate to a preferred organisation who wishes to maintain it and to secure access to farming for future generations.

Advantages and disadvantages of Option 3

Advantages

• Our strong desire is to protect farming in the future. Our overriding aims are to provide opportunities for new agricultural or land-based 'entrepreneurs', together with ensuring long-term viability.

• A potential to transfer the estate to an organisation which would not only maintain our existing philosophy on smallholdings, but could build on this principle and extend into the original concept of encouraging young people into farming.

• An organisation could go further than we've been able to in recent times, due to reductions in funding, to address business critical maintenance and provide more support to existing tenants to safeguard their own future and that of the holding.  

• The tenants will have a level of protection under their tenancy agreements.

• The organisation would be able to provide more support to existing tenants to safeguard their own future and that of the holding.

• The potential transfer could create opportunities for the future which could be delivered more effectively by another organisation.

Disadvantages

The current tenants may not be able to acquire the smallholdings, removing the potential for security of ownership for them and their families.

Impact of Option 3

The future of farming in the county will be secured. The tenancy position will remain the same as we have the ability to agree the terms of the agreement with the preferred landlord based on the consultation feedback.

Our view on the above options

While we haven't yet made a decision, of the available options Option 3 is currently our preference as it is considered that this represents an innovative approach to the future of the estate, and one which would allow farming in Shropshire to grow to the benefit of existing farmers and the next generation. However, we are still at the stage of considering all options with an open mind and keen to hear your views.

Click on the 'Get involved' tab above to share your views.