Whilst some councils have proactively sold off many components of their farms, others are keen to retain and utilise their smallholdings but are unsure of how best to manage this process.

Bruton Knowles has recently demonstrated through several trial programmes with county councils that smallholding estates can be structured for maximum economic efficiency using a variety of creative methods. By pursuing the ‘progressive rationalisation’ approach, Bruton Knowles has enabled several of the UK’s largest estates to see significant improvements in performance of their country farm estates, doubling total financial returns and creating opportunities for more viable holdings for tenants.

The origins of county farm estates
County farm estates were created in the difficult agricultural years of the late 19th century in order to avoid a decline in agricultural employment and to encourage young farmers to enter the industry and set up their own farms. For many years, certainly until local government reorganisation in 1973, county councils maintained their estates with the key objective of offering opportunities for new entrants.

However, the period since 1973 has been one of major upheaval and decline for county farm estates and many have failed to fulfil their traditional role. Major changes across the agricultural industry, such as technological developments, improvements in animal and crop husbandry, the impact of the Common Agricultural Policy, the pressure to reduce economies of scale and the trend for consolidation into larger holdings, have all had a huge impact on the structure of farming, and ultimately on the feasibility of country farm estates.

There has also been a number of changes in both agricultural holdings and fiscal legislation, which has lead to the reluctance of private estates to let out farms to tenants. As a result, the opportunity to move for county council tenants has been severely restricted and has led to stagnation on many estates as many tenants stay until retirement, thereby limiting available opportunities for newcomers.

It is no surprise therefore that against the backdrop of continued pressure on local authority funding, county councils are keeping their smallholding estates under constant review. Policies have become polarised; many councils have disposed of their holdings altogether – while others remain committed to retaining their estates, maintaining a policy of re-letting vacant holdings even though these may no longer offer a viable opportunity for new entrants.

The progressive rationalisation approach
Bruton Knowles has followed an innovative and strategic approach to enable county farm estates to successfully deliver for local authorities. Working with a number of county councils in different regions of the UK, Bruton Knowles has proved that county farm estates can be safeguarded for the future, put back into use and deliver strong financial returns.

Bruton Knowles is successfully using the modern approach of ‘progressive rationalisation’ to offer local authorities a strategic review of the county farms estate to reorganise assets. This approach follows the theory of breaking down each component of the farm so that they can then sell off the surplus elements, whilst amalgamating retained units, creating a more sustainable and profitable enterprise.

The approach provides a flexible way of assessing the farm assets in terms of land or buildings and then analysing the best use for each of these assets in order to maximise their economic efficiency overall. Combining the balance of a clear strategy with added flexibility, this approach enables smallholding estates to generate funds for council resources, while still supporting rural businesses.

Opportunities for diversification
Wider opportunities in the rural economy are also coming into play and may determine the
future use of country smallholdings. The huge surge in demand for organic and locally- produced, seasonal foods and the shift towards farm shop and farmers’ markets has opened up new markets for the farming industry, offering further opportunities for diversification and  creating new business for farmers.

Indeed, recent research from DEFRA highlights that through various diversification schemes, such as processing and retailing ‘specialist’ food products, sports and recreation, tourism, catering and letting farm buildings, farms can, indeed, generate a healthy profit aside from the traditional farmland uses.

Bruton Knowles has demonstrated that it is possible to modify and run farms of any size, so that they are financially and socially viable.  Not only will this support the farming industry and retain traditional rural skills it will also mean that younger applicants keen to enter the farming sector will be given the opportunity to do so.