Agenda item

To consider a report by the Head of Finance and Assets (copy enclosed) on the long term strategic vision for the Council’s Agricultural Estate holdings.

10.55 a.m. – 11.30 a.m.

A copy of a report by the Property Manager (PM) on the development of a long term strategic plan for the Council’s Agricultural Estate holdings and the governance issues for delivery of the strategy, had been circulated with the papers for the meeting.

Following the Committee's consideration of a report on the Estate in March, and in response to concerns raised at that meeting, the Agricultural Estate Working Group had met to discuss the development of a revised long term strategy on the basis of the Council’s legal obligation to retain the estate, the identified purpose of the estate aligned to the delivery of the Council’s Corporate Priorities and the Council’s Economic and Community Ambition Strategy 2013/23.  A copy of the reports considered by the Working Group had been included as an appendix to the report presented to the Committee.

The Working Group had resolved that the existing relocation and disposal programme should continue generating anticipated capital receipts of £1.3m by early 2015, and this effectively delivered the outcomes of the existing strategy.  It was also agreed that the remaining agricultural estate was far from sustainable given the levels of investment required to bring the buildings into a reasonable state of repair (circa £1.5 - £2Million) and, given the competing priorities for investment, the retention of a sizeable agricultural estate was not a viable option.

It had been agreed that the only realistic option was to continue with a prioritised and targeted disposal programme aligned to a focus on income generation and sustainability.  Options on how this could be undertaken and information on the steps being taken to develop a new strategy for the Estate from April 2015 onwards were contained in the report and appendix. 

Officers asked that any operational issues relating to the Estate be brought to the attention of Members should be reported to the Property Manager in the first instance for response and resolution.

In response to Members' questions the Lead Member for Finance and Assets and officers advised that whilst the Council did need capital receipts in order to deliver its Corporate Plan no decision had been taken to sell Agricultural Estate in its entirety.  The Estate, like all other Council structural assets, had suffered from a lack of investment over a number of years and consequently a considerable amount of money would need to be spent to make them viable and fit for purpose again.  Members emphasised the need to deal in a fair manner with tenants and those affected when disposing of any assets and of the need to consider the younger generation of farmers when devising a strategy for the Estate's future.  The importance of retaining any land earmarked as surplus to requirement as agricultural land when disposing of it was emphasised. 

Members referred to a report considered by the Welsh Local Government Association’s (WLGA) Rural Forum, titled 'Welsh County Farms:  Way Forward Initiative' and officers confirmed that they intended to fully engage with the work which would be undertaken by Mr Charles Coates on the WLGA Rural Forum's behalf.  Concerns were raised that due to changes to the farming industry over a number of decades some of the Authority's farms were no longer viable.  Historical tenancy agreements had also complicated matters due to some of them being lifetime tenancies which meant that tenants on 'starter-units' could not be compelled to move to bigger units once their business was established, this in turn had led to a shortage of starter units.  Members stressed the need to develop a long term strategy for the Estate which would ensure its viability and make it sustainable for the future.

RESOLVED – that subject to the above observations:-

(a)            to note the contents of the report and endorse the short-term vision for the County's Agricultural Estate,

(b)            that the draft  long term strategy for the Agricultural Estate from April 2015 onwards be presented to the Committee in early 2015 for examination, and

(c)            that a report on  the Agricultural Estate's performance, including the number and location of holdings and capital receipts received to date and proposed investment strategy, be presented to the Committee in the autumn of 2014.