Agenda item

To consider a report by Councillor Julian Thompson-Hill, Lead Member for Finance and Assets (copy enclosed) seeking approval of the future strategy for the Agricultural Estate.

RESOLVED that Cabinet –

(a)       approve the future strategy of the Agricultural Estate as detailed in Appendix 1 to the report subject to clarification in paragraph 4.2 of the strategy that disposal will only be considered to be appropriate where it is found to be the most economically advantageous option for the Council following an appraisal of other possible uses of the land by the Council and having regard to all the circumstances pertaining at the time of the proposed disposal;

(b)       emphasised the need for any disposal of a farm to be considered on the most economically advantageous terms to the Council having regard to all the circumstances pertaining at the time of the proposed disposal, and

(c)        requires officers to progress discussions referred to in paragraph 2.10 of the strategy for the provision of practical experience for new entrants to the farming industry and report back to Cabinet within the next six months.

Councillor Julian Thompson-Hill presented the future strategy for the Agricultural Estate for approval.  He provided some background to the report and work undertaken to inform the revised strategy, including consultation which had been carried out.  Performance Scrutiny Committee had considered the draft strategy and recommended it to Cabinet for approval.

In summary the Council no longer had the resources to support the Agricultural Estate in its current form and the proposed strategy would remove onerous maintenance and management liabilities and ensure greater efficiency of Council resources whilst mitigating the impact of cuts in corporate areas.  The strategy proposed a managed disposal of agricultural holdings with sitting tenants being given the first option to purchase.  Any holdings or land relinquished would be sold on the open market to realise a capital receipt.  All disposals would be as agricultural holdings, with appropriate covenant and overage agreements being applied to the sales.

Cabinet debated the merits of the proposed strategy at length acknowledging that the agricultural estate was no longer fulfilling its intended purpose of providing opportunities for new entrants into the farming industry.  Whilst supporting the strategy in principle members sought assurances regarding the particulars of disposal to existing tenants to secure best value for money, and in cases of vacant possession that other possible uses of the land be considered to ascertain the most economically advantageous option.  The appropriate use of covenants and claw back provisions was also highlighted in order to protect the Council’s future interests.  Cabinet was particularly keen that the proposed work with local colleges to facilitate more practical solutions to training requirements be progressed in line with what other organisations had been doing where new entrants into the industry were given an opportunity to run a farm for a year to gain valuable practical and managerial experience but stressed that ownership of the farm estate should be retained by the Council in those circumstances.  Councillor Eryl Williams reminded members that some farmsteads had been gifted to the Council to safeguard the future of agriculture and those intentions should be honoured.  He supported looking at what other organisations had done as a means of providing opportunities for new entrants into farming.

The following responses were provided to the issues raised –

·        discussions were ongoing regarding the provision of improved practical opportunities for new entrants to farming and members’ views thereon would be taken into account during those negotiations

·        sales to existing tenants would need to be negotiated taking into account the vacant possession market value and investment value of the tenancy and land transfers would be independently verified to ensure best value for the Council and its residents

·        following the end of a tenancy sales would be based on the current vacant possession market value

·        disposals would be carried out in line with the Council’s scheme of delegation to officers/Lead Member/Cabinet dependent on the value of the holding

·         for ‘market rents’ to be charged the farm estate had to be in ‘market condition’ and although rents had increased for farmsteads subject to investment, the Council did not have the resources to support the entire estate

·        it was accepted that not every tenant may be in a position to purchase their holding however it was noted that tenants could not automatically assume a renewal of tenancy and were subject to a legal contract with an expiry date

·        some background information on public owned agricultural estates in Wales had been collated on behalf of the WLGA’s Rural Forum and it was confirmed that the discussions informing that work had been considered by the Agricultural Estates Working Group as part of the review process – Councillor Huw Jones represented the Council at that Forum and he offered to provide that information to members on request

·        concerns were expressed regarding the lack of consultation response from stakeholders and clarification was provided regarding the timescales, recipients and content of letters sent

·        confirmed that other commercial options could be considered for holdings as they became vacant to ensure best value – however most holdings were outside the development boundary so would likely remain agricultural

·        in responding to scenarios provided by members regarding potential land use by prospective purchasers and existing tenants for various activities officers confirmed that covenant and overage agreements could be applied to the sale of agricultural holdings – however the more restrictions placed on a sale would affect the sale value and each holding needed to be considered individually taking into account their specific circumstances to ensure best value

·        financial information regarding the value of the agricultural estate and estimated capital expenditure required was provided and assurances were given that farm tenancies were subject to regular monitoring.

In light of the debate members agreed amendments to the recommendations to better reflect the intention for disposals to be considered on the most economically advantageous terms in order to secure best value for the Council and to explore other possible uses of land for expiring tenancies.  Members were also keen to progress to a positive outcome on the proposal to work with local colleges in terms of training new entrants into farming and receive a report back thereon.

RESOLVED that Cabinet –

(a)       approve the future strategy of the Agricultural Estate as detailed in Appendix 1 to the report subject to clarification in paragraph 4.2 of the strategy that disposal will only be considered to be appropriate where it is found to be the most economically advantageous option for the Council following an appraisal of other possible uses of the land by the Council and having regard to all the circumstances pertaining at the time of the proposed disposal;

(b)       emphasised the need for any disposal of a farm to be considered on the most economically advantageous terms to the Council having regard to all the circumstances pertaining at the time of the proposed disposal, and

(c)        requires officers to progress discussions referred to in paragraph 2.10 of the strategy for the provision of practical experience for new entrants to the farming industry and report back to Cabinet within the next six months.