Boost to rural economy as demand grows
Demand for Scotland’s farms, land and agricultural businesses is beginning to recover, likely boosting the rural economy and creating jobs, according to an adviser to the sector.
Andy Ritchie, partner at accountant Campbell Dallas and head of the rural team, said: “The market for farms and land is showing very positive signs of recovery, which is welcome news for Scotland’s hard-pressed farmers, foodproducers and land-owners.”
He said the boost is likely to be led by more lifestyle buyers looking to invest in the sector. “Rising demand for agricultural and land businesses will almost certainly result in the buyers investing in their buildings, plant, machinery, infrastructure and services. Scotland’s rural economy will benefit, and we will hopefully also see an increase in rural employment.
“Agricultural land, forestry and existing renewable assets are increasingly seen as a safe option for buyers seeking a safe investment option,” he said, highlighting how, say, farmland offers a secure investment, but with a relatively low return of capital.
Ritchie also said the new wave of lifestyle investors could provide a good option for owners looking to exit and retire: “The number of potential purchasers looking to relocate to Scotland’s rural economy will have increased with Covid-19. For many decades, land values have been influenced by non-agricultural factors and tax. New non-farming owners often provide opportunities to lease land, offer contracting options, improve infrastructure and stimulate general economic activity.”