There has been much news and discussion recently surrounding CAP reform and the likely impact on the sector.
There is still a great deal of uncertainty on the final framework, but progress does finally seem to be being made.
Last week we ran an event in Kirkcaldy which featured CAP as one of the main topics. It drew a crowd of around 100 local farmers, and it seems that there is a huge appetite for more information about what the future will hold.
What is clear is that the funds available for both Pillar One and Pillar Two are to be reduced and farm incomes are to fall.
But the question remains: is this a threat, as most perceive, or an opportunity to review business and look for alternative income streams?
Either way, I think now is an opportune time for the agriculture sector to conduct a healthy review, including considering succession, structure and diversification.
Without doubt the major issue in a farming business is one of succession or succession planning.
The repeated problem we encounter is how to make the business big enough to support the next generation or allow the existing generation a retirement income stream.
Diversification both on and off-farm has long provided for this, but will now be even more essential to add to the balance sheet. As Dave Thomas, founder of one of America’s biggest burger chains, Wendy’s, says: “Give everyone a chance to have a piece of the pie. If the pie’s not big enough, make a bigger pie.”
Every new or growing business must consider carefully how to structure this growth.
It is essential that both taxation and legal advice is taken, ideally at the outset to ensure that the best possible outcome is achieved.
The structure of the business and how the land is held will determine the starting point. It is essential to check this out prior to any other planning.
For example, on many occasions it may be thought that there is a partnership agreement in place, but it may be historic and need reviewing, and in other cases there will be none at all.
The titles to the land or the tenancy may be held in names other than those anticipated, and in every event the practicalities of the diversification will need to be looked at, not least access to the project and the position of your local planning authority in relation to the idea.
When the plan has come together it will need to be discussed fully with the family, and care needs to be taken to ensure that all parties are on board with the idea.
There is often understandable reticence by some parties, but with consultation from advisers it is possible to think up alternative structures or business vehicles to try to ensure that assets are protected and that all parties are comfortable with the plans.
Some of the regular readers of the Courier will have seen that we have been very busy promoting agritourism in Scotland, with events held throughout last month consulting on the appetite for this concept.
This new diversification concept is being driven forward by Caroline Millar of Go Rural.
Together we have visited some fabulous farm shops for business suppers, inviting along local businesses and professionals who are keen to find out more about agritourism.
The response has been fantastic, with a real enthusiasm for a concept which works so well in other parts of the world.
So what is agritourism?
The clearest model for agritourism is in Italy, where the concept is very well developed, tying together on-farm stays with food production, showcasing a warm welcome, explanation of food production and promotion of local produce.
Can we replicate this in Scotland?
While some of our guests were cynical about whether the average Scottish farmer was suited to this type of activity, many others recognised that what we have in Scotland is a unique food and drink industry producing top quality products.
By linking this food production to the source through farm stays or farm shops we can maximise the awareness of the wonderful produce, while providing that warm Scottish welcome that we are internationally known for.
Having met Adam Henson recently at the RSABI lunch and watched the Adam Henson effect on Countryfile, Lambing Live and Harvest Watch, there is no doubt that there is a massive public appetite to re-engage with the countryside.
Perhaps now is the time for Scottish agriculture to take up this challenge and show the rest of the world what we have to offer.
Linda Tinson is rural business director with Ledingham Chalmers, Solicitors, Stirling.