Opportunities abound for Scotland’s rural landowners

Originally published in the Press & Journal and The Courier

Throughout Scotland we find ourselves in a new era of opportunity in rural landownership which extends far beyond traditional stewardship. With numerous options to diversify or to embrace modern energy and climate goals, alongside raising an income from the land, careful thought and consideration are paramount. Environmental, cultural and economic potential is expanding, but with this comes new decisions for landowners who will shape the future of Scotland’s countryside for generations to come.

Land diversification is not a new concept, but we are seeing ventures extend in modern Scotland on an unprecedented scale. From small-batch distilleries, carefully making use of historic buildings which were long out of use and who proudly advocate local and Scottish heritage to artisan food production and farm shops, which encourage people to venture back out into the countryside to enjoy produce from source, diversification projects have become a commercially viable option for many landowners.

Successful diversification projects align with the land, the local community and a landowner’s long-term vision. What thrives in one area is not guaranteed in another and the most successful projects combine a clear understanding of the land’s natural assets and the local community, as well as market realities. A landowner’s enthusiasm then provides momentum for the venture over time.

In many areas of Scotland tourism continues to thrive and landowners are well placed to share some of Scotland’s natural beauty with visitors. Scotland has long been appreciated for outdoor pursuits but in many places modern initiatives like those encouraging wild swimming and saunas or retreats paired with luxury and environment-sensitive accommodation have proved both successful and sustainable. Where there is an influx of visitors, tourism must be managed carefully, with a solid strategy and seasonal planning.

Scotland is frequently highlighted as a prime location for renewable energy projects of all types: wind, hydro, solar and battery storage projects are often at the forefront in the drive towards Net Zero. However, landowners must be aware of the various local and national constraints governing the process.

The right project in the correct area can deliver a landowner stable long-term income and minimise ongoing disruption to land use, but there can be long lead-in times whilst reaching commercial agreement, obtaining approvals and undertaking legals before construction can begin. Where an opportunity is identified, it’s key to engage trusted advisers as early as possible to make sure the project can come to fruition successfully and sustainably.

One of the most rapidly developing areas in rural land management is natural capital. In the push towards Net Zero, carbon credits in the form of woodland creation, peatland restoration and other partnerships focusing on measurable carbon offset can provide income, together with a sustainable long-term asset for the landowner. Any landowner considering this kind of project must be mindful of the commitment being made, taking into account the management obligations, taxes and costs involved. There are increasing levels of regulation around natural capital so it’s crucial to seek expert guidance and ensure your venture is fully compliant.

Unlike ordinary commercial endeavours, landowners weighing up potential natural capital opportunities need to make sure the project ties seamlessly to the land. Projects can run with the land for generations, they can increase the value or provide a profitable going concern and as such a landowner must consider risk and the commercial landscape alongside their own long-term goals and strategies.

Seeking specialist legal advice on the best ways to embrace the different opportunities available will ensure landowners sow the seeds of a rewarding and sustainable future for their land for decades to come.