Agenda item

The Lead Member for Resources, Mr H. Fowler CC, has been invited to attend for this item.

The Commission considered a report of the Director of Corporate Resources, which presented the draft Investing in Leicestershire Programme Rural Estate Strategy for 2026 to 2036 for comment and set out the proposed approach to future management of the Programme’s portfolio of farms and rural properties.  A copy of the report marked ‘Agenda Item 9’ is filed with these minutes.

In presenting the Strategy the Lead Member for Resources, Mr Harrison CC, emphasised the importance of the rural estate not only in financial terms but also in supporting farming communities, protecting the countryside and sustaining the viability of tenant farmers in a challenging economic environment.

Arising from discussion, the following points were made:

(i)               Members noted that tenant engagement during the consultation on the draft Strategy had been positive with many of their priorities aligning with those of the Council around sustainability and viability.  Members agreed the need for ongoing communication to support both tenants and the Council’s management of the estate for the long term.

(ii)              Members supported the proposed vision of the Strategy and the aim to support new entrants into farming. The Director outlined proposals to establish ‘nursery farms’ that would run as pilots within Leicestershire.  The need to strike a balance between ensuring business viability, which was difficult for a small farm, and providing an opportunity for new farmers to establish themselves, was recognised. 

(iii)            Members endorsed the overall Strategy but stressed the need to ensure the estate remained viable without subsidisation.  A member further commented on the need to balance the benefits of retaining farmland whilst also exploring opportunities for development to maximise the Council’s income.  The Director advised that disposals were only considered where development opportunities existed and that, despite this, the estate was expected to remain broadly the same size overall, with acquisitions also considered where appropriate.

(iv)            Concerns were raised regarding the recent significant increases in tenant rents, acknowledging that this had resulted from rent reviews not having been carried out over several years.  Members welcomed assurances provided by the Director that rent reviews were now up to date across the estate and that these would be carried out on a three-year cycle as part of the Rural Strategy.  This would improve estate management and avoid future rental spikes for tenants in the future.

(v)             Members reiterated the strategic importance of farming to the wider economy and national food security, particularly in light of global uncertainties.

(vi)            Members noted works to support biodiversity initiatives which also helped deliver the Council’s statutory biodiversity duty and its Local Nature Recovery Strategy, as well as outcomes within its Climate Resilience Delivery Plan.  A Member suggested that further pilot activity in this area would be advantageous, building on the success of places like Broombriggs Farm, for example.

(vii)          Questions were raised about how the Council’s returns compared with other authorities with farm holdings.  The Director advised that the Council sought independent external advice to ensure rents were set at market levels. Past benchmarking had shown the Council’s rental levels to be above average, however, the availability of national benchmarking data in this area was limited to make a truly fair comparison.

(viii)         A Member queried the criteria adopted by the Council when considering the allocation of a new farm tenancy and questioned whether priority was or could be given to local residents who had a commitment to the County.  The Director undertook to provide further information on this to members after the meeting.

(ix)            Members welcomed plans to work more collaboratively with Brooksby Agricultural College, the Veterinary School at Nottingham University, the NFU, National Forest and other organisations to support research and student engagement on Council owned farms and to support those interested in agroforestry. 

(x)             Members noted that diversification requests from tenants were received but that these were generally low, typically one or two per year.  These were permitted when they aligned with the farms agricultural purpose. The Council recognised the need for farmers to diversify to make farms sustainable and sought to support this as far as possible.

(xi)            In response to a question raised, the Director advised that there were currently no discussions taking place with neighbouring authorities regarding the rural estate and the potential impact of Local Government Reorganisation.  Such discussions would commence once the Government had determined its preferred approach.

RESOLVED:

(a)  That the draft Investing in Leicestershire Programme Rural Estate Strategy for 2026 to 2036 be noted and supported;

(b)  That the comments now made by the Scrutiny Commission be presented to the Cabinet at its meeting in April for consideration;

(c)   That it be noted that an annual report would be presented to the Scrutiny Commission setting out a rolling five year financial strategy for the estate;

(d)  That the Director be requested to provide further detail on the criteria applied for allocating new farm tenancies, including whether priority could be given to Leicestershire residents committed to the local rural economy.