Rural business is widely recognised as one of the most challenging sectors to work in.

What I have always admired is the resilience and adaptability of those in the industry, continually adjusting to evolving market conditions. Diversification from traditional rural enterprises is often essential, providing financial stability and new revenue streams.

However, it can also stem from passion, recognising a market opportunity or creating roles for family members who might otherwise seek employment elsewhere.

Regardless of the motivation, diversification projects come with their own unique challenges, from regulatory hurdles to financial planning.

In Scotland, the regulatory landscape for estate and farm diversification is constantly evolving. The country is still adjusting to post-Brexit policies, many of which continue to emerge.

At the heart of most new regulations is a focus on climate change and sustainability, exemplified by the National Planning Framework 4 (NPF4). NPF4 prioritises sustainability, climate action and biodiversity, meaning any landowner looking to diversify must align their plans with these goals.

Many landowners hope that the promised ‘eco schemes’ will offer financial incentives for sustainable practices.

These schemes could encourage diversification into organic farming, rewilding or farm-based eco-tourism. However, to access available grants and funding, landowners will likely need to provide clear evidence of how heir projects contribute to sustainability.

While environmental regulation is necessary to protect our natural resources and meet sustainability targets, it must also support growth. The government has pledged to reduce regulatory burdens while fostering economic expansion, but how this will be achieved amid economic pressures and trade commitments remains uncertain.

While broader trends and factors certainly shape the direction which businesses in the rural sector take, it’s the personal, tactical decisions and the professional guidance obtained that can make a real difference on the ground.

From my perspective – having practical, on-the-ground knowledge of the rural sector and the day-to-day operations and challenges of running a rural business, as well as being a professional adviser – I can see how much value there is in leaning into a network of peers and experts who understand the unique challenges and opportunities within the rural sector.

Stronger voice for rural business as legal firms join forces

Scottish legal firm Wright, Johnston & Mackenzie is a proud sponsor of one of Scotland’s premier events celebrating rural life, agriculture and innovation – the Royal Highland Show – for another year.

This year is a particularly special one for the firm which recently completed a deal to join forces with Davidson Chalmers Stewart – creating a powerhouse of more than 200 people and 46 partners across Edinburgh, Glasgow, Inverness, Dunblane and Galashiels.

As a result the firm boasts enhanced expertise in rural business affairs, with an outstanding team of experts who bring a deep understanding of the sector and realities of running a rural business.

They can help explore new opportunities and navigate challenges with confidence, providing specialised input on a range of matters including agricultural holdings, business structures, capital taxes, estates and farms, forestry, land management issues, leisure and tourism, sporting and fishing rights, renewable energy and climate change. 

The firm’s experts can also advise on the acquisition, disposal, use and /or occupation of agricultural holdings.

When advice is needed on wider matters, such as estate restructuring or succession planning, they’ll work closely with the firm’s other specialists to ensure clients get the support they need.

Partner Content in association with WJM