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Planning for Farming’s Future
RTPI/NFU Conference
Harper Adams

9 November 2012

Charles Cowap
Chartered Surveyor
Harper Adams University College

                                  Charles Cowap
                                  MBA MRICS FAAV
Charles Cowap
MBA MRICS FAAV
NEW LAND MANAGEMENT
REQUIREMENTS ARE
EMERGING




                 Charles Cowap
                 MBA MRICS FAAV
Including

ECOSYSTEM SERVICES

                     Charles Cowap
                     MBA MRICS FAAV
Charles Cowap
MBA MRICS FAAV
Charles Cowap
MBA MRICS FAAV
Charles Cowap
MBA MRICS FAAV
Natural Environment
White Paper




June 2011


                      Charles Cowap
                      MBA MRICS FAAV
RICS Thinkpiece:
November 2012
•   Royal Charter
     – Promote the usefulness
       of the profession to public
       advantage

•   New opportunities in land
    management
•   New ways of working in
    development
•   New points to reflect in
    conventional valuations
•   New types of valuation


                                     Charles Cowap
                                     MBA MRICS FAAV
Top 10 Business Opportunities
1= Biodiversity Offsetting (BDO) and
Conservation Banking
• Estimated size of market £50 – 300 million
  pa from housing, plus other sectors
• Brokerage, certification and registration
• Additional costs to builders/developers
  deducted from land value

1= Peatland Carbon Code and Carbon Credits
• Peat restoration for carbon storage
• Management schemes and incentives
• Certification and brokerage

                                               Charles Cowap
                                               MBA MRICS FAAV
2. Woodfuel and Woodburning Stoves



3. UK ecosystem knowledge economy



4. Layered PES
   – Different Environmental Services
      to different buyers
   – Eg 


                                        Charles Cowap
                                        MBA MRICS FAAV
6. Carbon sequestration




7. Sustainability certification
   – Opportunities for
      intermediaries



8. Sustainable tourism


                                  Charles Cowap
                                  MBA MRICS FAAV
9= Global centre of excellence in
ESS certification



9= Water re-use technology



11 Reducing insurance risk
   through green infrastructure

12 Environmental bonds

                    http://www.valuing-nature.net/opportunities-uk-business-
                    protect-and-value-natures-services-report-published-
                    today [accessed 19 July 2012]

                                                            Charles Cowap
                                                           MBA MRICS FAAV
Twitter - #agrichatuk 1 November 2012




                          http://bit.ly/REeUat   [7 November 2012]

                                                    Charles Cowap
                                                    MBA MRICS FAAV
@bcualisterscott [8 November 2012]
  https://twitter.com/bcualisterscott
                  [8 November 2012]

                     Charles Cowap
                     MBA MRICS FAAV
Charles Cowap
MBA MRICS FAAV
Key trends from the
Foresight Report
Drivers:
• Demographic Change
• Economic growth(?),
   changing global economic
   conditions
• Climate change
• New technologies
• Societal preferences and
   attitudes
• Policy and Regulatory
   Framework

                              Charles Cowap
                              MBA MRICS FAAV
Other key trends from
the Foresight Report
Lead to 3 key challenges

•   + Demand for land in south-
    east

•   Climate change and land use

•   Delivery of public goods and
    services



                                   Charles Cowap
                                   MBA MRICS FAAV
From TEEB Foundations, Chapter 5


APPROACHES FOR THE
ESTIMATION OF NATURE’S
VALUES
                                   Charles Cowap
                                   MBA MRICS FAAV
Foresight Land Use Futures 2010




                                  Charles Cowap
                                  MBA MRICS FAAV
Market             Contingent           Cost
      Analysis            Valuation          Methods
                                                           Deliberative
                                            Avoided
                                                            Valuation
 Group              Replacement              Cost
Valuation               Cost                Methods
                                                           Regime Shift
                      Methods                                Analysis
                                      Insurance
       Resilience    Ecological         Value
         Value                                          Risk
                     Footprint
                                                       Analysis     Joint
                                          Mitigation               Analysis
  Input/Output         Production           Cost
     Analysis           Function           Method


                                                              Charles Cowap
                                                              MBA MRICS FAAV
Shorter term trends identified by Warwick
Business School/Local Govt Association
•   Ageing population

•   Health

•   Families in Crisis

•   Climate Change

•   Local Economic Development
    and Regeneration


                                      Charles Cowap
                                      MBA MRICS FAAV
Shorter term trends identified by Warwick
Business School/Local Govt Association
Leading to:

•   Diverse governance frameworks

•   Different relationship between

     – State (public)
     – Markets (private)
     – Civil Society (3rd Sector)



                                      Charles Cowap
                                      MBA MRICS FAAV
Rural
Scenarios
Project




            Charles Cowap
            MBA MRICS FAAV
Primary Production Countryside   Charles Cowap
                                 MBA MRICS FAAV
Primary Production Countryside
  • Farming, Forestry, Minerals
  • Food, fibre, raw materials, energy
  • Land hungry
  Competencies
  • Specialist Markets
  • Supply chains/contract management
  • Cost and quality challenges
  • Technical expertise
  Generic strategy: Cost leadership??




                                         Charles Cowap
                                         MBA MRICS FAAV
Stakeholder Countryside
• Policy-driven and Initiative-led
• Follow the funding
• Extensive land use?
Competencies
• Networking, political nous
• Presentation
• Negotiation
• Adaptation
Generic strategy: Differentiation??
                                      Charles Cowap
                                      MBA MRICS FAAV
Entrepreneurial Countryside

    • Market-led, local and small in scale?
    • Limited land requirement, but value?
    Competencies
    • Marketing
    • Opportunism
    • Promotion
    • Customer-service/relations
    • Strategy and Finance
    Generic Strategy: Focus??
                                          Charles Cowap
                                          MBA MRICS FAAV
A Farmer Typology, 1999

               A typology of Farmers
Agribusiness
    men                      Hobby
     5%                     Farmers
                              8%
 Potential                                   Pluriactive
Diversifiers
                                            successors
   17%
                                                15%
 Contented                     Struggling
Monoactives                   Monoactives
   25%                            30%


                Shucksmith M (1999) Structural changes in British Agriculture
                         beyond 2000, Paper at Roots 1999, London, RICS

                                                            Charles Cowap
                                                            MBA MRICS FAAV
Rural Futures: French Rural
Society to 2020


Generalised residential   Sustainable towns and
countryside               corporate large farms



Towards the nature        Active and competitive
countryside               rural areas


                                           Charles Cowap
                                           MBA MRICS FAAV
A Farm Scenario?


                     At One with        Economic
                       Nature        Environmentalist
    Environmental
    development




                    Dog and Stick      Global Trader


                         Economic efficiency


                                               Charles Cowap
                                               MBA MRICS FAAV
Charles Cowap
MBA MRICS FAAV
Questions?




             Charles Cowap
             MBA MRICS FAAV
Contact Details
In-house CPD programmes, professional-technical updates,
   organisational consultancy, and more:

             cdcowap@gmail.com
             07947 706505
Twitter:      @charlescowap
Blog:         http://charlescowap.wordpress.com/
Slideshare:   http://www.slideshare.net/cdcowap




                                                      Charles Cowap
                                                     MBA MRICS FAAV

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Farmers and Planners

  • 1. Planning for Farming’s Future RTPI/NFU Conference Harper Adams 9 November 2012 Charles Cowap Chartered Surveyor Harper Adams University College Charles Cowap MBA MRICS FAAV
  • 3. NEW LAND MANAGEMENT REQUIREMENTS ARE EMERGING Charles Cowap MBA MRICS FAAV
  • 4. Including ECOSYSTEM SERVICES Charles Cowap MBA MRICS FAAV
  • 8. Natural Environment White Paper June 2011 Charles Cowap MBA MRICS FAAV
  • 9. RICS Thinkpiece: November 2012 • Royal Charter – Promote the usefulness of the profession to public advantage • New opportunities in land management • New ways of working in development • New points to reflect in conventional valuations • New types of valuation Charles Cowap MBA MRICS FAAV
  • 10. Top 10 Business Opportunities 1= Biodiversity Offsetting (BDO) and Conservation Banking • Estimated size of market £50 – 300 million pa from housing, plus other sectors • Brokerage, certification and registration • Additional costs to builders/developers deducted from land value 1= Peatland Carbon Code and Carbon Credits • Peat restoration for carbon storage • Management schemes and incentives • Certification and brokerage Charles Cowap MBA MRICS FAAV
  • 11. 2. Woodfuel and Woodburning Stoves 3. UK ecosystem knowledge economy 4. Layered PES – Different Environmental Services to different buyers – Eg  Charles Cowap MBA MRICS FAAV
  • 12. 6. Carbon sequestration 7. Sustainability certification – Opportunities for intermediaries 8. Sustainable tourism Charles Cowap MBA MRICS FAAV
  • 13. 9= Global centre of excellence in ESS certification 9= Water re-use technology 11 Reducing insurance risk through green infrastructure 12 Environmental bonds http://www.valuing-nature.net/opportunities-uk-business- protect-and-value-natures-services-report-published- today [accessed 19 July 2012] Charles Cowap MBA MRICS FAAV
  • 14. Twitter - #agrichatuk 1 November 2012 http://bit.ly/REeUat [7 November 2012] Charles Cowap MBA MRICS FAAV
  • 15. @bcualisterscott [8 November 2012] https://twitter.com/bcualisterscott [8 November 2012] Charles Cowap MBA MRICS FAAV
  • 17. Key trends from the Foresight Report Drivers: • Demographic Change • Economic growth(?), changing global economic conditions • Climate change • New technologies • Societal preferences and attitudes • Policy and Regulatory Framework Charles Cowap MBA MRICS FAAV
  • 18. Other key trends from the Foresight Report Lead to 3 key challenges • + Demand for land in south- east • Climate change and land use • Delivery of public goods and services Charles Cowap MBA MRICS FAAV
  • 19. From TEEB Foundations, Chapter 5 APPROACHES FOR THE ESTIMATION OF NATURE’S VALUES Charles Cowap MBA MRICS FAAV
  • 20. Foresight Land Use Futures 2010 Charles Cowap MBA MRICS FAAV
  • 21. Market Contingent Cost Analysis Valuation Methods Deliberative Avoided Valuation Group Replacement Cost Valuation Cost Methods Regime Shift Methods Analysis Insurance Resilience Ecological Value Value Risk Footprint Analysis Joint Mitigation Analysis Input/Output Production Cost Analysis Function Method Charles Cowap MBA MRICS FAAV
  • 22. Shorter term trends identified by Warwick Business School/Local Govt Association • Ageing population • Health • Families in Crisis • Climate Change • Local Economic Development and Regeneration Charles Cowap MBA MRICS FAAV
  • 23. Shorter term trends identified by Warwick Business School/Local Govt Association Leading to: • Diverse governance frameworks • Different relationship between – State (public) – Markets (private) – Civil Society (3rd Sector) Charles Cowap MBA MRICS FAAV
  • 24. Rural Scenarios Project Charles Cowap MBA MRICS FAAV
  • 25. Primary Production Countryside Charles Cowap MBA MRICS FAAV
  • 26. Primary Production Countryside • Farming, Forestry, Minerals • Food, fibre, raw materials, energy • Land hungry Competencies • Specialist Markets • Supply chains/contract management • Cost and quality challenges • Technical expertise Generic strategy: Cost leadership?? Charles Cowap MBA MRICS FAAV
  • 27. Stakeholder Countryside • Policy-driven and Initiative-led • Follow the funding • Extensive land use? Competencies • Networking, political nous • Presentation • Negotiation • Adaptation Generic strategy: Differentiation?? Charles Cowap MBA MRICS FAAV
  • 28. Entrepreneurial Countryside • Market-led, local and small in scale? • Limited land requirement, but value? Competencies • Marketing • Opportunism • Promotion • Customer-service/relations • Strategy and Finance Generic Strategy: Focus?? Charles Cowap MBA MRICS FAAV
  • 29. A Farmer Typology, 1999 A typology of Farmers Agribusiness men Hobby 5% Farmers 8% Potential Pluriactive Diversifiers successors 17% 15% Contented Struggling Monoactives Monoactives 25% 30% Shucksmith M (1999) Structural changes in British Agriculture beyond 2000, Paper at Roots 1999, London, RICS Charles Cowap MBA MRICS FAAV
  • 30. Rural Futures: French Rural Society to 2020 Generalised residential Sustainable towns and countryside corporate large farms Towards the nature Active and competitive countryside rural areas Charles Cowap MBA MRICS FAAV
  • 31. A Farm Scenario? At One with Economic Nature Environmentalist Environmental development Dog and Stick Global Trader Economic efficiency Charles Cowap MBA MRICS FAAV
  • 33. Questions? Charles Cowap MBA MRICS FAAV
  • 34. Contact Details In-house CPD programmes, professional-technical updates, organisational consultancy, and more:  cdcowap@gmail.com  07947 706505 Twitter: @charlescowap Blog: http://charlescowap.wordpress.com/ Slideshare: http://www.slideshare.net/cdcowap Charles Cowap MBA MRICS FAAV