In an environment of geopolitical, security and trade concerns, rural businesses have performed incredibly well, as owners and managers continue to restructure and diversify.

Land Reform has clearly acted as a catalyst to change, affording opportunities to proactive farmers, and enhancing the quantity and quality of the rural housing stock. Following investment in new enterprises, these businesses have created new, sustainable jobs on estates and within local communities.

Agriculture and residential remain the bedrock of rural estates, providing 70% of turnover. However, other sources of income are growing fast and a diverse income will help businesses ride out economic uncertainty.

The agricultural sector has gone through significant restructuring. However, during this period, estates have continued to grow their turnover. Outdated farm tenancies have been converted to larger, viable in-hand and let units; indeed, a positive outcome of the Land Reform Act has been an increased acceptance by landowners of the modern limited duration tenancy. It is not an overnight process and businesses will need to secure the right balance of in-hand and let entities.

Residential portfolios have greatly improved their performance over the last 10 years. Owners have identified the relative security of this income and invested to enhance the rural housing stock and maximise return. This is a continuing trend and, once again, legislative change, namely the Repairing Standard, has acted as a catalyst.

Recently, farmhouses and cottages renounced from traditional tenancies have been a welcome addition to residential portfolios. However, these have required significant expenditure to bring them up to standard.

Increased diversification has been driven by a desire to add new income streams and by opportunities created by the reversion of old farm tenancies bringing land, cottages, farmhouses and farm buildings, back in-hand. It is exciting to see so many diversifications and we expect to see the diversity of income increasing, especially through renewable energy.

Rural business has adapted well to legislative change, but we are now set for a complex and protracted change in trade rules and subsidy regime. Estates have reduced their exposure to protect core incomes and capture new streams and the sector is increasingly well placed to optimise new opportunities.