Crofting Matters

We are at Dornie hall, talking to clerks and committee members about the issues they face when trying to run the common grazing, especially when it comes to finances.  Firstly, we talk with Finlay Beaton from the Crofting Commission, about the problems that they deal with and the solutions for clerks. Finlay also has the advantage of having worked with RPID, so also understands the grant and subsidy systems.  Arthur Macdonald adds his take from years of running finance training, working with landlords and crofters, and working at the CC.  These meetings are continuing around the crofting counties, so if you are a clerk, book on!

We cover:

Common themes such as monitoring and accounting for funds, who is responsible for the funds; how and who to bring onto your committee; how to set it up; the difference between CG and clubs; vacant crofts

Useful Links

Finance Forms for Common Grazings | Helping farmers in Scotland | Farm Advisory Service (fas.scot)

A Simple Guide to Common Grazings Terms | Helping farmers in Scotland | Farm Advisory Service (fas.scot)

Appointment of Grazings Committees | Crofting Commission (scotland.gov.uk)

Regulated Commons Grazings | Crofting Commission (scotland.gov.uk)

Common Grazings Dilemmas | Helping farmers in Scotland | Farm Advisory Service (fas.scot)

Don’t miss out on the current schemes which boost income and improve animal and soil health! We discuss the PSF scheme, the future of subsidy, recent changes to the Croft House Grant and what we should all do now to prepare for the 2025 change. 

We cover:  

What the term ‘conditionality’ means

PSF Animal Health & Welfare

Eligibility

How to carry out and how to claim

Benefits of animal health 

Soil sampling  

Carbon audits

What do we know so far

What is Just Transition

What are the Tiers

BPS

Whole Farm Plan

Habitat assessments

Grazing shares

Beef calf scheme

Scoteid My herd stats

CHGS changes

Top tips to prepare for 2025 – FAS biodiversity audits, carbon audits, psf scheme  

Related FAS Resources

Crofting Businesses: Carbon Audits and Preparing For Sustainable Farming | Helping farmers in Scotland | Farm Advisory Service (fas.scot)

The Croft House Grant Scheme | Information helping farmers in Scotland | Farm Advisory Service (fas.scot)

Crofter’s Fuel Poverty – Improving the Existing Housing Stock | Information helping farmers in Scotland | Farm Advisory Service (fas.scot)

Other Related Resources

Preparing for Sustainable Farming Support (ruralpayments.org)

Croft House Grant (ruralpayments.org)

MyHerdStats Information Guide - ScotEID Library (dozuki.com)

Crofting legislation is fairly complicated and its no different when it comes to succession! Brian Inkster, well-known crofting law specialist, takes us through different scenarios and highlights what to watch out for when it comes to passing on a croft.  

We cover:  

Terminology such as Executor, Testate and Intestate 

Wills and witness signatures 

Procedure for a Straightforward tenancy with a will in place 

Moveable items 

Confirmation 

Docket 

Splitting a croft to leave to different people 

Owner occupied crofts  

Deemed crofts 

Heritable and moveable 

It might not sound that interesting, but, especially these days, understanding what you can and should be doing with accounts and tax is important to save unnecessary expense and keep within the law. Margi Campbell, an expert in tax and vat, gives some insight into what crofters can do to improve their finances. It’s a confusing topic, but in this podcast we chat about the different terms, and what they mean in practice for crofters who are self-employed or employed, or vat registered or not. 

In this episode, we cover:

Do crofters need to do tax returns? 

Is an accountant needed to prepare accounts? 

What are audited accounts? 

How much could a set of accounts cost? 

What is a sole trader, why would you be one, what tax do you pay, can you be vat registered?  

What are partnerships and Limited companies? 

What do the terms Incorporated/unincorporated mean? 

What is the effect of the 5 year rule for hobby farms? 

What items are tax deductible? 

Can you offset your income with the cost of buildings, such as a shed? 

What about smaller kit and tools? 

The best way to keep records, VAT, MTD, can you keep everything on paper/programme? 

What is the Herd basis? 

Who gets taxed through a Sheep Stock Club? 

Who pays tax from Common Grazing income? 

What should you do if you are starting up? 

Top tips 

FAS Resources: 

Women in Agriculture, Balivanich: Why Keep Accounts?

Bookkeeping and Farm Accounts | Helping farmers in Scotland | Farm Advisory Service (fas.scot)

Other Links:

You can contact Margi through LinkedIn https://www.linkedin.com/in/margaretcampbellinverness 

Or at www.Saffery.com 

Also listen to Margi’s story on Episode 6 - Margi Campbell - Women In Wellies | Acast 

The Crofting Commission has recently started accepting online applications through their website for some of their crofting regulatory applications. In this episode, Siobhan Macdonald and Graham Fraser discuss which applications can now be completed online, how to go about completing them, what the benefits are of doing applications online over paper forms, and where you can access help.  

Linked FAS resources: 

https://www.fas.scot/rural-business/crofts-small-farms/crofting-legislation/  

Crofting Regulation Podcast

External resources:

https://www.crofting.scotland.gov.uk/  

Getting a croft isn't easy, whether you are new to agriculture or have been working in crofting all your days. In this episode, Siobhan Macdonald and Graham Fraser discuss how to get a croft, types of tenure, what to be aware of and how to keep a croft.  

 We cover:  

• How much does a croft cost?  
• What is the difference between assignation of a tenancy and buying an owner occupied croft?  
• Financing the purchase 
• Responsibilities and duties of a crofter 
• Avoiding becoming landlord of a vacant croft 
• Lets of owner–occupied crofts 
• Decrofting & Resumptions 
• Bareland crofts  
• Where to look for crofts?   
• Shares and deemed crofts 
• Contributions to the CG maintenance 
• Sub-lets 
• Creation of new crofts 

Linked FAS Resources 

Crofting Legislation | Helping farmers in Scotland | Farm Advisory Service (fas.scot)

Other Useful Resources

Register of Crofts | Crofting Commission (scotland.gov.uk)

About crofting - Scottish Crofting Federation

Woodland Crofts | Supporting Lives & Livelihoods through Managing Woodland

Selling livestock this autumn and winter? We have some wise words from Sarah Balfour on what to think about and how to navigate the auction mart system. This is the time of year for sales of breeding and store cattle and sheep. Sarah and Siobhan discuss the current beef and sheep markets and tips on presentation. Siobhan also speaks to John William Gillies of the North Rasaay Sheep Stock Club, who discusses how they batch lambs at the mart, and the popular Portree sale of store calves. 

For further information, have a look at this webinar which details buyer’s requirements, feed conversion and handy tips: https://www.fas.scot/publication/going-to-market-managing-your-stock-in-preparation-for-selling/ and you might also be interested in this case study, which although not in a crofting area, describes how Nigel Millar sells his AA & BSH store calves to a finisher: https://www.fas.scot/publication/fas-beef-supply-chain-case-study-co-operative-strategy-finishes-cattle-in-the-scottish-borders/ 

Sarah mentions Agribusiness News, which is a publication with up-to-date monthly market and policy intelligence for farmers and crofters: https://www.fas.scot/rural-business/agribusiness-news/

Linked FAS resources: 

A Guide to Buying and Selling at the Mart - https://www.fas.scot/downloads/a-guide-to-buying-and-selling-at-the-mart/ 

Croft & Small Farms: Store Livestock - Adding Value in Presentation - https://www.fas.scot/downloads/croft-small-farms-store-livestock-adding-value-in-presentation/ 

Small Lambs – A Problem or an Opportunity for Crofters and Smallholders? -https://www.fas.scot/downloads/small-lambs-a-problem-or-an-opportunity-for-crofters-and-smallholders/ 

If you are a new crofter, or new to buying livestock, we have some wise words from Sarah Balfour on what to think about and how to navigate the auction mart system. This is the time of year for sales of breeding cattle and sheep.  Sarah and Siobhan discuss disease risk, how to bid, different terms used, buying in guineas, how the auction mart works, and how to prepare. 

Linked FAS resources: 

New Entrants Guide to Buying and Selling at the Mart Practical Guide - https://www.fas.scot/downloads/a-guide-to-buying-and-selling-at-the-mart/ 

No matter the size of your herd, choosing the correct suckler replacements is important to ensure yearly, trouble free calvings and avoid nights spent calving or coaxing calves that refuse to suckle! Or worse, pets! 

Crofting regulation, which covers what you can do with your croft land and how, is a tricky subject, full of acronyms and references to various Acts of Parliament.  For most crofters, the day-to-day croft work is unaffected by legislation.  It’s often only when crofts change that attention to the legislation is needed.  In this podcast, we discuss some of the most common scenarios.  Is there anything you need to do now or be prepared for? 

Linked FAS resources: 

Webpage on succession planning with a succession tool -https://www.fas.scot/succession-planning-crofting/ 

Webpage with cartoon videos explaining crofting legislation - https://www.fas.scot/rural-business/crofts-small-farms/crofting-legislation/