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GROUSE MOORNEWSSUMMER 2013

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Welcometo the latest edition of

SavillsGrouseMoorNews

ALEXLAWSONDIRECTOR,FARMSANDESTATES

Grouse Moor News is published on behalf of Savills UK Ltd byCasella Productions Ltd.All information correct at time of goingto press. All rights reserved.Articles may not be reproducedwithout written permission from the publisher.While every careis taken in compiling the content, neither the publisher norSavills UK Ltd assumes responsibility for effects arising from thispublication. Investment advice:The information and opinionscontained in this magazine do not constitute professional adviceand should not be relied upon. Specific advice relating to yourindividual circumstances should always be obtained.

Stewardship schemes

-BULLETIN-SAVILLS EXPERTS ROUNDUP THE

LATEST NEWS FOR GROUSEMOORS

he transitionof agri-environmentschemes in

England is almost complete –most landowners now havearrangements under theEnvironmental StewardshipScheme (ESS).Under ESS, owners of grouse

moors with SSSI status agree amoorland management planwith Natural England thatcovers all the typical grousemoor operations with a specificfocus on heather burninglocations and rotation.Theappetite within Natural Englandis to extend the heather burningrotation to protect the deep peat.There is an argument thatgrowing heather fixes morecarbon than is released byburning, although the evidenceseems limited.When agreeing terms for

the burning rotation, ownersshould be aiming for flexibilitywith shorter rotations to retaingood habitat and productivity.It is imperative that grousemoor owners present a unitedfront in these negotiations inthe interests of the widercommunity.Of course, ownersmust co-operate fully withNatural England as theregulatory body, but they shouldstrive to ensure that theiragreement will not have adetrimental effect on their ownmoors or those of other owners.Stewardship schemes come

with funding for capital worksbut landowners should be awarethat there is less money availablethan before.When entering anew agreement, therefore, it isimportant to bear in mind thatthe funds it releases are unlikelyto match those of the existingagreement. Changes under theCommon Agricultural Policy(CAP) are likely to see greaterre-distribution of thesemonies, with more focus onoutcomes rather thanmanagement prescriptions.In Scotland, too, stewardship

schemes are poised for change.The Scottish Government’sScottish Rural DevelopmentPlan 2007–2013 (SRDP), a verydifferent, outcome-led system ofgrants that addressed economicand social aims as well asenvironmental benefits, willclose on 31 December. It will bereplaced by the SRDP 2014–2020, which hopes to be openfor applications by August 2014.The Government has justpublished the consultationdocument on this.Withimpending CAP reform and themovement of funding fromPillar 1 direct payments to Pillar2 rural development measures, itis important that moorlandowners and managers play aproactive role in the newSRDP’s consultation stage sothat it provides meaningfulsupport measures to allowScottish Landowners toimprove their upland habitats.

Telcome to the 2013 issue of Grouse MoorNews, which comes amidst the continuingeconomic uncertainties that aremaintaining pressure on most sectors of

the property market. The best grouse moors, however,are still highly attractive; the undoubted cachet ofownership ensures their unique appeal.

Grouse moors have proved to be a sound capitalinvestment — owners who bought 20, or even 10,years ago should have done well from rising valuesand sustained demand for prime moors. As ever, thestrongest demand is for the best of the best, in linewith the market for other high-value assets. Buyersare highly discerning, and with an extremely limitedsupply over the last few years, this is a necessarilysmall market.

The UK is the only country in the world where drivengrouse shooting is practised, making it a key focus forsporting investment and with much of the wealthcoming into the country now generated internationally,the pool of potential buyers is a wide one.

At the time of writing, conditions have been relativelykind (although slightly late): once again, the prospectsfor the forthcoming season look positive.

We hope you will find the range of articles andupdates that follow helpful and informative. If theyraise any issues of particular interest or concern toyou, Savills experts will, of course, be delighted todiscuss them personally.

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G R O U S E M O O R N E W S 2 0 1 3 3

Bracken control

The Game &Wildlife ConservationTrust (GWCT) has raised concernsthat red grouse are becoming resistantto Fenbendazole, the wormer used inmedicated grit.This is potentiallyserious news since it is unlikely thatanother drug as effective asFenbendazole can be developed andlicensed for worming purposes in theshort term.Grouse moor owners areurged to take an informed approach onthe use of Fenbendazole rather than ablanket policy year in, year out,managing the worm burden ratherthan trying to eradicate it. Followingtrials on 12 grouse moors last winterand five the winter before, the GWCTadvises regular monitoring of the wormburden in grouse stocks by takingsamples of caecal faeces. If the burdenis below an acceptable level, the use ofunmedicated grit can continue. If theuse of medicated grit is necessary, it isimportant that this can be supplied in atimely manner. The advice seems to bethat continued treatment of a problemthat may not need treatment is likely tobackfire with resistance becomingestablished.This has the potential tobring the current purple-patch ofgrouse numbers to a promptconclusion if resistance becomeswidespread. The GWCT is notadvocating a blanket policy but it isimportant for owners to makeinformed, evidence-based decisionson the use of medicated grit.

MEDICATEDGRIT

ew rules from HMRC requirethe details of beaters employedby the day to be reportedwithin seven days of their

employment, rather than annually, as hasbeen the case since 1983.Under the Real Time Information (RTI)

system, employers must provide eachemployee’s full name, date of birth, gender,National Insurance (NI) number andaddress. Records of the fees paid must bekept for three years.RTI has been under discussion for several

months; its implementation was delayedbecause HMRC had disregarded the“Harvest Workers Rules”previously agreedwith the NFU and the CLA.Beaters are included in the rules

governing the employment of Daily CasualHarvest Workers.To count as such a worker,the following criteria apply:• you must be engaged “for harvest work

and shoots”• you must not be a member of the

employer’s family

• you must be taken on for one day or less• you must be paid off at the end of

that period• you must have no contract for further

employmentEmployers should also be aware of their

tax obligations. Beaters pay no NI if theyearn less than £149 per week, but sincebeaters’ employers treat each day as a one-offemployment, they get their weekly thresholdeach day of the week.A beater can,therefore, earn up to £148 on each day ofthe week and still pay no NI, because eachday’s work counts as a separate contract ofemployment. Employers do not need todeduct income tax if the daily employee:• is taken on for one day or less, and• is paid off at the end of that period, and• has no contract for further employmentIf individual beaters receive cash in hand,

it is their responsibility to declare it on theirend-of-year tax return; because the employerwill already have submitted details of theiremployment and fee,HMRC will knowthat they have received untaxed income.

The window for controllingbracken using Asulam is a verynarrow one, so moor ownersshould act swiftly.The ban on

Asulam, the only chemical licensed forbracken control, came into effect last year, butthe Bracken Control Group set up inresponse to the ban successfully applied foremergency authorisation permitting the useof Asulam for a limited period this year.Thestorage, promotion, sale and transfer ofAsulam is permitted for a period of 120 days,dated from 20 May this year.That means afour month window for bracken control, until17 September, which is the last day that thesale and distribution of Asulam stocks ispermitted.The emergency authorisationexpires on 31 October, after which the

It is likelythat the

Bracken ControlGroup will applyfor a furtherauthorisationnext year

storage and disposal of Asulam stocks willbe illegal.However, it is likely that theBracken Control Group will apply for afurther emergency authorisation next year.

BEATERS’WAGES

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ith demand for shootingdays over recent seasonsperhaps failing to meet theamount on offer, owners

should consider being as flexible aspossible when letting.We have seen a move towards more

fixed pricing in recent years, wherebyguests pay a price per brace (typically£150) but with much greater flexibilityshould more grouse be shot on the day.This is in response to the problems facedby several moors that have struggled toshoot enough grouse to reduce stockssufficiently for effective over-wintering.The laws of supply and demand suggest

that the price of a day’s shooting shouldfall, but naturally no one wants to devaluethe sport. Fixed pricing is an effective wayof simultaneously maintaining income andcontrolling stock levels.However, the onus is not only on moor

owners: the guns, too, should be flexible

The long-awaited reform of the Common

Agricultural Policy (CAP) has moved a

step closer, as political agreement

between the European Commission, the

Council of Ministers and the European

Parliament was reached on 26 June. The

proposed changes are not imminent: the

agreement’s legislative texts are

expected to be approved in the autumn,

and member states will need time to

implement policy changes. However, it

looks as though grouse moor owners will

face stricter criteria to qualify for CAP

payments. Most prominently, no

payments will be forthcoming to owners

of land that is naturally in a state for

grazing unless they can demonstrate a

minimum level of agricultural activity.

This level is to be set by individual

member states, so it is impossible to say

at this stage what it might comprise.

However, it is possible that the minimum

activity will be incompatible with grouse

moor management. This reform will

also have serious implications for

“Naked Acre” agreements in Scotland

whereby farmers with surplus subsidy

entitlements activate them on another

farmer’s land, often moorland; it is

unlikely to have a significant impact in

England. It is however anticipated that

some mechanisms will be available to

enable parties to access monies from

CAP following the changes.

If you would like to discuss any of

these issues, please contact:

W

Contact DetailsMatthewWatsonSavills York01904 617 [email protected]

RoryGallowaySavills Brechin01356 628 [email protected]

CAP reform

DAILY LETTINGS MARKET

Bothmoor

owners and gunsneed to be asflexible aspossible tomaintain values

about when they shoot.Many guests arewaiting until late in the season beforemaking a commitment, hoping to getbetter value as owners seek to fillunbooked days; they should be preparedto accept a deal earlier in the season.In short, flexibility and understanding

are needed on both sides to maintainvalues and manage stocks effectively.


G R O U S E M O O R N E W S 2 0 1 3 5

he magnificence of heather-clad hillsides is one of theglories of the Britishcountryside yet these uplands

are the result of ongoing and expensivemanagement over decades of ownership. Aconstant programme of intervention,including the burning and re-seeding ofheather and the control of bracken, predatorsand disease is necessary to preserve them.For the past couple of centuries, the British

enthusiasm for shooting driven grouse hasshaped huge swathes of uplands, supportedrural communities and maintained scarcehabitats for wildlife. According to theMoorland Association, Britain contains 75%of the world’s heather moorland, which israrer than rainforest. Its fundamental value toconservation means that 49% of grousemoors are designated as EU SpecialProtection Areas for the rare birds theysupport and 49% as Special Areas ofConservation due to the plant species.Nationally, 66% of grouse moors areprotected as Sites of Special ScientificInterest; 45% carry all three designations,making them one of the UK’s mostimportant habitats.Grouse moors provide a vital habitat for

nesting birds including the merlin, short-eared owl, hen harrier, golden plover, lapwing,curlew, snipe, redshank and duck.Well-managed moors are a haven for reptiles,including adders, lizards and slow worms,and the control of bracken means that lingand bell heather, cross-leaved heath andbilberry can thrive.However, the ecological importance of

grouse moors is measured not by the diversityof wildlife they support but by the specialistspecies that thrive there, as David Baines,Director of Upland Research at the GameandWildlife Conservation Trust, points out.“The value of managed grouse moors is

that they preserve a threatened habitat thatsupports fewer, but rarer, species,”he says. “If

A unique and vital heritage

T

WE LOOK ATHOWMANAGED GROUSEMOORS SUPPORT ATHRIVING ECOSYSTEM AND RURAL COMMUNITIES

The UK’sgrouse

moors provide ascarce and vitalhabitat fornesting birds andother wildlife

the land were left to its own devices, it wouldrevert to scrub and woodland.This woodedlandscape would support a much greatervariety of species than heather moorland butthose species would be commonly foundelsewhere.The management of grouse moorsis one of the best ways of preserving heathermoorland and the species that need it tothrive, including the sphagnum mosses that

are responsible for building up the peatdeposits which absorb great quantities ofcarbon. Losing heather moorland would havea significant impact on carbon storage.”Of course, it is highly unlikely that tracts

of land would ever be left to encroachingscrub. “In practice, the cessation of grouse

moor management would result in land usegoing one of two ways,” says Dr Baines.“Either it would see a greater intensity ofsheep production, or,more probably, it wouldbe planted with conifers for commercialtimber production.“Grouse would survive, but in very low

densities. In my area of the Pennines, thereare perhaps 100 pairs per square kilometre inspring; without management, this wouldprobably drop to one or two pairs.”It is not only the environment that is

enriched by grouse moors: manycommunities, too, depend on the incomethat shooting generates. The sums areconsiderable. According to figures from theMoorland Association, businesses associatedwith grouse shooting earn an additional£15.2 million per year from the sport.Grousemoor management is estimated to be worth£30 million per year in Scotland, and in thecountry as a whole it is worth £67.7 million.With an average of 30 people employed

per day to help run shoots on each moor, thesport provides an average of 37,050 dayscasual labour.Then there is the money spentlocally on accommodation, dining andshopping. Income generation does not endwith the shooting season; a wide range oftrades and expertise are supportedthroughout the year, from tree-planting,heather re-seeding and dry-stone walling totrack construction and maintenance.MatthewWatson of Savills York believes

that the proper management of a grousemoor reaps huge dividends for both ownersand the public. “Grouse shooting remains atthe pinnacle of fieldsports and moorlandmanagement from the private purse providesthe best environmental and ecological rewardof any conservation spend,”he says.“In recent years there has been assistance

to reverse changes in farming practiceshowever, grouse shooting has helped to retainthe bio-diversity and ecological wealth ofthese special areas.


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he question of whether to leaseor purchase a grouse moorcomes down to personalcircumstances; for some,

ownership is paramount.However, ownersand tenants have two things in common:both are wealthy, and both are passionateabout shooting grouse.Opportunities topurchase or lease are few and far between, sowhen moors do come to the market theycommand high prices.Most grouse enthusiasts prefer to own

their moor and have complete control overhow it is managed, but this has one bigdrawback: the price of a prime drivengrouse moor with a lodge, keepers’ cottages,an in-hand farming operation and thelike is £10–£20 million on top of theannual cost of perhaps £475,000 for a15,000 acre moor, depending on thenumber of keepers employed.Still, there are plenty of attractions in

ownership. Perhaps the most rewarding for anew owner is the ability to optimise grousebags and to achieve capital appreciation.There is unlikely to be scope for a viablereturn on the investment, even over a period

T

Lease or purchase?RODDY D’ANYERS WILLIS ON THE PROS AND CONSOFOWNERSHIP

Whetherone opts

for purchase orlease, the valueof grouseshooting isimmeasurable

of years, so with a capital value of £4,500–£5,500 per brace, the attraction of doublingthe average grouse bag is obvious.Another justification for this expensive

indulgence relates to the next generation; it iseasier to indulge a passion and validate an

country estates were very much larger thanthey are today, it was fashionable forlandowners to retain one grouse moor forpersonal use and to let out the others.These days grouse moors are often offered

for let when owners are unable to fund theirrunning costs and see the standard ofmanagement and keepering diminishing, andproductivity declining. It is, therefore, notunusual to find a moor being let with a lowaverage bag but with considerable potential,as evidenced by historical records.This“potential” requires considerable investmentand patience.When such moors are let, bothrents and premiums are modest since thetenant will need to invest heavily in the earlyyears of the lease. A lease term of 15 to 20years is appropriate where grouse stocks needbuilding up.The chances of acquiring an “oven ready”

grouse moor are very slim, so the famousLeadhills Moors in Lanarkshire, Scotland,present an almost unique opportunity forthose who can afford to enjoy some of thebest driven grouse shooting in the UK.TheLeadhills Moors, which Savills has just beeninstructed to lease, comprise 18,500 acres of

apparently selfish investment if children areto inherit. But what if the next generationhas no interest in sport or lack sufficientincome to fund the running costs?Then along lease should be considered, allowingcapital to be invested elsewhere. Indeed, inthe earlier decades of the 20th century, when


G R O U S E M O O R N E W S 2 0 1 3 7

moorland, including 11,500 acres of heatherhill, and are among the most productive inScotland.They have benefited fromsubstantial investment over the past 10years: many miles of hill roads have beenconstructed or upgraded, the seven keepers’cottages have been refurbished, and agrouse-friendly farming operation is in place.Most of the 35 lines of butts are now sunkenand lined, heather burning is up to scratchand the moor is laced with grit, both naturalquartz and medicated.If ever there was a justification for a tenant

to pay a substantial premium, this is it. Apremium of £500,000 is a snip in comparisonto the millions required to purchase a moorof this quality. In the case of Leadhills, a10-year lease with an option for a further fiveyears is being offered.The reason forrestricting the term is simple: a tenant canexpect to shoot significant grouse bags fromthe outset. Leadhills presents a wonderfulopportunity for those able to opt for the verybest. Single tenants are preferable, but a smallgroup of friends forming a mini syndicatecould work equally well.Leadhills’ potential is enormous and in its

current state could soon be producing 4,000

brace in a season.Up to six consecutive daysdriven shooting can be enjoyed withoutcovering the same ground twice, and this canbe highly convenient for those who arepressed for time or living overseas.Some owners and tenants want to be very

“hands on” in the management of theirmoors; some even join in heather burningand counting grouse, reaping greater personalreward when things turn out well.Others,committed to business ventures elsewhere,prefer to engage a manager and distancethemselves from the whole operation untilthey’re in a grouse butt. It is simply a matterof circumstance, of “horses for courses”.But whether one opts for purchase or lease,

grouse moors are not for the fainthearted orthe irresponsible: the value of grouse shootingis immeasurable and must be preserved at allcosts for future generations.

It is best to follow the six P’s

when getting ready for the grouse

season: Proper Prior Planning Prevents

Poor Performance.

Most guns will wait until the last

minute to get that niggling issue with a

gun sorted, and then want it back in

prime order in two days. Get your guns

to the gunsmith in good time before

starting your season. Everyone else will

have had the same thought, so the

gunsmith may be rather busy.

Go to a shooting ground and have a

session or two in the grouse butts with

a reputable instructor. Remember: the

last thing you shot at was probably a

high January pheasant, and there’s a

big difference between that and a fast,

low-flying grouse.

If you have a working dog, do some

pre-season training with it to ensure

that both you and the dog are together.

Check your kit to see if anything

needs repairing or replacing and make

sure you have your anti-midge

equipment and a pair of safety glasses.

Dust off your hill boots and give them a

bit of tender loving care: there is

nothing worse than a stiff pair of boots

on the moor.

Make sure you have the right

cartridges for the job and ensure that

they are fibre wad.

It may also be worth checking

whether you took out adverse weather

insurance cover. It never seems a good

idea at the time of booking your

shooting, but it is rarely cursed when

claimed on because of a foggy day.

Seasonaltips

Contact DetailsRoddy d’AnyersWillisSavills Brechin01356 628 [email protected]

Rent and charges £65,000(based on a rent for keepers’ cottages and sportings or alternative charge)

Keepers’ costs £240,000(including wages, contract labour/beaters, clothing, training, dog food, vet and med

Keepers’ accommodation £40,000(including Council Tax, property insurance, repairs, water rates,if applicable, heat and light, telephone)

Vehicles and machinery £50,000(including fuel, repairs, insurance, road tax)

Moorland expenses £40,000(including fencing, road repairs, drainage, bracken control, butt repairs,traps and snares, acaricides, tools and equipment, ammunition/licences)

Professional services £40,000(including consultancy, management, accounting, legal fees)

TOTAL £475,000

Summary of running costs for leased 15,000 acre grouse moorsix keepers employed – average bag: 2,000 brace

Note: The above budget example for a properly managed moor excludes shooting rent, letting commission and depreciation on vehicles and machinery

Now enjoy a safe and what looksto be a good season.

Adam Bromfield,Shooting Consultant atRoxtons, offers his advicefor a successful season

“No Skimping” BudgetEXAMPLE


8 G R O U S E M O O R N E W S 2 0 1 3

Savills moorland services

savills.co.uk

OUR GROUSE MOOR EXPERTS

AndrewBlackSavills York01904 617 [email protected]

Paul AinscoughSavills York01904 617 [email protected]

Roddy d’AnyersWillisSavills Brechin01356 628 [email protected]

MatthewWatsonSavills York01904 617 [email protected]

• Sales & purchase• Lettings/agreements

• Management & establishment• Financial planning• Environmental advice

• Habitat layout & improvement• Market information• Recruitment services

• Capital & rental valuations• Litigation & dispute resolution

• Rating appeals• Health & safety/risk assessments

RoryGallowaySavills Brechin01356 628 [email protected]

CharlesDudgeonSavills Edinburgh01312 473 [email protected]

Alex LawsonSavills Farms & Estates020 7409 [email protected]

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