Jonathan's come back to his roots

JONATHAN Wallis is a local farmer’s son with a wealth of training and experience in land agency.

Little wonder then that his feet haven’t touched the ground since he became a self-employed adviser last summer, having returned to his Barnard Castle roots and set up home in Startforth.

Mr Wallis’s services include private land and property sales and acquisitions, land development and landlord and tenant negotiations, as well as capital gains tax issues, boundary disputes and probate valuations.

He has worked with countless farm businesses since he left university in 2005, giving him a broad overview of the industry. Mr Wallis is convinced that many will need to change, if they are to survive in a future where support is likely to diminish, or even be removed altogether.

“I believe that some farm support will continue, but that it will be more directed towards the public benefit and that the uplands are likely to receive the most benefit,” he said.

“The rules are expected to be on an income foregone basis and land will probably have to be taken out of production, in order to make a claim. I would be very surprised if area payments were to be continued.

“Businesses which rely on support as the main profit stream may be in a difficult position and the industry will have to pull together to survive.”

He added: “Farmers need to find a way to gain more power and control over their produce and a better understanding of the supply chain. This is easier said than done, however, and perhaps we need a new type of organisation to cope with the new set of circumstances.”

He has some specific advice for tenant farmers.

“I would recommend a tenant to think very carefully, before agreeing to any proposition by their landlord. In the case of a rent review, for example, it is worth putting together some figures and looking at all of the influential factors. These can be taken along to the meeting and can be used to argue the case against a rental increase, for example,” he said.

“The same applies to investment, whether that involves money coming from either the landlord or the tenant, or through a joint arrangement.”

Mr Wallis added: “I would not advise against a tenant being the sole investor in an asset like a new building on a rented farm if it improved capital efficiency by reducing labour, or for expansion, in order to minimise fixed costs.”

It can be difficult to think about investment when profitability is poor, but as long as the tenancy is secure, it can help to move the business forward, he stresses, and risks must be taken to avoid becoming a casualty.

In the current climate, maintaining the status quo and hoping that the situation will improve may work for some farms, but certainly not for all.

Mr Wallis said: “Change and development is particularly necessary on tenant farms with a succession plan, where the business may have to provide two incomes in the future. A lot will depend on size, location and soil type, etcetera, but it is advisable to review the business on a regular basis and consider other possible options.

“One of my most successful clients originally had arable and livestock, but slowly built up an equestrian centre on his rented property. It has done so well that his daughter has taken over the enterprise and he has ended up buying the farm.

“Another client is always willing to embrace change. He will keep a close eye on returns and will give up an enterprise if it is not profitable. He makes sure that his business responds to market conditions,” he said.

“However any adjustments should be as flexible as possible. If a new building is required, it should be designed with a range of other potential uses for the future in mind.”

Jonathan’s grandfather, Walter Wallis, was the original tenant on the family farm, while his father, Frank Wallis, is a very well-respected hay and straw merchant who also keeps livestock. However, Jonathan’s own career progression means it is unlikely that he will ever farm in his own right.

“I am content with the path I have chosen and it keeps me in close touch with the agricultural industry. If I went into practical farming, I would strive to be an owner-occupier and probably try to develop a strong brand for my produce by seeking out a premium market,” said Mr Wallis.

“The obvious choice would be to produce beef and lamb to a high standard and sell to a small number of butchers whose customers were prepared to pay more for a high quality meat. But that is mere speculation.

“I have no plans to expand beyond being a sole trader land agent because I do not want to lose the personal touch which I feel gives me an advantage over some of my competitors.”

In Mr Wallis’s limited spare time, he enjoys organising charity fundraising events and has discovered that he has something of a flair for it. His most recent event was Christmas at the Cathedral, held at St Nicholas Cathedral in Newcastle.

The money raised from the concert went to the Sir Bobby Robson Foundation, which finds methods of detecting and treating cancer. He also enjoys rough shooting and has recently bought a springer spaniel puppy, which he intends to train himself.

“I thought I might have more leisure time when I set up on my own. It hasn’t worked out that way, but I’m very happy,” said Mr Wallis.