Plan a croft or smallholding

URN: LANCSH1
Business Sectors (Suites): Crofting and Smallholding
Developed by: Lantra
Approved on: 2022

Overview


This standard is about planning a croft or smallholding.

All crofts are regulated by the Crofting Commission. Both tenant and owner-occupier crofters have a duty to: 

  • Be ordinarily resident on, or within 32 kilometres of their croft 
  • Cultivate and maintain the croft (This refers to the croft being used for cultivation or put to another purposeful use. This includes horticulture, keeping livestock, including poultry and bees, the growing of crops and the planting of trees).
  • Not to misuse or neglect the croft 

Smallholdings in the UK are generally regarded as having a land area of less than 50 acres (20 hectares). Like crofts, common uses of smallholdings are mixed crops, livestock and woodland management.

Before setting up your croft or smallholding you need to be clear what you hope to achieve from the venture. Do you want to run it as a business to create an in-come stream, for improved self-sufficiency or simply for pleasure? You will need to consider if you want to make it your home, how it will fit in with your lifestyle and that of your family, why you want to take on what may be a major change in your life, and if you will really enjoy it.  You might be able to explore your idea on a short training course or “taster” day, or by volunteering on a farm, to give you some basic, practical experience, to see if it is feasible for you.

What taking on a croft or smallholding involves:

  • Deciding on the activity that will give the most reward, whether financial or personal enjoyment
  • Deciding on the products and services you may wish to offer
  • Deciding on the work-life balance that will be acceptable to all involved.

This standard is for anyone considering setting up a croft or smallholding.


Performance criteria

You must be able to:


  1. collect information to help to plan the kind of croft or smallholding you want
  2. decide if you are aiming to create a financially viable business, become more self-sufficient, or just to provide enjoyment
  3. ask yourself what activities you would consider carrying out, which could in-clude keeping animals, poultry or gamebirds, growing vegetables, fruit or other crops or managing a woodland 
  4. where you wish to create an income, investigate opportunities for products or services that could be provided, such as crafts or food products, offering hospitality, a retail facility, training or other activities, research whether there is a market for your products or services and how you will find and supply your customers
  5. decide if you want to make it your home, whether you can use land you al-ready have access to or if you need to find somewhere suitable to live, de-cide if you will buy or rent or if you could engage in community agriculture
  6. find out if your chosen activities have any special requirements for land, soil or climate
  7. investigate the need for buildings or other structures to facilitate your activi-ties and the regulatory requirements of making changes to the croft or smallholding
  8. determine the need for access to public utilities and mains services, including broadband, schools, shops, suppliers, doctors, other services or social provisions
  9. investigate the equipment required to run the croft or smallholding and the cost
  10. determine the labour requirements to run the croft or smallholding, if you will need to employ someone and the implications of this
  11. research the resources required, including money, time and skills, to set up and run the ideas you have, and how these can be obtained
  12. research legal requirements and business obligations 
  13. seek information and advice and investigate what is involved in your various options by visiting similar enterprises, contacting support groups, going to local shows and talking to the various exhibitors
  14. investigate opportunities for grants, subsidies or other forms of funding or assistance  


Knowledge and Understanding

You need to know and understand:


  1. the information you need to consider when planning a croft or smallholding
  2. the commitment required in running a croft or smallholding, and if you want to create a financially viable business, become more self-sufficient, or just to provide enjoyment
  3. the activities that can be carried out on a croft or smallholding and the regu-lations that govern this 
  4. the different options for running a croft or smallholding including using your own land, buying or renting, with or without accommodation, or community agriculture
  5. how to evaluate different products and services that could be provided to create an income and decide if this is something you wish to do  
  6. the importance of identifying or establishing a market for any products or services, what competition there is and how you will find and supply your customers
  7. the climate and soil condition required for your chosen activities
  8. the amount of land required to accommodate your chosen activities, such as the number of animals, plus any increases from breeding stock, and the ca-pacity to rest or rotate the land used
  9. the recommended stocking rates for animals, plus any restrictions on stock-ing densities, and expected yields per acre/hectare for any intended crops
  10. where to look for available crofts or smallholdings and opportunities
  11. the need for access to public utilities and mains services, including broad-band, schools, shops, suppliers, doctors, other services or social provisions
  12. the equipment needed to run the smallholding and the cost
  13. how to plan the resources required to set up and run the croft or smallhold-ing, including finance and skills, and where these can be obtained
  14. the legal requirements and other business obligations to set up and run a croft or smallholding
  15. the useful sources of information and advice to help form your decisions 
  16. where to find information on grants, subsidies or other forms of funding or assistance that might be available


Scope/range


Scope Performance


Scope Knowledge


Values


Behaviours


Skills


Glossary


Legal requirements and business obligations including:

  • Obtaining holding registration, environmental requirements, waste regula-tions, operators’ licences, Scottish Environment Protection Agency (SEPA)
  • Defra regulations
  • Less Favoured Area Support Scheme (LFASS), Crofting Law together with township/Common Grazings Rules and Regulations 
  • Keeping animals involves registration, traceability, medicines records, movement and transport records
  • Animal health and welfare regulations (including transport of livestock)
  • Health and Safety regulations, Fire Regulations, hygiene regulations, public health regulations
  • Public Health regulations for visitors to your property
  • Trading standards, sale of goods 
  • Company returns, VAT and other financial records
  • Insurances
  • Requirements for training and certification

Information and advice could be obtained from e.g.

  • Breed organisations and societies, local associations, The National Farmers' Retail & Markets Association (FARMA), livestock market organisations
  • Local horticultural trade associations
  • Scottish Crofting Federation (SCF), National Farmers’ Union Scotland (NFUS), Forestry and Land Scotland (FLS), Scottish Tenant Farmers’ Asso-ciation, Scottish Agricultural College (SAC), NatureScot, land agents
  • National Farmers Union (NFU), Federation of Small Businesses (FSB), Tenant Farmers’ Association, Country Land & Business Association, HCC-Hybu Cig Cymru, AHDB, DEFRA, EBLEX, Farming Connect etc.
  • Agricultural Shows, Farmer’s markets, local livestock markets, local agricul-tural suppliers, agricultural press and websites (use with care and make sure information given applies in the UK), community websites
  • Internet discussion groups and social media (with caution)
  • Local Wildlife Trust, Farming and Wildlife Advisory Group (FWAG), Barn Owl Trust, RSPB etc 
  • Biofuel, windfarms, Soil Association, Organic farmers and Growers etc.
  • Banks, Business Gateway, Business support helpline on the gov.uk website, Crofting Commission, Defra, Scottish Government Rural Inspectorate and Payments Directorate (SGRIPD), Princes Trust, Highland & Islands Enter-prise (HIE)

Sources of finance could include: banks, existing assets, grants, sponsorship, franchises, partnerships.


Links To Other NOS


External Links


Version Number

2

Indicative Review Date

2027

Validity

Current

Status

Original

Originating Organisation

Lantra

Original URN

LANCSH1

Relevant Occupations

Crofter, Smallholder

SOC Code

5111

Keywords

business; croft; smallholding