Future prospects for land agents

Charles CowapMBA MRICS FAAV

Challenges for international professional practice:

From Market Value to Natural Value

Charles Cowap

Battleby, Perth

22 November 2012

Charles CowapMBA MRICS FAAVCharles CowapMBA MRICS FAAV

New land management Requirements are emerging

New markets

New challenges to professional practice


Peat’s Story



Context: Exmoor example

Exmoor

R Barle

R Exe

Wimbleball Resr & R Haddeo

ExebridgePumping Station

Replenishment PumpingApprox 5 miles, lifting water from 120 to 240 m AODCO 2


Top 10 Business Opportunities

1= Biodiversity Offsetting (BDO) and Conservation Banking• Estimated size of market £50 – 300 million

pa from housing, plus other sectors• Brokerage, certification and registration• Additional costs to builders/developers

deducted from land value

1= Peatland Carbon Code and Carbon Credits• Peat restoration for carbon storage• Management schemes and incentives• Certification and brokerage


2. Woodfuel and Woodburning Stoves

3. UK ecosystem knowledge economy

4. Layered PES– Different Environmental Services

to different buyers– Eg


6. Carbon sequestration

7. Sustainability certification– Opportunities for

intermediaries

8. Sustainable tourism


9= Global centre of excellence in ESS certification

9= Water re-use technology

11 Reducing insurance risk through green infrastructure

12 Environmental bonds

http://www.valuing-nature.net/opportunities-uk-business-protect-and-value-natures-services-report-published-today [accessed 19 July 2012]

http://www.valuing-nature.net/opportunities-uk-business-protect-and-value-natures-services-report-published-today




NEW VALUATION REQUIREMENTS ARE EMERGING




SOME WORK HAS BEEN DONE ALREADY





ECONOMIC APPRAISALWe face challenges to valuation



ECOSYSTEM SERVICESAnd Now




ECOSYSTEM SERVICES


APPROACHES FOR THE ESTIMATION OF NATURE’S VALUES

From TEEB Foundations, Chapter 5


Market Analysis

Group Valuation

Contingent Valuation

Cost Methods

Replacement Cost

Methods

Avoided Cost

Methods

Deliberative Valuation

Regime Shift Analysis

Insurance ValueResilience

Value Risk Analysis

Ecological Footprint

Mitigation Cost

MethodInput/Output

Analysis

Joint Analysis

Production Function


WHERE DOES IT FIT?Valuation


Foresight Land Use Futures 2010


Other key trends from the Foresight Report

Drivers:• Demographic Change• Economic growth(?),

changing global economic conditions

• Climate change• New technologies• Societal preferences and

attitudes• Policy and Regulatory

Framework


Other key trends from the Foresight Report

Lead to 3 key challenges

• + Demand for land in south-east

• Climate change and land use

• Delivery of public goods and services


Shorter term trends identified by Warwick Business School/Local Govt Association

• Ageing population

• Health

• Families in Crisis

• Climate Change

• Local Economic Development and Regeneration


Shorter term trends identified by Warwick Business School/Local Govt Association

Leading to:

• Diverse governance frameworks

• Different relationship between

– State (public)– Markets (private)– Civil Society (3rd Sector)


No future for land agents and agricultural valuers?


Source: http://charlescowap.wordpress.com 20.6.2012

http://charlescowap.wordpress.com/


And what they said

Business skills and knowledge• “It’s all about leadership, a psychological game more practised by

others in big offices and organisations”

• Difficulties in recruiting suitable chartered surveyors to top estate management positions

• Lacking in vital business areas like risk analysis and management

• Need to raise game: undergrad study not enough


Valuation

• Now the unique differentiation

• But threated by cheap and cheerful services, and DIY valuations by banks, accountants etc.

• And the emergence of eco-system/non-market valuation requirements???

“There are plenty of non-surveying professionals who, in my opinion, are ahead of surveyors in considering non-market values and eco-system services”


More specialisation

• Teamworking for complex client problems

• Competition or collaboration or complementarity – ‘co-opetition’

• Planning, valuation, tenancy advice, business consultancy

• Specialised agricultural and land administration

• Local knowledge a specialisation in itself?


We’ll always need land and farming

• Food, fuel, fibre

• Investment portfolios

• But who will do the work?

• “a little lycra under the tweed"

“with more competition for land for food, energy or ecosystems it will be a time of opportunity for land agents but they will need to be more expert at valuing uses and mediating choices and blends between them”


Changing nature of clients

• Client knowledge and intelligence UP

• Clients DIY

• Implications for – Assistant Work– Succession in firms

• Opportunities in project initiation and development– cooperation

In my recent dealings looking at 2 farms for rental tender I have found the land agents quite difficult to deal with … the number of questions I asked that went either unanswered or were answered with 'I don't know' was disconcerting.

There was also a strong feeling of being spoken down too, rather than on a par. I do feel in business that you need to have a strong aptitude to build lasting relationships with people as you never know when you may look for their help/advice in future and in too many cases I do find land agents speak as though they are of a higher order.


A Future?• Yes, But:• Hard work to get there and stay there• And different in many ways.

– Valuation– Management– Project initiatives: entrepreneur– Specialisation in networks

See More

Blog:


Storify:

http://storify.com/charlescowap/what-will-land-agents-and-agricultural-valuers-be







Key Questions for RICS

• Is this anything to do with us?

• Our Public Interest Function in this area?

• Our Member Services Function in this area?

• Our Global Positioning?

• What, if anything, needs to be done?


Thinkpiece

• Royal Charter– Promote the usefulness

of the profession to public advantage

• New opportunities in land management

• New ways of working in development

• New points to reflect in conventional valuations

• New types of valuation


And we should offer:

• Our expertise

• In Land Tenure and its relationship to land management and development

• Our experience of valuation in challenging commercial markets

• Our expertise in brokerage


Questions?

http://www.infuzionweb.com/sketches/wp-content/uploads/2007/06/clear-road-with-blue-sky-and-clouds-72dpi.jpg


Contact Details

Translating new knowledge for rural professional practice

[email protected]

07947 706505

Twitter: @charlescowap

Blog: http://charlescowap.wordpress.com/

Slideshare: http://www.slideshare.net/cdcowap


http://www.slideshare.net/cdcowap

http://www.slideshare.net/cdcowap

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Future prospects for land agents

Real Estate