What future for land agents and agricultural valuers?

Charles CowapMBA MRICS FAAV

Future challenges for rural professional practiceRICS Rural Conference

Cirencester

21 June 2012

Charles Cowap

Chartered Surveyor

Harper Adams University College

Charles CowapMBA MRICS FAAVCharles CowapMBA MRICS FAAV

NEW VALUATION REQUIREMENTS ARE EMERGING


SOME WORK HAS BEEN DONE ALREADY


ECONOMIC APPRAISALWe face challenges to valuation


ECOSYSTEM SERVICESAnd Now


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


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?


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







Contact Details

In-house CPD programmes, professional-technical updates, organisational consultancy, and more:

[email protected]

07947 706505

Twitter: @charlescowap

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

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


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What future for land agents and agricultural valuers?

Real Estate

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