1. Jimmy McLean Head of Agricultural Services The Royal Bank of Scotland Group New Entrants Summit 12 September 2012

2. Scottish Farming Balance Sheet ASSETS£b Land and buildings32.3 Plant, machinery and vehicles1.0 Breeding livestock1.1 Other2.0 36.4 LIABILITIES Loans and mortgages0.9 Overdrafts0.8 Other credit0.5 2.2 NET WORTH34.2 Source: Scottish Government

3. New Entrants New to sector Successor – with other beneficiaries to pay out Sole Successor

4. Scottish TIFF

5. Scottish Farming Balance Sheet ASSETS£b Land and buildings32.3 Plant, machinery and vehicles1.0 Breeding livestock1.1 Other2.0 36.4 LIABILITIES Loans and mortgages0.9 Overdrafts0.8 Other credit0.5 2.2 NET WORTH34.2 Source: Scottish Government

6. Financial Plan Profit ↕ Cash ↕ Capital

7. Owner Equity Percentage of Business Owned Net Worth divided by Total Assets Tenant - 50% Owner Occupier - 70%

8. Profit and Loss Account

9. Cash Managing the Cashflow

10. Risk Recognise the risk Manage the risk –Training/qualifications –Experience –Business Plan –Sensitivity Analysis –Potential Exit Strategy

11. Final Thoughts Business Training for Succession Availability of Tenancies Lack of Share Farming Opportunities Bespoke Loan Guarantee Schemes