SCOTLAND'S extraordinary period of prolonged sunny weather has been greeted as a godsend by the public as they have hit the country's parks and beaches – yet for most farmers, the heatwave's effects will be far reaching, long-term and costly.

But according to Savills food and farming consultant Gordon McConachie, who also operates a 4700 acre farm in Speyside, this reminder of how precious a resource water is should be grasped as an opportunity to improve its management and perhaps even its commercial worth.

"There are concerns about springs and watercourses drying up altogether and causing problems with grazing, and livestock having to be moved – not mention hydro schemes not working," reported Mr McConachie. "All this has resulted in vast amounts of extra work for farmers, with a knock-on impact on future farm profits.

"Many see livestock prices collapsing due to shortages of feed and fodder supplies. Spring cereal yields are looking light in many areas, although future prices for wheat are likely to be more positive in the light of possible supply shortages.

"More than 1490mm of rain fell on Scottish land last year, 55% more than south of the border, and 90% of the UK’s water supply is based in Scotland. Hindsight is a wonderful thing, but in times of plenty here in Scotland we are profligate with our water resource – the summer has seen 57 days without rain in some Scottish locations, revealing major flaws in this practice.

“I have had to invest time and money in buying new equipment and pumping water from the Spey into my fields. I hope this means I will be better prepared in future as research tells us that water shortages are only to become more acute.”

Mr McConachie pointed out that a UK Government national adaption plan estimates between 27 million and 59 million people in Britain will be living in areas affected by water shortage by 2050. Water use has grown by 50% in the past 25 years in the UK and global demand for water is predicted to outstrip supply by 40% over the next 20 years.

He suggested that this situation leaves Scotland with an interesting challenge – how to prosper from one of its potentially most abundant natural resources by conserving and managing water in times of plenty, and ultimately selling excess supplies to other markets.

"The technical and physical constraints of developing a cross-border water system should not be underplayed, but even so recent legislation on both sides of the border recognises the possibility of just such an eventuality.

"There is an increasing understanding that water is an important part of our natural capital. The Water Resources Act designated Scotland as a ‘Hydro Nation’ and ministers are now duty-bound to realise its potential."

The global water industry is certainly a lucrative sector, estimated to be worth £240-440 billion. There are currently more than 300 companies active in the Scottish industry supplying water to businesses under recent deregulation of the sector. These range from selling bottled water through to producing and exporting essential technology such as pumps and valves.

Improving Scotland's expertise in water management and purification will be key to its future as a successful hydro nation, he predicted. as clean water will become increasingly rare and expensive, so appropriate cultivation techniques, along with water flow and nitrate management, will all become increasingly important.

Mr McConachie noted that making the most of Scotland’s water would create challenges as well as opportunities, particularly for landowners and land managers who are already expected to deliver on a bewildering number of fronts, from pesticide management and nitrate directives to flood protection and peatland restoration.

Meanwhile, reservoir liability is getting tighter and trickier, as Savills strategic projects director Guy Russell noted: “Scottish Water themselves are all too aware of the responsibilities and have activated economies of scale by either selling off or draining smaller reservoirs and investing in larger ones, complete with state of the art water treatment facilities. Independent suppliers to the market need to prove they are not contaminating public supply by putting checks and measures in place.”