Farming sector urges Ministers to accept constructive changes to new tenancy legislation

Press Release

Scottish Land & Estates, the rural business organisation, today urged Scottish Government Ministers to ‘act in the true interests’ of the tenant farming sector by accepting amendments to the Land Reform (Scotland) Bill that are supported by farmers and the majority of the agricultural sector.

The section of the Bill that affects agricultural tenancies includes provisions for new compensations arrangements for tenants when part of a tenancy is resumed. The measure would entitle tenants to a fixed half share of any increase in capital value of the land which might occur if the whole tenancy was ever to end. This would go against the principle that true compensation should leave the tenant no better and no worse off financially when an area of land is being resumed.

This measure was rejected by the agricultural sector and members of the Tenant Farming Advisory Forum. An alternative measure was put forward but the Scottish Tenant Farmers’ Association later withdrew its support.

As the Scottish Parliament prepares to debate the final stage of the Bill, new amendments have been tabled in an effort to find a compromise solution. These amendments have the support of NFUS, RICS, the Agricultural Law Association, CAAV, SAAVA and Scottish Land & Estates, together representing current and future landlords, tenants and their professional advisers.   

Jackie McCreery, legal adviser to Scottish Land & Estates, said: “There has been significant compromise across the sector on this issue and we hope that the Cabinet Secretary takes this on board for the sake of the tenant farming sector.

“As things stand, there is an artificial calculation when only a part is resumed and could include value which is over and above genuine compensation for the partial resumption – that is inherently unfair to the landlord and going beyond what most reasonable tenants would expect. 

“Amendments now being tabled would leave the principle of compensation based on value of the tenant’s interest in the lease but remove the most damaging and unfair aspects. All the organisations who support these amendments believe they are in the true interests of tenant farming. If we continue to pass legislation that is damaging in this way the outcome will be that the letting of land – which is already in decline – will be disincentivised even more and that is the opposite of what the Scottish Government says it wants to achieve.”