Royal Highland Show 2014: Lochhead pledges to reverse Scots tenant farming decline

The Scottish government has set out its thinking for the future of the tenant farming sector with the launch of an interim agricultural holdings report that calls for a more transparent rent review system, a widening of succession rights for secure tenancies and better opportunities for new entrants.

The Agricultural Holdings Legislation Review Group, which has taken evidence from landlords and tenants during the past six months, will now spend the rest of the year developing specific recommendations before issuing its final report.

The interim report, which was launched at the Royal Highland Show, focused on the Scottish government’s concern that shorter leases are replacing longer letting arrangements and that Scotland has one of the lowest proportions of rented land anywhere in Europe.

See more: Read more news from the 2014 Royal Highland Show

Speaking at the Highland Show, rural affairs secretary Richard Lochhead said he was determined to do all he could to reverse the decline of the tenant farming sector.

“No industry can expect to flourish when there are such significant barriers to new entrants and successful businesses that want to improve, diversify and expand,” he said.

“This interim report provides a firm basis for the detailed thinking that needs to be done to overcome the challenges we face, which extend well beyond the reach of government.”

The Scottish Tenant Farmers’ Association (STFA) welcomed the report as a “step in the right direction”. In the light of recent rent review cases the STFA praised the review group’s commitment to making the process more transparent and having rents reflect the nature of the farm and activities undertaken on the holding.

The report makes it clear that the controversial option of an absolute right to buy could still be on the cards for Scottish tenant farmers in possession of a secure 1991 tenancy.

The review group is also to assess the experiences in other countries where the right has been extended and provide an analysis of the wider implications of such a move for the Scottish economy beyond the agricultural sector.

Other issues that will be examined by the review group over the next six months include:

• Investment: Finding ways of allowing landlords and tenants to invest with equal opportunity and confidence
  
• Improvements, compensation and waygo: Investigating ways of avoiding lengthy periods of negotiation at waygo
  
• Retirement and releasing land to tenancy: Finding ways of supporting tenants who wish to retire, and create turnover in tenanted holdings so that new entrants in particular have access to land
  
• Succession for secure 1991 Act tenancies: Examining widening the rights of succession
  
• Letting vehicles for the 21st century: Examining a range of flexible tenancy options to suit diverse business needs and evolving economic circumstances
  
• New entrants: Considering a range of measures to encourage and facilitate the contribution new entrants make
  
• Landlord-tenant relationships: Considering ways of improving the nature of the relationship and making it more collaborative and constructive.