In responding to the Scottish Government's consultation on the Law of Succession the Scottish Tenant Farmers Association (STFA) has called for agricultural leases to be excluded from the proposed changes to succession rules.

STFA chairman, Christopher Nicholson said: "STFA has no objection to the principle of the abolition of the distinction between moveable and immovable property in domestic law, but has concerns as to the impact this may have on agricultural businesses, specifically tenanted units.

"Scotland's 6000 heritable tenancies will be particularly hard hit if a value is attributed to the tenancy from which relatives not involved in the farming business can claim a share. At the moment a farm lease cannot be traded and therefore has only a notional value for tax purposes. The potential value of the tenant's interest in a lease is thought to be around 30 per cent of the open market value of the farm, and if this value is taken into account as part of the estate of a deceased tenant, his successor could be faced with a crippling bill in settling claims for legal shares in the estate.

"Whereas an owner occupier can sell off parcels of land to settle such claims, a tenant has only his trading stock to sell with potentially catastrophic consequences for the business.

"Imposing such a liability on a tenanted business is at odds with the thrust of the current agricultural holdings bill which seeks to widen the class of relatives entitled to succeed to a tenanted holding. It makes no sense to encourage wider family succession on one hand whilst compromising the viability of the new business where the new tenant is faced with the prospect of paying relatives out from a lease which has no realisable value."

Market round-up

Lawrie & Symington Ltd sold 151 store heifers in Lanark on Tuesday to a top of £1210 per head and 241p per kg to average £866.15 and 201p (-8.3p on the fortnight), while 190 store, beef-bred bullocks peaked at £1240 and 238p to level at £957 and 205p (-14.9p). Thirty-seven store, dairy-bred bullocks sold to £780 and 164p to average £662.59 and 145p (-7.8p).

C&D Auction Marts Ltd had 6553 store lambs forward at their weekly sale in Longtown on Tuesday that included special sales of 2543 Cheviots and 1278 Blackfaces. Cheviots sold to £56 and averaged £47.66 (-£3.05 on the week), while Blackfaces peaked at £55.50 and levelled at £40.94 (-£2.82). Top prices and averages for some other selected breeds: Suffolks £56.50 and £52.32 (-65p); Texels £64 and £52.95 (-25p); Greyfaces £56 and £46.08 (no change).