Leading organisations representing landlords and tenants from across the country have launched new guidance on agreeing and recording tenant-financed investments on farms in Scotland.
The guidance is based on existing legislation which allows the tenant to invest in the farm and claim compensation for some investments when the lease ends.
In some cases the consent of the landlord is required before the investment can proceed, and disagreements sometimes arise about the kind of investment that should be allowable.
The guidance describes the investments that should be permitted under three broad headings:
* Investment in fixed equipment or land improvement which is reasonable and desirable on agricultural grounds for the efficient management of the holding.
* Upgrading living accommodation to a reasonable level compatible with modern standards and expectations.
* Environmental enhancement or business diversification where the investment is being encouraged and financially supported through a Scottish Government promoted scheme.
Scottish Tenant Farming Association (STFA) chairman Chris Nicholson emphasised the theme of productivity on tenanted farms saying: "It can be very difficult for tenants to raise long-term capital, and clarity about future compensation rights is a vital part of investment security. In my lifetime I have seen an extraordinary increase in the proportion of farm investment coming from tenants, and agricultural productivity in Scotland now depends heavily on tenants being able to do this going forward."
Rural Affairs Secretary Richard Lochhead welcomed the move saying: "This new guidance should mean improved fairness, greater clarity and less scope for conflict between landlords and tenant farmers conducting rent reviews."
A copy of the guidance can be sought from Andrew Thin at www.gov.scot/Topics/farmingrural/Agriculture/agriculture-holdings/Tenant-Farming-Adviser.
Market round-up
C&D Auction Marts Ltd had 21 prime cattle forward in Dumfries on Wednesday when heifers sold to 202.5p per kg and averaged 186.4p, while bullocks peaked at 195.5p and levelled at 175.1p.
There were 99 OTM cattle presented in the rough ring when beef cows averaged 115.2p and dairy cows levelled at 76.1p.
The firm also sold 908 prime lambs to a top of £72 per head and 160p per kg to average 137.5p (-7.8p on the week).
The 634 cast sheep forward saw heavy ewes sell to £98.50 for a Texel and average £57.44 (-£4.49), while light ewes peaked at £53.50 for Cheviots and levelled at £40.45 (-£4.34).
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