VOLUNTARY GUIDELINES to help both farm landlords and farm tenants properly and promptly fulfil the obligations of their tenancies have been issued by the three industry bodies that represent the sector.
NFU Scotland, Scottish Land and Estates and the Scottish Tenant Farmers Association have already jointly issued similar advice in relation to limited partnerships, rent reviews and tenants’ improvements.
This latest co-operatively concocted missive aims to help landlords and tenants agree a planned approach to fulfilling their respective obligations "promptly and on a collaborative basis".
Assuming a 'typical' agricultural lease where the landlord is responsible for replacing and renewing worn out assets, and the tenant is responsible for keeping assets in good order through effective maintenance and repair, the guidance outlines good practice principles that landlords and tenants are expected to adhere to, and recommends a triennial planning cycle for fulfilling obligations so as to align with rent reviews.
NFUS president Allan Bowie said: “This guidance is a welcome step forward. The productivity of Scottish agriculture depends on farmers having access to land and fixed equipment that are in optimal condition, and landlords or tenants who do not fulfil their obligations promptly risk undermining the success of our industry”.
SLE chairman David Johnstone emphasised his organisation’s support for the guidance: “Landlords are in the business of providing capital assets so that tenants can use them to generate an income and pay an appropriate level of rent in return.
"Any slippage in fulfilling obligations by either party could reduce the income generating capacity of these assets to the detriment of both parties”.
STFA chairman Chris Nicholson also emphasised the theme of productivity on tenanted farms: “Despite very high levels of innovation and skill in the tenanted sector, productivity and incomes are sometimes held back by a failure to fulfil obligations promptly leading to dilapidated assets. Both parties have a responsibility to address this issue, and the systematic common-sense approach recommended in the guidance will be welcomed by tenants”.
The guidance was prepared with support from the Scottish Government’s Independent Adviser on Tenant Farming, Andrew Thin.
Copies are now available from the NFUS, SLaE and STFA, or may be downloaded from www.gov.scot/Topics/farmingrural/Agriculture/agricultural-holdings/Tenant-Farming-Adviser
- For in-depth news and views on Scottish agriculture, see this Friday’s issue of The Scottish Farmer or visit www.thescottishfarmer.co.uk
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