A group of estates have written an open letter to Cabinet Secretary Richard Lochhead criticising Scottish Government proposals to give secure agricultural tenants the right to assign their tenancies to new secure tenants, instead of the conversion model recommended by the Cabinet Secretary's own Review Group.

The signatories to the letter, representing the estates of Atholl, Buccleuch, Dormont, Dunecht, Dunfallandy, Kirkdale and Moray, and the MacRobert Trust, say they are united by fear of what may become of the tenant farming sector in Scotland should certain proposed amendments to the Bill in relation to agricultural holdings go ahead.

"In particular, the proposal to enable tenants to assign their tenancies to new secure tenants, coupled with the widening of rights to succeed to secure tenancies, is another serious and destructive blow to tenant farming."

The letter goes on to warn: "From every angle this measure looks like a fundamental breach of property rights and one that is much more likely to face challenge than the alternative conversion model which most of the industry, including ourselves, could accept. We all know the damage that flawed legislation can do and no-one wants to see any repeat of that in Scottish farming, an industry that is already facing enough significant challenges on several fronts.

We make the point that this is not a "threat" from landlords, but a view on the importance of striking the right balance of property rights."

Scottish Tenant Farmers Association (STFA) Chairman Christopher Nicholson hit back saying: "This proposal is well thought out, recognising both the landlord's and tenant's property interests, and includes measures to ensure fairness to both parties and compliance with ECHR (European Court of Human Rights)."

Mr Nicholson went on: "STFA is concerned that there appears to be considerable misunderstanding within the industry around the proposed assignation measure. In a steadily declining tenanted sector increasingly bereft of opportunities, recent press claims by a small minority of Scottish estates is proof of the dogged resistance of some landlords to deny agricultural opportunity in the wider public interest. The assignation proposal appears to have been deliberately misinterpreted by some to scaremonger in a blatant attempt to undermine the proposal at the first opportunity.

"Contrary to press claims by these estates, the valuation of the tenant's interest in their lease and improvements will not disadvantage landlords with the expectation of gaining vacant possession of a holding where the tenant has no successor. The valuation method proposed takes account of when a landlord would otherwise have been likely to recover vacant possession from the tenant, and if the tenant is nearing retirement without successors the vacant possession premium will be minimal and the cost to the landlord will be no more than their current obligation to compensate for tenant's improvements."

A Scottish Government spokeswoman said: “The agricultural holdings provisions in the Land Reform Bill have been designed as a package of measures to improve security and investment conditions for existing tenants, to deliver the environment to create tenancies for new entrants, and to ensure an appropriate balance between tenants’ and landlords’ rights in the context of the wider public interest.”

She added: “The Scottish Government believes that the new resumption and assignation process will more closely meet these key objectives. It will give a secure route out of farming for those who don’t have an eligible successor and open up opportunities for new entrants, helping to support a vibrant and productive tenanted sector.

“It also creates a new opportunity for landlords, giving them the chance to buy out the tenant’s interest instead of the tenancy being assigned. We have been engaging with stakeholders, including Scottish Land and Estates, on the development of the new policy, and have welcomed their feedback in helping us to refine the details.”

Scottish Government pulls plug on YFC funding

The Scottish Government has withdrawn financial support for Scotland's largest rural youth organisation, the Scottish Association of Young Farmers' Clubs (SAYFC).

The loss of the annual grant of £66,000, which is managed by the Department for Children and Young People, will result in a 13 per cent reduction in SAYFC income.

This is the first time in nearly seventy years that SAYFC will receive no financial support from the Scottish Government impacting more than 3,500 members across Scotland. The association, which supports individuals ranging from 14 to 30 years of age, provides personal development through their network via events, competitions, training and travel. This helps reduce rural isolation and increases individual's confidence and skills, which benefit them throughout life.

Market round-up

Lawrie & Symington Ltd had 181 store cattle forward in Lanark on Tuesday when heifers sold to £1180 per head and 219.3p per kg to average £824.43 and 182.2p, while bullocks peaked at £1220 and 227.6p to level at £837.27 and 178.6p.