FARM TENANCY legislation should be 'broadened' to enable farmers in secure tenancies to pass the farm down the family line.
Writing to the Scottish Parliament’s Rural Affairs, Climate Change and Environment Committee this week to voice its support for legislation opening up the definition of an eligible tenancy successor, the National Farmers Union Scotland also stated that the law should be changed to make it possible for secure '1991 act' tenancies to be converted to Modern Limited Duration Tenancies, with the ability to be sold on the open market for a 35 year term.
The union said that it had extensively consulted with its membership throughout the process of the Land Reform Bill, and had reached similar conclusions to those held by the expert Agricultural Holdings Legislation Review Group with regard to 91 act tenancies..
NFUS president Allan Bowie believes that a MLDT conversion option would help achieve the oft-stated goal of more land becoming available for rent, and that land being made available on a longer-term basis, rather than the short-term leases that have proliferated as relations between landlords and tenants have been strained by the ongoing tensions in the sector.
Recognising that whilst secure tenants are largely in favour of Scottish Government’s proposed amendment to section 79 of the Land Reform Bill, the view taken reflects that contention over rent reviews, the practices of land agents, and uncertainty over achieving a fair reflection of investment during the waygo process are all being addressed by the Bill.
Mr Bowie commented: “This Bill must strive to ensure that the right conditions exist to support long term letting and that confidence within the sector is restored to ensure that short term lets are no longer the default letting option. Whilst short term lets have their place, the current situation where they are the default option is something which is not beneficial for the industry.
“There is strong support within the industry for secure tenancies, and we recognise the contribution that these tenancies make to the fabric of Scottish agriculture. We have welcomed proposals in the Bill that will modernise the rules of succession and will enable tenants in secure tenancies to pass the farm down the family line.
“We agree with the Agricultural Holdings Legislation Review Group that in balancing the interests of maintaining the supply of tenanted land, all secure 91 act tenancies should be able to be converted to a Modern Limited Duration Tenancy with the ability to be sold on the open market for a 35-year term.
“This will provide the tenant - with or without a successor - the ability to realise a capital payment for their lease without turning landlord behaviour to be increasingly defensive.”
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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