THE Scottish Tenant Farmers Association (STFA) has made an initial submission to the Agricultural Holdings Legislation Review Group (AHLRG), based on their recent survey of members.

As reported recently in The Herald, the survey - when more than half the STFA membership responded - shows a strong desire amongst tenants for land and tenancy reform in Scotland.

After meeting with the AHLRG, STFA chairman Christopher Nicholson said: "It is clear that the current tenancy legislation is failing to provide a platform which can support the high levels of investment in infrastructure required for businesses to remain competitive in modern agriculture."

The survey revealed that 46% of respondents have had no landlord investment in the past 10 years, and 85% believe that as tenants they will not receive fair compensation for their improvements at way-go (leaving the farm).

According to Mr Nicholson, these results point to an unhealthy sate of affairs in the tenanted sector which require solutions beyond tinkering with existing legislation.

"An analysis of the survey results show that landlord investment is the key factor that creates healthy tenancies," said Mr Nicholson. He went on to explain: "The 13% of respondents with landlords willing to make investments when necessary have attitudes, experiences and relationships which set them apart from the remaining 87%; they are four times more likely to have a good relationship with their landlord, twice as likely to have diversified and three times more likely not to have had a diversification project objected to by their landlord."

Recognising impasse in the tenanted sector, the STFA is developing proposals for the use of an absolute right-to-buy (ARTB) in cases where there is a clear public interest argument.

It is also proposing that secure tenancies become freely assignable, which would help to put tenants on a more level playing field with regard to ability to invest in their holdings, as well as providing access to holdings with secure tenure for new entrants.

With an assignable lease the value of the tenant's improvements would be reflected in the value of the lease which, if freely assignable, could be used as a standard security with a bank.

"This would vastly improve a tenant's ability to borrow, and for the first time allow a tenant to benefit fully from the value of the improvements.

Furthermore, according to STFA, instead of relying on compensation for improvements from a reluctant landlord at way-go, the tenant would have the option to assign their leases for value to a third party.

Commenting on the future of the tenanted sector, Mr Nicholson went on: "In the event of the Scottish Government introducing ARTB it is highly likely that not all tenants will buy their farms and there will be a continuing need for a tenanted sector - so it is vital that we remedy current shortcomings."