TENANT FARMING FORUM AGREES TENANCY PACKAGE

Issued on behalf of the Tenant Farming Forum

Following a meeting today (Thursday, 20 August) between the Tenant Farming Forum (TFF) and the Scottish Cabinet Secretary for Rural Affairs, Richard Lochhead, the TFF agreed on a new tenancy package for Scotland.

At the meeting, the Cabinet Secretary expressed his appreciation of the progress that had been made by the TFF in reviewing the Agricultural Holdings (Scotland) Act 2003 regarding the need to find ways of making more land available to let to new tenants. He encouraged the TFF to agree proposals to make such changes as it thought necessary to the 2003 Act, particularly in relation to term length, that would improve the probability of this happening.

Following this meeting, and further discussion, the TFF agreed unanimously to recommend to the Cabinet Secretary a package of improvements to the 2003 Act. These include a recommendation that the minimum term of a Limited Duration Tenancy (LDT) be reduced to 10 years; and that the maximum length of a Short Limited Duration Tenancy (SLDT) should remain at 5 years. However, at any time during the period of an SLDT, it is proposed, by agreement between the landowner and tenant, the lease can be converted to a minimum 10 year LDT. This 10 years will be taken to have started on the start date of the SLDT

The TFF also recommends changes to some of the accompanying provisions which it believes will also increase the probability of more land becoming available to let and provide greater security and confidence for landlord and tenant. In particular, the package will include alterations to the Act concerning fixed equipment, procedures relating to permission and compensation for improvements, rent review post – lease agreements and the two-man rule.

The TFF chairman, Jeff Maxwell said:
“As a body representing the landlord and tenant interests, we are confident that our proposal will strengthen the provision of the landlord /tenant sector and its contribution to the Scottish agricultural industry”.

“The TFF continues to work on the details of its proposals and will present these to the Cabinet Secretary in the next two to three weeks. Further details of the recommendations will be published on the TFF web-site in due course.”