Farming groups have warned that controversial tenancy proposals in Scotland’s new land reform bill could undermine confidence, deter land letting, and damage the future of tenant farming unless ministers agree to key changes backed by the industry.
Scottish Land & Estates (SLE) has urged ministers to “act in the true interests of the tenant farming sector” by accepting compromise amendments to the Land Reform (Scotland) Bill that have been supported by a broad coalition of farming bodies.
The bill forms part of the Scottish government’s wider programme to modernise rural land ownership and management. The controversial section of it sets out new rules on compensation when part of a tenancy is resumed by a landlord.
Under the current proposal, tenants would be entitled to a fixed half share of any increase in the capital value of the land if the whole tenancy were to end.
Critics argue that this goes beyond fair compensation, which should ensure the tenant is left “no better and no worse off” financially when land is resumed.
The proposal has already been rejected by most of the agricultural sector and the Tenant Farming Advisory Forum. An alternative arrangement was suggested, but later lost the backing of the Scottish Tenant Farmers’ Association.
As the legislation moves to its final stage in Holyrood, a fresh set of amendments has been tabled to seek a middle ground.
The revisions have been jointly supported by the NFU Scotland, RICS, the Agricultural Law Association, CAAV, SAAVA, and Scottish Land & Estates — a rare show of unity between landlords, tenants and their advisers.
Jackie McCreery, legal adviser to SLE, said the new amendments represent a balanced and workable solution. “There has been significant compromise across the sector on this issue and we hope that the Cabinet Secretary takes this on board for the sake of the tenant farming sector,” she said.
She warned that the current drafting creates “an artificial calculation” which could include value “over and above genuine compensation for the partial resumption” — something she described as “inherently unfair to the landlord” and beyond what most reasonable tenants would expect.
“The amendments now being tabled would leave the principle of compensation based on the value of the tenant’s interest in the lease but remove the most damaging and unfair aspects,” McCreery added. “All the organisations who support these amendments believe they are in the true interests of tenant farming.”
SLE and its partners argue that, without changes, the bill risks discouraging landowners from letting property — undermining the government’s stated goal of expanding opportunities for new entrants and tenant farmers.
Industry groups say ministers now have a clear chance to strike a fair balance that protects both tenants’ rights and future land availability.
