The closing date for responses to the public consultation on Scottish Government proposals for the new Land Reform Bill has been extended by a month to October 30, so farmers who have been focused on harvest matters have a better opportunity to give their views.
While most of the expected tenancy reforms are contained in the separate Agriculture Bill consultation (the deadline is November 21), the reform bill contains significant measures that will affect tenant farming and tenants are urged to respond to both consultations.
The main thrust of the land reform measures appear aimed at “large-scale landholdings”.
Farm tenants on large estates, particularly those on the islands, will be well aware of potential negative impacts of concentrated ownership on their businesses and the wider local economy.
The proposals suggest a land holding will be large-scale if it is over 3,000ha; accounts for more than a fixed percentage of a local area; or is more than a minimum proportion of an inhabited island.
Proposals for Land Reform Bill
Such large-scale landholdings will be expected to comply with the Scottish Government’s Land Rights and Responsibilities Statement underpinned by statutory codes of practice and a complaints process for non-compliance. They will be expected to make public compulsory land management plans.
And they will be and subject to a public interest test applied should the landholding be transferred.
📣In a new blog series, our Chair @andrew_thin & Land Commissioners share their thoughts on why it's important for everyone to get involved in @scotgov's public consultation on proposals for a new Land Reform Bill. Read now ➡ https://t.co/8LoHKP4LQc #LandReform #LandReformBill pic.twitter.com/n2bIYni45e
— Scottish Land Commission (@ScottishLandCom) September 26, 2022
The proposals include a significant stick to be applied in the event of non-compliance by large-scale landholdings which is the withdrawal of public funding (eg agricultural, forestry and peatland grants). That will certainly focus landowners’ minds, especially if the stick also applied to breaches of the tenant farming codes of practice.
The establishment of the Scottish Land Commission and the Tenant Farming Commissioner in 2016 has improved relationships between landlords and tenants on many large estates. However, there are still some estates where management practices have failed to change through the voluntary approach.
New statutory proposals for large-scale holdings
These new statutory proposals for large-scale holdings will introduce a legal duty to comply with the Land Rights and Responsibilities Statement and associated codes of practice. There is some concern among tenants on lowland estates that the 3,000ha threshold is too high. With lowland tenanted holdings commonly being around 120ha in size, an estate with 20 or more farm tenants might not be classed as large-scale despite being a powerful local land monopoly.
The consultation will also interest tenant farmers who pay their rent to corporate bodies registered in offshore tax havens. Views are sought on whether all those acquiring land in Scotland and all recipients of land-based subsidies should be registered and liable to pay tax in the UK or EU.
An unexpected measure in the consultation paper is the proposal for a new type of tenancy called a Land Use Tenancy aimed at tenants wishing to undertake a combination of agricultural and non-agricultural activities.
There is little detail to comment on and this proposal has not come from any of the usual stakeholder bodies. The emerging view is the introduction of a new-style tenancy will require significant government resources to finalise and that time and effort would be better spent to ensure our existing tenancies, both secure and fixed-term, remain fit for purpose under future agricultural policy. Now harvest is over, tenant farmers should find time to respond to the Land Reform Bill consultation, either as individuals or though organisations such as STFA.
Christopher Nicholson is chair of the Scottish Tenant Farmers’ Association
Conversation