Landowners body Scottish Land and Estates (SLE) has called for the creation of a new cross-industry taskforce to look at developing share farming in Scotland.
It says the concept, which is already well established in the US, Australia and New Zealand, could give the next generation of farmers their first foot on the farming ladder, without the financial challenges faced by many through the existing tenancy system.
The plea is part of SLE’s submission to the Scottish Government’s Agricultural Holdings Legislation Review Group.
The minister-led review group, which is set to publish an interim report on its findings by June, was set up to develop recommendations for the future of Scotland’s tenanted farming sector.
It is looking at various issues, including whether tenants on traditional secure 1991 agricultural tenancies should be given the absolute right to buy. SLE chairman Luke Borwick said: “Whilst existing and historic issues in the tenant farming sector need to be addressed, the Agricultural Holdings Legislation Review Group is being faced with many contrasting viewpoints in an often polarised debate.”
He said positive measures needed to be put in place for the next generation of farmers to ensure their aspirations were not sidelined.
“One of the ways forward could well be share farming and we are appealing to other organisations in the sector to set up a group which would look specifically at what options may be available,” he added.
“No one is suggesting that this would be a panacea but share farming seems to deliver the dynamism, flexibility and business-partnership approach that many of us are trying to achieve in the agricultural system, and should be considered alongside the tenancy vehicles currently available. It offers an alternative way to encourage new entrants.”
He said share farming would require no legislative changes to be taken up by the sector.
“It is difficult for new entrants to finance a tenancy and it is also increasingly difficult for young farmers to make a living solely from farming a unit so we believe a close look at share farming could help,” Mr Borwick added.
“We will be contacting other organisations with a view to taking this forward in a spirit of co-operation. There is no better time for the industry to work together to see how this opportunity can be grasped.”
Under a share farming agreement, two parties jointly farm the same land, each making a specified contribution to the deal.
It typically involves the owner or tenant of farmland – the landowner – entering into a contract with a working farmer – the share farmer.
The landowner may provide the land and buildings, fixed equipment and machinery, while the share farmer provides labour, mobile machinery and his expertise. Other costs are shared and the produce is ultimately split between them.