The potential threat of a reform-induced land grab is considerably stifling the availability of agricultural tenancies on Scotland’s privately owned land and estates, according to research by Scottish Land and Estates (SLE).
Almost 50% of land and estate owners surveyed cited land reform and political uncertainty as the greatest barriers to economic progression.
“It is no surprise to find that this subject was causing concern and uncertainty to estate owners and managers,” said Rural Solutions director Rob Hindle, who led the study.
He said the issue repeatedly surfaced when landowners were asked what was currently influencing their management decisions and investment opportunities.
“We were told again and again that one big issue is land tenure – with many estates opting to take and keep land in hand,” said Mr Hindle at the SLE spring conference in Edinburgh yesterday.
Responding to the survey and related interview process, one estate owner said: “We’ve taken more land in-hand in the last 18 months.
“The antics of the Scottish Parliament and the government leaves me with no confidence in them. If we get the opportunity to get more in-hand that is what we will do. One would like to be creating opportunities for people of talent and drive who want to go into the industry but you can’t do that.”
Mr Hindle said similar responses also indicated that land reform was blocking investment in both land and infrastructure where there is a full agricultural tenancy – as this is increasingly seen as an area of high risk.
“If you invest a sum of money and it’s a secured tenancy, immediately that capital sum is devalued because there’s a sitting tenant who could purchase it at a discounted rate,” one landowner said.
Another responded: “I’ve got three farms coming back in-hand this year and I will grass park probably and just see what happens.”
Providing the keynote speech for the conference, Finance Secretary John Swinney was pressed to explain the Scottish Government’s current stance towards Scottish land ownership.
Asked whether he could provide any kind of assurance to SLE members that there will not be some kind of land grab on the horizon, Mr Swinney said the land reform process and Agricultural Holdings Review Group are both high on the political agenda.
“Both of these processes are taking their course,” he said. “They are by no means concluded and whatever they come up with will be the subject of consultation going forwards.
Conceding the issue is “enormously emotive” for a very great number of people, Mr Swinney admitted that for estate owners, it will be a case of “just waiting to see what comes out of the review process”.