Tenants’ improvements avoid risk of conflict with landlords
farmers have a chance to set clear terms with landlords on which farm improvements are liable for compensation.
Speaking at the Scottish Agricultural Arbiters & Valuers Association annual field day in Midlothian last week, the organisation’s president Rob Forrest discussed the upcoming opportunity for tenants and landlords to establish amnesty agreements.
‘Under the Land Reform Act, and starting on June 13 this year, we now have a temporary opportunity to regularise the position for existing improvements on tenanted farms,’ he explained. ‘I strongly encourage all tenants to use this chance to get their house in order and establish the compensation terms of any improvements made.
‘Simply, we now have a three-year window in which landlords and tenants can agree on which improvements are compensatable when the tenancy ends. Any improvements made from this year will require the tenant to adhere to statutory procedures, which offers more clarity for all parties for future improvements.’
Jeremy Moody, secretary and adviser to the Central Association of Agricultural Valuers, added, ‘It must be made clear that the amnesty only determines what improvements are eligible for compensation and does not agree value.
‘That can only be established when the tenancy ends, maybe in decades. Nor will it lead to any immediate payments.
‘The opportunity to establish clarity as to what is compensatable is a very positive development for landlord and tenant relations and, as good housekeeping, could save risks of future conflict and legal procedures. I highly recommend all tenants and landlords to act on this chance to agree terms, so all parties are clear on their position and effective business planning can be made with an accurate knowledge of the position.’