New farm tenancy code is ‘simple and practical’

A new code of practice for agreeing and managing agricultural leases has been issued by Scotland’s Tenant Farming Commissioner (TFC), Bob Mcintosh, following full consultation with the country’s farming and landowning organisations.

Intended to ensure “robust procedures” are in place to avoid misunderstandings when a lease is entered into, the new code is described by Mr Mcintosh as providing simple principles and practices for tenant farmers and landlords to follow.

He said: “A decision to sign up to an agricultural lease is one which results in responsibilities and liabilities and should not be taken lightly and without considering the full consequences and implications. Time should be allowed for both parties to negotiate, agree and understand the terms of the lease and, in the case of fixed duration leases, it’s important both parties are clear about what’s likely to happen when the lease has reached the end of its term.

“Misunderstandings, disagreements and disappointments often occur during the lease as verbal agreements are not followed up in writing so it is essential any agreements are properly recorded.”

He also said ending a fixed duration lease can be a difficult outcome for the tenant, making it important that talks take place in good time about prospects for renewal, or the consequences for both parties of a decision not to renew.

The code has been developed with the Scottish Tenant Farmers Association, NFU Scotland, Scottish Land & Estates, the Royal Institution of Chartered Surveyors and the Scottish Agricultural Arbiters and Valuers Association (SAAVA).