Schedule 5 overhaul is overdue, says SAAVA

Land agents body SAAVA has called for an urgent overhaul of the list of tenant farmers’ improvements that qualify for compensation once the tenant leaves the farm.

SAAVA, the Scottish Agricultural Arbiters Valuers Association, says the current list of eligible improvements, which is officially called Schedule 5, must be redefined to make it relevant to current farming businesses.

Association president Rob Forrest said updates to Schedule 5 must be made as soon as possible so tenants can register them during the current amnesty period.

Mr Forrest said: “In June, landlords and tenants were offered a three-year window to agree an amnesty on which specific improvements are compensatable when the tenancy ends.

“Any improvements made from this year will require the tenant to adhere to statutory procedures.

“The opportunity to establish clarity as to what is compensatable has been, and will be, a very positive development for landlord and tenant relations over the next three years.

“However, what has become apparent are ‘omissions’ in the list of improvements that qualify.”

He said the Act, in which Schedule 5 is contained, was formed nearly 70 years ago and as such it does not include some significant modern improvements which tenants may have made.

For example, the list of improvements eligible for compensation at waygo does not include slurry stores – a vital piece of infrastructure needed for a modern day livestock enterprise.

“Clearly, some items have involved significant investment from the tenant and it is vital that they are able to establish the compensation terms of any improvements made,” added Mr Forrest.

“This is why SAAVA want to ensure that the list is well debated and any required additions to the current Schedule 5 are made.”

A Scottish Government spokesman said Schedule 5 was under review.

He said: “The Tenant Farming Commissioner is producing a report setting out recommendations for a modern list of improvements to agricultural holdings, and he will speak to all stakeholders, including SAAVA, in the course of this work.

“Following consideration of the report we will update Schedule 5.”

Rob Forrest wants to see a better deal for tenant farmers.