New code may end uncertainty for limited partnership tenants

While there may only be just over 500 farming businesses still involved in limited partnership agreements, the publication of a code of practice for planning the future of those involved in such arrangements yesterday will directly address one of the areas of greatest contention between landlords and tenants.

Limited partnership tenancies were used as a means of circumventing security of tenure throughout the latter decades of the 20th century until changes to the holdings legislation introduced limited duration leases in 2003.

However, with the majority of these agreements now approaching their dissolution date, many limited partnership tenants have found themselves facing an uncertain future, with what effectively constitutes their lease coming to an end in what might be considered the middle of their farming careers.

While some landlords have rolled leases over to time-limited agreements which will last until the tenant retires, other highprofile cases have led to years of contention and legal wrangling, with the Scottish Government’s intervention during the early years of the new legislation leading to further problems and lengthy appeals.

However, the new code of practice, drawn up by tenant farming commissioner Dr Bob Mcintosh, is designed to take some of the uncertainty out of the issue and provide a framework for both sides to work together towards a satisfactory deal.

“It is important that discussions take place with plenty of time for both parties involved to discuss their aspirations before a final decision is agreed to the future of the partnership,” said Mcintosh.