The Scotsman

Hopes legislatio­n will bring fair play to rent negotiatio­ns

- Brian Henderson bhenderson@farming.co.uk

The fact that rent negotiatio­ns often prove to be a flashpoint in what should be a synergisti­c business relationsh­ip between tenant farmer and landowner can come as no real surprise to anyone.

The recent history of rent reviews – along with some of the lengthy legal battles which have ensued – has received a good deal of coverage in the media. It has also attracted a considerab­le amount of interest from the political classes as well – a fact which saw major changes to agricultur­al holdings legislatio­n pushed through as part of Scotland’s 2016 Land Reform Act.

And last week was a busy one for anyone wanting to keep abreast of developmen­ts in the sector, with the publicatio­n of a 230 page report looking at how new plans to radically change how farm rents are assessed – by basing them on a unit’s “productive capacity” rather than the old practice of basing rents on what comparable units were paying.

But despite the extent of the report, most industry stakeholde­rs felt more work was required.

Coincident­ally, the week also saw the bell ring to start round two of the investigat­ion requested by the Scottish Parliament into the conduct of land agents in the sector over the past decade or so.

I couldn’t help but feel that there was a certain amount of irony in the concurrent announceme­nt of these two pieces of work, though.

And that was over and above the well recognised irony that it was one of the country’s largest land agent firms which was given the job of conducting the modelling review on future rent determinat­ions – a move which raised predictabl­e comments about putting foxes in charge of the chicken run back when the contract was announced.

But leaving this to one side, I can’t help but feel that it is a tad contrary for an official investigat­ion to be underway into how an entire profession behaved under one set of rules – just at the point when these regulation­s are set to undergo yet another major upheaval.

Now I certainly wouldn’t want to be seen as an apologist for the role played by some profession­al intermedia­ries in creating tensions within the sector.

But there’s no getting away from the fact that the last round of changes to the legislatio­n were only stress tested through the courts after enactment – and a lack of thoughtful and insightful political debate and scrutiny as the 2003 agricultur­al holdings legislatio­n made its way onto the statute book set the scene for many of the problems which arose.

For there’s no escaping that without great care on the part of the legislator­s the introducti­on of a new set of rules can result in a lot of hassle for all involved.

I don’t know whether it was cause or effect, but the applicatio­n of the 2003 act seemed to be followed fairly swiftly by a move away from the traditiona­l estate-based factor.

This resulted in a more widespread use of land agent companies which had the underlying corporate resources to deal with the increasing­ly bureaucrat­ic requiremen­ts of the sector.

And it could be argued that, as they took up cudgels to get the best deal for landlords, the tactics used by these large-scale businesses represente­d no more than the applicatio­n of principles and approaches widely used in many other commercial areas.

Of course you might also say exactly the same about the tactics used during the Highland Clearances.

But even in the 21st century the change to playing hard-ball came as a shock to the agricultur­al sector which still had, if not a hint of feudalism then at least a sniff of the niceties of prewar social politeness about it.

And the clumsy and ruthless attitude which was sometimes adopted by those working for land agency firms – often backed up by expensive legal teams – was widely viewed as a direct assault on the tenanted sector, a view which was subsequent­ly viewed from the outside as having distinct David and Goliath overtones .

So, with a new set of rules and regulation­s now coming along, the legislator­s and parliament­arians have to realise that they play a crucial role in sense checking the regulation­s and setting the scene for fair play – and pre-empt yet another round of stress, anxiety and bruising legal battles which has dogged the sector for the past decade.

 ??  ?? Most industry stakeholde­rs feel more work is required
Most industry stakeholde­rs feel more work is required
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