Ireland offers example for Scots tenant farmers
Despite changes introduced through the recent Land Reform Bill aimed at tackling the issue, Scotland’s tenant farming sector continues to shrink.
However, changes to the taxation system in the Republic of Ireland have seen the number of tenancy arrangements increase by 30 per cent, and the amount of rented land coming onto the market increase by more than 50 per cent in the first year.
That was the message given by legislative specialist Jeremy Moody at a seminar organised by the Scottish Land Commission which looked at opportunities for improving access to land for new entrants and those seeking to step up the farming ladder.
Moody, who is secretary and adviser to the Central Association of Agricultural Valuers said that the Irish authorities had introduced tax relief of up to €40,000 for “arms-length” (ie, not to family members) rentals of land. The level of relief increased as the rental period was extended to seven, ten and 15 years.
Moody said: “The Irish experience shows that encouraging land rental through the tax system is more than just a nice idea – it gives us the evidence that such an approach can, indeed work.”
He said that many of these agreements were based on freedom of contract arrangements which allowed the parties to develop an agreement which suited them both.
Dr Bob Mcintosh, the Scottish Tenant Farming Commissioner, who chaired the event, said that it was time for the industry to discuss a range of options to increase land availability for new entrants as a means of increasing the productivity and sustainability of the sector.
Sarah Allison, vice-chairwoman of NFU Scotland’s next generation committee, told the seminar that there was a growing call in Scotland for the two parties involved in drawing up an agreement which would allow the parties involved to work out what suited them best.
“At the moment much of the tenancy legislation is overly proscriptive and greater flexibility is needed in order to see a more vibrant tenancy sector.”