New method of tackling rent disputes

TENANT FARMERS and landowners in Scotland now have access to a new method for dealing with disputes over rents.

The process, to be known as short form arbitration, has been developed by the Scottish Agricultural Arbiters & Valuers Association (SAAVA) at the request of the Tenant Farmers Forum (TFF).

There can be little doubt the initiative will be welcome, with the total cost of setting a rent estimated to be £1,500 to £2,500.

It is hardly small change, but far below the six-figure sum believed to be spent recently settling the rent for Moonzie farm at Cupar. This case was heard in the Scottish Land Court and settled finally in the Court of Session.

The Agricultural Holdings Act (Scotland) 2003 envisaged referring rent disputes to the Land Court as being a simple and cheap solution, but it turned out to be neither of these things.

“This new initiative is an attempt to bring negotiations back to as near the kitchen table as possible,” said SAAVA president Martin Hall.

“We have around 20 of our members now fully trained as arbiters and they will be able to run arbitrations with minimal professional representation needed on behalf of the parties involved.”

The term ‘short form’ might be thought to apply to the application form, and that wouldn’t be inaccurate. But in fact ‘short form’is meant as a comparison with the pre 2003 Act arbitration procedure which had become unwieldy, expensive and little used.

Mr Hall continued: “Our new short form arbitration process is designed to be a more straightforward and cost-effective means of dispute resolution. SAAVA believes that this robust tool will be extremely useful to tenant farmers and landowners.

“The process is the result of 12 months of solid work and input from our professional members. We are now focusing on the development of further alternative dispute resolution tools, including making it easier for tenants and landowners to take the independent expert approach.

“This work will follow on from discussions in the Rent Review Working Group, where there was a clear desire for cheap, efficient methods for reviewing, setting and agreeing agricultural rents.”

The use of independent experts, if it comes to fruition, would take the matter of setting a rent to an even simpler level. The short form arbitration process will see the landlord and tenant agreeing to ask for an arbiter to be appointed, although they would have no say over the person appointed.

Supporting documentation would then be lodged prior to a hearing, at which the arbiter would consider all the relevant facts.

He or she would then issue a rental determination.

The independent expert approach would be different. The appointed person would not ask for documentation or hold a hearing but instead use his or her experience to settle a fair rent.

The difference would be that an arbiter could only consider the evidence presented by both sides. The independent expert would be able to take a wider view.

But it is a case of one step at a time.

Picture: Ron Stephen. Raspberry pickers bringing the fruit to the collecting point at Colbeggie Fruit Farm, Coupar Angus.

SAAVA president Martin Hall said the initiative to tackle rent disputes is an attempt to bring negotiations “back to as near the kitchen table as possible”.