Rent reviews guide welcomed by tenant farmers association

THE Scottish Tenant Farmers Association (STFA) has welcomed the launch of the Practitioners Guide to Rent Reviews and the announcement of a new Short Form Arbitration service as a step in the right direction for a costeffective and quick alternative to the Scottish Land Court.

The new scheme aims to resolve disputes in two to three months at the most, at a total cost of between £1500 and £4000 for straightforward cases. Both tenants and landlords are able to self-represent and avoid the hefty costs of QCs and solicitors.

Commenting on the arbitration scheme, that was developed by the Scottish Agricultural Arbiters and Valuers Association (SAAVA), STFA Chairman Christopher Nicholson said: “The Practitioners Guide will provide a much needed rule book governing the conduct of rent reviews. “

Mr Nicholson hopes the Guide will help and encourage an accu- rate and consistent application of the rent review process throughout the country and remove some of the “brinkmanship and pressure tactics that are all too evident at the moment”.

“This should not, however, be seen as the end of rent review problems,” Mr Nicholson stressed, adding: “In detailing the rent review process the Practitioners Guide clearly emphasises the influence that open market lettings have on sitting tenants’ rents, inevitably causing them to escalate with little prospect of future reductions in times of falling profitability.”

“Rent reviews will continue to be contentious, expensive and stressful as long as rents are driven by a scarce and over-heated open market which takes little account of what the farming business can actually stand.

“We will be pressing the Cabinet Secretary to revisit the way in which rents are set during the Agricultural Holdings Review.

Mr Nicholson went on to warn: “The rent rack will continue unless decisive action is taken. Tenant farmers cannot continue to farm with the spectre of regular rent hikes over-shadowing and threatening their businesses. The overwhelming view of tenant farmers is that this one-sided rent formula must change. Rents must reflect the reality of farm economics, particularly as we approach a new CAP regime of considerably reduced support payments.”

Market round-up

United Auctions sold 644 store heifers at Stirling on Wednesday to a top of 241.4p and an average of 223.3p (-2.7p on the week), while 792 store, beef-bred bullocks peaked at 285.7p and levelled at 232.5p (-5.4p). One-hundred-andseventy-three store, B&W bullocks sold to 217p and averaged 160.8p (-0.4p). In the rough ring 190 cows averaged 119.8p.

There were also 4851 store lambs forward. Top prices and averages: Suffolks to £64.50 and averaged £60.47 (+67p on the week); Texels £65 and £60.17 (+28p); Mules £60 and £54.63 (+£1.25); Blackfaces £53 and £42.60 (+77p).