Warning to tenants to ‘ca’ canny’ over tree plans
While increases in returns from woodlands and timber production in recent years – along with government encouragement and incentives – might make trees look like an attractive option in the face of declining farm commodity prices, tenant farmers have been warned to “ca’ canny” before planting.
A new guide on tree planting on tenanted land was published this week by the Scottish Land Commission, aimed at highlighting the rights of both tenants and landlords to plant trees on tenanted land.
The Tenant Farming Commissioner, Bob Mcintosh, said it was important that tenants and landlords considering planting trees understood who was able to do what and when.
He said: “A tenant of a secure tenancy or a limited duration tenancy wishing to use the land for a nonagricultural purpose such as tree planting can now do so provided they obtain written consent for the diversification activity.”
However, following its publication, the Scottish Tenant Farmers Association said that while the clarity brought by the guide was welcome – as was the prospect of building greater co-operation or even joint ventures between landlords and tenants – tenants should beware some pitfalls.
“Woodland creation may provide an alternative income stream but, tenant farmers are urged to proceed with caution,” said the association’s chairman, Christopher Nicholson.
He warned tenants that any new venture, especially long-term commitments such as tree planting, should be carefully planned and accompanied by “cast-iron” agreements with landlords to protect their interests against any unforeseen circumstances – such as a tenancy being brought to an end before the trees had grown sufficiently to be of value.
Nicholson said that, despite government incentives and encouragement, there had been very few examples of tenants planting trees apart from small shelter belts and amenity planting.
“This is partly due to an unwillingness to convert land from agriculture to forestry, the perceived
difficulties of obtaining landlord consent and the inherent risks of having to pay end of tenancy compensation to the landlord if the tree planting is seen as devaluing the land,” he said.
“Landlords may have the right to resume land for non-agricultural purposes, but tenants also have statutory rights and are entitled to resist resumption, where it could be seen to be a ‘fraud on the lease’, or contrary to the good faith of the original lease,” he said.
Sarah-jane Laing, executive director of the landowners’ organisation Scottish Land & Estates, said that the integration of farming and forestry was a pertinent issue, adding that the document would be useful for landlords and tenants who might be considering planting trees on tenanted holdings.