A new Tenant Farmers' Forum, independently chaired by Professor Jeff Maxwell, has been looking into ways to fine-tune the Agricultural Holdings Act.
The forum comprises two representatives from the Scottish Estates Business Group (SEBG), the Scottish Rural Properties and Business Association (SRPBA), the Royal Institute of Chartered Surveyors (RICS), the Scottish Tenant Farmers Association (STFA), NFU Scotland and the Scottish Association of Young Farmers' Clubs (SAYFC). Their aim is to make submissions to SEERAD and the government in Westminster to help increase the availability of farms to let to new entrants.
Symptomatic of the problems facing landlords was the recent controversial decision by Buccleuch Estates to let six of their farms in Upper Nithsdale, Dumfriesshire that had become vacant, totalling about 3500 acres, in various lots as seasonal grass park lets.
Responding to flak from STFA chairman Angus McCall that the move denied new entrants opportunities to start farming, Buccleuch Estates factor David Gyther explained that this was only a temporary measure until the Estate had fully considered its options.
Alan Nisbet, of letting agent Buccleuch FBR, reported that all the various lot had been let with good interest from a variety of bidders that included existing Buccleuch tenants, local farmers and several offers from further away.
According to him, better fields, suitable for cutting as hay or silage fetched in excess of £100/ha, reasonable quality grazing land over £60/ha, while rough hill grazing was worth about £30/ha.
According to McCall, the forum believes that one way to improve the flow of farms on to the letting market would be a relaxation of tax in relation to let land.
"The Treasury is not very sympathetic," he explained. "The possibility of relaxing inheritance tax liability on let land is also being explored," he said.
Other issues needing to be addressed are the difficulties faced by landlords wishing to resume land when they want to and their fear of tenants being granted the right to buy their farms.
"The system needs tweaking", admits McCall. "You can't enact new legislation and expect to get it right first time,"he adds.
Another issue that is preventing the let sector becoming more dynamic is the lack of incentives for older farmers to retire.
"Many tenants are struggling to fund their retirement. As long as they are tenants they have a house to live income from the single farm payment."
He reckons there is a real need for a tenant's survey to establish how many want a successor to take over and how many would like to retire.
"We have also got to watch that farms that are offered for let aren't simply snapped up by neighbours wishing to expand. I don't think that would be good for rural Scotland," he warns.
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