Rural landowners across Scotland say uncertainty around the impact of changes to agricultural subsidies and tenancies remain among their key concerns. Discussions at agricultural shows this summer have centred on key issues affecting farming as well as wider legal issues and their impact on rural enterprises.
With the curtain falling on the show season, Lyndsey White, a Senior Associate in our Rural - Land & Business team, revealed that land reform, the future of agricultural subsidies - and their impact on rural enterprises - remain some of the major issues with their clients and contacts.
Speaking after visiting shows including Perth and Kirriemuir, Lyndsey said: “The elephant in the room when speaking to many is the uncertainty surrounding the impact of the Land Reform (Scotland) Bill and the passing of the Agricultural and Rural Communities (Scotland) Bill into law.
“This raft of proposed legislation continues to provoke strong feelings in the rural sector and has been a talking point throughout the summer both in the office with our clients and out and about at agricultural shows.
“We are finding the biggest concern surrounds the proposals to change the timescale to resume land from agricultural leases and the compensation payable on resumption contained in the Land Reform Bill, which if passed into law, could have huge ramifications for rural landlords.”
Resumption is the means by which landlords can take land back in hand, removing it from the tenancy.
The Bill, however, proposes extending the minimum notice period to resume land to at least one year, potentially overriding the terms of existing leases with shorter notice periods, which are generally a minimum of two months.
Observers have pointed out that such a shift could dramatically alter the pace at which landowners may be able to access land to pursue the likes of new diversification projects. Scottish Land and Estates has been among those making representations on the issue.
Leanne Gordon, a Partner in our Rural team at Lindsays, who has been working closely with clients to assess the impact of any change, said: “It could be that political debate leads to the changes not taking effect as currently proposed.
“It is, however, something to be mindful of when drafting agreements where the landlord would need to be able to give vacant possession of land. It would also be wise factoring in the financial impact of the compensation that may be payable to tenants to obtain vacant possession in any considerations.”
Other issues raised at shows this summer included the ban of wood-burning stoves in new-build homes, forthcoming changes to agricultural subsidies and natural capital.
Article featured in the Courier on Thursday 19 September 2024.
