Agricultural tenancy data collection for Scotland: findings report

Appendix B: Recommendations for additional variables

Stakeholder recommendations for additional or adapted variables are presented below, broadly in order of frequency raised. Their inclusion will ultimately depend on the Scottish Government’s strategic priorities, and the recommendations are intended for future consideration.

It should be noted that the variables below were anecdotally expressed by stakeholders and have not been tested or analysed in detail to evaluate their effectiveness and practicality.

1. Expanding tenancy types

Stakeholders recommended expanding the type of tenancy arrangements available to capture non-traditional tenancy types. This would enable policymakers to better understand sectoral changes, such as whether declines in traditional tenancies are being offset by new tenancy types or alternative arrangements.

Additional categories suggested included unwritten agreements, subtenancies, joint ventures, and contract farming. The latter was considered a growing and fluid area, making it difficult to analyse clearly. Some stakeholders also suggested introducing an ‘unknown’ option to better capture the proportion of respondents that are uncertain about the tenancy types (and avoiding nudging people to guess their responses).

2. Differentiating tenant profiles and business models

For meaningful policy development and data analysis, stakeholders considered it important to differentiate between three types of farmers: 1) genuine farmers, whose livelihoods depend primarily on their tenancy; 2) farmers who own land but also rent additional land, for whom tenancy security is less critical; and 3) family arrangements established for tax or succession purposes, where tenancies are held primarily for inheritance planning or asset protection rather than farming.

To further get an understanding of how many genuine new entrants enter farming each year versus intra-family reassignments, it was recommended to distinguish new tenants from those succeeding or continuing family tenancies. Additionally, recording how tenancies were acquired, whether by succession, assignation, or lifetime transfer, can help understand inheritance and tax implications. These acquisition routes also provide insights into the sustainability of tenancy arrangements and generational changes within the sector. It was proposed that this can be captured through structured drop-down options to make the process easier and more consistent.

3. Exploring tenant-landlord relationships

Stakeholders also suggested capturing information on the relationship between tenants and landlords. While some expressed concern that this could cause hesitation among respondents due to perceived repercussions, others viewed it as particularly relevant given the current inheritance and tax context.

There was also interest in identifying whether tenants with multiple tenancies hold them under the same or different landlords. A few stakeholders further recommended clarifying who pays rent to whom, to help determine the legal tenant in more complex arrangements involving trusts, partnerships, or family holdings.

4. Capturing changes and tenancy evolution over time

To better reflect the dynamic nature of the tenanted sector, stakeholders proposed including additional indicators to capture changes and developments over time. Opinions were mixed regarding the practicality and usefulness of collecting tenancy start and end dates, as many agreements may roll over, convert, or lack clearly defined timelines.

As an alternative, several stakeholders suggested questions focused on recent tenancy changes, such as identifying whether a new tenant is related to the previous tenant, represents the same business or individual under a new agreement, or constitutes an entirely new occupier. Others also recommended including an indicator for tenancies involving a dwelling or housing unit to track the separation of housing from agricultural tenancies and monitor how this trend evolves over time.

5. Adding contextual and qualitative variables

Finally, stakeholders encouraged the inclusion of variables to capture broader contextual and qualitative information. This could include questions gauging overall confidence in the sector, such as perceptions of stability and future outlook, as well as key succession indicators like tenant age, anticipated retirement or transfer, and family succession planning. This data would help identify emerging trends and inform long-term policy development.

To ensure that complex or atypical arrangements are not overlooked, stakeholders also suggested incorporating optional open-text fields. These would allow respondents to provide additional detail where their circumstances do not fit neatly within predefined categories, particularly in relation to succession planning or informal tenancy arrangements.