Land reform in a Net Zero Nation: consultation paper

Part 9: Land Use Tenancy

The Scottish Government is committed to addressing the twin crises of climate change and biodiversity. To address these challenges, the legal framework surrounding agricultural holding and small landholding tenancies should be adapted to allow tenant farmers and others to undertake a combination of agricultural and non-agricultural activities. These activities could support climate change mitigation and help to restore and preserve nature.

The current system of agricultural and small landholding tenancies creates a number of barriers to those who want to undertake a combination of agricultural and non-agricultural activity within a tenancy. One barrier is the inability for some tenants to undertake certain forms of non-agricultural activity on a holding. This can prevent tenants from delivering a range of environmental benefits, and may result in them ending their tenancy early.

What we propose

We propose a new form of flexible tenancy, called a 'Land Use Tenancy', which would help agricultural holdings, small landholding tenants and others to deliver multiple eligible land use activities within one tenancy. These activities could include woodland management, agroforestry, nature maintenance and restoration, peatland restoration, and agriculture.

The legal framework of the Land Use Tenancy would set out the terms and conditions of the tenancy for a tenant and their landlord. This legal framework could include:

• the key elements that both a tenant and their landlord would agree to at the start of the tenancy;
• how benefits would be shared;
• the range of activities that would need to be considered throughout the tenancy; and
• the process for bringing the tenancy to an end.

We propose that tenant farmers and small landholders would be able to convert their tenancy into a Land Use Tenancy. This would allow them to undertake a range of diverse land management activities to deliver national climate and environmental objectives without leaving the landholding.

Why we are proposing this

A legal framework of this kind would provide a transparent system and would encourage better use of land. It would also aid retention of people in rural areas and local communities, contributing to our goal of a just transition. This structured framework for managing land use change would provide certainty to people wishing to rent land to undertake this type of land management. It could also create new opportunities for people wishing to engage in other forms of land management, allowing people to develop the range of skills required to deliver the land-use change Scotland needs to be more adaptive and resilient.

The Land Use Tenancy would provide landlords with a transparent framework for creating a hybrid of agricultural and non-agricultural land use within a tenancy arrangement. It would also offer landowners greater certainty and confidence when letting their land to new individuals.

Questions

Q29. Do you agree or disagree with our proposal that there should be a Land Use Tenancy to allow people to undertake a range of land management activities?

Agree / Disagree / Don't know

Please give some reasons for your answers:

Q30. Are there any land management activities you think should not be included within a Land Use Tenancy?

Q31. Do you think that wider land use opportunities relating to diversification, such as renewable energy and agri-tourism, should be part of a Land Use Tenancy?

Yes / No / Don't know

Please give some reasons for your answers:

Q32. Do you agree or disagree that a tenant farmer or a small landholder should, with the agreement of their landlord, have the ability to move their agricultural tenancy into a new Land Use Tenancy without having to bring their current lease to an end?

Agree / Disagree / Don't know

Please give some reasons for your answers:

Q33. Do you agree or disagree that when a tenant farmer or small landholders' tenancy is due to come to an end that the tenant and their landlord should be able to change the tenancy into a Land Use Tenancy without going through the process of waygo, with parties retaining their rights?

Agree / Disagree / Don't know

Please give some reasons for your answers:

Q34. How do you think the rent for a Land Use Tenancy should be calculated?

Q35. Would you use a Land Use Tenancy if you had access to a similar range of future Scottish Government payments which other kinds of land managers may receive?

Yes / No / Don't know

Please give some reasons for your answers:

Q36. Do you think that there should be guidance to help a tenant and their landlord to agree and manage a Land Use Tenancy?

Yes / No / Don't know

Please give some reasons for your answers and outline who you think should be responsible for writing and managing the guidance:

Q37. Do you think there should be a process to manage disputes between a tenant of a Land Use Tenancy and their landlord?

Yes / No / Don't know

Please give some reasons for your answers and outline how this process could be managed:

Q38. Do you agree or disagree that tenants of a Land Use Tenancy and their landlords should be able to resolve their legal disputes in relation to the tenancy through the Scottish Land Court?

Agree / Disagree / Don't know

Please give some reasons for your answers and outline additional ways in which disputes could be resolved:

Q39. Do you have any other comments on our proposal for a Land Use Tenancy?

Yes / No / Don't know

Please give some reasons for your answers: