Feb 15 2018
LANDLORDS AND TENANTS MUST FOLLOW NEW CODE ON FIXED EQUIPMENT
Scottish Tenant Farmers Association
News Release
24th January 2018
LANDLORDS AND TENANTS MUST FOLLOW NEW CODE ON FIXED EQUIPMENT
The Scottish Tenant Farmers Association has welcomed the latest Code of Practice on the Maintenance of the Condition of Tenanted Agricultural Holdings which will help address the state of farm fixed equipment, so often a cause of disputes between landlords and tenants. This Code has been issued by the Tenant Farming Commissioner, Bob McIntosh, as a result of visiting farms and seeing the problems first hand.
Commenting on the latest Code of Practice STFA Chairman Christopher Nicholson said; ‘Responsibility for fixed equipment on tenanted holdings is usually a joint one between landlord and tenant. The division of obligations between landlord and tenant can be a grey area depending on the terms of the lease. Many tenants have had difficulty persuading their landlords to carry out renewals where needed since the only remedies available to tenants have involved applications to the Land Court to withhold rent. The costs of such remedies are difficult to justify, and this latest Code of Practice will provide both landlords and tenants with a cost effective means of ensuring that maintenance obligations are met by both parties.
‘With many areas of Scotland experiencing extreme weather patterns, farm outputs and efficiency are becoming increasingly dependent on adequate levels of well-maintained fixed equipment, and it is clearly in the public interest to ensure that farm infrastructure in the tenanted sector can compete with the owner occupied sector. The timing of the publication of this Code of Practice sits well with a recent article in the Scottish Farmer titled ‘Safeguarding the future of farming infrastructure’ where CKD Galbraith partner, Robert Taylor, points out the difficulties faced by tenant farmers in financing necessary fixed equipment. He goes on to say that sympathy is needed from landlords if tenants are to survive poor financial years and that landlords’ expectations of ever increasing rents may not be achievable.
‘STFA urge the sector as a whole, both landlords and tenants, to recognise the increasing need for modern and adequate fixed equipment. We hope that the sentiment expressed by Robert Taylor is adopted by other agents currently engaged in reviewing fixed equipment and the setting of farm rents.’