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Dec 2 2014

STFA SAYS NO TO FORESTRY ON ARABLE LAND

News Release

Scottish Tenant Farmers Association

2^nd December 2014

STFA SAYS NO TO FORESTRY ON ARABLE LAND

 The Scottish Tenant Farmers Association has written to Forestry Commission Scotland to urge it not to plant trees on what was once intensive agricultural land.

 STFA is responding to a consultation being carried out by FCS in Aberdeenshire on tree planting plans on farms purchased by the Commission before the Woodland Expansion Advisory Group (WEAG) curtailed what had been an unbridled acquisition policy buying agricultural land for forestry.

Commenting on the Commission proposals STFA director Angus McCall said; “As a member of the WEAG, we continue to support the recommendations of the group, including the requirement to consult with stakeholder groups and the local community and the recommendations calling on those considering planting whole farms to keep better grades of land in agricultural use.

“The Forestry Commission has led the field in creating starter units for new entrants to farming and has recently had a good track record in responding to concerns raised by tree planting plans.  The consultation on Corniehaugh Farm, for example, seems to have taken account of the wishes on the local community and we hope that these farms will be treated in a similar manner.

“Much of this farmland being considered for woodland creation is productive land.  The arable land at Culdrain, for example, is described by the Forestry Commission themselves as “being mostly intensive agricultural land”, planting with trees would be totally inappropriate.  The land has been recently cropped and the farm would provide an ideal starter unit for a new entrant.  Similarly some of the land at Upper Tullochbeg is good grassland and really should be added to the existing starter farm to increase its viability.  We have also suggested that the better land on the remaining farms be retained in agriculture.

“We acknowledge the need for increased tree planting to meet climate change targets and to satisfy the demands of the timber industry, but this should not take place at the expense of agriculture and its prime purpose of producing food.  The government has stated its woodland creation ambitions but it also has committed to making more land available for new tenancies. These two ambitions could surely go hand in hand, with agriculture retained on the better land and tree planting on the remainder.  There may even be scope for agro-forestry schemes.”

For further information:

Contact:  Angus McCall 01408 633275 / 07767 756840

Notes for editors:

Farms referred to are:

(a)    Culdrain Farm – 64.2ha of arable and 7.2ha rough grazing near Huntly

(b)   Upper Tullochbeg and Ittingstone, near Huntly  – 80.6ha arable, 33.8ha permanent pasture and 100.1ha rough grazing.  Buildings plus 44.7ha have been already leased out as a starter farm.

(c)      Curlusk and Broadfield – 180ha of grazing land near Keith

By tfadmin • Uncategorized •

Nov 26 2014

LONG RUNNING RENT CASES MUST BE CONCLUDED

Scottish Tenant Farmers Association

News Release

^{26th November}

LONG RUNNING RENT CASES MUST BE CONCLUDED

 The Scottish Tenant Farmers Association is concerned at the lack of progress in settling some long running rental disputes in the Land Court despite the consensus amongst industry bodies that rents should be kept at sensible levels pending legislative change.  Although the recent rent initiative does not apply to cases sisted (put on hold) to the Land Court, it was hoped that the spirit of agreement would influence rent disputes already in the Court process.

Commenting on the situation STFA spokesman Angus McCall said: “With the November term date imminent it would seem that the recent industry rent initiative has encouraged most rent reviews to be settled at sensible levels. However we are aware of a handful which have been left to the last minute and may be referred to the Land Court to keep negotiations open.  We hope this practice will be outlawed in the forthcoming review to stop the Land Court being used as a way of increasing the pressure on tenants.  Rents should only be referred to the Land Court, or preferably some form of arbitration or expert determination, if there is a genuine dispute over the level of rent being demanded.

“One of our main areas of concern relates to the number of unresolved rent review cases still lying unresolved in the Land Court, there are more than a dozen, some since 2008.   This places an intolerable strain on the families affected who have spent years facing the uncertainty of an ongoing rental dispute with the bleak prospect of a Land Court hearing sometime in the future.  It is unbelievable that rent disputes are allowed to continue for such a long period of time and it is doubly disappointing that the current consensus over sensible rent settlements has not done anything to bring them to a conclusion.

“We expect the AHLRG to make some robust recommendations on the conduct of rent disputes and the way they are handled by the Land Court.  Since 2004 over 200 rent review cases have been referred to the Land Court but only 4 rent review cases have actually come to Court.  This is not because of amicable settlements but because the alternative is to face bankruptcy through the Court process.  The move from arbitration to the Land Court has failed the rent review process and until change can be brought about landlords, their agents and tenants must abide by the voluntary rental initiative and that includes those stuck in the Land Court.”

By tfadmin • Uncategorized •

Nov 20 2014

CAP PAYMENTS MUST BE TARGETED AT ACTIVE FARMERS

CAP PAYMENTS MUST BE TARGETED AT ACTIVE FARMERS

The Scottish Tenant Farmers Association has called on the Scottish Government to tighten criteria for activity rules in the new CAP regime to ensure that only genuinely active farmers receive entitlement to basic payments.  Implementation rules are still to be finalised and STFA considers that there needs to be much more rigorous definition of active farmers and what constitutes agricultural activity.  STFA is also concerned that the Government may not be implementing 2013 as the reference year for claiming entitlements – a measure designed to limit the damage being done to the tenanted sector by landlords bringing tenancies to an end to take advantage of the new CAP rules.

 Commenting on the latest CAP developments STFA chairman Christopher Nicholson said: “In announcing the CAP agreement in June the Cabinet secretary promised to “make every effort to target every public pound at genuine activity – to target those who wear dirty wellies not comfy slippers”. As the rules stand this is not going to happen.  There is nothing to prevent a landowner from renting his land out on a seasonal arrangement while being classified as an active farmer picking up receiving support payments and also being able to receive tax benefits available to working farmers.

 “We would like to see the activity rules strengthened to include proof that the active farmer’s main income is from agriculture, that he is in occupation of the land, that he is taking the entrepreneurial risk of the farming activities on the holding, and that he is in control of the day to day management of the holding.  We can see no justification for anyone to be in receipt of SFP unless they are actually engaged in farming activity on that land.  This concern relates equally to contract farming arrangements where the “farmer” frequently shares very little risk with the contractor.

 “There would appear to be very little joined up thinking between CAP reform and tenancy reform.  At a time when the government is seeking to revitalise and expand the tenanted sector and create more opportunities for new entrants the CAP regime is in danger of achieving the opposite by discouraging land to be let and of encouraging a new breed of armchair farmers who will be able to sit back and receive support payments for very little effort.

 “With a restricted CAP budget and the move to an area payment it is important, even at this late stage, for the government to use the flexibility it has to deliver support payments where they are needed rather than allowing the payments to be used as a return on investment in land.”

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Nov 14 2014

Government survey shows value of farm ownership and security of tenure

News Release

Scottish Tenant Farmers Association

12th November 2014

 Government survey shows value of farm ownership and security of tenure

The Scottish Government has now completed its research into the tenanted sector with the publication of a survey of owner occupiers’ views on tenant farming.  This follows an extensive series of studies carried out over the last few months.

The latest study elicited 337 responses representing a 12% response rate compared to landlords 35% and tenants 53%.  The area of land owned by the sample of respondents has hardly changed since 2000 and is made up of medium sized farms of about 350acs.  More than half of respondents were over the age of 60.  This survey clearly only represents the views of a small number of owner occupier farmers and may not be representative of the whole.

Commenting on the results of the survey STFA chairmen Christopher Nicholson said; “The majority of farmland in Scotland is owner occupied and it is surprising that there was such a low response rate to this survey, but although this survey is limited in statistical significance it has produced some interesting results.

“Contrary to the expectations of many landlords there would seem to be considerable support for granting tenants the absolute right to buy, probably because owner-occupiers appreciate the value of owning their own farms.  More than half of those taking part in the survey (56%) thought that all or certain categories of 1991 tenants should be granted an absolute right to buy their farms.

“87% of the sample of owner occupiers had taken ownership of their farm since 1945, and it is likely that majority of these family businesses were originally tenants who have had the opportunity to buy their holdings.  It comes as no surprise to us that these former tenants recognize the value of ownership in terms of enabling their businesses to borrow, invest and grow. Indeed there are examples of owned and tenanted land up and down the country which show the contrast and different levels of investment between tenanted and owned farms.

As well as agreeing with ARTB for tenants the majority of owner occupiers sampled also recognized the importance tenants’ being able to pass on a viable business to a family member.  Succession provisions are a significant hurdle for tenants and it is only commonsense that the AHLRG are working on proposals to allow wider family succession for tenants, but they must not lose sight of the importance of opening assignation opportunities to allow a wider group of aspiring tenants access to secure tenure.

“History has shown that the purchase of holdings by tenants has allowed much higher levels of investment compared with those that have remained in the tenanted sector.  Putting tenants on a level playing field with owner-occupiers with regard to ability to invest is a key challenge for the AHLRG.  Maintaining and preserving the secure tenure model must be a priority of the review to provide future generations of tenant farmers with the confidence to invest in and grow their businesses .”

By tfadmin • Uncategorized •

Nov 6 2014

STFA STRESS IMPORTANCE OF SECURITY FOR TENANT FARMERS

The Scottish Tenant Farmers Association has urged the Agricultural Holdings Legislation Review Group (AHLRG) not to lose sight of the importance of maintaining security of tenure and encouraging investment in tenanted farms.

The AHLRG has just concluded a final round of public meetings where they tested their thinking in in front of mixed audiences of landlords and tenants.  Tenant reaction to these meetings has been mixed with many expressing disappointment that some of the more progressive ideas have become watered down.

STFA Chairman Christopher Nicholson who attended several of the meetings said: “There has been some good stuff coming out of the Group’s thinking.  They are on the right track in the proposed changes to rent reviews.  Improved compensation for tenant’s improvements is welcome as are greater rights of succession and assignation for family members.  Our calls for an ombudsman have been heeded and it looks as though the Group now recognise that the ombudsman must have statutory powers and codes of practice must be mandatory.

“However, there seems to be doubt emerging over the future of plans for open assignation of 1991 tenancies which the Group had hailed as a potential solution to many of the problems found in the tenanted sector.  STFA welcomed this initiative as a way of encouraging much needed investment in tenanted holdings whilst providing older tenants a route to retirement to allow new blood access to secure tenancies.

“The much diluted proposal to limit assignation to lifetime Limited Duration Tenancies is seen as a short term-fix signalling the demise of the secure sector which has been the backbone of Scottish agriculture for the last sixty years. Food production is just as important now in Scotland as it was when security was introduced and there are people who want to be part of that economy and security is an essential ingredient for investment.

“It must be in the public interest that tenanted land under secure tenure is preserved as a resource for future generations.  Turning the clock back to the days before security of tenure when tenants were at the beck and call of their landlords is a bleak prospect and one which will only add fuel to the demand for ARTB.  More importantly, the review will miss the opportunity to breathe life into a stagnant tenanted sector and rural communities by failing to put the farming ladder back in place and encouraging innovative projects for new entrants such as share farming.

“We know of many landlords who are supportive of open assignation of secure tenancies, recognising the measure as a long term solution to key problems which have vexed the tenanted sector for decades.  Such pragmatism has been welcomed by tenants and curbed calls for an ARTB during the course of the review.  However, there is a very powerful minority of landlords in the background who vehemently oppose such reforms. We believe this opposition to be short sighted and risks further deep discord in the sector.”

By tfadmin • Uncategorized •

Oct 20 2014

STFA OPEN DAY PROVIDES TEST BED FOR TENANCY REFORMS

STFA OPEN DAY PROVIDES TEST BED FOR TENANCY REFORMS

Tenancy reform will be the focus of an open day to be held next week (Thursday 23^rd Oct) on an Aberdeenshire farm where tenant farmers will have the chance to put the Agricultural Holdings Legislation Group’s (AHLRG) latest thinking to the test.  The review group have been conducting exhaustive research into the operation of tenanted sector and are now sharing their ideas with the industry in a series of meetings before finalising their report, due in December.  Well known tenancy expert, Hamish Lean, and other members of the Group will also be attending.

The open day is to be held on Craskins Farm near Aboyne, a 700 mixed unit tenanted by the Ross family.  The land is rented from the MacRobert Trust and is made up of 1991 tenancies, a Limited Duration Tenancy and seasonal grazings.  Farming enterprises include beef cows, sheep and malting barley with all progeny finished at home.

The mix of land holdings and the range of fixed equipment provided by landlord and tenant will provide an ideal practical test bed for the Review Group’s proposals.   Rent reviews, are due for a shake up as the AHLRG seek to base rent setting on the productive capacity of the farm rather than on the open market – an approach tenant farmers have been advocating for well over a decade.  The open day will provide an opportunity to examine how a new production based rent system might work on the ground using practical examples.

Other topics up for discussion will be tenants’ improvements, succession and assignation of tenancies and the creation of opportunities for new entrants to the industry.  The meeting is open to members of STFA and non-members are welcome to join on the day and should register beforehand.

Notes for Editors:

The open day is to be held at at Craskins Farm Tarland,  Aboyne Aberdeenshire AB34 4TJ

(By kind permission of the Ross Family)

Thursday 23^rd October 2014

Registration at 11.00am

To book contact STFA : stfa@tfascotland.org.uk

Tel: 0140863 3275 or 07767756840

Members of the Ag. Holdings Review Group will be in attendance

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