What is an Agricultural Tenancy?
An agricultural tenancy is a private agreement between a landlord and tenant farmer. Agricultural tenancies in Scotland range from seasonal grazing lets, Short Limited Duration Tenancies (SLDTs) and Modern Limited Duration Tenancies (MLDTs) to “secure” 1991 Act tenancies. Each tenancy type has varying maximum durations and can cover just land or include houses and buildings.
A change in legislation in 2021, means tenants with 1991 Act tenancies can relinquish their tenancy to their landlord for payment, or assign it to a new entrant or progressing farmer for the value of the tenancy.
Tenancies rarely become available, making the long and often challenging tendering process very competitive. Therefore, it important you are quick off the mark with an application. You can find out what tenancy types might be available to you here.
Other Information & Resources
Getting off the Mark with Tenancy Applications
With few farm tenancy opportunities arising in Scotland, each tenancy prospect is usually highly competitive with new and existing farm businesses. This factsheet is designed to help new entrants to agriculture navigate the process of completing a farm tenancy application, which in itself, can be a daunting process from self-reflection, finding a suitable farm tenancy opportunity, completing an application and interview with a landlord.
This guide explains and gives areas of consideration for each of the sections that would be required in completing a strong business plan and projected financial budget, with an aim on building a sound farm tenancy tender application.
Relinquishment & Assignation of Tenancies
The relinquishment and assignation of agricultural tenancies became live on 28th February 2021 by the Land Reform Scotland Act 2016, with a new section (32A) being introduced. This factsheet explains what is involved in relinquishment and assignation of tenancies, relevant interests and progressing forward.
This video focuses on the potential opportunities for new entrants and those progressing in their businesses through relinquishment and assignation of agricultural tenancies. It outlines what opportunities there are, what to watch out for and how to make an agreement a success.
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