Agricultural Holdings Legislation
An agricultural holding is the aggregate of agricultural land comprised in any tenancy arrangement between a landlord and a tenant farmer.
The PSR Order along with the earlier Agricultural Holdings (Scotland) Act 2003 ( explanatory notes) and Agricultural Holdings (Scotland) Act 1991, together provide the basis for a modern framework for the tenanted sector in Scotland.
The legislation provides for four types of formal farm tenancies:
- A secure "1991" Act tenancy is a long term heritable tenancy with security of tenure and a succession right
- A grazing or mowing lease of not more than 364 days
- A Short Limited Duration Tenancy (SLDT) of up to five years duration
- A Limited Duration Tenancy (LDT) for a minimum period of fifteen years
The present minimum and maximum terms of tenancy arrangements in the legislation are intended to allow tenants sufficient time to invest in their business. These tenacy arrangements were suggested by key stakeholder organisations from the farming sector.
The agricultural holdings legislation also provides:
- A presumption in favour of diversification of a tenant's activities for a non-agricultural purpose
- A pre-emptive right, for a secure "1991" Act tenant, to buy their agricultural holding when it is offered for sale provided they have registered an interest in the Register of Community Interests in Land
- The resolution of disputes between landlords and tenants by referral to the Scottish Land Court replacing statutory arbitration (voluntary arbitration between landlords and tenants is still an option)
- Compensation for vacant possession and assignation