Land Reform (Scotland) Bill: business and regulatory impact assessment

Options

4.3 Sectors and groups affected

4.3.1 Information on tenancy type is available through the Scottish Government Agricultural Census and was last collected in 2021. The Scottish Government Agricultural Census 2021 results showed that there were:

• 3,821 secure 1991 Act agricultural tenancies,
• 175 Modern Limited Duration Tenancies (MLDTs).
• 743 Limited Duration Tenancies (LDTs).
• 1,258 Short Limited Duration Tenancies (SLDTs).
• 59 Small Landholders Act (SLA) tenancies.

4.3.2 Landlords and their tenant farmers have private contractual agreements to manage their tenant farms. People primarily affected by the Bill proposals are tenant farmers, small landholders, and landlords of agricultural holdings and small landholdings.

4.3.3 The potential for impacts on other groups including the public sector – Scottish Government Directorates, the Scottish Courts and Tribunal Service (SCTS), the Scottish Land Commission, Local Authorities and other parts of the public sector and third sector organisations.

4.3.4 This BRIA considers primary effects on different sectors and groups. However we recognise that there may also be indirect secondary effects as a result of the implementation of certain parts of the Bill. Groups which may be indirectly affected include land agents, agricultural solicitors, valuers, and surveyors, when a landlord or tenant farmer chooses to use one.

Option 1 – Do nothing

4.3.5 This option would mean that the proposals relating to the Land Management Tenancy, agricultural holdings, and small landholdings would not be included in the Land Reform (Scotland) Bill.

4.3.6 Under this option modernising tenant farming and small landholding legislation would not happen. Equally a Land Management Tenancy template would not be created as a statutory Ministerial duty. The costs and benefits of this option are outlined below.

Option 2 – Adopt the proposals for Land Management Tenancy, agricultural holdings and small landholdings

4.3.7 The Bill would bring forward the following provisions:

• A model Land Management Tenancy template.

4.3.8 For agricultural tenancies amendments to the following legal processes:

• Diversification.
• Agricultural improvements.
• Good husbandry and estate management rules.
• Waygo.
• A new rent review system.
• Resumption.
• Compensation for game damage
• Improvements to the pre-emptive right to buy process.

4.3.9 For small landholdings modernisation and amendment to the following legal processes:

• Pre-emptive right to buy.
• Diversification.
• Succession and assignation.
• Umbrella Body.
• Rent and compensation.