Agricultural tenancies, small landholdings and land management tenancy proposals - strategic environmental assessment: consultation analysis

3. Conclusions

The main conclusions from this report are:

Respondents identified potential positive impacts on the climate, biodiversity and landscape for each set of proposals; in many cases they stated that this would depend on the scope and type of activities planned.

Respondents were broadly supportive of proposals to modernise and update legislation and tenancy mechanisms to reflect modern farming practices, in the context of a wider move toward regenerative, sustainable agriculture. However, several noted the need to balance tenants’ rights with landlords’ long-term security.

In several areas, including the Land Management Tenancy proposals, respondents stated that further guidance and consultation is needed. Wider points included the need for a coordinated approach to land use; to balance environmental considerations with issues such as food production, agricultural costs and efficiency; and to consider the long-term risks of changes in land use or agricultural tenancies.

It should be noted that the sample size was small, respondents’ views were mixed and in several cases, they did not understand the question or terminology.

This report has outlined the findings of a consultation carried out as part of the Strategic Environmental Assessment of Agricultural Tenancies, Small Landholdings and Land Management Tenancy Proposals. The consultation ran from October to December 2023, and received 12 responses. The low response rate should be taken into account when considering the consultation results, which are summarised below.

3.1 Diversification

• Respondents held mixed views on the potential climate, biodiversity and landscape impacts of these diversification proposals. Whilst some felt the diversification proposals would improve tenant farmers’ ability to carry out activities with positive environmental impacts, others stated that diversification would not necessarily achieve this, and may be shaped by other factors such as profit.
• Potential historic environment benefits of the diversification proposals highlighted by respondents included improving tenants’ ability to maintain historic monuments and widen public access.
• In several cases, respondents stated that the impacts would depend on the proposed diversification. Wider points raised included the need for a coordinated approach to land use and to consider the long-term risks of changes in land use or agricultural tenancies.

3.2 Agricultural Improvements

• Almost half (42%) of respondents thought that the Agricultural Improvements proposals would have positive climate and biodiversity impacts. They agreed with the need to modernise Schedule 5 to reflect modern farming practices, and felt that the new framework would provide certainty for tenants and landlords.
• Whereas some felt that compensation for improvement would provide an incentive for tenants to invest in environmental measures, others felt it would not do so, as it would not be payable until the end of the tenancy.
• Respondents highlighted the need for Part 3 of Schedule 5 to remain a fixed list to give landlords certainty, and to update and regularly review the list of activities in Schedule 5. Several organisations stated that clearer guidance on the Part 4 proposals is required, for example in relation to carbon credits.
• A third (33%) were unsure about the potential impacts on the landscape and historic environment, due to a lack of relevant knowledge, or in other cases not understanding the question.

3.3 Rules of Good Husbandry and Estate Management

• Respondents were broadly supportive of these proposals on the Rules of Good Husbandry and Estate Management and, agreed that they should be modernised to reflect modern practices.
• Almost half (42%) of respondents agreed that the Rules of Good Husbandry and Estate Management proposals would have positive impacts on the climate, landscape and historic environment, and a third (33%) agreed that it would have positive biodiversity impacts.
• Some argued that these proposals should be linked to the proposed Code of Practice on Sustainable and Regenerative Agriculture, and highlighted the need to include a requirement to record a baseline in a consistent way.
• Others, however, noted that efficient production is how farmers make a profit, and so any planned activities would need to be financially sustainable.

3.4 Small Landholdings: Diversification

• Responses to this section were mixed, with a quarter (25%) of respondents unsure about its potential impacts. Several highlighted a lack of clarity on how these proposals are expected to lead to environmental benefits.
• Others emphasised potential wider socio-economic benefits in rural areas if the proposals lead to an increased number of small holdings.
• Others felt there were likely to be positive outcomes, as it would give small landholders greater ability to undertake non-agricultural measures to mitigate emissions or improve the landscape and historic environment.

3.5 Small Landholdings: Right to buy

• A third (33%) of respondents agreed that the Right to Buy proposals for small landholdings will have positive environmental and biodiversity impacts.
• Potential benefits highlighted included that a pre-emptive right to buy will encourage small landholders to make long term investments in the holding with benefits to the climate, biodiversity or historic environment.
• Others felt there would be no substantial changes, and highlighted a lack of clarity on how the relevance of the proposals to these wider goals; or a general lack of understanding of the policy.

3.6 Land Management Tenancy

• Half (50%) of respondents were unsure about the climate, biodiversity or historic environment impacts of this proposal.
• Two positive impacts identified were that the Land Management Tenancy model has the potential to improve the speed and scope at which tenants and landlords are able to respond to environmental challenges, and may be more likely to facilitate the types of activities required to achieve net zero.
• However, several felt the likely low uptake of this model would decrease its impact; others were unclear what it would add to the current system or how it would interact with the other proposals, which already aim to allow non-agricultural activities within existing tenancy models.
• A number of respondents said that further information and detail on the proposal was needed in order for them to comment further.

3.7 Wider points

Overall, a number of wider points can be highlighted from respondents’ answers to each of the six sections of the consultation:

• Respondents identified potential positive impacts on the climate, biodiversity and landscape for each set of proposals;
• In many cases they stated that this would depend on how the proposals work in practice, or the scope and type of activities or diversification planned;
• Respondents were broadly supportive of proposals to modernise and update legislation and tenancy mechanisms to reflect modern farming practices, in the context of a wider move toward regenerative, sustainable agriculture;
• Whilst respondents were supportive of giving tenant farmers and small landholders the ability and security to carry out activities aimed at benefitting the climate, biodiversity or landscape, a second group emphasised the need to give landlords greater certainty as part of these proposals, in order to protect the tenanted sector for new entrants (who may be more likely to farm in a sustainable, regenerative way), and in the long-term;
• In several areas, including in terms of the Land Management Tenancy proposals, respondents stated that further guidance and consultation is needed, both in terms of their practical application and intended impacts;
• Wider points raised included the need for a coordinated approach to land use; the need to balance environmental considerations with issues such as food production, agricultural costs and efficiency, when planning diversification activities, for example; and to consider the long-term risks of changes in land use or agricultural tenancies.

In conclusion, this consultation has provided an insight into respondents’ views on the potential environmental impacts of the Scottish Government’s agricultural tenancies, small landholdings, and Land Management Tenancy proposals. It should be noted that the sample size was small, respondents’ views were mixed and in many cases there was a lack of understanding around the question and terminology used.

The findings will inform the Scottish Government’s work to bring forward the proposals outlined in this report, as part of its work to deliver the Land Reform Bill.