Strategic Environmental Assessment (SEA) for the Agricultural Tenancies proposals Environmental Report

1. Introduction

Background

1.1 AECOM has been commissioned to undertake an independent Strategic Environmental Assessment (SEA) in support of the Agricultural Tenancies proposals (“the proposals”), on behalf of The Scottish Government.

1.2 SEA is a systematic process for evaluating the environmental consequences of proposed plans, strategies, or programmes to ensure environmental issues are fully integrated and addressed at the earliest appropriate stage of decision making, with a view to promoting sustainable development.

1.3 This Environmental Report, which is the main output of the SEA process, accompanies the Agricultural Tenancies proposals for consultation between September and October 2023.

Overview of Agricultural Tenancies proposals

1.4 The Scottish Government’s Vision for Agriculture, published in March 2022^[1], outlines its long-term vision to transform how farming and food production can be supported in Scotland to become a global leader in sustainable and regenerative agriculture. As outlined in the Agricultural Reform Route Map^[2], the Scottish Government is committed to ensuring that tenant farmers, smallholders, crofters, new entrants and land managers are given equality of opportunity to allow them to play a key role in making the Vision for Agriculture a reality.

1.5 Scottish Agricultural Census results from June 2021 demonstrate that Scottish agriculture is diverse, and just over 20% of agricultural land is tenanted. The Scottish agricultural tenanted sector has 6,057 agricultural tenancies.

1.6 The majority of agricultural tenancies are secure 1991 Act agricultural, which total 3,821 tenancies. This type of tenancy is passed on through generations within the same tenant farming family. The remainder of agricultural tenancies are:

• 368 Limited Partnerships,
• 175 Modern Limited Duration Tenancies (MLDTs),
• 743 Limited Duration Tenancies (LDTs) and
• 1,258 Short Limited Duration Tenancies (SLDTs).

1.7 Proposals to modernise agricultural tenancies were contained in the Delivering our Vision for Scottish Agriculture: Proposals for a new Agriculture Bill consultation.^[3]

1.8 This reflected the Scottish Government’s Programme for Government 2021- 2022, which made the commitment to “continue to modernise tenant farming – a key part of the rural economy and for some farmers and new entrants, the only route of entry”, “ensure tenant farmers and smallholders have the same access to climate change adaptation and mitigation measures”, and “we will also legislate as part of wider agricultural support reform to bring forward a revised approach to rent reviews”. The Bute House agreement also committed to “continue to improve the rights of tenant farmers and small holders so they are not disadvantaged from actively participating in climate change mitigation and adaptation.”

1.9 The proposals, including amendments to agricultural rent review provisions, seek to promote fairness and enable tenant farmers to play a leading role in addressing the twin crises of climate change and biodiversity loss.

1.10 Further information on the Agricultural Tenancies proposals and component parts are set out in the consultation document with which this Environmental Report accompanies.^[4]