Increasing the Availability of Farmland for New Entrants to Agriculture in Scotland

In conjunction with the Scottish Land Commission, a selection of models for increasing land access has been explored: i. Experience and understanding of joint venture options: (i) contract farming, (ii) partnerships, and (iii) share farming, as well as (iv) agricultural tenancies, and (v) leasing /licensing (Section 4.1); ii. A tax intervention to increase land availability for new entrants: reviewing the proposals made by CAAV (2017), with particular focus on the potential for income tax relief with tenancy creation/length (Section 4.2); iii. A land matching service as a structural option to increase land availability (Section 4.3); iv. Incubating new farm businesses: an innovative model to increase land availability for new entrants to agriculture (Section 4.4). With regard to the existing joint venture options, it is agreed that contract farming is well established in Scotland, particularly in the arable sector, providing a business development opportunity for new entrants. However, the capital required to establish a contracting business may be prohibitive and established contracting businesses may be considered preferable partners by existing farmers and landowners, thus limiting opportunities for new entrants. Share farming is viewed positively, but there is less awareness of how such arrangements can work in practice, and uncertainty arises regarding legal structure and distinction from contracting arrangements. The new Modern Limited Duration Tenancy (MLDT) is highlighted as promoting a partnership approach between landlord and tenant. When enacted, the new ‘Repairing Tenancies’ are considered a route into land access for new entrant farmers. It is suggested that use of partnership models outwith inter-family transfers could be supported by a land matching service, similar to that implemented in Ireland, building trusting relationships through an independent facilitator. The Irish experience also provides a model for taxation reform, in particular, Income Tax relief with agricultural letting, which is of relevance to the Scottish situation. The research report concludes with overarching themes emerging from the review of new entrant land access models, as highlighted by farming focus group participants and informant interviewees from the key stakeholder organisations. These themes include the balance of risk and reward on the part of existing farmers/landowners when implementing the models, the profitability of new entrant farming businesses, and the need for trust and relationship-building to ensure model success. These themes provide opportunities and important questions for further research and discussion