Press Release
THE CROWN ESTATE LEADS THE WAY WITH NEW FARMING TENANCIES
18 April 2006
The Crown Estate is leading the way by converting most of its Limited Partnership Tenancies and short term agreements to the new Limited Duration Tenancy (LDT) and Short Limited Duration Tenancy (SLDT) agreements introduced by the Scottish Executive in 2003 as part of the Agricultural Holdings (Scotland) Act.
The Crown Estate is the first large landowner in Scotland to announce such a comprehensive modernisation programme. It is recognised that the new forms of tenancy have been designed to meet the future needs of the Scottish agricultural let sector. They provide flexibility, a framework for tenants to develop their businesses at a time of great change and opportunity in the Scottish rural sector. The new LDT lasts for a minimum of 15 years with no maximum term, whilst the SLDT provide tenancies for a maximum of five years.
The Crown Estate embarked on the process last summer and has been working since then with managing agents Smiths Gore and solicitors Anderson Strathern to move this initiative forward. A review of all limited partnerships and grazing agreements on The Crown Estate has been undertaken with a view to converting these to either LDT or SLDT. Where appropriate, tenants have been approached and discussions are ongoing while a number of new leases have already been agreed.
Alan Laidlaw, Head of Customer Management based at The Crown Estate’s Edinburgh office said: “ The Crown Estate is committed to the future of tenant farming in Scotland and we are pleased to adopt the new legislation in a spirit of partnership with our tenants. We recognised that a number of our limited partnership tenancies were nearing their termination date, and by utilising the positive framework provided by SLDT and LDT agreements, we have taken a decisive step to extend the good relationships that have already been established.
“We are finding that agreements such as limited partnerships are rather cumbersome on administration for both tenant and landowner. This process removes uncertainty for tenants occupying land on limited partnerships that we feel will become increasingly anachronistic. We hope to be able to help by providing agreements, which aim to meet the needs of our tenants, their businesses and The Crown Estate itself.”
One such tenant is John Smith, currently the General Partner of a limited partnership in respect of Auchenreath Farm on The Crown Estate’s Fochabers estate in Moray. He manages the 176-acre farm with his sons William, 28, and Alan, 26, as part of the family business, which extends to almost 900 acres in total. Arrangements are now in place to convert the limited partnership to a LDT of 35 years duration. Mr Smith commented: “I am very pleased to have the opportunity to enter into a limited duration tenancy with The Crown Estate. I consider this a positive move forward and the longer duration of the new lease will provide a degree of security and direction for my sons which is very important in establishing them within our main farming business.”
Angus McCall, chairman of the Scottish Tenant Farmers’ Association (STFA) also commented: “We have been calling for the new tenancies to be introduced for some time now and are delighted in the progressive way that The Crown Estate has accepted the challenge in converting its farms on limited partnership arrangements to the new tenancies. We have been lobbying other major landowners to do likewise and hope that they will follow The Crown Estate’s example and help bring stability to the tenanted sector and secure the future for all tenant farmers.”
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