Agriculture & Farming Scotland

Agricultural tenancy law in Scotland is entirely separate from England and Wales. Scotland has its own legislation, its own specialist court (the Scottish Land Court), and its own regulatory body (the Scottish Land Commission).

If you farm tenanted land in Scotland, or let agricultural land to tenants, you need to understand which tenancy regime applies to your situation. Getting this wrong can have serious consequences - from invalid notices to lost compensation rights.

This guide explains the two coexisting tenancy systems in Scotland and your rights and obligations under each.

The dual tenancy regime in Scotland

Scotland operates two parallel agricultural tenancy systems based on when the tenancy was created:

Tenancy created Governing legislation Key features
Before 27 November 2003 Agricultural Holdings (Scotland) Act 1991 Indefinite duration, strong security, succession rights
From 27 November 2003 Agricultural Holdings (Scotland) Act 2003 Fixed-term tenancies (SLDT, LDT, MLT)

Important: The 1991 Act is not obsolete. Thousands of pre-2003 tenancies remain active and are still governed by the 1991 Act. Both systems will coexist for decades to come.

1991 Act secure tenancies

If your tenancy was created before 27 November 2003, it is a "1991 Act tenancy" or "secure agricultural tenancy" with strong tenant protections.

Why 1991 Act tenancies are valuable

These tenancies are considered highly valuable assets because:

  • Security of tenure: The tenant cannot be removed except in limited circumstances, regardless of lease term
  • Succession rights: The tenancy can pass to family members on the tenant's death
  • Compensation rights: Extensive rights to compensation for improvements and disturbance
  • Rent control: Rent can only be reviewed every 3 years, based on open market principles

Landlords cannot simply choose not to renew a 1991 Act tenancy. The tacit relocation principle means the tenancy continues automatically unless validly terminated.

Notice periods for 1991 Act tenancies

Ending a 1991 Act tenancy requires strict compliance with notice requirements. Many attempted terminations fail because of defective notice.

The Scottish term days

Notice to quit must expire on a "term day" - traditionally:

  • Martinmas: 28 November
  • Whitsun: 28 May

Check your lease for which term day applies. Most Scottish agricultural tenancies run from Martinmas to Martinmas.

Counter-notice rights

If a landlord serves notice to quit, the tenant can serve a counter-notice demanding that the case be referred to the Scottish Land Court. The Court will then decide whether the notice should take effect.

Counter-notice must be served within 1 month of receiving the notice to quit.

Rent review for 1991 Act tenancies

Rent can only be reviewed at specific intervals, and either party can demand a review.

Practical rent review process

If you want to review the rent:

  1. Serve written demand: Either landlord or tenant serves formal demand for rent review
  2. Negotiate: Parties attempt to agree new rent, often using agents or valuers
  3. Refer to Land Court: If no agreement within reasonable time, either party can apply to the Scottish Land Court
  4. Land Court determination: Court assesses open market rent based on evidence

Tip: Keep records of comparable rents in your area. These are crucial evidence in Land Court rent determinations.

2003 Act tenancy types

Tenancies created from 27 November 2003 fall under the Agricultural Holdings (Scotland) Act 2003, which introduced fixed-term tenancies in place of the open-ended 1991 Act model.

Choosing the right tenancy type

If you are creating a new agricultural tenancy in Scotland, consider:

Tenancy type Best suited for Considerations
SLDT (up to 5 years) Seasonal grazing, short-term cropping, trial periods Minimal security; converts to LDT if continued beyond 5 years
MLT (10+ years) Long-term farming businesses, livestock enterprises, new entrants Break clauses after 5 years; can be assigned; rent review every 3 years

Note: The LDT (Limited Duration Tenancy) category is being phased out. New long-term tenancies should be MLTs. Existing LDTs convert to MLTs at renewal under the Land Reform (Scotland) Act 2016.

Succession rights

Succession rights differ significantly between 1991 Act and 2003 Act tenancies.

1991 Act tenancies - strong succession rights

Tenants under the 1991 Act can bequeath their tenancy to close family members:

  • Spouse or civil partner
  • Son or daughter (including adopted children)
  • Brother or sister
  • Grandchild

The landlord can object to succession, but must do so within strict time limits and can only succeed on limited grounds before the Scottish Land Court.

2003 Act tenancies - limited succession

Succession rights for 2003 Act tenancies are more limited:

  • SLDT: Generally no succession rights (tenancy ends at term)
  • LDT/MLT: Limited succession to "near relatives" (spouse, civil partner, child, grandchild, sibling, or child of sibling)

MLT assignation to new entrants

The Land Reform (Scotland) Act 2016 introduced the right for MLT tenants to assign their tenancy to a "new entrant" (someone who has not been a tenant farmer before) or to a family member. This was designed to help new entrants into farming.

Waygoing compensation

When an agricultural tenancy ends, the outgoing tenant may be entitled to significant compensation. This is known as "waygoing" compensation.

Claiming waygoing compensation

To maximise your compensation claim:

  1. Record keeping: Keep records of all improvements made during the tenancy, including invoices, consents, and photographs
  2. Consent for improvements: Obtain landlord consent in writing where required (Part I improvements)
  3. Notify improvements: Give written notice to landlord for Part II improvements
  4. Inventory on entry: If you have a record of holding condition at entry (schedule of condition), this helps prove improvements
  5. Professional valuation: Consider instructing a surveyor or agricultural valuer to assess your compensation claim

Timing: Claims for compensation must be made within 2 months of the tenancy ending. Do not delay.

Scottish Land Court

The Scottish Land Court is the specialist tribunal for agricultural tenancy disputes. It is essential to understand when and how to use the Court.

When to use the Land Court

Common reasons to apply to the Scottish Land Court:

  • Rent review: When parties cannot agree a new rent
  • Notice to quit: Challenging validity of a notice, or responding to counter-notice
  • Succession: When landlord objects to succession claim
  • Compensation: Disputes over waygoing or improvement compensation
  • Improvement consent: When landlord unreasonably refuses consent
  • Compliance: Disputes over good husbandry or good estate management

Alternative dispute resolution

The Scottish Land Commission strongly recommends trying ADR before court proceedings:

  • Mediation: Neutral mediator helps parties reach agreement
  • Arbitration: Arbitrator makes binding decision
  • Expert determination: Expert (e.g., surveyor) determines specific issues

ADR is usually faster, cheaper, and less damaging to ongoing landlord-tenant relationships than court proceedings.

Good husbandry and good estate management

Both landlords and tenants have legal standards they must meet, recently amended by the Land Reform (Scotland) Act 2025 to include sustainability requirements.

Tenants - good husbandry

Agricultural tenants must farm to the standard of "good husbandry" defined in Schedule 6 of the Agriculture (Scotland) Act 1948. Since December 2025, this includes:

  • Efficient production appropriate to the land
  • Sustainable farming practices
  • Regenerative practices (improving soil health, biodiversity)
  • Proper livestock health and welfare

Landlords - good estate management

Agricultural landlords must manage their holdings to the standard of "good estate management" (Schedule 5, Agriculture (Scotland) Act 1948). Since December 2025, this includes enabling tenants to farm efficiently, sustainably, and regeneratively.

Failure to meet these standards can be relevant in tenancy disputes before the Scottish Land Court.

Key differences from England and Wales

Do not assume English agricultural tenancy law applies in Scotland. Key differences include:

Aspect Scotland England/Wales
Legislation Agricultural Holdings (Scotland) Acts 1991 & 2003 Agricultural Holdings Act 1986; Agricultural Tenancies Act 1995
Court Scottish Land Court Agricultural Land Tribunal / County Court
Regulator Scottish Land Commission No direct equivalent
Term days Martinmas (28 Nov), Whitsun (28 May) Michaelmas (29 Sept), Lady Day (25 March)
Tacit relocation Yes (Scottish legal concept) No (uses English contract law principles)

If you have land in both Scotland and England/Wales: You must understand and comply with both systems. They are completely separate legal regimes.

  1. Determine which Act governs your tenancy

    Check when your tenancy was created. Before 27 November 2003 = 1991 Act. From 27 November 2003 = 2003 Act. This determines your rights and obligations.

  2. Review your lease terms

    Obtain a copy of your written lease (if one exists). Check the term day, notice provisions, rent review clauses, and any special conditions. Many older tenancies have limited written terms.

  3. Understand your notice requirements

    Both landlords and tenants must give 1-2 years' notice to end a 1991 Act tenancy. Mark key dates in your calendar well in advance to avoid missing the notice window.

  4. Record all improvements

    Keep detailed records of any improvements you make to the holding - invoices, photographs, landlord consents. This protects your waygoing compensation rights.

  5. Plan for rent reviews

    Rent reviews happen every 3 years. Gather comparable rent evidence from your area before negotiating. If you cannot agree, be prepared to refer to the Scottish Land Court.

  6. Consider succession planning

    If you have a 1991 Act tenancy, discuss succession with your family. Consider whether to bequeath the tenancy and ensure potential successors understand their rights.

  7. Seek specialist advice for disputes

    Agricultural tenancy law is specialist. If facing eviction, succession dispute, or compensation claim, consult a solicitor experienced in Scottish agricultural law or contact the Scottish Land Commission.