Navigating the complex relationship between horse owners and tenant farming
Peter MacDougall
My sister-in-law is a horse person, she keeps two horses on land where I have a grazing let. In the summer they draw crowds of tourists to take pictures of them and then in the winter they seem to run round in circles making a mess. It’s fair to say I have a relatively uncomfortable relationship with them! The same can be said of the relationship between horses and tenant farming in general. Now I am going to stray slightly outside my remit as Tenant Farming Manager to address a recurring issue that we see coming up time and time again.
Through the Tenant Farming Helpline, we have had many enquiries from horse owners who have been renting land to keep their horses. The enquiries tend to follow a common theme of a horse owner being in occupation for several years, paying rent and undertaking improvements to the ground, this can be in the form of fencing, weed control but on occasion it can include the erection of buildings and groundworks. After a dispute or sometimes completely out of the blue a notice to vacate the land appears and this causes a desperate rush to identify whether an agricultural tenancy has been created and whether there is any protection to be had under the Agricultural Holdings Legislation.
Unfortunately, in most instances there is no protection offered, there is clear case law that those keeping horses for a purpose that is not agricultural cannot create an agricultural tenancy. I believe the rules are slightly different for crofting as the definition of “another purposeful use” is more compatible with horses although in such a case advice should be sought from the Crofting Commission directly. This often means the landlord is within their rights to end the working arrangement if and when they decide to do so.
It serves to highlight the importance, when entering into any commercial agreement in relation to renting land, to put the agreement in writing and ensure both parties know their rights and responsibilities. This is especially important if you plan to undertake improvements and spend money on the land. Good professional advice is vital to protect your interests and make sure you don’t end up in the position where you must move your animals off the land without sufficient time to make alternative arrangements. It is also important to protect yourself from a financial loss after making investments in the ground.
Much like an agricultural tenancy the success of the arrangement will depend on a good relationship between the landlord and tenant, it is worth investing in and nothing helps this along like a clear agreement where everyone knows where they stand. The Tenant Farming Commissioner has produced a Code of Practice on Agreeing and Managing Agricultural Leases and while not directly applicable to this scenario the key principles are worth reading before entering into a new commercial agreement. So, if you are using someone else’s land to keep your horse on, beware of entering into to a verbal agreement with the landowner and always insist on a proper agreement which covers issues such as rent, length of tenure and the consequences of the tenant carrying out improvements to the land and/or erecting any structures. Without such an agreement you are likely to have no security of tenure.
If you have issues with any aspect of an agricultural tenancy, don’t ignore the problem, contact us today at the Helpline number below.
Tenant Farming Helpline
The Tenant Farming Helpline is available to anyone with an interest in letting land, landlords, tenants, agents of either, and anyone looking for more information on agricultural tenancy and letting matters.
01463 423 300
tfc@landcommission.gov.scot
