Sheep grazing near cliff
Photo by David Hofmann
Business

Land

Understanding your options with regard to land usage and land rights.

Updated 12 June 2024

Land

You don’t need land to produce food. You can be a grazier – you own and manage the livestock (typically cattle or sheep) and you provide a service to landowners who want the benefits of managed pasture without the work and risk of owning livestock.

You can farm shellfish in the ocean, or fish in a glasshouse. You can farm fungi – in a shed or a basement. Or herbs and salads in a vertical farm if you’ve got a good bank manager and a cheap source of electricity.

But if you want to have some land which you can look after for the long term, you will need to rent, croft or buy.

Who’s the farmer, crofter or grower?

You may be wanting to farm yourself; with a partner; as a company, a co-operative, or as a community organisation. As a community interest company, for example, you can earn an income and retain some of the advantages of being a company while also being eligible for some funding help.
Find information about setting up as a workers co-operative, social enterprise or community interest company on the Scottish Government’s ‘Setting up a social enterprise‘ page.

Renting

Agricultural tenancy law is complicated. In 2017 the modern limited duration tenancy (MLDT) was introduced by the Scottish Government. This runs for at least ten years – and can be extended indefinitely by agreement. The MLDT also provides for a ‘break clause’ at five years for a new entrant. For guidance on MLDT see here (pdf).

A new land use tenancy is being introduced as part of the forthcoming Land Reform Bill. This will be particularly suitable for businesses which are looking to integrate woodland and other conservation measures alongside farming. This is not yet in place – more details here.

You first have to find a landowner willing to rent you some land. The clearer you are about what you’re looking for, the better. For example, do you expect to earn a living just from farming or do you expect to combine this with other work? Do you want the tie of having livestock? Do you want/need to live on the land you rent or to live within commuting distance?

If you are looking to farm in an urban area, there may be areas of land owned by the local authority, health board or other public bodies. Some local authority land is ‘common good’ land which you can find by searching the local authority’s common good register.

Additionally, Scotland has around 11,000 hectares of vacant and derelict land listed on the Scottish Vacant and Derelict Land Survey site register, and the owner may be happy to agree a ‘meanwhile lease’ which can get you started. The soil may be contaminated in which case you will need to get it tested and talk to the local authority about how to produce food safely, for example in raised beds.
If you live in or want to live in a rural area and looking for a farming or crofting opportunity you could start with the Scottish Land Matching Service. Or if you’re sure of the area you’d like to farm in, you could make contacts by going to an agricultural mart and asking around. Some landowners have areas of land they would be willing to rent out but they don’t want the hassle of advertising the opportunity – or simply no-one has asked them yet. Public bodies such as Scottish Water and Forestry Scotland may also have land which could be rented out.

Crofting

Crofting is a unique form of tenure, and again the legislation is complex. Crofting law only applies in the original and crofting counties – Argyll, Caithness, Inverness, Ross & Cromarty, Sutherland, Orkney and Shetland, or in one of the newly designated crofting areas – Arran, Bute, Greater and Little Cumbrae, Moray. 

 The key responsibilities of crofting are:

  • to be a resident on, or within 32 kilometres of, the croft.
  • not to misuse or neglect the croft.
  • to cultivate and maintain the croft or to put it to another purposeful use.

Crofts can be bought or tenanted. You may have to pay to acquire a tenancy; however annual rents are typically low. Available crofts are listed on by estate agents and local solicitors’ property centres. The Scottish Crofting Federation can also provide information on crofting opportunities and there is further guidance on the regulations at the Crofting Commission.

Some crofts already have houses on, while in other cases a croft may be bare land. Planning permission is required from the local authority to build a house and the Crofting Commission is consulted about planning applications.

Buying

If you are in the fortunate position of being able to buy a farm or smallholding, be prepared to move fast. Agricultural land prices have risen sharply this century – partly because they are not making any more and partly because of the growing carbon market.