Agricultural Holdings (Scotland) Act 1991

JurisdictionUK Non-devolved
Citation1991 c. 55


Agricultural Holdings(Scotland) Act 1991

1991 CHAPTER 55

An Act to consolidate the Agricultural Holdings (Scotland) Act 1949 and other enactments relating to agricultural holdings in Scotland.

[25th July 1991]

Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

I Agricultural Holdings

Part I

Agricultural Holdings

S-1 Meaning of ‘agricultural holding’ and ‘agricultural land’.

1 Meaning of ‘agricultural holding’ and ‘agricultural land’.

(1) In this Act (except sections 68 to 72) ‘agricultural holding’ means the aggregate of the agricultural land comprised in a lease, not being a lease under which the land is let to the tenant during his continuance in any office, appointment or employment held under the landlord.

(2) In this section and in section 2 of this Act, ‘agricultural land’ means land used for agriculture for the purposes of a trade or business, and includes any other land which, by virtue of a designation of the Secretary of State under section 86(1) of the Agriculture (Scotland) Act 1948 , is agricultural land within the meaning of that Act.

S-2 Leases for less than year to year.

2 Leases for less than year to year.

(1) Subject to subsection (2) below, where, under a lease entered into on or after 1st November 1948, land is let for use as agricultural land for a shorter period than from year to year, and the circumstances are such that if the lease were from year to year the land would be an agricultural holding, then, unless the letting was approved by the Secretary of State before the lease was entered into, the lease shall take effect, with the necessary modifications, as if it were a lease of the land from year to year.

(2) Subsection (1) above shall not apply to—

(a) a lease entered into (whether or not the lease expressly so provides) in contemplation of the use of the land only for grazing or mowing during some specified period of the year;

(b) a lease granted by a person whose interest in the land is that of a tenant under a lease for a shorter period than from year to year which has not by virtue of that subsection taken effect as a lease from year to year.

(3) Any question arising as to the operation of this section in relation to any lease shall be determined by arbitration.

S-3 Leases to be continued by tacit relocation.

3 Leases to be continued by tacit relocation.

3. Notwithstanding any agreement or any provision in the lease to the contrary, the tenancy of an agricultural holding shall not come to an end on the termination of the stipulated endurance of the lease, but shall be continued in force by tacit relocation for another year and thereafter from year to year, unless notice to quit has been given by the landlord or notice of intention to quit has been given by the tenant.

II Terms of Leases and Variations Thereof

Part II

Terms of Leases and Variations Thereof

S-4 Written leases and the revision of certain leases.

4 Written leases and the revision of certain leases.

(1) Where in respect of the tenancy of an agricultural holding—

(a) there is not in force a lease in writing; or

(b) there is in force a lease in writing, being either—

(i) a lease entered into on or after 1st November 1948, or

(ii) a lease entered into before that date, the stipulated period of which has expired and which is being continued in force by tacit relocation,

but such lease contains no provision for one or more of the matters specified in Schedule 1 to this Act or contains a provision inconsistent with that Schedule or with section 5 of this Act,

either party may give notice in writing to the other requesting him to enter into a lease in writing containing, as the case may be, provision for all of the matters specified in Schedule 1 to this Act, or a provision which is consistent with that Schedule or with section 5 of this Act; and if within the period of 6 months after the giving of such notice no such lease has been concluded, the terms of the tenancy shall be referred to arbitration.

(2) On a reference under subsection (1) above, the arbiter shall by his award specify the terms of the existing tenancy and, in so far as those terms do not make provision for all the matters specified in Schedule 1 to this Act or make provision inconsistent with that Schedule or with section 5 of this Act, make such provision for those matters as appears to the arbiter to be reasonable.

(3) On a reference under subsection (1) above, the arbiter may include in his award any further provisions relating to the tenancy which may be agreed between the landlord and the tenant, and which are not inconsistent with this Act.

(4) The award of an arbiter under this section or section 5 of this Act shall have effect as if the terms and provisions specified and made therein were contained in an agreement in writing between the landlord and the tenant, having effect as from the making of the award or from such later date as the award may specify.

S-5 Fixed equipment and insurance premiums.

5 Fixed equipment and insurance premiums.

(1) When a lease of an agricultural holding to which this section applies is entered into, a record of the condition of the fixed equipment on the holding shall be made forthwith, and on being so made shall be deemed to form part of the lease; and section 8 of this Act shall apply to the making of such a record and to the cost thereof as it applies to a record made under that section.

(2) There shall be deemed to be incorporated in every lease of an agricultural holding to which this section applies—

(a) an undertaking by the landlord that, at the commencement of the tenancy or as soon as is reasonably practicable thereafter, he will put the fixed equipment on the holding into a thorough state of repair, and will provide such buildings and other fixed equipment as will enable an occupier reasonably skilled in husbandry to maintain efficient production as respects both—

(i) the kind of produce specified in the lease, or (failing such specification) in use to be produced on the holding, and

(ii) the quality and quantity thereof,

and that he will during the tenancy effect such replacement or renewal of the buildings or other fixed equipment as may be rendered necessary by natural decay or by fair wear and tear; and

(b) a provision that the liability of the tenant in relation to the maintenance of fixed equipment shall extend only to a liability to maintain the fixed equipment on the holding in as good a state of repair (natural decay and fair wear and tear excepted) as it was in—

(i) immediately after it was put in repair as aforesaid, or

(ii) in the case of equipment provided, improved, replaced or renewed during the tenancy, immediately after it was so provided, improved, replaced or renewed.

(3) Nothing in subsection (2) above shall prohibit any agreement made between the landlord and the tenant after the lease has been entered into whereby one party undertakes to execute on behalf of the other, whether wholly at his own expense or wholly or partly at the expense of the other, any work which the other party is required to execute in order to fulfil his obligations under the lease.

(4) Any provision in a lease to which this section applies requiring the tenant to pay the whole or any part of the premium due under a fire insurance policy over any fixed equipment on the holding shall be null and void.

(5) Any question arising as to the liability of a landlord or tenant under this section shall be determined by arbitration.

(6) This section applies to any lease of an agricultural holding entered into on or after 1st November 1948.

S-6 Sums recovered under fire insurance policy.

6 Sums recovered under fire insurance policy.

6. Where the tenant of an agricultural holding is responsible for payment of the whole or part of the premium due under a fire insurance policy in the name of the landlord over any buildings or other subjects included in the lease of the holding and the landlord recovers any sum under such policy in respect of the destruction of, or damage to, the buildings or other subjects by fire, the landlord shall be bound, unless the tenant otherwise agrees, to expend such sum on the rebuilding, repair, or restoration of the buildings or subjects so destroyed or damaged in such manner as may be agreed or, failing agreement, as may be determined by the Secretary of State.

S-7 Freedom of cropping and disposal of produce.

7 Freedom of cropping and disposal of produce.

(1) Subject to subsections (2) and (5) below, the tenant of an agricultural holding shall, notwithstanding any custom of the country or the provisions of any lease or of any agreement respecting the disposal of crops or the method of cropping of arable lands, have full right, without incurring any penalty, forfeiture or liability,—

(a) to dispose of the produce of the holding, other than manure produced thereon;

(b) to practise any system of cropping of the arable land on the holding.

(2) Subsection (1) above shall not have effect unless, before exercising his rights thereunder or as soon as is practicable after exercising them, the tenant makes suitable and adequate provision—

(a) in the case of an exercise of the right to dispose of crops, to return to the holding the full...

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