The Future Demand for Smallholdings in Scotland – An Assessment
This research project was undertaken to assess demand for small landholdings in Scotland. Small landholdings are a form of tenanted agricultural holding that exists in the non-crofting counties as defined under the Small Landholders (Scotland) Acts. As the number of small landholdings is very limited “smallholdings” and “small landholdings” were treated as one category when analysing data and considering future demand for these holdings. The research method included analysis of the Scottish Government's June Agricultural Census (JAC) data, an online survey and workshops with SRUC students and staff.
JAC analysis identified 21,594 unique non-croft smallholdings which accounted for 42% of all agricultural holdings and 1.9% of the Scottish land area. The holdings demonstrated a mixture of uses with a mix of commercial focus on some, some which were more diversified and others which were more lifestyle focused. Of those responding to the survey the majority had some experience of land based businesses, with the main motivations for wanting to become a smallholder including family links, personal interest or experience, business goals and lifestyle reasons. A majority (58%) were more interested in becoming an owner occupier than a tenant and being able to own a home/live on site as part of the smallholding was an important factor.
The perceived barriers to becoming a smallholder included: start-up costs, lack of awareness of how to obtain a smallholding, lack of available smallholdings, lack of income potential and a lack of support/funding. Opportunities identified for increasing smallholding activity included: providing start up grants, guidance and support, events and networking opportunities, small business training and availability of small loan funding.
Further opportunities for the Government to improve access to smallholdings, included: (i) tax and / or policy incentives for landowners to create small holdings for rent / purchase; (ii) creation of publicly owned smallholdings from existing publically owned land, or through strategic purchase of land; (iii) flexibility within the Planning System to enable new smallholders to build homes / infrastructure required to run smallholdings; and (iv) promoting the benefits and economic opportunities of smallholding in Scotland.