Crofting is a traditional farming method, preserved in the crofting counties of Inverness, Argyll, Caithness, Sutherland, Ross and Cromarty, Orkney and Shetland. 

The Crofting Reform Etc (Scotland) Act 2007 extended the concept to include the Islands of Arran, Bute, Greater and Little Cumbrae and the Highlands Enterprise Area, so far as not already in the traditional crofting counties, principally the Local Authority Area of Moray Council.

New crofts may be created by the voluntary act of the landowner or, in the new counties only, by the compulsory conversion of certain statutory small tenancies.

• Crofters have basic statutory rights, including security of tenure, fair rent, compensation for permanent improvements, the right to buy and succession.  The transfer of the tenancy may in some cases only require landlords’ consent but in others the consent of the Crofters Commission is essential.
• Calculation of the price when the crofter is purchasing the croft land and/or croft house site is governed by statutory controls.  Landlords are not always able to recover their legal expenses from the crofter but can reserve minerals, preserve their interest in the sporting rights over the croft land and participate in its development value, if sold within five years.
• Croft land (including common grazings) can be taken out of crofting use on a temporary or permanent basis. Resumption is essential to allow any non-agricultural development of the land by the landlord.  Resumption applications are made to the Land Court.  Crofters relinquishing croft land are entitled to share in the development value of such land. In the case of major developments such as wind farms the landlord will usually have consulted extensively with the crofters before submitting the Resumption application, the aim being to produce a proposal which is acceptable to the landlord whilst recognising the wider crofting interest.
• De-crofting may be appropriate where the landlord/tenant relationship has ended, often when the crofter becomes the owner-occupier.  This is done by way of application to the Crofters Commission.
• Crofting Community Bodies can be set up to compulsorily acquire croft land in the traditional crofting counties under the Crofting Community Right to Buy (there should be a link to Crofting Community Right to Buy in your Rights to Buy one) introduced by the Land Reform(Scotland) Act 2003
• Statutory Smallholdings created under the various Small Landholders Act 1886 -1931 exist outwith the traditional crofting counties and whilst they share some characteristics with crofts different rules apply. Specifically there is no right to buy and assignation will require the landlord's consent.(There could be a link here to agricultural leases),
• Statutory Small landholders in the newly designated areas of Arran, Bute, Greater and Little Cumbrae and the Moray Council Area may be entitled, provided certain conditions are satisfied, to apply to the Crofters Commission to have their smallholdings converted to crofts with all the rights that flow from that status.

The general consensus in the Crofting Communities and a view shared by the Scottish Government, is that, despite the changes made by the 2007 Act, further reform is necessary, particularly to encourage new entrants and to maintain the active working of croft land. Following on the recommendations of the Shucksmith Report published on 12 May 2008 there is ongoing consultation with a view to further reform to enable the crofting regime to thrive in today's world.

We closely follow the development of crofting reform and are able to advise you fully on all aspects of crofting and smallholdings law whether you are a landlords or a tenant.

For more information please contact Adele Nicol.