Crown Estate To Almost Double Leases To The Seabed For Fish Farms And Others

25th January 2022

Root and branch review of aquaculture leasing complete.

A comprehensive ‘root and branch' review of how Scotland's seabed is leased for aquaculture has resulted in changes to rents as well as new reporting requirements on the use of plastics and, for finfish operators, participation in agreements to manage cumulative impacts.

The review covered all aquaculture sectors and explored and recommended rent and lease terms that:

Ensure rents fully reflect market value (profits from rents paid to Crown Estate Scotland are passed to Scottish Government for public spending);
Drive sustainable performance; and
Incentivise effective use of the seabed as a shared resource.


The overall charge for finfish producers will be 1.5% of production turnover (through phased introduction of the reviewed terms), putting producers on a level playing field with other commercial users of the seabed.

This means that producers' commercial success - success that relies on using the seabed, a shared resource - is reflected in increased funds flowing to Crown Estate Scotland and, ultimately, to the Scottish Government and local authorities.

Revised terms support implementation of the Scottish Crown Estate Act 2019 specifically regarding managing assets in a way that maintains and enhances value, generates return and promotes sustainable development.

As the body responsible for the leasing of Scotland’s seabed and around half the foreshore, Crown Estate Scotland currently leases around 750 sites for finish and shellfish farming.

The review was informed by recommendations from an expert panel, working alongside members of Crown Estate Scotland’s aquaculture team. An Island Communities Impact Assessment relating to the recommendation to standardise charges across Scotland was carried out.

Alex Adrian, Aquaculture Operations Manager at Crown Estate Scotland, said: "This review was essential to ensure that we keep up with the pace of an ever-changing sector.

"Aquaculture businesses sustain jobs in some fragile, remote communities and their operations impact the environment. We want to ensure that, in line with legislation, sustainable development is the core principle underpinning seabed leasing."

Some of the key changes include:

For finfish tenants, an increase in fees (as a percentage of turnover) to reflect the consistently strong prices for salmon alongside a revised rent determination process that can better reflect market behaviour;
For finfish tenants, reporting required on participation in (collaborative) Management Agreements to mitigate cumulative impacts;
For shellfish tenants, rent remains the same other than an increase in minimum rents; and
For all tenants - reporting required on management of plastic used on the leased area.

Changes to lease terms will come into effect in phases, starting in January 2023.

The review is separate from the review of regulation commissioned by Scottish Government.

Crown Estate Scotland issues leases for seabed only once operators have the necessary consents and permissions from regulators and planning authorities.

SALMON SCOTLAND COMPLAINS ABOUT UNJUSTIFIED RENT INCREASES FROM CROWN ESTATE SCOTLAND

Salmon Scotland, the trade organisation for the Scottish salmon farming sector has written to Mairi Gougeon, The Cabinet Secretary for Rural Affairs and Islands to express its disappointment and concerns about today’s announcement from Crown Estate Scotland
(CES) to implement significant rent increases to the sector.
The changes by CES, which include rises of 95% across the sector as well as removing the Outer Island Discount to protect areas where higher costs of living, labour and logistics are constant, has come in advance of the report by Professor Russel Griggs looking at the regulatory aspect of the industry as a whole.

Salmon Scotland had raised concerns with the Crown Estate Scotland proposals urging a collective approach which would align with the outcome of the sector review and help have
a holistic approach across decision making to consider the wider consequences and implications made by policy change.

Tavish Scott, Chief Executive of Salmon Scotland, said:
"Scotland’s salmon sector, employing 2,500 direct jobs in coastal and island communities is very disappointed by Crown Estate Scotland’s arbitrary and totally unjustified decision to almost double rents on salmon farms. CES presumably now see salmon like offshore wind – a cash cow to be exploited.

“We are today asking Cabinet Secretary Mairi Gougeon to halt this rise until the independent review of regulation is published, and Government assess Professor Russel Griggs recommendations.

“Our members have paid more than £20 million into CES over the last five years – a charge which is set to almost double under this new framework.

“Scotland’s salmon farmers would be more likely to accept such a steep increase if they could see the benefit in terms of local investment of these charges. But, despite requests, CES have failed to give any indication as to how – or even if – this extra money will actually be used to help local people in the areas where it is raised."