Crofting remains a deeply rewarding way of life, rooted in Scotland’s rural landscapes and heritage. Yet, for many crofters, generating a sustainable income from traditional agricultural activities alone can be challenging. As a result, diversification has become an increasingly important part of modern crofting businesses.
Today, many crofters supplement their agricultural activities with alternative income streams. Popular examples include holiday accommodation, such as self-catering units and small campsites; food and drink production; cafés and farm shops; direct sales of meat, fruit and vegetables; and renewable energy projects.
While diversification can create valuable opportunities, croft land remains subject to a unique legal framework. What a crofter can do – and whose permission may be required – depends largely on whether the crofter is a tenant or an owner-occupier.
Understanding a Crofter’s Duties
Every crofter has a statutory duty either to cultivate and maintain their croft or to put it to another “purposeful use”.
Purposeful use is defined as any planned or managed use of the land which does not adversely affect the croft, the public interest, the interests of the landlord, or the use of adjacent land.
For tenant crofters, diversification into a non-agricultural purposeful use requires written permission from the landlord. For example, a tenant crofter wishing to install a wind turbine on the croft must first obtain landlord consent, in addition to any necessary planning permissions. If consent is refused, the tenant may apply to the Crofting Commission, which has the power to grant approval.
In contrast, an owner-occupier crofter does not require consent and can proceed with projects such as their own renewable energy infrastructure, provided the project does not adversely affect the croft, the public interest or the use of adjacent land.
When a Third Party Is Involved
Renewable energy projects are a useful example, as they frequently involve third-party developers seeking rights over croft land. In practice, developers often prefer land to be free from crofting regulation before significant projects, such as wind farms or hydro schemes, proceed on the land.
The appropriate route for removing or modifying crofting restrictions will depend on the nature, scale and layout of the development.
One possible route is to apply to the Crofting Commission to have the relevant area(s) of land decrofted and removed from crofting tenure. Where the land is tenanted, the landlord may alternatively apply to the Scottish Land Court for a resumption order, either temporarily or permanently removing the land from crofting tenure.
Since 2007, it has also been possible to seek approval from the Scottish Land Court for a detailed Scheme for Development. This procedure allows a development to proceed while the land remains within crofting tenure. If approved, crofting rights over the affected land are restricted to the extent necessary to facilitate the project.
Developers will typically also require a lease or other rights over the land. An owner-occupier crofter will generally be able to grant the necessary rights directly, subject to any other regulatory requirements. In the case of a tenanted croft, however, the necessary lease must be granted by the landlord rather than the tenant.
Diversification and Common Grazings
Common Grazings have traditionally been used for a limited range of purposes, including livestock grazing, forestry and peat cutting.
Since 2007, shareholders in a Common Grazing have been able to agree alternative uses, provided they obtain approval from the Crofting Commission. Any proposed use must not be detrimental to use of other parts of the Common Grazing or to the interests of the landlord.
Opportunities Under Crofting Reform
The Crofting and Scottish Land Court Act 2026 introduces further opportunities for croft diversification by recognising “environmental use” as a legitimate use of croft land. Under the new provisions, which are still to come into force, crofts may be used for environmental purposes without requiring the consent of either the Crofting Commission or, in the case of tenanted crofts, the landlord.
Environmental use includes activities such as peatland restoration but does not extend to the generation, storage or transmission of energy.
For Common Grazings, environmental use will also be permitted, although consent from the landlord and/or the Crofting Commission is required.
Building Resilient Crofting Businesses
Diversification is increasingly essential to the long-term resilience of crofting businesses and communities. Whether through renewable energy, environmental projects, tourism or direct sales, crofters have more opportunities than ever to generate additional income from their land. Understanding the regulatory framework, engaging early with relevant stakeholders and obtaining the right permissions at the right time are key. With further reforms on the horizon, crofters who are prepared to explore new opportunities while remaining compliant with crofting law will be well placed to secure a sustainable future for their businesses and for the wider crofting sector.
*Originally featured in Scottish Farming Leader on 28 July 2026: View Article
