The crofting system was the only reason there were still people living across much of the Highlands and Islands at the beginning of the 20th century, but its demise is now inevitable unless government takes radical action to help preserve it.

However, it is only Scotland's 12,000 crofters themselves who can guarantee that a unique system of land tenure remains integral to the human geography of 21st century Scotland. And they may soon have the chance.

These were the clear messages from Stornoway yesterday where the Scottish Government's committee of inquiry into crofting, under land use expert Professor Mark Shucksmith, published its report which is being hailed as the most important development in crofting in over a generation.

The committee was established in September 2006, charged with producing a vision for crofting. This had followed the debacle over the former Scottish Executive's bill to reform crofting which many feared would destroy it within a generation.

There was particular concern the bill would have legitimised and promoted a free market in croft tenancies which can already change hands for tens of thousands of pounds in the face of the insatiable demand for property in desirable locations. Already there are communities where far more than half of all houses are second or holiday homes.

The interests of the individual crofter who might be tempted to cash in have not always been the same as the interests of crofting as a whole. As historian Professor Jim Hunter said yesterday: "The only reason the crofter has such an asset today is because Gladstone's government intervened against the rights of 19th century landlords to do what they wanted with their land (by giving crofters security of tenure)."

This internal tension within the community is one of the main reasons why younger people find it so difficult to gain access to it.

Professor Shucksmith's prescription for the survival of crofting is radical. It prescribes early surgery with the abolition of the Crofters Commission after 53 years of regulating the system. It would be replaced by seven to 10 local crofting boards which would be elected locally but would form a single Federation of Local Crofting Boards which would represent a central executive providing staffing support and finance. The boards would have the power to suspend a crofter's right to buy their croft, established in 1976, if it was in the community's interest.

All sub-lets and tenancies should also have to be approved by the board, which would have the power to place a limit on the number of crofts or amount of land which can be held or worked by any one crofter. Grazings committees should be modernised to become crofting township development committees with a primary role of developing strategic plans for local development.

An annual "state of crofting" report should be submitted to the Scottish Parliament by the Federation of Crofting Boards.

The development side of the commission's work would be taken over by a new crofting and community development body which the committee believes would be sited, ideally, in Highlands and Islands Enterprise. New legislation is recommended to replace, simplify and clarify the accumulated laws that set the framework for crofting, described yesterday as being of Byzantine complexity.

However, no change should be made to those rights given to individual crofters in the 1886 Crofters Act. These rights should only be enjoyed by those residing on or near their croft and using the land beneficially, and not the 1700-plus absentee crofters scattered across the world.

They would no longer enjoy any of the crofters' rights, as the committee's report makes clear: "All croft houses should be tied to residency through a real burden, which would be deemed to be included in the conveyancing when next assigned or purchased. Crofters may apply to the local crofting board to have the burden removed, but only if it is in the wider community interest. The government should consider backdating the real burden to all assignations and purchases made after May 12 2008."

This last recommendation is to head off any dash to cash in or acquire crofting assets before the law is changed.

An enhanced Croft House Grant and Loan Scheme is recommended with a combination of a means-tested grant of up to £30,000 index-linked (up from the present £22,000 limit) and reintroduction of non-means tested loans at commercial rates guaranteed by the Scottish Government. This to permit house building or improvement without taking land out of crofting. It should help young crofters who find it next to impossible to raise a commercial loan with their croft as security.

Presenting his report Professor Shucksmith said his committee had engaged with more than 2500 people: "Our aim has been to consider the best way of addressing current issues and building for the future so the economic, social, environmental and cultural benefits of crofting can be enjoyed by those living in rural Scotland. A key theme of our recommendations is empowering crofting communities, through the right mix of support, to take ownership and responsibility for their future.

"Our proposals are far-reaching and will require significant commitment and investment for changes in legislation, governance, procedures and practice. Crofting has already made a significant contribution to life in Scotland and it offers an internationally unique and valuable approach to sustainable rural development. We firmly believe that these changes are necessary if crofting is to remain an important and viable part of our society."

Environment Minister Michael Russell said ministers would consider the report and Parliament would debate crofting on Thursday. "Crofting does not exist in global isolation and in safeguarding this heritage we must ensure it offers a viable and fulfilling way of life for future generations."

Patrick Krause, director of the Scottish Crofting Foundation, said: "There is no doubt the authentic voice of Scottish crofters is in this report. It will mean far greater responsibility for crofters but Mark Shucksmith has looked at rural development worldwide and has found it is only when it comes from the people themselves that it works."

Drew Ratter, the Shetland crofter who is chairman of the Crofters Commission, welcomed the report despite its recommendation to abolish the commission. "I have been a crofter a hell of a lot longer than I have been on the commission and I really want crofting to have a future. Many of the principles are ones I have been advocating for years."

Proposals on housing grants would be a big help to me'
David Ross highland correspondent KEVIN Kennedy, 28, was assigned two family crofts by his grandfather at Lemreway in South Lochs on Lewis, though he lives in Stornoway.

Last night the father-of-two welcomed the report as "positive". He said: "I went to two meetings called by the Shuckmsith committee and it is obvious they were listening then and in the report. The proposals on housing grants and loans would be a big help to me. I want to build a house on the croft and move the family down there.

"But at present it is very difficult. You get up to £22,000 in a grant but the problem comes when you try to get the rest. You have to get planning permission for your house and then apply to take the site out of crofting land before you can get a commercial loan. But what is being recommended here would allow people like me to build a proper croft house on croft land."

He has about 50 sheep and five cows and has been involved in planting trees on marginal ground. "Although I live in Stornoway I'd generally support the demand for crofters to be resident or close to their crofts. I certainly couldn't work on the croft and at the same time have a job on the mainland."

He studied genetics at Aberdeen University but works as assistant manager at Lewis Crofter (a co-operative providing agricultural supplies). He and his partner, Tracey Murray, have two young children, Kieran, five, and Kayleigh, two, and is determined they will yet enjoy their childhood on their croft.

He said the report was tackling the vexed question of croft transfers. "I can't see any future for young people coming in if they have to pay £20,000 or £30,000 just to get a tenancy. The whole process of transferring crofts has to be sorted out, and this report looks as though it is taking the first steps."