I was interested when you mentioned this song in the Land of MacLeod thread and I'm glad you added the lyrics (though I don't know the air).
Sutherland is in the NORTHwest of Scotland. I heard it got its name because it was South for the Vikings coming from Scandinavia. There's a memorial statue to the Duke of Sutherland which has recently been a subject of debate as some people think it should be removed. Land is a very current issue in Scotland where a lot of land is still held in large estates. A recent trend has been for community buy-outs, with a local trust to manage the land.