Tenants need to talk to landlords about spring payment difficulties

Tenant farmers who believe they may have difficulty making their spring payments should seek a meeting with their landlord or agent as soon as possible, according to the NFU.

The delay in distribution of Single Payment Scheme payments along with depressed prices has created cash flow problems for many farmers, and the NFU is urging tenants to raise this with their landlords if it looks like affecting their ability to meet payments.

Tenant farmers, particularly those with Candlemas and Lady Day agreements, are also being reminded that the NFU Legal Assistance Scheme (LAS) offers assistance for those considering serving a rent review notice on their landlord.

The NFU issued the reminder along with details of the financial support available from LAS, which helps tenants meet some of the costs of obtaining ‘First Advice’ on the likelihood of achieving a change in their rental agreement.

NFU vice president Meurig Raymond said: “These are difficult times for farmers, particularly in the tenant sector with depressed prices and delays to the distribution of Single Payment Scheme money causing very real cash flow problems. It is important that tenants know what options are available to them. If you are paying high rent you may wish to seek a rent review and I would encourage you to take advantage of the NFU’s ‘First Advice’ facility to explore the possibility of achieving more favourable rental terms.

“I must also remind tenants that if they believe they may have difficulties meeting spring payments they should discuss this issue with their landlord or agent as soon as possible, before a rent payment notice has been issued. At every meeting the NFU has had with the major institutional landlords we have raised the matter of late SPS payments interrupting cash flow and the message we have received is that if that is the case tenants should seek a meeting with their landlord as soon as possible.”