The Tenant Farmers Association will be telling members at this weeks Dairy Show at the Bath & West showground that they should resist suggestions from landlords that dairy rents should increase.
TFA National Chairman, Reg Haydon said "Whilst there has been an increase in prices paid to producers for their milk in recent months, these have been already swallowed up in increased costs not least energy, fertiliser, labour and dairy replacements. Any landlord's agent worth his salt will be considering very carefully whether to pursue rent reviews on dairy holdings this spring and coming autumn. It must also be remembered that the recent improvement in prices comes after an extremely long spell where tenant farmers in the dairy sector were having to live off their limited capital".
Landlords agents will however quote the value of the farmhouse to the tenant making reference to rents achievable in the private rented sector for residential tenancies.
"I am well aware that the rents on residential tenancies are strong and in rural areas tend to be supported by commuters or those with second homes earning their incomes in the big cities. This is very different to the situation experienced by farm tenants. The houses which they live in are part of a complete farm unit let under a very different legislative code to residential tenancies and often with very different repairing obligations. It is like comparing chalk and cheese and we consider it bad practice when landlords agents attempt to split out the value of the farmhouse in rental negotiations," said Mr Haydon.
"The Tenant Farmers Association is the most authoritative voice on these matters and the best source of advice for tenants approaching rent reviews. Our long-running rent databank, which has been available to members for many years, is now available in the members area of our website and provides a unique resource to TFA members to benchmark their position against similar tenancies. With the advice available from our Head Office, the TFA's Recommended Professionals and its market-leading insurance scheme which covers the costs of potential rent review arbitrations, there is nowhere better for tenant farmers to get their advice than from the TFA".
