Push for 'mutual respect' as Wales launches farming tenancy code

A new code designed to reset relationships between landlords and tenant farmers in Wales has been unveiled, marking a fresh push to improve standards and reduce disputes across the sector.

The voluntary Agricultural Landlord and Tenant Code of Practice, published by the Welsh Government, sets out clearer expectations for behaviour, with a focus on improving transparency, communication and long-term stability for farm businesses.

The framework was developed with input from a range of industry bodies, including NFU Cymru, the Farmers Union of Wales, Tenant Farmers Association Cymru, the Country Land and Business Association, the Royal Institution of Chartered Surveyors and the Central Association of Agricultural Valuers.

It applies to a sector that covers around a third of all farmland in Wales, underlining its importance to the wider rural economy.

At its core are three guiding principles — “clarity, communication and mutual respect” — which the code states should underpin all dealings between landlords, tenants and their advisers.

The code is intended to improve working relationships while recognising that both parties may have differing priorities.

It covers the full lifecycle of a tenancy, from the initial agreement through to rent reviews, repairs, diversification and eventual termination.

Landlords are expected to provide sufficient detail when offering land to give a fair and accurate picture of the holding, including any limitations or obligations attached.

Prospective tenants, meanwhile, are expected to be open about their experience, finances and farming proposals, with both sides encouraged to negotiate terms positively and flexibly.

Once agreements are in place, the emphasis shifts to maintaining regular and effective communication.

The code states that engagement should be “clear and timely”, with both parties agreeing practical arrangements for contact, visits and record-keeping.

Rent payments and reviews are highlighted as key pressure points, with guidance urging early discussions, realistic timelines and properly documented outcomes to avoid unnecessary disputes.

The framework also encourages more open conversations around future opportunities, including environmental schemes and diversification.

Landlords are advised not to withhold consent for new initiatives unreasonably, while tenants are expected to consider the long-term interests of the holding when making decisions.

Disputes are acknowledged as inevitable in some cases, but the code emphasises that they should be handled constructively, with parties encouraged to keep costs proportionate and consider alternative resolution methods such as mediation.

Importantly, the guidance makes clear it does not carry legal force. It does not replace existing tenancy agreements or legislation, but instead aims to raise standards beyond minimum legal requirements.

For many new entrants, tenancies remain one of the few realistic routes into farming, while established businesses rely on rented land to expand and adapt.

The code describes the sector as vital to Welsh agriculture, supporting innovation, flexibility and the wider rural economy.

Officials hope the new framework will help create more stable, transparent and productive relationships across Wales’ farming sector.