Farm tenancy proposals published
Industry proposals for measures to help secure a sustainable and profitable future for tenant farmers were welcomed by Defra Ministers Lord Whitty and Alun Michael today.
The Tenancy Reform Industry Group (TRIG) report, published today, is in response to Curry Commission recommendations and an economic evaluation by Plymouth University.
The TRIG report provides an industry consensus as to how the economic development of the tenanted sector can be promoted to meet the government objectives, with recommendations to help tenant farmers diversify whilst acknowledging landlords interests, and to give landlords confidence to offer more land to rent.
The report's key recommendations include
- Changes to the Agricultural Tenancies Act 1995 to give parties greater flexibility to reach their own agreements in relation to rent reviews and end of tenancy compensation.
- Changes to the Agricultural Holdings Act 1986 to update the tests for statutory succession to farm tenancies in relation to approved diversification activities.
- Establishing a voluntary Code of Good Practice and an ombudsman scheme to encourage greater opportunities for on farm diversification by tenant farmers.
- Drawing up model clauses that can be used to mirror the terms of an Agricultural Holdings Act 1986 tenancy within a tenancy agreement drafted under the Agricultural Tenancies Act 1995.
- Changes to Inheritance Tax and Capital Gains Tax to remove barriers to diversification and encourage longer lettings.
- Research into problems associated with tenant retirement and support for an advisory service for new entrants.
Lord Whitty, Food and Farming Minister, said:
"A strong tenanted sector is a vital component of the sustainable, profitable and diverse farming industry we all want to see. It is in all our interests to create the best possible conditions for tenant farms to thrive. We must all work together to break down barriers which prevent them fulfilling their business potential.
"The Government will study these proposals carefully and will respond to each of the individual recommendations."
Alun Michael, Rural Affairs Minister, added:
"It is vital for the well-being of the rural economy that we have a healthy and prosperous farming industry. Farmers can no longer rely on traditional agricultural activities to sustain their businesses. We need to ensure that we put the necessary measures in place to allow tenant farmers to take part in a diverse range of rural activities, which will enable them to make a greater contribution to the rural economy as a whole."
TRIG chairman Julian Sayers said,
"This package of measures is supported by all organisations represented on TRIG. We believe, that if implemented, these measures could bring about significant improvements within the let sector. It will enable tenant farmers to restructure their businesses without jeopardising their rights, while maintaining an appropriate balance between landlord and tenant interests. I hope Ministers can give their full backing to our proposals."
