Concerns have been raised over proposals by the Welsh government to introduce a statutory licensing scheme for accommodation providers in Wales.
In its response to the consultation, the Farmers' Union of Wales (FUW) stressed that a free statutory registration scheme should be introduced instead.
It said there was a 'strong feeling' amongst diversified farmers that policies to tackle the impacts of second homes and short-term holiday lets would have a 'detrimental impact' on genuine providers.
The union warned the Welsh government that such policies could result in "an irreversible impact" for the domestic tourism industry.
This could, in turn, lead to a sharp increase in the number of accommodation providers operating under the radar, the FUW said.
The union's diversification chair, Dewi Owen said: “Consequently this could also lead to empty properties which cannot be used for residential purposes due to planning conditions.”
In its response, the FUW highlighted concern that the proposed scheme would be considered as an enforcement tool by creating more barriers and bureaucratic requirements for genuine accommodation providers.
The consultation further highlighted the Welsh government’s intentions to introduce a licensing scheme based on a similar model to Rent Smart Wales, which the union said it was opposed to.
"Rent Smart Wales has clearly created additional barriers for landlords attempting to provide for the rented sector," Mr Owen warned.
"[This has] resulted in many properties being left unoccupied or sold as second homes which in turn has exacerbated the second home crisis."
FUW senior policy officer, Gareth Parry added: “We have emphasised the need to differentiate between genuine accommodation providers and those who both inhabit and let second homes at different times of the year.
“It has previously been proposed by the FUW that a statutory registration scheme is introduced in order to closely monitor the number of AirBnB and holiday home type properties in Wales."
