Proposals to enable tenant farmers to improve their
resilience, professionalism and prosperity by overhauling
agricultural tenancy laws are part of a consultation launched by
the Welsh Government today (9 April).
Currently around 30% of total land farmed in Wales is rented
either through the Agricultural Holdings Act, Agricultural
Tenancies Act or informal agreements or grazing licences.
The consultation looks for ways to enable this key sector of the
agricultural industry to modernise by considering elements of
tenancy law which are perceived outdated or restrictive to modern
farming practices.
The 12-week consultation, running concurrently with another from
Defra, builds on the recommendations of the Tenancy Reform
Industry Group, who provided advice on the key policy priorities
for the tenanted sector as the United Kingdom prepares to leave
the EU.
The aim is to enable tenant farmers and agricultural landlords to
thrive by ensuring agricultural tenancies are fit for the future
as we move away from the Common Agricultural Policy and bring in
a new agricultural policy.
The consultation will seek views on proposals which could remove
perceived barriers to productivity levels and make it easier for
structural changes in the tenant farming sector.
These changes aim to remove barriers preventing tenants from
erecting or alter buildings, invest in new fixed equipment, take
on other land or diversify into non-agricultural activities, such
as environmental land management.
The consultation, where responses will be made from where the
holder is registered when land straddles the border, will focus
on four distinct areas;
-
Proposals to facilitate structural
change - the proposals have been designed
to enable the incumbent tenant to give up or pass on their
rights to others in advance of the retirement age, creating
opportunities for the younger generation.
-
Proposals to facilitate productivity, investment and
environmental improvements - the proposals
would include loosening standard landlord restrictive clauses
in leases preventing tenants from making longer-term
investments in sustainable land management practices and
productivity improvements.
-
Non-legislative options - this may
be through brokering better and more robust relationships
between tenant and landlord and promoting the benefits of
longer tenancy agreements.
-
Call for evidence - this section
includes an open call for evidence covering mortgage
restrictions and repossession of farm businesses to aid
consideration of the issues and potential action in the future.
The consultation will also seek evidence and views into whether
current restrictions on agricultural mortgages are a barrier to
landowners wishing to let land, as well as whether there is a
need to introduce additional measures into repossession
proceedings to provide protection for farm business borrowers who
are unable to meet finance repayments.
It is hoped the new proposals will assist tenants and landlords
to adapt to change, access new schemes, improve productivity and
enable structural change by modernising elements of tenancy
law.
The consultation is open until 2 July.
Minister for Environment, Energy and Rural Affairs, , said:
“We are determined to put the agricultural industry in the best
possible position to thrive in the future and allow both
landowners and tenants to adapt to challenges and overcome
whatever issues they face.
“As we prepare to leave the European Union and Common
Agricultural Policy it is more important than ever that we
support proposals like these, so tenant farmers can be safe in
the knowledge that their futures are strong and sustainable.
“We’re urging everyone in the sector to share their views so we
can gain an insight into the issues they’re facing and ensure the
new regulations are fit for purpose. With this reform we’re
determined to help farm businesses become more professional,
resilient and prosperous in the future.”
Chairman of The Tenancy Reform Industry Group Sayers said:
“TRIG as the cross industry Group has worked closely with the
Welsh Government representatives to identify how to invigorate
the tenanted sector through further legislative and other
measures.
“We face a period of significant change across the whole farming
industry, to which both landlords and tenants must be in a
position to adapt over the course of the next few years and
beyond.”
