Plans to modernise and update agricultural tenancy legislation
have been published today (Tuesday 9 April) as part of a
public consultation and call for evidence.
The proposals build on the work of the Tenancy Reform Industry
Group (TRIG), which has provided advice on the key policy
priorities for the tenanted sector as we leave the EU.
The consultations in England and Wales set out proposals to
remove existing barriers to productivity improvements and help
bring about structural change, improving the overall
competitiveness and sustainability of the tenant farming sector.
The options that are being explored include:
- Enabling tenants of Agricultural Holdings Act (AHA)
agreements to hand over their lease to new tenant farmers on
their retirement, encouraging earlier succession planning.
- Incentivising more landlords to let new Farm Business
Tenancies of 10 years or more, giving tenants greater security to
invest and grow a sustainable businesses.
- Removing barriers which may currently dis-incentivise
landlords and tenants from investing and making improvements to
their AHA rented holdings. For example, there is currently the
risk that agreed tenant interest payments made on investments can
be lost during the rent review process.
As the existing legislation on agricultural tenancy applies to
England and Wales, two consultations will run for 12 weeks in
both countries.
Farming Minister said:
“We are seeking views on how we can open up more opportunities
for the next wave of tenant farmers, breathe new life into the
sector and step up farming productivity.
“We are exploring a number of options to reboot the sector, such
as encouraging earlier succession planning and having more
flexibility in current tenancy agreements.
“The policy framework for agricultural tenancies needs to be fit
for the future, and I welcome all views on the proposals set out
in this consultation.”
Views will be sought from farmers in tenancy agreements,
agricultural landlords and the organisations which represent
these groups, as well as professional advisers and financial
organisations in the sector.
The Government is also seeking to gather evidence on mortgage
restrictions and repossession protections for farmland to better
understand any issues that exist in this area.
Sayers, Chairman of the
Tenancy Reform Industry Group (TRIG) said:
“The cross industry Group has worked closely with Defra to
identify further legislative and other measures which will
hopefully help to maintain and invigorate the tenanted
sector.
“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.
“I therefore encourage all those with an interest in land tenure,
which has such an important part to play in the future of many of
our agricultural business, to respond to the consultation.”
The deadline for responses is 2 July 2019.
Ends
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