The Tenant Farmers Association (TFA) has identified three key issues that need addressing and developments for a successful tenanted agriculture sector in the New Year.
The three issues are: more “effective” government policy; a tenanted sector code of practice; and tax changes.
TFA chair Mark Coulman said:
“There’s always a sense of anticipation when we stand on the cusp of a New Year. Amongst the many things that we are expecting in 2024, there are three particular issues, for which the groundwork has already been done, that could make a huge difference to the tenanted sector of agriculture.
“The first development I will be looking for is a more effective implementation of government policy towards agriculture which properly recognises the specific needs of the tenanted sector.
“This includes the Defra agriculture transition plan in England and the consultation to launch the Sustainable Farming Scheme in Wales.”
Coulman said both have had the benefit of “considerable input” from tenant farming working groups established to inform their development including the continued input from the recently established Farm Tenancy Forum in England.
“Generally, the implementation of the new Sustainable Farming Incentive in England has, at best, been stuttering forward and we are yet to see anything concrete in respect of what was announced earlier this year as Countryside Stewardship Plus.
“We need to see a considered push to get these new schemes operating efficiently whilst ensuring both fair access to tenant farmers who may be limited by term length and restrictive clauses, and no net loss of land to the tenanted sector with landlords taking land back in hand to go into schemes themselves.”
Code of practice
Coulman said the second important development will be the launch of a new code of practice to “underpin engagement” within the landlord tenant sector of agriculture.
“We need ever stronger, more collaborative landlord tenant relationships within the agricultural sector,” he said.
“It is a crying shame that we are still experiencing poor practice with tenants feeling bullied, marginalised, and treated as second-class citizens. It simply is not good enough.
“However, in what will be a significant output from the Farm Tenancy Forum, established in the wake of the report from Baroness Kate Rock’s review into the tenanted sector (The Rock Review), a new industry code of practice could change all of that.”
The Farm Tenancy Forum has pulled together a working group of organisations to draw up a code of practice, expected to be launched in the spring, that aims to be based on trust, respect and collaboration.
“This new code should provide a step change in the conduct of relationships between landlords and tenants and build an important platform to hold to account those continuing to display poor practice,” Coulman said.
Tax changes
Thirdly, the TFA is hoping for news from the Treasury in the spring concerning tax changes to encourage landlords to provide “longer security” of tenure on farm business tenancies.
In the 2023 spring Budget the UK government announced a call for evidence on an important change to the availability of the 100% agricultural property relief from inheritance tax available to landlords.
“Given the short-term nature of many farm tenancy agreements now on offer, the TFA has long campaigned for this generous relief to be restricted only to those landlords letting for 10 years or more,” the TFA said.
“However, the Rock Review, whilst accepting the premise of the TFA’s arguments, decided that the bar should be set at eight years which was the basis of the Treasury’s call for evidence.
“The Treasury has signalled that the government’s response to the call for evidence will be issued in spring of next year.”
Coulman said the Treasury “must not drop the ball” on this issue.
“Inevitably, there is a host of vested interests who have lobbied the Treasury against the proposed changes. These must not be allowed to prevail,” he said.
“The sustainability of the tenanted sector of agriculture needs to be supported by longer term agreements for business growth, investment and sound environmental management.”
