PROPOSAL 7

The strengthening of protections for farmers within Farm Business Tenancies  

Over 30% of agricultural land in England and Wales is in some form of farm business tenancy so the importance of good regulation around tenancies cannot be underestimated. Not only are significant amounts of farmers affected by tenancy conditions, but the sector provides a vital role in that it matches those without sufficient capital who want to farm to those with sufficient capital who do not wish or are unable to farm. This is an essential form of liquidity within the agricultural economy. All farm business tenancies should become formal to assure tenants of their rights. We propose to increase the minimum term of farm business tenancies to 7 yrs with a minimum 3-year notice to cease. Landlords who do not offer minimum 7 yr rental terms will be penalised by not being able to claim agricultural property relief on their assets for inheritance tax purposes. Landlords will no longer have the right to take land out of tenancies for other land management schemes without tenant consent. Tenants should be granted full rights to engage in farm diversification and fair representation must be guaranteed for the tenant to challenge any decision by the landlord to deny permission.