Farm Tenancies Suffer from Short Term Thinking
The Tenant Farmers Association’s National Chairman, Greg Bliss will tell a congress of rural lawyers from across Europe that Farm Business Tenancies in England and Wales are failing to provide the long term security that farm tenants require.
Mr Bliss will be speaking at the opening ceremony of the 2009 Congress of the European Council for Rural Law at Queen’s College Cambridge this evening.
“We are nearly 15 years on from the introduction of Farm Business Tenancies under the 1995 Agricultural Tenancies Act and whilst we have arrested the previous year-on-year decline in the area of let land which was evident before the introduction of the new legislation, there remain painfully few opportunities for new farm tenancies in England and Wales. Last year only 8.5% of lettings were of both land and buildings and less than 8 per cent included houses leaving 84% of lettings as bare land. On top of this, with an average length of term of only 3½ years on those tenancies which are being offered, there seems to be little if any long-term thinking amongst landlords and their advisers,” said Mr Bliss.
“The landlord tenant system provides an excellent framework for the needs and aspirations of the landowner to be complemented by those of the farmer. Wealth and fixed capital can be combined with innovation, farm business acumen and drive to achieve joint ends. However, if landlords and their advisers continue to look short term these ends will not be met. What we need are landlords interested in promoting long-term sustainability, advisers who are seeking to facilitate sustainable businesses and tenants who are prepared to share fairly the rewards of farming their holdings,” said Mr Bliss.
“Of course there are some legislative obstacles to long term thinking which cannot be ignored most notably the taxation framework within which land management decisions are made. It remains the case that it is more tax efficient to remain an owner occupier, even when you do not possess the required skills, than it is to grant a lease to a tenant farmer who does possess those skills. It is a major disappointment that despite the agreement that exists on the fiscal changes that should be implemented, as expressed through the Tenancy Reform Industry Group, the Government fails to recognise the need for change,” said Mr Bliss.
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Ref: MR26
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Date: 23 September 2009
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Notes for Editors:
The Tenancy Reform Industry Group includes the representative bodies for tenants, landowners and professional advisers.
For further information contact Greg Bliss on 07850 716 042 or George Dunn, TFA Chief Executive on 0118 930 6130 or 07721 998961.
