Farming News - Future of Farming: Are landlords part of the problem?

Future of Farming: Are landlords part of the problem?


In the wake of the government-commissioned Future of Farming review, the Tenant Farmers Association has challenged rural landlords to consider whether they are "part of the solution or part of the problem." 

 

The report, released earlier this week, identified several barriers facing new entrants into farming, amongst which access to land featured prominently. TFA said "It is clear that as a farming industry we need a consistent stream of new entrants both to be farmers in their own account and to be employed in both managerial and other positions."

 

Chief Executive George Dunn added, "There is definitely a high demand from individuals looking to get into agriculture and this is a real turnaround from 10 or 15 years ago. However, a major barrier to entry is access to land.

 

"It is a great shame that many private landlords take a short-term view when letting land. They seem to have one eye on taxation and another on potential payments through the Common Agricultural Policy rather than having both eyes fixed on a long term approach… which will deliver enduring value to both parties," Mr Dunn added.

 

Changing conditions could require reassessment of relationships

 

In April, following months of harsh and unsettled weather, there were suggestions that tenancies are, in some cases, characterised by "short-term profit over long term prosperity," and that in the future, farm tenancies may require a 'climate clause' if the value of land continues to rise out of proportion to productivity.     

 

Touching on the subject on Monday, Mr Dunn said, "Even when land does come to the rental market there is a tendency for existing owner occupiers to bid rental levels which are well in excess of what could be justified from the profit that can be made from farming the land, blocking out opportunities for new entrants and those looking to progress."

 

In its report this week, the Future of Farming group, convened by farming minister David Heath and made up of representatives from agriculture and associated leaders from banking, education and legal services, suggested that limitations and significant overlap in training have also exacerbated barriers to entry into the industry. The group said the waning number of local authority farms may also be narrowing the range of entry points into agriculture.

 

TFA's Mr Dunn was heavily critical of the situation which has led cash-strapped councils to sell of a large number of their assets, including in many cases their agricultural holdings. Speaking on Monday, he said, "At a time when we need opportunities it is also disappointing that a number of county councils… are in the process of disposing of holdings in a 'dash for cash'. This type of policy is not good for the agricultural industry and not good for local council taxpayers who will expect long-term, best value from the management of the assets entrusted to local authorities." 

 

He concluded, "For too long we have allowed an unabated laissez-faire approach fuelled by generous taxation incentives to drive the market and land occupation decisions, to the detriment of the common good. We need a long-term strategy which aims at producing lasting, viable opportunities for entry to and progression through the agricultural industry to meet the challenges which face us in the years which lie ahead, including population growth, higher environmental demands and greater volatility in markets."