TFA Chief Executive, George Dunn, said “As a report commissioned by Government to answer questions about how the tenanted sector of agriculture can be improved to unlock its economic, environmental and social potential, the 74 recommendations made within the Rock Review take a solutions-based approach to the issues faced by the sector. At this stage, it is vital that the Treasury acts on those recommendations relating to the fiscal environment within which agricultural tenancies operate”.

“The need to change the taxation environment within which landlords let land is now urgent. Over half the land in the tenanted sector of agriculture in England and Wales now falls under Farm Business Tenancies. That proportion is due to accelerate over the next 10 to 15 years. With the average length of term on these agreements just three years and with nearly 90% of those tenancies let for five years or less, they provide no incentive for investment, progression or in terms of the delivery of the Government’s natural capital objectives for carbon, biodiversity, nature, water, soil and renewable energy,” said Mr Dunn.

“We must move the dial to encourage longer term lettings and there is broad agreement that the most effective way of achieving that is through changing the way in which landlords are taxed particularly on Inheritance Tax. Currently, there is little, if any, return to the public interest from the huge benefit given to landlords through Inheritance Tax Agricultural Property Relief. It must be re-geared to benefit those willing to offer more reasonable levels of security of tenure,” said Mr Dunn.

“In addition, landlords letting for 10 years or more could be given new reliefs through the income tax system similar to those which have been operating so well in the Republic of Ireland. A combination of carrot and stick will be a powerful force for good in driving longer-term tenancies and protecting the long-term security of the let sector of agriculture whilst operating at least fiscally neutrally,” said Mr Dunn.