Farming News - Progress of Reform for Tenanted Sector of Agriculture Must Continue in 2025

Progress of Reform for Tenanted Sector of Agriculture Must Continue in 2025

The Tenant Farmers Association (TFA) has said that there must not be any let-up on the progress of reform for the tenanted sector of agriculture into the New Year.

 

TFA National Chair, Robert Martin, said “We continue to be eternally grateful to Baroness Kate Rock for providing such a comprehensive blueprint for delivering a thriving agricultural tenanted sector in her October 2022 report following her review of the sector. TFA is continuing to press for her recommendations to be implemented and we are slowly but surely making good progress in doing so.”

The establishment of the Rock Review into agricultural tenancies followed extensive lobbying by the TFA leading up to the introduction of the Agriculture Act 2020. On the back of a strong lobby, the previous Conservative DEFRA Secretary of State, George Eustice, saw the need for such a review. However, the recommendations of Baroness Rock’s report are non-party political and did have the support of Labour in opposition and should therefore continue to have support now that the Party is in Government.

“It is no exaggeration to say that without TFA lobbying there would have been no Rock Review and without is continuing pressure on both the previous and current administrations, the report of the Rock Review would now be gathering dust on Whitehall shelves. Instead, we have seen great progress not least with the development of the Sustainable Farming Incentive, the establishment of the Farm Tenancy Forum, the introduction of a new landlord and tenant code of practice and the recent announcement of the forthcoming appointment of a Tenant Farming Commissioner,” said Mr Martin.

“The agreement to create the role of Tenant Farming Commissioner is a strong indication of the importance of the tenanted sector of agriculture which covers 30% of the farmed area of the country. It brings together those who hold land with those who have the entrepreneurial flair to make a success of farming that land, provides liquidity to the land market and offers opportunity for new entrants and progressive farmers. The TFA will be making sure that this appointment does get over the line in the New Year and we are looking forward to working with whoever the Government brings into that very important post for our sector,” said Mr Martin.

There is much more which remains to be delivered from the Rock Review, including a Law Commission review into necessary legislative changes, further development of Government schemes to align with the principles of landlord tenant agreements, reform of the taxation environment within which decisions to let land are made by landlords and to ensure that private markets for natural capital work in harmony with landlord tenant agreements rather than undermining security of tenure.

“Beyond the appointment of the Tenant Farming Commissioner the most immediate issue that needs to be addressed is in respect of taxation particularly in light of the decisions made by the Chancellor of the Exchequer as part of the October Budget. The TFA understands the objective of the Government in wanting to deny wealthy individuals easy routes to avoid their fair share of paying tax, but the measures announced will not achieve that objective and will have unintended consequences not least for the tenanted sector of agriculture. The TFA remains in close consultation with the Government to encourage it to make necessary changes to the announcement that it has made including, amongst other things, allowing landlords letting for the longest terms to continue to have Inheritance Tax relief,” said Mr Martin.

“The TFA is the only organisation dedicated to the interests of those who farm land that they do not own. There is a whole raft of regulatory, policy and market situations which impact the let sector differently to those who own and manage their own land. The TFA will continue to be at the forefront of advocating on behalf of the sector and those who operate within it,” said Mr Martin.