Agricultural tenancy law to be reviewed

The Law Commission, a government organisation that considers changes to the law, recently announced that it will be reviewing agricultural tenancy law, which will form part of its 14th programme of law reform. The Commission’s aim is to modernise and simplify the law.

These reforms come 30 years after the Agricultural Tenancies Act 1995 came into force and will be significant to landlords, tenants and others in the agricultural sector.

The legislation governing agricultural tenancies is:

• Agricultural Holdings Act 1986 (governing Agricultural Holding Act tenancies)
• Agricultural Tenancies Act 1995 (governing farm business tenancies)

The Commission’s reasons for reviewing and reforming agricultural tenancy law are:

• The current regime may not correctly balance the interests of landowner and tenants
• Lack of security of tenure and short-term nature of tenancies may be seen as a barrier to investment
• The current law may restrict tenant farmers from diversifying
• The reforms will boost economic growth and opportunity for tenant farmers

As part of its reform programme, the Commission will consider the following points:

• If the law properly balances tenant farmers sufficient security to encourage investment and maintain viable farm businesses
• Opportunities for new entrants
• The interests and confidence of landlords to let land
• Whether the law impedes tenant farmers from diversifying
• Whether the law supports a collaborative approach between landlord and tenant
• Technical issues that cause problems in practice

The CLA will be engaging with the Law Commission on this project to ensure our members views are represented. An update and our plan of action will be provided to members when timings of the review are confirmed and available.

The CLA is positive about this reform; we are aware there is a risk to landowners, and we will push the Law Commission to ensure a balanced and practical approach for both landowners and tenants.

In addition to the Commission, the CLA will continue to attend and represent members’ interests at the Farm Tenancy Forum. We are currently representing members on discussions related to longer term tenancies.