Will’s World: Why tenant farmers could do with a superhero
© Richard Stanton If you read last week’s column, you’ll recall the story of our hapless former local MP who didn’t remotely understand Agricultural Holdings Act tenancies and their associated restrictions.
I feel a bit bad now, as he’s far from the only one who doesn’t appreciate the many differences between owner-occupiers and tenant farmers.
Then again, I suppose that’s part of the problem.
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As a tenant farmer myself, though, I’m extremely aware of them.
Not least because in the past couple of years I’ve had a significant rent increase on our home farm, of which I’m the third-generation tenant of a three-generation AHA tenancy, and an even larger one on another farm that we rent on a Farm Business Tenancy from the same estate.
Far cleverer people than me confidently stated that farm rents would drop after Brexit; lamentably, no one informed my landlord.
Rent realities
I recently had the dreadful misfortune to read a sneering Guardian article stating that the new inheritance tax changes are a wonderful thing as they’ll result in farmland rents dropping too.
Forgive me if I’m cynical – perhaps I’ve just dealt with far too many vaguely threatening land agents over the years to believe that sort of cock-and-bull nonsense.
I’m not really complaining about that (well, maybe just a bit) – no one forced me to become a tenant farmer, and I went into it with eyes wide open.
We have a good farm, with good land, and I very much appreciate the life we get to lead here despite all the current challenges.
Tenancy restrictions
What I am complaining about, however, is the fact that my AHA tenancy, like most others, restricts us to “agricultural use only”, and I believe the definition of agriculture in this case comes from the Agriculture Act 1947.
I’m not going to type it all out here, but suffice it to say that farming is in a very different place than it was 77 years ago, with environmental pressures, new technologies, changing consumer habits, and the withdrawal of direct subsidy payments all obvious contributing factors.
Trying to run a small farming business like this in 2024 is a bit like being in the ring with peak-era Mike Tyson with one hand tied behind your back.
You can flail about as much as you like, but ultimately – and sooner rather than later – you’re hitting the canvas.
Diversification
I’m aware that some of the more progressive estates will allow diversifications under various forms of agreement – usually at a hefty price for the tenant.
If it works for both parties, though, then I suppose that’s alright.
What would surely be a less complicated solution is decent tax incentives for the landlord to allow diversifications.
Tenant farmers could open up more income streams, gain more money to invest in our farms, and ultimately, in these very difficult economic times, perhaps even keep our businesses afloat.
Failing that, we could look to get income from outside the farm, and I expect that’s something that many of us will have to do, if we don’t already.
Except that AHA tenancies usually stipulate that your main source of income must be the farm itself, or you’ll be in breach of your agreement.
Another ridiculously outdated and highly restrictive clause that desperately needs scrapping.
There’s talk of a tenant farming commissioner, and when I hear that word I can only envisage a man with a big red phone on his desk and handy access to the Bat-Signal.
Perhaps, though, that’s just what we need.