The Tenant Farmers Association (TFA) has said that figures released in the Central Association of Agricultural Valuers' (CAAV) annual Land Occupation Survey point to the need for Andy Burnham's new Government to address the lack of security of tenure offered to tenant farmers.

The survey shows reduced confidence within the landlord community: average lengths of term on new tenancies have dropped to barely over three years, and nearly 85% of all new tenancies were offered for terms of five years or less. In a further worrying statistic, the proportion of relet farms that had previously been let under secure agreements has dropped from over 70% to just over 50%.

 TFA Chief Executive, George Dunn, said, "The TFA has consistently made the case that farm tenancies have been too short for too long. Short farm tenancies provide no basis for building sustainable farm businesses or addressing environmental and social needs in our rural areas. The most recent CAAV statistics demonstrate that things are getting worse, not better. Clearly the changes made in the 2024 Budget have had an impact on confidence amongst land owners. It is hugely worrying that those who have let securely previously are now more likely than ever to sell the farms they had previously let rather than allowing them to be offered to new farm tenants who can progress within the agricultural industry. This is a clear case of the market pushing things in the wrong direction and a sign that the Government must step in to correct that."

 "Recent reports both from Baroness Kate Rock and Baroness Minette Batters have agreed with the analysis of the TFA that changes to the taxation framework within which landlords make decisions is the correct way to change the current narrative," said Mr Dunn.

 Mr Dunn continued, "Within the framework of changes made to Inheritance Tax on agricultural land this year, landlords who are offering tenants the opportunity to farm for 10 years or more should now be allowed to claim 100% of the value of that land as free of Inheritance Tax. This would incentivise such arrangements, providing the best prospects to support new entrants, progressive farmers and providing a basis for good environmental management. That tax change could be funded by the Government curtailing the availability of Capital Gains Tax rollover relief, which allows individuals securing an uplift in value on sale of an asset to avoid tax by buying land and, in addition, obtaining 50 per cent relief on future inheritance tax."

 "As we have done with previous administrations, we will be putting these arguments to Andy Burnham's new team. Whilst previous Governments have rejected calls to make these taxation changes, the TFA very much hopes that Andy Burnham's new approach to politics will allow him and his Cabinet ministers to think more progressively about this policy change," said Mr Dunn.