by George Dunn BA MSc ARAgS Chief Executive, Tenant Farmers Association
The Tenant Farmers Association exists to advise and support tenant farmers throughout England and Wales, and lobbies for a legislative framework within which farm tenants and the farm tenancy system, can thrive. An important aspect in this regard is to ensure that there are viable mechanisms to allow new entrants into the industry whilst at the same time allowing those wishing to retire to leave the industry with dignity.
Turning first to the latter group, it has become increasingly difficult over recent years for tenant farmers reaching the age of retirement to leave the industry on their own terms. Falling levels of farm profitability and increased farm indebtedness have caused a major problem for many tenants reaching retirement age. Another significant problem is the lack of available, alternative accommodation. Very often the need to preserve occupation of the farmhouse is a more important consideration than the viability of the business going forward. This is not a sustainable solution for the individuals concerned or the sector as a whole.
The Tenant Farmers Association has been something of a voice in the wilderness arguing for a government funded retirement scheme. We did, however, come close to achieving our goal when, in 2001, the Labour Party made it a general election manifesto commitment. However, when Nick Brown departed from his front bench role at Defra to be replaced by the infamous Mrs Beckett, the indecent haste with which the retirement scheme proposal was dropped was remarkable. Despite this setback, the TFA continues to lobby for such a scheme.
The biggest issue in relation to inability to retire is, as I have said, the lack of alternative accommodation. We are very pleased to be supporting the ARCAddington Fund which has done so much for many individual farm tenants to find alternative accommodation. However, this can only ever be a small contribution to the widespread concerns that exist. The TFA is therefore looking at a number of options to improve the availability of alternative accommodation for retiring farm tenants.
In the first instance we are looking at properties which have agricultural ties. It is the view of the TFA that these ties are all too easy to remove. The TFA would like to see a system whereby these ties are maintained and perhaps expanded to become rural "key-worker" ties rather than allowing them to slip into the private sector providing little or no benefit to the rural community.
Secondly, we are exploring the possibility of arguing that landlords who allow tenants to stay in rented accommodation somewhere else on the estate should be able to receive some form of capital gains tax advantage for that benevolence. It is understandable that landlords will seek to gain the maximum rent from available housing stock and therefore it must be reasonable to provide incentives, perhaps through the taxation system, to encourage them to consider letting to retiring farm tenants at rents below open market values.
Thirdly, we need to be working with local planning authorities to encourage them to take a more proactive stance on the provision of affordable housing on exception sites. The ARC-Addington Fund has done a tremendous amount of work in this area and the lessons learned need to be communicated more widely throughout the country.
Providing exit routes for retiring tenant farmers, should, in theory, increase the supply of farms to let by new entrants. However, in practice, there is also pressure on the supply of farms to rent by new entrants. The taxation system, in some respects, works against letting as it provides a disincentive to landowners considering letting land as it is more tax efficient to be an owner-occupier. The TFA is working with the Country Land and Business Association to try and even up this imbalance.
We are also greatly concerned that County Council Smallholding Estates, traditionally the first rung on the farming ladder, are under increasing pressure to be sold by their County Council Trustees. The TFA has managed to garner a useful coalition of politicians, civil servants and other interested parties who are now urging local authorise to retain their farms. Nevertheless, it is an uphill struggle and one where new fronts appear to open every day.
Anyone wanting further information about the Tenant Farmers Association or its activities can contact me on 0118 930 6130 or further information is available from the TFA's website www.tfa.org.uk.
