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Agricultural tenancies

This project will examine the law governing tenancies of agricultural land.

Background (Back to top)

A significant portion of the land in England and Wales is dedicated to agriculture, much of which is tenanted. The regime governing agricultural tenancies is therefore of crucial importance.

There are two types of agricultural tenancy under the current law:

  • pre-1995 tenancies, governed by the Agricultural Holdings Act 1986, which generally provide lifetime security of tenure, rent control, and (often) succession rights; and
  • post-1995 tenancies (“Farm Business Tenancies”) governed by the Agricultural Tenancies Act 1995, which do not have any fixed statutory period, succession rights, or rent control.

We have heard that these regimes may not correctly balance the interests of landowners and tenants and that the lack of security of tenure and often short-term nature of many tenancies is a barrier to investment and the viability of some tenanted farm businesses. We have also been told that the current law may restrict tenant farmers from diversifying and adapting their businesses and benefiting from new opportunities. The current law may therefore hinder economic growth and opportunity for tenant farmers.

Project (Back to top)

This project will consider whether the existing law properly balances giving tenant farmers sufficient security to encourage investment and maintain viable farm businesses, opportunities for new entrants to access farming opportunities, and the interests and confidence of landlords to let land.

This project will also consider whether the law impedes tenant farmers from diversifying their businesses, including to farm in more sustainable ways; whether the law supports a collaborative approach between landlords and tenants; and whether there are technical issues which cause problems in practice.

Detailed consideration of reform of the law in this important area is long overdue.

This project forms part of the Law Commission’s 14th Programme of Law Reform.

Next steps

The Law Commission’s next step will be to commence the project when resources allow.

Further steps and their timings will be confirmed in due course.

Documents (Back to top)

There are no documents published as part of this project currently.

Updates (Back to top)

There are no updates on this project currently.

Contact (Back to top)

Contact us if you have any queries about this project.

Email: propertyandtrust@lawcommission.gov.uk