Uncertain policy ‘stifles’ tenanted farm sector

Market faces period of change

Changes in government policy are likely to impact the tenanted farm sector, with uncertainty typically leading to shorter-term lets, says a study.

The farm let sector remained stable in 2023, despite fears that owners would take land back in-hand for environmental uses, according to the 47th annual survey of let land in England and Wales by the Central Association of Agricultural Valuers (CAAV).

Stifling effect

“The overall let area has remained static since 2003, when CAP area payments were starting to come in, says the study. But it suggests that could change now payments have been delinked from land – and are being phased out entirely.

“The let land market has appeared to have settled at an unnatural equilibrium, due in part to the stifling effect of area-based entitlements and subsidies,” says CAAV secretary and adviser Jeremy Moody.

“Whether de-linking changes this is a matter for future surveys. In all parts of the UK, the tenanted sector will only grow if owners who do not want to farm themselves see letting land as an attractive option.”

Fresh lets in England and Wales were marginally outweighed by losses, says the CAAV study. This meant a net loss of 1,532 acres of let land.

Some 68.6% of 1986 Agricultural Holdings Act tenancies were re-let on Farm Business Tenancies averaging 7.26 years.

Most lettings were of bare land – only 6.6% were fully equipped farms. Holdings with a house and buildings let for almost 10 years, while the overall average was 3.84 years.

But this includes everything from seasonal grass lets upwards, so where lettings of a year or less are excluded, the average term was 5.42 years.

New entrants obtained 20% of lettings where occupation changed. They tended to be longer tenancies – 35.6% over five years. Activity increased in 2023, though not to pre-2005  levels.

Mr Moody says the CAAV is actively looking at ways to remedy the stasis in land occupation. “Increasing the use and flexibility of our land occupation markets seems a critical reform for the success of agriculture,” he says.

“In that task, the Republic of Ireland’s Income Tax relief for letting farmland for more than five years is showing strong and continuing signs of success in attracting retiring farmers to let out their land. That merits serious attention in the UK.”

The full report can be downloaded from www.caav.org.uk.

Safety campaigners launch countryside code for road

Fatal accidents on rural roads could be reduced following the launch of new guidance from safety campaigners.

Some 969 people died on rural roads in 2023, according to the latest Department for Transport (DfT) figures. The death toll is some 70% higher than on urban highways – despite there being fewer than half the number of collisions.

In a bid to reduce the accident rate, Rural insurer NFU Mutual has teamed up with the four UK farming unions to publish safety advice, warning that collisions on rural roads are currently four times more likely to result in a fatality.

The Code for Countryside Roads promotes the safe, considerate use of countryside highways. The 28-page online guide contains hints and tips on better driving techniques, the need to take time and respect for other road users.

Lives lost

Describing rural roads as the arteries of the countryside, Mr Turner said good transport links were vital to the rural economy and to tourism. It was extremely concerning that a vastly disproportionate number of lives were lost on rural roads, he added.

“Every road user has a responsibility to protect themselves and others, but the disparity in safety between urban and rural roads and the higher risk shouldered by vulnerable road users suggests more can be done.

One in every 32 collisions on rural highways during 2023 resulted in a death, compared to one in every 122 on urban roads, says Mr Turner.

“NFU Mutual has been campaigning for several years to improve rural road safety by raising awareness of the risks inherent to countryside roads, and we are proud to publish a code for countryside roads.”

The code has been based on feedback from over 700 members of the public. It is being supported by the Royal Society for the Prevention of Accidents (RoSPA) Farm Safety Foundation, British Horse Society and Older Drivers Forum.

To download the rural roads guidance,    visit www.nfumutual.co.uk/ruralroads.