21/12/05
The Tenant Farmers Association has welcomed the introduction of
an Adjudication Scheme to handle disputes between landlords and
tenants over proposals for farm diversification.
TFA Chief Executive George Dunn said “Against the background
of Government policy to encourage farmers to diversify, the TFA
has long been concerned that tenants do not have the same freedom
as owner occupiers to look beyond traditional agriculture for their
income. This means that they not only miss out on grant aid from
the Government but also the alternative, economic opportunities
available which could make their farm businesses more viable”.
A survey carried out by the TFA in 2002 showed that over half of
landlords with tenants under traditional agreements and 80 percent
of landlords with tenants on Farm Business Tenancies (FBTs) took
a negative attitude to their tenants’ plans for diversified
use of their let holdings.
Following TFA lobbying on the back of those survey results, the
Tenancy Reform Industry Group (TRIG) recommended to Government
in May 2003 that there should be a Code of Good Practice on how
matters of diversification within farm tenancies should be handled.
It also recommended that the Code should be supported by an Adjudication
Scheme. This would be free at the point of use and oversee the
implementation of the Code.
“Farm tenants can be hampered in their ability to diversify by the legislation
governing agricultural tenancies, their individual contracts of tenancy and by
the attitude of their landlords or landlords’ agents. Some of this opposition
is unreasonable and an important role for the Scheme is to ensure that tenants
who present diversification proposals to their landlords are treated reasonably” said
Mr Dunn.
Whilst any decisions from adjudicators would not be binding, TRIG also asked
that the Government commit to new legislation in this area to protect tenants
if the Code and Adjudication Scheme were not working. In response, in December
of 2003 the Government accepted that there was a problem and agreed to implement
the TRIG recommendation and to follow through with legislation if matters did
not improve.
“The TFA is keen to assist farm tenants to use the Scheme as it believes
that it is important for securing greater rights for farm tenants now and in
the long-term. Therefore if any tenants have a diversification scheme for which,
unreasonably, they have already been refused consent by their landlord or are
about to embark on a new proposal then they should join the TFA and we will then
assist them through the process” said Mr Dunn.
Note:
The Royal Institution of Chartered Surveyors (RICS) has won a competitive
tender to run the Adjudication Scheme on behalf of DEFRA. The Scheme
can consider cases where, despite the Code of Good Practice, agreement
on a proposal for a diversification project or participation in
an agri-environment scheme cannot be reached. The Scheme is voluntary
and is free at point of use. Either landlord or tenant can apply
if they wish an adjudicator to consider their case. The decision
of the adjudicator will not be legally binding but it is hoped
that parties shall abide by the adjudicator’s decision. Copies
of the Code of Practice are available from the TFA or the DEFRA
website.
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