Rural Landlords and Land Letting: Reform

Earl of Devon Excerpts

Thursday 21st January 2021 Grand Committee

[The Earl of Devon (CB) [V]]

My Lords, I thank the noble Baroness, Lady Rock, for calling this key debate. I note my interests and the fact that I speak with modest experience as the co-chair of a local agricultural tenancies working group.

Given that tenants farm one-third of the agricultural land in England and Wales, tenancy reform will undoubtedly have a large impact, but that impact pales in comparison to that of the Agriculture Act and the introduction of ELMS. I therefore urge caution against a rush to further immediate reform and suggest that we need time to understand ELMS and farmers’ new role as environmental land managers before enacting further change. In an ideal world, TRIG would continue its excellent, consensus-driven work during the agricultural transition period before recommending a comprehensive reform that will complement ELMS and improve farming.

FBTs were introduced to increase new entrants and improve productivity, as we heard, yet the average age of farmers remains over 60 and productivity has flatlined. The fact that the average farm business tenancy lasts for only about three years is a complete failure. Such short-termism may be profitable, but it is a disaster for our soil. From personal experience, I know that it can take years and considerable cost to build organic matter in soil, so why would a tenant farmer do that with only a three-year tenure? Equally, how does a landlord implement a long-term stewardship vision for land without a long-term relationship with those who farm it? Can the Minister therefore explain how ELMS payments might work within the current agricultural tenancies structure, what payments will be the landlord’s and what will be the tenant’s, and whether that will vary with length of tenure? Finally, with the Environment Bill looming, can the Minister please explain how conservation covenants will work within the existing agricultural tenancies structure?