Tenant Farming

Philip Hollobone Excerpts

Tuesday 10th May 2016 Westminster Hall

[Nusrat Ghani]

Absolutely. My hon. Friend is reading my mind—I hope to go on to that. For tenant farmers to diversify, which they have to in order to keep their business thriving, they need some assurances that they can reap the rewards of their investment in the land they take care of.

Will the Minister outline what steps the Government are taking to ensure that farmers have an incentive to diversify, so that they and the rural economy can benefit from new initiatives and enterprise? Also, how is he communicating the 25-year food and farming plan to local authorities, so that they may support tenant farmers and local businesses to survive?

In Sussex, in particular, the problem many tenant farmers face is that there is simply not enough land available to them. They want to expand, invest and diversify, but they cannot. Often, that is because they are out-competed by developers, who simply have more financial leverage with landlords. Understandably, those landlords are looking for the most profitable way in which their land can be sold. The most profitable way for the landlord, however, does not necessarily mean the most profitable way for the rural economy. Will the Minister describe the action the Government are taking to ensure an increase or, at least, to prevent a decrease in the availability of land to tenant farmers?

President Eisenhower of the United States once said:

“Farming looks mighty easy when your plow is a pencil, and you’re a thousand miles from the corn field.”

He was right, of course—it is easy for us consumers to take those who are striving in green fields for granted, and to expect a steady supply of meat, vegetables and dairy products at respectable prices. The food security of our country lies on their shoulders, and the role of farmers in Sussex and elsewhere in keeping food on our table in an unstable world is vital.

In January, my hon. Friend the Member for St Ives (Derek Thomas) led an important debate on food security in this Westminster Hall Chamber. He highlighted how, as the world’s population grows and with increasing unrest and conflict, as well as what may be considered fractured relationships between Russia, China and the United States, the ability of some regions to produce food that can be turned into affordable imports for us in Britain is not guaranteed. He also made the valuable point that every tonne we import is a tonne less that is available to other nations, which might not have the ability to produce as we can. So we must empower our farmers to produce, and not limit their capacity by withholding land, saddling them with excessive regulation or disincentivising them from diversifying and investing.

Views on the European Union within the farming community are mixed, but in my opinion the EU does itself no favours when it issues regulations about crop rotation and the size of a hedge to recipients of the basic payment scheme. Such regulations all cost time, money and effort, and do not help British farmers—already adhering to high standards—to achieve a competitive edge, especially when the basic payment scheme payments are delayed, as they have been. Furthermore, landlords are known to take advantage of the basic payment scheme: if they know what the farmer is receiving, they can put their rent up accordingly, meaning a higher charge for the farmer before they even start producing.

Today, I have focused on tenancy security, but tenant farmers face many challenges—tax issues and incentives, tenancy succession, encouraging new entrants with loan schemes, and the arbitration process are all causes for concern. Time does not allow me to speak about those concerns in any great depth, but they and the interests of tenant farmers should be heard. I am grateful for the opportunity to have contributed in a small way, and I hope that other Members will do the same now and in future.

[Mr Philip Hollobone (in the Chair)]

The debate is due to finish at 4.30 pm. The recommended time limits for the Front Benchers’ speeches are five minutes each for the Scottish National party and Her Majesty’s Opposition, and 10 minutes for the Minister. Two Members are standing and have caught my eye, the first of whom is Jim Shannon.

--- Later in debate ---

[Antoinette Sandbach]

I certainly do agree. We should focus our attention on providing support and encouraging those constructive relationships to go forward rather than on legislating to alter the lengths of tenancies. Quality and support are the two issues, and a good relationship will almost inevitably lead to an extension of tenancy agreements when that suits both parties.

If we constrict the amount of time to a minimum term of 10 years, with relief available only at that time, what happens to someone who wants to renew for another five years? Is that done from the baseline of the tenancy? What happens if someone wants to bring in a partner to farm with them? Does that count as a new tenancy? In my submission, the current system is flexible. It has wrinkles, and I do not pretend that there are not problems, but I urge caution before this place passes more legislation on farm business tenancies.

[Mr Philip Hollobone (in the Chair)]

We now come to the Front-Bench speeches, after which Nusrat Ghani will have two or three minutes to wind up the debate.