Tenant Farming

Steve Double Excerpts

Tuesday 10th May 2016 Westminster Hall

[Antoinette Sandbach]

I would advise those tenants to speak to the Tenant Farmers Association, which is effective at representing its tenant farmers, as well as to the NFU and other organisations, who also provide effective representation.

I plead the cause of young farmers in particular. It is a big risk for a landowner to take an unproved tenant under 40, who may not have had their foot on the ladder before, on to their farm for a 10-year tenancy of the type that my hon. Friend argued for, but it is vital to encourage younger entrants to come forward. They have bright ideas and they want to progress, but that is a risk. The danger of the course of action that she proposes, with longer-term tenancies, is that innovation and support is stifled because the risk is too great. A 10-year commitment is also a great risk for the tenant, who will have that liability for 10 years.

My hon. Friend is in effect arguing for better representation in negotiations rather than reducing flexibility in the system. I say to the Minister that for tenant farmers in my constituency the real pressure in the system comes from the level of rents and, in particular, what has happened to dairy prices. I certainly saw livestock farmers priced out of the market when milk prices were high because high levels of rent were being asked for relatively small parcels of land, which prevented some getting on to the ladder in the livestock sector. I experienced that in north Wales and there are also high levels of rent in Eddisbury. That, rather than flexibility, is the real issue.

Diversification has risks associated with it, but again a good landlord will want to encourage a positive relationship with their tenant and the tenant will want to have a positive relationship with their landlord. When that works, there can be some really good, productive, experimental diversification programmes.

[Steve Double (St Austell and Newquay) (Con)]

Does my hon. Friend agree that when there is a positive, constructive relationship between the landlord and tenant, that can work in the long term? My father-in-law has been a tenant farmer with the Duchy of Cornwall for more than 50 years, which has worked well for both parties.

[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.