Question to the Department for Environment, Food and Rural Affairs:
To ask Her Majesty's Government what assessment they have made of the proposals from the Tenant Farmers Association to amend the taxation framework within which landlords of farmland make decisions about letting land to encourage longer term farm business tenancies; and what plans they have, if any, to implement these changes.
The Tenant Farmers Association provides a constructive contribution to considerations on the letting of agricultural land. The Government recognises that the fiscal framework plays a role in landowners' decisions on whether to let land and on the length of tenancy terms offered. Other factors are important too such as the size, quality and location of the land, and personal motivations for owning land. The Government is committed to a fair and sustainable tax system and keeps all taxes under review as a matter of course. The impacts and potential unintended consequences of tax reform need careful analysis to ensure confidence in the let sector is maintained.
Officials from Defra and HM Treasury have regular discussions to share information and feedback views from farming stakeholders. A third of all farmland in England is tenanted and a vibrant tenanted sector is vital to the future of agriculture. The Government is working with the Tenants Farmers Association and others to ensure our future farming policy provides an enabling environment for tenant farmers, including ready access to the Sustainable Farming Incentive and other future schemes. Minister Prentis recently met with George Dunn of the Tenant Farmers Association where a wide range of issues relating to tenant farmers were discussed, including the importance that tenant farmers can join environmental schemes without consequences on their tenancy agreements.