Agricultural tenant code of practice launched in Wales

Guidance on agricultural tenancy matters between landlords and tenants has been published by the Welsh government.

The Agricultural Landlord and Tenant Code of Practice for Wales was convened by the Welsh government, with input from NFU Cymru, the Country Land and Business Association (TFA),  the Tenant Farmers Association Cymru, Farmers Union of Wales, Royal Institution of Chartered Surveyors, and Central Association of Agricultural Valuers (CAAV).

The voluntary code is designed to help improve fairness, communication and transparency between all parties, including professional advisers and land agents.

See also: Farms urged to prepare for changes to residential lets

It covers a vast range of topics including new tenancies, payment of rent, rent reviews, renewals, access to government support schemes, disputes and termination of agreements.

Roughly one-third of all farmed land in Wales is through either formal or informal arrangements, according to the report.

The report says: “The code recognises the great variation in the individual circumstances of landlords and tenants and so should be used and applied in a way which is appropriate and proportionate to the circumstances.”

It states that the code aims to “foster positive landlord-tenant relationships” and create a sense of “fairness and proportionality”.

TFA Cymru has welcomed the publication of the code and hopes it will lead to a “step change” in conduct between landlords, tenants and professional advisers.

TFA chief executive George Dunn said: “The publication of this code of practice follows concerted lobbying from TFA Cymru following ongoing concerns about the poor treatment of tenant farmers by some landlords and their professional advisers.

“Although voluntary, we hope that many landlords, particularly the institutional landlords, will agree to formally adopt the code and to reference it in their tenancy agreements.

“Those bodies involved in resolving disputes including tribunals, arbitrators and courts are also encouraged to consider the code of practice when making awards on costs for the disputes which they determine so that they penalise poor practice and incentivise good behaviours.”

TFA Cymru has committed to monitoring compliance of the code by industry and has renewed calls for the introduction of a Tenant Farming Commissioner in Wales to manage disputes.

The CAAV added that the code seeks to assist tenants, landlords and their agents and advisers, adding that it is not to avoid reasonable commercial proposals but to support them being handled well between parties.