Tenant farmers urged to resist unfair rent hikes this autumn

Tenant farmers are being urged to push back against unjustified rent increases this autumn, as landlords seek higher payments despite falling farm business incomes and rising costs.

With many rent reviews due around this Michaelmas (29 September), the Tenant Farmers Association (TFA) is calling on farmers to stand their ground, gather evidence, and act collectively.

“We are seeing a lot of landlords seeking rent increases even where they aren’t justified,” said TFA rural surveyor Caroline Squire.

“Tenants should always request the landlord’s evidence. Without it, the landlord has no valid argument at arbitration.”

Multiple pressures

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NFU deputy president David Exwood highlighted the pressures many tenant farmers face, including sharply reduced Basic Payment Scheme incomes, difficulties accessing green schemes, and struggles in the arable sector.

“The affordability in the rent and the division of risk between landlord and tenant has changed. Farmers are taking all the risk, with less guaranteed income than ever,” he said.

Nix Farm Management Pocketbook projections for 2026 underline the economic challenges: average lowland combinable crop farms face a negative margin before rent and finance (-£35/ha), while average upland beef and sheep farms barely break even (£12/ha).

Even high-performing farms in some sectors face tight margins, emphasising the limited room for rent increases.

Tenants under Agricultural Holdings Act (AHA) agreements may be best placed to challenge hikes, using farm budgets and local rent comparables as evidence.

“Budgets directly reflect economic reality,” Ms Squire explained, especially in tough years like this.

Tough outlook

Farm business tenancy (FBT) tenants face a harder challenge, as rents rely on open-market comparisons.

Transparency is vital, with adjustments needed for land quality, property type and farm repair obligations.

A 2024 TFA survey found 30% of tenant farmers experienced bullying or harassment from landlords, rising to 37% when including agents.

“Bullying at any level is unacceptable, but sadly common,” said TFA chief executive George Dunn.

The TFA urged tenants, especially those on the same estates, to share data and avoid acting alone.

“If one tenant agrees to a higher rent, it can push rents up for others,” Ms Squire said.

Scottish Tenant Farmers Association chairman Christopher Nicholson noted that tenant communication through WhatsApp groups can help to defeat “divide and conquer” tactics from landlords and their agents.

Arbitration costs ‘significant’

While the TFA encourages tenants to challenge rent reviews or seek reductions where evidence supports it, arbitration costs – often thousands of pounds – must be considered.

Country Land and Business Association (CLA) president Victoria Vyvyan said: “The rent review process is clearly set out in both AHA and FBT legislation, with rents depending on cropping, livestock and agreement terms.

“Landowners and tenants must engage in this legitimate process to achieve fair rents.”

Tenants unsure of their options should seek professional advice from the NFU, TFA, CLA or similar organisations.