TFA warning to Burnham as security of tenure plummets

The Tenant Farmers Association (TFA) is urging the newly-formed Andy Burnham government to address the lack of security for tenant farmers, as new industry data shows a slump in the average length of farm lets.

The figures from the Central Association of Agricultural Valuers’ (CAAV) show that, in the year to 31 October 2025, there was a net loss in let land of 4,510 acres from some 88,384 acres surveyed, with the proportion of Agricultural Holdings Act (AHA) tenancies being re-let declining sharply.

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“Historically, 75-80% of AHA tenancies have been re-let,” said a statement. “This dropped to under 53% in 2025.

“At the same time, the proportion of units being sold when AHAs ended increased from a typical 8-10% to nearly 23%.”

The annual land occupation survey also shows the average length of Farm Business Tenancies has declined to its lowest level since 2021, dropping from 3.97 years in 2024 to 3.38 years in 2025.

Excluding those tenancies shorter than a year, the average fell from 5.05 to 4.65 years – the lowest since 2018. 

“Over the years, these surveys have shown that periods of policy uncertainty see the average length of letting shorten,” said CAAV secretary Jeremy Moody. “Wider issues, from farming economics to housing legislation, underpin this reality.”

Government support

TFA chief executive George Dunn said the figures point to reduced confidence within the landlord community and highlight the need for the new government to address the lack of security for tenant farmers.

“Short farm tenancies provide no basis for building sustainable farm businesses or addressing environmental and social needs in our rural areas – and things are getting worse, not better,” he said.

Mr Dunn said the changes made to inheritance tax (IHT) thresholds for farm businesses had had an impact on confidence among landowners, making them more likely to sell farms than re-let them.

The whole tax framework needed to change, he suggested, including exempting landowners from IHT if they let for 10 years or more.

“That tax change could be funded by the government curtailing the availability of capital gains tax rollover relief, which allows individuals securing an uplift in value on sale of an asset to avoid tax by buying land and, in addition, obtaining 50% relief on future inheritance tax.”