In light of the looming end of the EU transition period, the TFA has suggested that tenant farmers should be pro-active in the face of the potential disruption to the agricultural markets and consider initiating a rent review by Michaelmas (29th September).
Most farm tenancies will include rent review provisions that can be initiated by either the landlord landowner or the tenant farmer with Michaelmas usually being a key deadline. Generally, tenants are nervous to start this process as it can lead to the rent being increased. However with the day that the EU ties will be cut getting closer, the TFA is of the view that now is the time for tenants to make their move and potentially secure a rent reduction.
George Dunn, the Chief Executive of the TFA, explains that “the rental position of each farm needs to be looked at and compared with other rents being paid in similar situations to decide whether a rent reduction is a possibility. Landlords are continuing to resist reductions, but we are beginning to see some rent reductions feeding through. This includes a recent arbitration award which provided a rent reduction. In that case, the landlord was advised by a national firm of land agents arguing for a substantial rent increase. Farm tenants must not feel bullied or pressurised into accepting what landlords’ agents argue for.”If you would like any advice about your farm tenancy, please do not hesitate to get in touch with us. email@example.com or call 01245 228126
This is not legal advice; it is intended to provide information of general interest about current legal issues.