Succession in a new age
The government included agricultural tenancy reforms in the Agricultural Tenancy Bill going through parliament, bringing significant change for landowners with tenants occupying under the Agricultural Holdings Act (AHA) legislation.
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Arguably, the most significant reform is the removal of the 65 age cap at which AHA tenants can trigger a succession. The move to abolish the cap is broadly positive for the industry, enabling new talent from this generation to drive farming forward.
It may, however, bring forward complications for landlords and future succession tenants alike, where working relationships may not yet have developed. The reforms also water down restrictive clauses, bringing further challenges for AHA landlords.
The restrictive clauses that have historically handed landowners some control over the business conducted by their tenants look set to no longer be as strong as they were, and subject to arbitration. All of this reinforces the need for landlords and tenants to be in close contact.
No two farms are alike, so get in touch to find out what it all means for you.
James Shepherd, Rural Asset Management