NFUTenants24: Farm political and the work of the Farm Tenancy Forum

22 April 2024

Tenants and land
Mark Spencer and David Exwood sat on a panel

The newly launched Landlord-Tenant Code of Practice was high on the agenda during the NFU Tenant Farmers’ Conference keynote political address, chaired by NFU Deputy President David Exwood and headed up by Farming Minister Sir Mark Spencer and Farm Tenancy Forum chair Julian Sayers.

Farming Minister Sir Mark Spencer, who was invited by NFU Deputy President David Exwood to speak at the conference, opened the session, telling delegates the tenant farming sector is “hugely important to a vibrant and thriving farming industry”.

Having worked with the farming sector to design, test, and trial approaches to producing food and at the same time enhance the environment, the Minister pointed to moves including accelerating the SFI roll out, and new actions this summer to improve the offer for all types of farms, but “especially tenant farmers and those on moorland and grassland”.

Farm Tenancy Forum chair Julian Sayers said that it had been key to make sure “both within SFI and future Countryside Stewardship, that as many as possible of those measures can be taken up by tenant farmers without the need for landlord consent”.

Only schemes which involve long-term landscape change should need consent he added. “It’s important landlords sign up jointly with tenants, but what we are emphasising is do communicate with your landlord.”

Looking ahead, Mr Sayers said the forum was exploring the potential of joint applications: “We’re hoping we can get to stage where a landlord and tenant can apply jointly for a major scheme and have split responsibilities […] and we’re even looking at possibly having split payments.

“We’ve also looked at the issue of landlords going into schemes and making sure where a landlord may have land in hand and tenant farmers as well, that they have management control.

The tenanted farming sector is a central part of our plan to back British farmers to grow the rural economy and I look forward to continuing that work.”

Farming Minister Sir Mark Spencer

“If they don’t have management control then they’ve got to consult with their tenants as part of that process of applying for a scheme.”

NFUTC24_DQ24

Photograph: Farm Tenancy Forum chair Julian Sayers

Joint tenant-landlord agreements within ELMs are “not intended to replace existing avenues for applications, but merely provides an alternative route”, the Farming Minister explained, adding that there will be a workshop on this in May with a view to developing further through a formal test and trial process.

Rock Review recommendations

More than one year since the publication of the Rock Review, Sir Mark said the government response “has been embedded in all of the work we have done and provides a framework for tenant-proofing all of our policies and schemes as they develop”.

He added: “I am pleased to report that we have actions underway to deliver on 90% of the commitments we made in our governmental response, with over a third of these already completed.

“We are making progress and there is more to do but we will continue to communicate and listen as we move forward.”

Pointing to the new Agricultural Landlord and Tenant Code of Practice, Sir Mark said it is a “welcome step forward in encouraging positive and collaborative tenant and landlord relationships” and encouraged delegates to read and adopt it to help support a thriving tenant farming sector.

Does the new code have teeth?

Mr Sayers said the key events during which the code will apply include:

  • Granting of a tenancy.
  • The rent review process.
  • Repairs and improvements.
  • New opportunities.
  • Termination and renewal, including succession.
  • Handling disputes.

Following the development of the code of practice, Mr Sayers said he’d been asked – ‘has the new code got any teeth?’

“Not directly, but indirectly it has,” he answered.

“When you get into a situation with a mediator, an expert, an arbitrator or maybe even a court of law, the person sitting in judgement will now be looking to say, ‘Did those parties adhere to the code?’, and if one party didn’t adhere to the code that may well be taken into account.

“I would encourage all of you to look at the code, read the code understand it and promote it – it doesn’t come up with the answer but it does help people to work their way through what can sometimes be tricky situations.”

Next steps

The Farming Minister highlighted news announced in the recent budget that on 6 April 2025, the scope of agricultural property relief from inheritance tax will be expanded to include land managed under an environmental agreement.

“This is a big step forward and one of the big asks of the Rock Review. This will open the way up for greater collaboration between tenants and landlords, a longer-term environmental scheme, so that both parties can access the benefits of those schemes.”

Sir Mark also provided an update on the potential creation of a Tenant Farming Commissioner, who would provide oversight and scrutiny of practices within the sector.

“We continue to explore the next steps, including examining the practical functions and will provide a further update on this very soon,” he said. “It does pose a potential exciting way forward and we will report on that later this year.”

Summing up, the Farming Minister reiterated the “legacy of the Rock Review”, adding it and the ongoing work in the Farm Tenancy Forum is firmly embedded within the government.

“The tenanted farming sector is a central part of our plan to back British farmers to grow the rural economy and I look forward to continuing that work, working with you all moving forward to deliver that plan together.”

Watch the session back below:

Meet the speakers from this session

David Exwood

NFU Deputy President

David believes that the future of farming isn't about managed decline and dependence on environmental payments, it's about creating new opportunities for profitable food production alongside net zero and biodiversity.

David farms south of Horsham in West Sussex with his wife and two sons over 1200 tenanted hectares in the heart of the Sussex Weald.

Starting in 1989 with 70ha the business now has arable, dairy beef, Sussex suckler herd and sheep enterprises. In 2003 the Farm Shop opened and sells a wide range of food from the Victorian stable yard at Westons.

He has served previously within the NFU as Branch Chair, West Sussex Council Delegate, South East Regional Chair as well as four years on Governance Board.

David was elected to the position of NFU Deputy President in February 2024.

Responsibilities

  • EU and international relations
  • Banking
  • Biodiversity
  • Food labelling
  • Food safety
  • Food service and hospitality
  • Agricultural transition (productivity, ELMs, stability)
  • Plant health
  • Assurance schemes
  • British Agriculture Bureau
  • Health, safety and wellbeing
  • Agricultural transport
  • Uplands
  • Tenants

The Rt Hon Sir Mark Spencer MP

Minister of State for Farming, Fisheries and Food (Defra)

Mark Spencer was appointed Minister of State at the Department for Environment, Food and Rural Affairs in September 2022.

He was previously Lord President of the Council and Leader of the House of Commons from February 2022 to September 2022, before which he was Parliamentary Secretary to the Treasury (Chief Whip) between July 2019 and February 2022. He was elected Conservative MP for Sherwood in May 2010.

Before entering Parliament, Mark was Chairman of the National Federation of Young Farmers’ Clubs as well as a District and County Councillor.

He studied at Shuttleworth Agricultural College before joining the family farm business, which now employs around 50 people. He is still a local farmer and businessman, growing the produce which is sold in the farm shop.

Julian Sayers

Chartered Surveyor and Director of Adkin

Julian has worked in Oxfordshire, the surrounding counties and further afield for over 40 years, advising farmers and landowners on a wide range of matters relating to the occupation and ownership of land and other rural properties.

Julian's planning and management expertise associated with a diverse range of projects, including the preparation of whole farm and estate plans, have led to assignments throughout the UK.

He also specialises in the promotion of development land, property acquisitions, estate management, agricultural tenancies, succession advice, and tax planning.

He is a Deputy Lieutenant for Oxfordshire, Chairman of The Worshipful Company of Farmers Trustee Company, a Trustee of the Lawes Agricultural Trust, chairs the Farm Tenancy Forum for the Defra Ministers, a Vice President of The Farmers Club and chairs several farming and estate management boards.

In recent years, he has been Master of The Worshipful Company of Farmers, Vice Chairman of Governors at the Royal Agricultural University, Chairman of The Royal Agricultural Benevolent Institution, the Oxford Farming Conference and The Farmers Club.

He is a Life Vice President of the National Federation of Young Farmers Clubs and an Honorary Fellow of the Royal Agricultural University.

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