The Law Commission has announced it’s intention to review two key pieces of legislation governing agricultural tenancies in England. The two main acts are the Agricultural Holdings Act 1986 and the Agricultural Tenancies Act 1995, (which introduced Farm Business Tenancies). This initiative stems from a recommendation made in the 2022 review of tenant farming, known as the Rock Review. Although no timeline has been set, the Commission has stated the review will commence “when resources allow.”
The review aims to assess whether the current legal framework effectively balances several critical objectives:
- Ensuring tenant farmers have adequate security to invest and sustain viable businesses
- Opening up land access for new entrants into farming
- Providing landlords with sufficient confidence and incentives to let land
It will also investigate whether existing laws hinder tenant farmers from diversifying their operations, particularly in adopting sustainable practices, and whether they support constructive relationships between landlords and tenants. Additionally, the review will consider whether the legislation imposes unnecessary bureaucratic burdens that complicate practical implementation. A key consideration moving forward could be the interaction between let land and Inheritance Tax relief (IHT). There are increasing call for a more generous IHT position for let land as this would certainly encourage a more active lettings market.
