Farm Business Tenancies

Farm business tenancies is a qualifying conditions set by the government. It is under the Agricultural Tenancies Act 1995 that concerns about the tenants welfare.

If you are a tenant in a piece of land you should familiarize the act.

In order to qualify for the tenancy, a tenant should meet any of the two conditions. Primarily, if it is an agricultural land the tenant and landlord should exchange notices confirming that they are both interested about the farm business tenancy. As long as the tenancy agreement allows, the tenants can diversify other business aside from agriculture. Secondly, in case the tenant and landlord do not exchange notices prior of the tenancy, the farm business tenancy will remain agricultural.

Notices to Quit and Terms of Agreement

In case both party intend to end the tenancy regardless of the fixed term, it is required to exchange written notice at least a year before the end of tenancy. If either party fails to give the notice, the tenancy continues until such time that the notice is given. Also, the yearly extension of tenancy should be ended by a notice at least one year prior. Keep in mind that it would take you more that two years before the one year notice be effective. To avoid some issues, both parties should agree to set the notice in a shorter period. However, if the land involve is large, the tenant can require for a longer period. On the contrary, if the tenant finds a seasonal occupation then he can request for a shorter period. In this regard, both parties should decide to break clauses cited in the agreement giving them the option to break at a specific time. Nevertheless, through mutual agreement both parties can negotiate to surrender the tenancy.

Compensation for Tenants

The farm business tenancy allows the tenant to receive compensation after the end of tenancy. The compensation can help for the physical improvement of a holding as well as to cover the intangible advantages regarding the value of the holding. However, in case the landlord does not allow making any improvement in the holding, such compensation will not be given. Nevertheless, if the tenant is not happy about the conditions, he has the right to demand for arbitration unless otherwise no improvement has taken place. In addition, the compensation should be given based on the actual value of the improvement yet, government grant scheme will be considered. The arbitrator will be the one to determine the current value. However, if both parties extend the farm business tenancy, the compensation will be rolled over through an agreement.

Disputes Procedures

In case that the landlord and tenant have reached disputes, they can seek help from an arbitrator to mediate the dispute. Settling of disputes is very expensive and time consuming. That is why it is better to settle immediately instead of taking the disputes to the court.


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