THE Tenant Farmers Association (TFA) is launching a campaign which aims to more than double the average length of Farm Business Tenancies (FBTs).

2015 marks the 20th anniversary of their introduction to promote economic efficiency in agricultural land use – but, the TFA, claims they have singularly failed with the average length of term being only four years.

The campaign "FBT10+: Too short for too long" aims to see their length extended to at least ten years.

Stephen Wyrill, TFA national chairman, said four years was no time at all, particularly during such highly volatile times as today with particularly severe downturns in profitability for dairy, livestock and arable farms.

He said: "That reduction in profitability looks set to continue for the foreseeable future. Farm businesses need long term security to ride these economic storms and to service the borrowing necessary to support business development.

“Landlords appear reluctant to use anything like the full extent of the flexibility of the legislation. Too often we see landlords using short term agreements to maintain maximum flexibility but leaving tenants in very difficult situations.

"The lack of security also provides little incentive for investment by farm tenants. In fact landlords – particularly private estates – have gained considerably from the new legislation and its associated tax changes.

"With much higher demand than supply, landlords can offer short-terms, for high rents at very little risk and obtain, into the bargain, 100 per cent Agricultural Property Relief from Inheritance Tax. The short-term nature of tenancies is holding back progression, investment and sustainable land use."

The TFA 's campaign calls for further reform, particularly in the area of taxation within which land owners make decisions about letting.

Mr Wyrill said: "We do not want to set a statutory minimum term. If landlords want to let on a short-term basis they should be able to do so but without the advantage of significant tax benefits.

"The TFA suggests that only those land owners prepared to let for 10 years or more should be in receipt of the generous advantage of Agricultural Property Relief from Inheritance Tax whilst, at the same time, the Government should clamp down more heavily on those owners of land who are using other vehicles such as share farming, contract farming, share partnerships and grazing licences as thin veneers of trading activity to gain tax advantage when in practice they are taking no risk, having no entrepreneurial input and lacking any management control.

“FBTs have been too short for too long and in 2015 this must change,” said Mr Wyrill.