THE Tenant Farmers Association (TFA) has accused landlords of failing to provide adequate security to farm tenants taking on new Farm Business Renancy (FBT) agreements.

It says figures released by the Central Association of Agricultural Valuers (CAAV) in its annual Agricultural Land Occupation Survey, show a marked decrease in security of farm tenure in 2017 compared to the previous year.

The TFA argues that the short-term nature of agricultural tenancies has held back progression, investment, sustainable land use and productivity on farms.

With much higher demand for farm land than supply, landlords can offer short-terms, for high rents at very little risk, while receiving unconstrained tax benefits that the TFA argues must be addressed.

George Dunn, chief executive, said: “Last year’s results were encouraging. They showed, for the first time, that average lengths of term across all types of FBT were moving in the right direction.

"At the time, we said that one swallow did not make a summer and we wanted to see those improvements built on in future years. Sadly our hopes have been dashed. We have seen a significant retreat by landlords in terms of what they are willing to offer by way of security which will undermine the confidence of the tenanted sector to invest in their farms."

The CAAV figures show the average length of all FBTs has decreased from 4.5 years in 2016 to less than 4 years in 2017. Excluding lettings of less than a year, the average tenancy length has fallen from 6 years to below 5 years.

Worryingly, the TFA says, fully equipped holdings, which would be expected to be let for longer terms, have seen a reduction from more than 14 years on average to below ten years. It says it is unacceptable that 85 per cent of farm tenancies let in 2017 had terms of five years or under.

Since the introduction of FBTs in 1995, the TFA has been concerned that average lengths of term have ranged between just three and four years. As a direct result of the TFA launched the FBT10+ Campaign in 2015.

Mr Dunn said: “These statistics make grim reading. Everyone agrees that long-term relationships are the best way to achieve positive outcomes for landlords and tenants and yet the market is failing to deliver efficient or sustainable outcomes.

"The tenanted sector cannot begin to consider issues of resilience and sustainability in the post Brexit environment with such short lengths of term. It is now urgent that the Government steps in to address this major market failure, in a sector that makes up one third of all UK farm land, and where FBTs represent about half of that area.

"The best way to do this would be through the taxation environment within which rural landlords make decisions about letting land, to encourage longer-term FBTs."