Shropshire Farming Talk: Agricultural Landlord and Tenant Code of Practice

 Published in April 2024, the code followed the Rock Review on the tenant farming sector, which found “an open and collaborative approach between tenants and landlords is sadly not the norm”. 

In response, the Farm Tenancy Forum was established to implement the Rock Review’s recommendations and prepare a code of practice. 

Membership of the Farm Tenancy Forum includes organisations representing tenant farmers, landlords, professional advisers and government officials. Subsequently, the code is endorsed by a number of farming bodies. 

It applies to England only, but may well indicate the general direction of travel in Wales as well.

There are three key aims and principles of the code – clarity, communication, and collaboration.

For clarity, it states that parties should clearly define their intentions and expectations as well as any problems that arise.

In terms of communication, the code states that parties should communicate clearly and in a timely fashion. It says communication should be considered and tailored to the needs and situation of the recipient, rather than the sender.

Lastly, for collaboration it says parties should adopt a collaborative and cooperative approach on the basis that they can achieve more when they work together in “a positive spirit of common endeavour”.

Where there is any doubt, these principles should inform parties’ decision-making. 

Each section of the code sets out what the parties should do, along with things parties may consider doing; these are desirable behaviours over and above the minimum standards. 

With regards to environmental schemes, the code makes it clear that landlords’ consent for new schemes should not be withheld unnecessarily, and blanket bans in new tenancy agreements on participation in such schemes are discouraged. 

When disputes arise, parties should consider alternative forms of dispute resolution (ADR) where appropriate.

Finally, agents and advisers are required to make their clients aware of the code and to encourage them to abide by it.   

At present, the code is voluntary rather than binding, however, it is likely to become persuasive in courts and tribunals, particularly given its endorsement by industry leaders. 

If successfully adopted by the industry, it is also hoped that the code will help prevent further regulation of the sector. 

by Rosie Lewis, Solicitor, HCR Law