Commons Sense

House of Commons · Ministerial Statement

Agricultural Tenancies

24 May 2023 · 12 other contributors

Opened by Mark Spencer Con Sherwood

Agriculture & Rural Affairs

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Mark Spencer raised concerns about agricultural tenancies in the House of Commons. A government minister responded. Other MPs also contributed.

Key points

  • The minister highlights the publication of the Government's response to Baron Rock's review of tenant farming in England.
  • The response aims to support farmers and improve access for tenants to environmental land management schemes.
  • The minister notes the launch of a consultation on extending inheritance tax relief for tenant farmers.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Government Statement

Mark Spencer

The minister draws attention to the publication of the Government’s response to Baroness Rock's review of tenant farming in England, aiming to support farmers and improve access for tenants to environmental land management schemes. The statement acknowledges the importance of tenant farmers in rural economies and highlights actions such as launching a consultation on extending inheritance tax relief and creating a farm tenancy forum. He also mentions making it easier for tenants to participate in the sustainable farming incentive with three-year agreements, enhancing accessibility of productivity grants, and assessing new entrant support schemes.

Other contributors (12)
  • Daniel Zeichner Lab Cambridge

    Question

    How many recommendations from the Rock review has the Government adopted? Will the Minister address the challenge of short-term tenancies for tenants to access farming schemes like SFI and landscape recovery?

    Minister reply

    The minister acknowledges the importance of addressing these issues and emphasises ongoing efforts, including a consultation on inheritance tax relief and forming a farm tenancy forum. He also mentions the Royal Institution of Chartered Surveyors developing an industry-led code of practice.

  • David Linden Lab Walsall South

    Question

    How will the Government's commitment to tenant farmers be operationalised, and how does it relate to achieving a sustainable form of food production?

    Minister reply

    The minister highlights efforts such as extending inheritance tax relief consultation, establishing a farm tenancy forum, and developing an industry-led code of practice. He emphasises support for new entrants into farming through accessible schemes.

  • Ben Spencer Con Penistone and Stocksbridge

    Question

    What is the timeline for implementing these recommendations in light of the impending agricultural transition?

    Minister reply

    The minister states that implementation will continue with improvements to the SFI application process, enhancing countryside stewardship, and launching a call for evidence on the proposed tenant farming commissioner this summer.

  • Daniel Zeichner Lab Cambridge

    Question

    The shadow thanks the Minister and Baroness Rock for their work but raises concerns about the piecemeal approach to adopting recommendations from the report. He asks how many of the 74 recommendations have been adopted, questions why proposals facilitating easier access to tier 2 and tier 3 versions were not accepted, inquires about current uptake levels of SFI, and expresses doubt about sufficient tenant participation due to landlords' consent issues.

    Minister reply

    The minister acknowledges the engagement with Baroness Rock's group throughout the process. He mentions that most recommendations have been adopted and reassures tenants can participate in SFI through pilot schemes. The minister emphasises the need for a positive working relationship between landlords and tenants, highlighting the flexibility to adapt policies based on feedback.

  • Robert Goodwill

    Question

    The MP pays tribute to Baroness Rock’s work and expresses concern about limitations in tenant participation due to long-term nature of schemes. He is also concerned about perverse incentives for landlords to take land back from tenants.

    Minister reply

    The minister acknowledges the concerns and emphasises avoiding any such perverse incentives, encouraging a positive working relationship between landlords and tenants. The minister highlights the need for landlord engagement in grants supporting tenant investments.

  • Tim Farron Lib Dem Westmorland and Lonsdale

    Question

    The MP welcomes the report but criticises the Government's slow response, noting only 27 farms out of over a thousand have participated in SFI. He raises concerns about tenant farmers being included in landscape recovery schemes and questions if funding via income forgone discriminates against upland farmers.

    Minister reply

    The minister thanks the MP for his welcome but disagrees with characterizations of the response. He emphasises support for all tenants, especially upland farmers, while defending the transition from EU subsidies to a new system focusing on sustainability and profitability.

  • George Eustice Con Cornwall North

    Question

    I commend the comprehensive piece of work done by Baroness Rock and I welcome the statement, but I want to make two points. First, probably the most powerful thing that the Government could do to improve the accessibility of the schemes to tenant farmers is to make agreements assignable from one tenant to the next. Secondly, if we want to help tenant farmers, we must make it as easy as possible for landowners to bring land to market for rent.

    Minister reply

    I pay tribute to my right hon. Friend, who triggered the Rock review and set it up in the first place. I will look into his specific questions and get back to him, but many of these issues can now be reviewed by the farm tenancy forum.

  • Siobhan Baillie Con Stroud

    Question

    I thank all the farmers in Stroud Valleys and Severn Vale for everything they do for food production. I also welcome the farming focus from Baroness Rock and, indeed, the Prime Minister—and Kaleb from “Clarkson’s Farm”, who is a firm favourite in our household. Does my right hon. Friend agree that we must keep tenant farmers farming for generations, and look at how we are encouraging young farmers into the businesses that are so vital for our country?

    Minister reply

    My hon. Friend will be aware of my background. I think that if ever there was a moment in history when we needed the brightest and most inspired people to come into the sector and embrace food production, as well as solving the challenges of climate change, that moment is now.

  • Simon Hoare Con North Dorset

    Question

    Thank you, Madam Deputy Speaker. I am the first of two Simons to be called. I thank my right hon. Friend for his statement. Dorset Council runs a very successful network of county farms, which are becoming rarer but are still, in my view, important. Can my right hon. Friend say whether his statement will be of benefit to the tenants of those county farms?

    Minister reply

    I hope that it will be of benefit to all tenant farmers, whether they are on a county farm, have a private landlord or a non-governmental organisation as their landlord. We want to support all tenants, but I recognise the huge contribution that county council-owned units have made and Dorset has certainly been exemplary in showing how they can benefit tenants.

  • Simon Jupp Con Sherborne

    Question

    The creation of a new farming tenancy forum is a welcome move. Those voices are crucial and the next generation in East Devon will be vital. Does the Minister agree that the tenanted sector is vital for the future of agriculture and absolutely crucial for the food security of the United Kingdom?

    Minister reply

    I wholly agree with my hon. Friend. He will be aware that only last week I was in Devon talking to farmers in his constituency about the contribution they are making to keeping the country well fed and also protecting the beautiful landscapes that Devon has to offer.

  • Caroline Johnson Con Sleaford and North Hykeham

    Question

    I welcome today’s report and the Minister’s statement. He will be aware of the rise in food prices and the pressure on land use, particularly in relation to rewilding and large-scale solar farms. What is he doing to ensure that we maintain food production and food security from tenants and non-tenant farmers alike?

    Minister reply

    I pay tribute to my hon. Friend. The farmers of Lincolnshire produce a huge amount of food for the nation. We need to invest in new technology and in productivity, to ensure that our farmers continue to become more productive.

Shadow Comment

Daniel Zeichner

The shadow responds by expressing disappointment over the piecemeal approach taken by the Government in addressing the Rock review recommendations. The shadow highlights issues such as the short-term nature of farm business tenancies and challenges faced by tenants in accessing environmental land management schemes, particularly tier 2 and tier 3 versions. He questions the current uptake of sustainable farming incentive (SFI) and seeks clarity on the new entrants scheme's progress and its impact on reducing rents under agricultural transition.

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