Ensure Single Farm Payment is fair to all (From Gazette & Herald)

Ensure Single Farm Payment is fair to all

THE Tenant Farmers' Association (TFA) has endorsed the publication of advice to tenants and landlords on issues affecting them through CAP reform.

Produced by the Tenancy Reform Industry Group and published by DEFRA, the advice is a timely reminder to both landlords and tenants about the need to ensure that there are agreements in place which take into consideration the new Single Farm Payment and are fair to all parties.

TFA national chairman Reg Haydon said "The TFA has been extremely concerned about how some landlords have been seeking to gain an unfair advantage in relation to Single Farm Payment when renewing or granting new Farm Business Tenancies. We have seen a large number of agreements which require tenants to relinquish any entitlement to the landlord or his nominee for little or no compensation. The new guidance gives a clear signal that this is not acceptable."

The guidance seeks to ensure fairness between the parties to a tenancy agreement. It states clearly that "it would be unfair if the individual to whom entitlement had been allocated were required by a clause in the agreement to give it up for little or no consideration in comparison to its value". It goes on to say that "at the end of the tenancy the tenant should be able either to retain control of the entitlement allocated to him for use against other land or pass it to his landlord or a nominee for fair compensation".

"We would urge all landlords to take on board this advice which has the backing of all industry bodies with interest in the landlord/tenant sector including the TFA and CLA. To require entitlement to be given up for little or no compensation is tantamount to theft and bullying," said Mr Haydon.

In launching the advice DEFRA Minister, Lord Whitty, said that he would be keeping matters under review and if necessary would consider further measures which may be necessary to maintain a fair balance between landlords and tenants.

Updated: 12:25 Wednesday, January 05, 2005