Following the Rock Review in April 2024, the implementation of the Agricultural Landlord and Tenant Code of Practice has introduced several notable changes, designed to foster a more transparent and cooperative relationship between agricultural landlords and tenants.
By establishing a clear framework of aims to ensure that all parties are fully aware of their rights and obligations, this can then be used to promote a culture of mutual respect and understanding within the agricultural sector.
One of the significant changes is the emphasis on clarity in the agreements and communications between parties. This ensures that everyone involved has a clear understanding of their roles, responsibilities, and the expectations set upon them.
The Farm Tenancy Forum launched the Agricultural Landlord and Tenant Code of Practice for England (“the Code”) in April 2024, following the Rock Review which called for a code of good practice to guide the conduct of agricultural landlords, tenants and their professional advisers.
This Code introduced three principles that should be encouraged:
Clarity
The parties should be clear on their intentions, expectations and their position if problems arise.
Communication
The code requires clear, timely and considered communication between the parties and should be tailored to the needs and situation of the recipient.
Collaboration
A belief that the parties can achieve more when they work together.
What does this hope to achieve?
The key aim of these principles is to support landlords and tenants and their professional advisers to establish and maintain positive, productive and sustainable commercial relationships with open dialog.
The Code should be used where issues arise, with the aim of helping to resolve any potential conflicts if the parties do not agree.
It is important to remember the Code does not extend to the current law or create new legal obligations but is endorsed by member organisations of the Farm Tenancy Review. Whilst not compulsory, it does become binding if a new tenancy agreement includes the principles, holding both landlord and tenant accountable to its terms.
The hope is that all parties will adhere to these principles, resulting in less conflicts during the length of a tenancy and better communication across the industry. Landlords and Tenants should still abide by their written tenancy agreement, whilst keeping in mind the ideals of clarity, communication and collaboration.
The Agricultural Landlord and Tenant Code of Practice marks a significant step forward in fostering a more transparent and collaborative agricultural sector, where landlords and tenants can build stronger, more sustainable relationships.
The implementation of these principles provides a useful structure to support any future agreements you might enter into. Embracing the principles outlined in the Code can help mitigate conflicts and enhance understanding and promote a better working environment. Whether you are a landlord, tenant, or professional adviser, integrating these practices can lead to more productive and positive outcomes.
If you would like further information or advice in relation to agricultural tenancies, please contact the Commercial Property team by calling 0161 884 0902 or by emailing bromleys@bromleys.co.uk.