Farm landlords need to take a step back and consider growing uncertainty in the sector, according to the Tenant Farmers Association
Fears about growing in the agriculture sector have prompted the Tenant Farmers Association (TFA) to call on landlords to “step back” from pushing higher rents in their annual reviews.
Traditionally rent reviews are issued around February/March and September/October, with a notice served at least 12 months prior to the review date.
The TFA has issued new advice to landlords encouraging them to take a more measured approach in light of the increased uncertainty over the new few years.
“Any dialogue between landlords and tenants would be better spent on working jointly to consider how to meet the challenges and opportunities which lie ahead,” TFA Chief Executive George Dunn said.
“We have some indication of how the Government intends to allow a period of transition beyond the point we leave the European Union, but nothing is guaranteed at this stage.
“The UK is entering into some tricky negotiations with the European Union and until we have an agreed settlement covering all of the separation issues, predicting future profitability of the industry, with any degree of certainty, will be impossible. Therefore, it is best to park discussions on rent until later in 2019 at the earliest.”
The TFA believes that landlords should postpone discussions about rents until the autumn of next year or the spring of the year following when farmers should have a clearer picture of how the markets will be affected by Brexit.
“That is not to say that landlords and tenants should not be in dialogue at this time. Indeed for such a time as this, it is vitally important that landlords and tenants stay engaged,” added Mr Dunn.