Renting farmland

Farm tenancies: renting land in or out

The main kinds of farm tenancy in England, what each side should agree in writing, how tenancies work with SFI and Countryside Stewardship, and where to get help if things go wrong.

England. Checked against GOV.UK every day.

Get advice before you sign. A tenancy can tie up land for years, and the wrong kind can give rights you didn't mean to give (or lose ones you need). Have a solicitor or land agent who knows farm tenancies check it first.

The kinds of tenancy

Most new lets Farm Business Tenancy (FBT)
  • Under the Agricultural Tenancies Act 1995. Almost every farm let since 1 September 1995 is an FBT.
  • You agree the length, rent and repairs. There's no right for the tenant's family to take it over.
  • A tenancy of more than 2 years doesn't end on its end date unless at least 12 months' (and less than 24 months') written notice is given. Without notice it carries on from year to year.
  • Rent reviews follow the tenancy, or every 3 years by law if it says nothing, at an open-market rent.
  • At the end, a tenant can claim compensation for improvements the landlord agreed to in writing.
  • The land keeps 100% Agricultural Property Relief for the landlord's inheritance tax. See Passing on the farm.
Older lets Agricultural Holdings Act 1986 tenancies (AHA)
  • Tenancies from before September 1995. The tenant has security for life, and the rent is set on the 1986 Act's rules.
  • Many allow up to two successions: a close relative who has earned their living mainly from the holding can apply to take it over when the tenant dies or retires. There are tests on eligibility and suitability, and strict time limits.
  • Notices, rent reviews and successions all have their own forms and deadlines. Take advice early, as missing a deadline can lose the right.
  • A landlord's land let on an old tenancy may only get 50% Agricultural Property Relief. Check with your adviser.
Short lets Grazing licences, mowing and contract farming
  • Grazing or mowing licences for less than a year give the right to graze or cut, but not to farm the land. They suit a season's keep. A "licence" that is really a tenancy in practice can be treated as one, so get the wording right.
  • Contract farming: the landowner stays the farmer and hires a contractor for the work, sharing the profit. The owner keeps control, scheme payments and inheritance tax relief on the business.
  • Share farming: two separate businesses share the output of one farm, each bringing their own part (land, machinery, labour, stock).

What to agree in writing

Tenancies and farm schemes

If there's a problem

Official pages: Agricultural Tenancies Act 1995 · Agricultural Holdings Act 1986 · Government response to the Rock Review

This page is general guidance for England, not legal advice. Wales, Scotland and Northern Ireland have their own tenancy laws.