News
1st Mar

2013

Media Release 05 – Farm Tenants Must Take Care To Avoid Subsidy Traps

Farm tenants must take care to avoid subsidy traps
The Tenant Farmers Association is warning all tenant farmers to watch out for traps in new tenancy agreements and other documentation that they sign with their landlords which could mean they lose their rights to vital support payments.
TFA Chief Executive George Dunn said “Increasingly the TFA is seeing new tenancy agreements containing clauses seeking to deprive tenants of their existing and future entitlements to Single Farm Payments for little or no compensation in return. Unsuspecting tenants who are glad to have the opportunity of farming additional land may fall unsuspectingly into these traps if they do not take advice. It is important that tenants read carefully through any document they are asked to sign and seek advice from the TFA or a professional adviser before completing any new agreement”.

“The concern is heightened as there are now a number of standard farm tenancy agreements doing the rounds which have these alarming clauses within them. Such clauses are in direct contravention of guidance issued by the Tenancy Reform Industry Group in 2004 which made it clear that it would be considered ‘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’. The TFA would urge all professionals advising landlords not to include clauses in agreements with tenant farmers which seek to harvest the benefit of support through the CAP for the landlords benefit,” said Mr Dunn.

“With all the uncertainty surrounding the current process of reform to the CAP it would be very easy for individuals to sign up agreements which they later find particularly disadvantageous. This increases the need for tenants to ensure they are obtaining objective advice before signing agreements. This is one of the reasons why the TFA is holding a roadshow of meetings to ensure that tenant farmers are up to speed with CAP reform developments and what they need to look for in any new agreements they are asked to sign,” said Mr Dunn.

End

Ref:  MR05

Date: 01 March 2013

Notes for Editors:

The TFA is holding its next round of CAP Reform Roadshow meetings for tenant farmers between 04 March and 08 March in Stafford, Kendal, Northallerton and Lincoln. For more information or to book a place at one of the Roadshow meetings contact Larissa Harmsworth, TFA Marketing Executive on 0118 930 6130.

 

George Dunn can be contacted on 0118 930 6130 or 07721 998961.

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