The Tenant Farmers Association is dismayed but not surprised by the results of the 20th Annual Tenanted Farms Survey carried out by the Central Association of Agricultural Valuers. It has shown a decline in the area of land let for the first time since Farm Business Tenancies were introduced in 1995.

TFA National Chairman, Reg Haydon said "These results back up what we have been hearing from members throughout 2004 and the first part of 2005. Landlords, who would have traditionally let land, have been manoeuvring themselves to find a way of being in occupation of land in order to claim the new entitlements under the Single Farm Payment Scheme. Through the debate on the mechanism to be used for introducing entitlements, we warned Defra that this would happen and I am sad to say that our warnings have now become a reality".

The TFA is particularly concerned about those cases where legal agreements between parties have changed, but the practical arrangements have remained unchanged. Landlords have been using grazing licences, cropping licences, profit of pasturage agreements and other devices in order to appear to be in occupation of land sufficient to meet the criteria for the new entitlements. However, despite the change in legal agreement, the practical arrangements are conducted in the same way as before.

"We believe that it is wrong that landlords should be able to create the appearance of being in occupation whilst in practical terms having little or nothing to do with the management of the land. We are also questioning whether the land is properly at the disposal of those individuals for the qualifying period for the new payments. I will be raising these concerns formally with the new Minister, Lord Bach when I meet him at the end of the month", said Mr Haydon.

As to the long-term position, the TFA is confident that the supply of let land will again increase.

"2005 is a special year as this was the only year which was available for establishing entitlements. Once those entitlements are established, I firmly believe that landlords will return to letting land with entitlements. However, there will also be changes on the demand side as well. If returns from agriculture continue to be depressed, then demand will be lower and the willingness of tenants to pay, much reduced in comparison to previous years", said Mr Haydon.