Fresh Start Entrants Need to be Prudent
03/06/05

The Tenant Farmers Association will be using its presence at the Cornwall Show to urge new entrants encouraged by the "Fresh Start" initiative to be level headed when considering tendering for new tenancies.

The TFA is supporting the "Fresh Start" initiative being pioneered in Cornwall by the Cornwall Agricultural Council but is urging potential new entrants to think prudently and not to get carried away.

TFA Chief Executive George Dunn said "I am alarmed at reports from some quarters that new entrants are tendering seemingly unsustainable rents. I am worried greatly that today's new entrants who do budget prudently will be tomorrow's casualties. It is true that the supply of farms has been tight in recent times due to landowners reserving their position in relation to the Single Payment Scheme but the TFA believes that we will see a turnaround in supply in the not too distant future. New entrants must not look through rose tinted spectacles when considering available opportunities - realism is what is needed".

On a regular basis the TFA is receiving reports of land, particularly grass, which cannot attract a bid when put up for letting. Increasingly this will be the case for arable land. This shows the reality of the market place looking forward in a decoupled subsidy world.

"A big problem is the residential value of farm houses and cottages. The TFA is critical of landlords who seek to take separate bids for houses and land when letting farms. We are also critical of those landlords who set the rental value of farm houses at Assured Shorthold Tenancy rates in letting particulars and then expect a bid on the land on top. There is no way in which the farm businesses on those holdings will be sustainable without a significant injection of income from other sources. The strain that puts on farm families is enormous", said Mr Dunn

"In supporting "Fresh Start" we also want to make sure that it generates new opportunities and that it does not merely shuffle them around. We are aware of at least one case on the Cornwall County Council estate were a previous plan to add land to an existing tenant's holding might now be shelved in order to provide a stand alone, "Fresh Start" farm. However, the TFA, the tenants involved and the "Fresh Start" team are working to ensure that this does not happen" said Mr Dunn.