Agricultural Tenancies Order 2006

Background
Since the Agricultural Tenancies Act 1995, there have been many changes in agricultural processes as well as a growing need for farmers to prioritise environmental as well as farming outputs as well as the introduction of the Common Agricultural Policy (CAP).

Farm diversification has been essential to secure the sustainability of the farm. Since the outbreak of Foot and Mouth and the Policy Commission on the Future of Food and Farming, there has been more recognition or a healthy tenanted sector in achieving sustainable agricultural industry.

The Tenancy Reform Industry Group which has representatives nationwide came up with the following reforms, which have been implemented by this Order:

• Encourage diversification by tenant farmers;
• Maintain and improve viability of tenanted farmers;
• Allow restructuring of holdings without jeopardising valuable rights;
• Improve flexibility in the tenanted sector;
• Maintain a balance between landlord and tenant interests.

Does the Order apply to me?
The Order applies to:
• All new tenancies in England and Wales;
• To variations and consents affecting existing tenancies made on or after 19 October 2006;
• Arbitrations arising on 1986 Act tenancies where the appointment of the arbitrator takes place on or after that date;
• All amendments to the Agricultural Tenancies Act 1995 regarding notice to quit and the criteria which an arbitrator can take into account in a rent review for a Farm Business tenancy.

Related resources: Agricultural licence | Agricultural tenancies | Agricultural lease

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