Alongside the publication of the Farming Roadmap, DEFRA has also set out a detailed response to the recommendations contained within the Farming Profitability Review carried out by Baroness Minette Batters. Looking specifically at the recommendations made by Baroness Batters in respect of the tenanted sector of agriculture, DEFRA says that it recognises the need to strengthen confidence and investment in the tenant farming sector. However, it fails to endorse any of the recommendations made. DEFRA accepts the importance of longer agricultural leases and greater security of tenure, while maintaining that landlords and tenants should remain free to agree terms suited to their circumstances. It points to the new guidance produced by the Farm Tenancy Forum in March, to encourage consideration of longer-term agreements.
Law Commission Review of Agricultural Tenancies
On tenancy law, DEFRA’s response welcomes the Law Commission’s planned review of agricultural tenancies, expected to begin in summer 2027. This will examine whether existing legislation balances the interests of landlords and tenants and whether it supports diversification and sustainable farming. DEFRA has committed to work with the Law Commission on developing the terms of reference and ensuring that they include issues, such as end-of-tenancy valuations and environmental value.
Taxation Reform
On the recommendations for taxation reform, including reference to Ireland’s income tax relief model, promoting longer tenancies and the problems associated with the calculation of Stamp Duty Land Tax (SDLT) on long tenancies, DEFRA makes no promises, but indicates that it will keep income tax and SDLT issues under review. However, DEFRA also said that it does not believe the income tax policy of the Republic of Ireland will work in the UK and that there is insufficient evidence that SDLT is the main barrier to longer tenancies.
TFA Chief Executive, George Dunn, said: “It is hugely disappointing that DEFRA has been so non-committal in respect of these specific tenancy recommendations. The recommendations tabled by Baroness Batters, echo those already identified from the Rock Review into agricultural tenancies and must be taken more seriously by Government. The taxation issues are crucial in building a more secure and sustainable tenanted sector for agriculture in England.” For more details of the Government’s response to the Batters’ Review, click here.
This news article was written by George Dunn, TFA Chief Executive on 30 June 2026.
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