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Economic Evaluation of the Agricultural Tenancies Act 1995 A Baseline Study - ER02021

There has been a long term decline in the proportion of agricultural land which is rented. In the years preceding the First World War the area of agricultural land rented in England and Wales was about 90% of the total. Since that time, this has fallen gradually to about 33% now.

The principal reasons for this decline have been the security of tenure granted to tenants under various Acts of Parliament and the relatively advantageous tax position faced by owner occupiers. This trend has resulted in fewer opportunities for farmers to develop their businesses by renting additional land and has made it more difficult for new entrants to gain a foothold in the industry. Over recent years various short term lettings, contract and share farming arrangements have been used to avoid the creation of full agricultural tenancies.

The Agricultural Tenancies Act came into force on 1 September 1995. This Act provides for a new category of letting in England and Wales - farm business tenancies - and is designed to encourage more letting of agricultural land by deregulating and simplifying the holdings legislation; increasing the opportunities for new entrants; and promoting economic efficiency in agricultural land use by making the market for rented land more flexible and open to market forces.
Project Documents
• Final Report : Economic Evaluation of the Agricultural Tenancies Act 1995 A Baseline Study   (440k)
Time-Scale and Cost
From: 1997

To: 1997

Cost: £26,000
Contractor / Funded Organisations
University - Plymouth
Agricultural Tenancies Act              
Economic Policy Evaluation              
Rural Issues