Agricultural Tenancy Notices for Tenants' Improvements
The documents listed below are for use by agricultural Landlords and Tenants who are making and receiving applications for consent to make improvements to the holding during the term of the tenancy and claims for compensation at the end of the term.
Improvements can be either physical improvements to the holding or intangible advantages obtained for the holding by the Tenant (such as milk quotas and planning permissions).
The Agricultural Tenancies Act 1995 sets out a procedure for Landlords and Tenants to follow when seeking consent to improvements and claiming compensation. The Notices below are designed to help Landlords and Tenants to comply with the Act when dealing with improvements.
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Frequently Asked Questions
I am a farm tenant planning improvements. How do I protect my right to compensation? +
Get the landlord's written consent before you start. Under the Agricultural Tenancies Act 1995 a tenant's right to compensation for an improvement depends on the landlord having consented in writing, or on an arbitrator approving it. Carry out the work without consent and you usually lose the right to be paid for it. These notices help you request and record that consent.
The landlord will not consent to my improvement. What can I do? +
You can refer the question to arbitration under the Agricultural Tenancies Act 1995 if the landlord refuses consent, attaches conditions you object to, or fails to respond within two months of your written request. The arbitrator can approve the improvement outright, and that approval then counts as the landlord's consent. One exception: consent for planning permission cannot be sent to arbitration.
How is compensation for an improvement worked out at the end of the tenancy? +
By the value the improvement adds. Under the Agricultural Tenancies Act 1995 the tenant is compensated for the amount by which the improvement increases the value of the holding to an incoming tenant at the end of the tenancy, not the amount the tenant spent. Landlord and tenant can agree an upper limit. Disputes over the sum go to arbitration.
Do planning permissions or other intangible gains count as improvements? +
Yes. As well as physical works, the Agricultural Tenancies Act 1995 treats intangible advantages obtained for the holding, such as planning permission or a milk quota, as improvements that can attract compensation, provided the consent rules are met. Planning permission has its own route: the tenant needs the landlord's consent, and that particular consent cannot be referred to arbitration.
