Survey of the Agricultural Tenant Farmers

3 CHANGES IN LAND TENURE SINCE 2000

Summary

1. The majority (83%) of respondents had been farming their main tenancy since 2000. Around one in ten respondents have entered their current tenancy since then and are potentially new entrants to the tenant farming sector or existing farmers who moved location.

2. Two thirds (64%) of respondents' businesses were the same size as they were in 2000. Almost a quarter of respondents reported that the hectarage of their business was larger than in 2000, while the hectarage of around one in ten businesses had decreased.

3. Respondents said that the biggest challenges to increasing the hectarage of a business included both the supply and cost of land to rent or buy. Reasons given for reductions to size of holdings were tenancies not being renewed and that respondents were getting older and wanted smaller holdings that were easier to work.

3.1 Respondents were asked to provide details of any changes to the land they farmed since 2000 in order to explore the level of change in agricultural land tenure arrangements. The time since 2000 was considered to provide a suitable period over which to measure any changes, being recent enough for most respondents to remember but long enough to reflect change over time.

3.2 The majority of respondents had been farming on some or all of their main tenancy since at least 2000 (83%). In 5% of cases, a respondent had not been farming on their main tenancy since 2000 but someone in their family had been.

3.4 Ten per cent of respondents said that neither they nor someone in their families had been farming on all or some of the land since at least 2000. These are either new entrants to the sector that have begun farming after this date or potentially existing farmers who had moved location.^[8]

3.5 Not surprisingly, respondents aged 50 years or over were more likely to have been farming on their land since 2000 (87% compared to 83% overall) while, those aged under 40 years were more likely to have not been farming on all or some of their land since 2000 (40% compared to 15% overall).

Changes since 2000

3.6 Respondents who said that all or some of their land had been farmed by them or their family since 2000 were asked about whether and how the hectarage of their business had changed in that time. As shown in Figure 3.1, around two-thirds (64%) said that their business was the same size now as it was in 2000. More businesses had increased in size than decreased: overall, 17% of respondents reported that their business was up to 40% larger than in 2000 and 6% reported that their business was more than 40% larger. In comparison, 12% said that the hectarage of their business had decreased.

Figure 3.1: Changes to the hectarage of businesses since 2000
Q. Compared to 2000, is the hectarage of your business now…

Base: All respondents who gave an answer and whose land was farmed by them or their family since 2000 (2,609)
Source: Ipsos MORI

3.7 Respondents who said that their tenancies were larger or a lot larger than in 2000 were more likely to be aged under 65 years (27% compared to 23% overall). Livestock (LFA cattle and sheep) over 80 hectares, Mixed and Non LFA cattle and sheep farmers were more likely than the other types of farmer to have tenancies that were larger or a lot larger than in 2000 (27%, 28% and 32% respectively, compared to 23% overall).

3.8 Respondents whose tenancies were the same size, smaller or a lot smaller than in 2000 were more likely to farm only one holding (83% compared to 75% overall), while those whose tenancies were larger or a lot larger than in 2000 were more likely to farm two or more holdings (41% compared to 23% overall). Respondents in the North West were more likely than other regions to have tenancies that were the same size as in 2000.

3.9 Respondents were asked to indicate any changes to the size of land held under different arrangements since 2000. The results are shown in Figure 3.2.

Figure 3.2: Changes in tenure since 2000
Q. Compared to 2000, do you…

Base: All respondents who gave an answer and whose land was farmed by them or their family since 2000 (2,576; 2,553; 2,527; 2,499; 2,480)
Source: Ipsos MORI

3.10 Changes to the size of holdings were most commonly reported to have taken place through increases or decreases in rented-in land, with 22% of respondents reporting that they rent-in more land since 2000, and 10% saying that they rent-in less land.

3.11 The next most common change in relation to size of business holding was in relation to amount of land owned, with 12% of respondents reporting that they owned more land compared to 2000, and 4% saying that they now own less land.

3.12 Changes in the amount of land rented-out and contracted in or out was less common. Four per cent rented-out more land and 2% rented-out less, while 13% rented out the same amount of land. Six per cent of respondents said that they contracted-in more land, while 2% contracted-in less land and 18% contracted-in the same amount. Contracting-out of land was relatively uncommon: 2% said they contract-out more land, 1% that they contract out less land and 7% that they contract-out the same amount of land.

3.13 Those that had increased the hectarage of their holdings since 2000, around 20% of all respondents, were asked to give their reasons for doing so (Figure 3.3). The reasons most commonly agreed with were to increase the production capacity of the business (94%), chance availability of nearby land (87%), and to help maintain the current financial position of the business (77%). Fewer said that they were providing for their family members to build a farm unit (48%), were diversifying into other agricultural enterprises (18%), were relocating enterprises to activate CAP entitlements (11%) or that they were diversifying into other non-agricultural enterprises (7%).

Figure 3.3: Main reasons for increasing the hectarage of businesses
Q. What were your reasons for increasing the hectarage of your business?

Base: All respondents who gave an answer and who had increased the hectarage of their business since 2000 (570; 570; 543; 544; 534; 524; 530)
Source: Ipsos MORI

3.14 This group of respondents were also asked if they had bought, rented or inherited the land. As shown in Figure 3.4, the most common method of increasing the size of their holding was to rent land, followed by buying land, chosen by 88% and 47% of respondents respectively. Twelve per cent of respondents had inherited a tenancy and 7% had inherited owned land.

Figure 3.4: Main ways in which the hectarage of businesses were increased since 2000
Q. When you increased the hectarage of your business did you buy the land, rent the land or inherit the land?

Base: All respondents who gave an answer and who had increased the hectarage of their business since 2000 (541; 451; 400; 389)
Source: Ipsos MORI

3.15 Those that had increased the hectarage of their business were also asked about the challenges they have faced in increasing the hectarage of their farm business (Figure 3.5). Overall, 55% of respondents cited the supply of land to rent or buy. The next most commonly cited challenge was the cost of land to rent or buy (28%). Fewer respondents said the ability to raise funds (10%) or gaining agreement from business partnerships/family (2%) was the biggest challenge.

Figure 3.5: Challenges faced in increasing the hectarage of businesses
Q. What was the biggest challenge in increasing the hectarage of your farm business?

Base: All respondents who gave an answer and who had increased the hectarage of their business since 2000 (586)
Source: Ipsos MORI

3.16 The supply of rented land was mentioned in a number of the comments given by respondents. The following quote is one example.

"The availability of small rented farms is far too scarce. If a farmer has 2 children (or more) who wish to farm it is nearly impossible to rent another piece of land"

3.17 Other challenges given by respondents comprised of a broad range of concerns, including the costs of equipment, overheads and repairs, finding out when land was available for sale or rent and a lack of staff, skills or knowledge.

3.18 Respondents who reported that the hectarage of their business had decreased since 2000 were asked why this had occurred (See Figure 3.6).

Figure 3.6: Main reasons for decreasing the hectarage of businesses
Q. What were your reasons for decreasing the hectarage of your business?

3.19 The main reason given for decreasing the size of a business, among the 12% of respondents whose holding had decreased since 2000, was tenancies not being renewed by landlords (39%). The following quote is an example.

" [My] two immediate neighbours on the same estate as our rented farm have both not had their tenancies renewed and the farms [have been] absorbed into the landlords' own farming enterprise. I cannot help but wonder if the possible future introduction of ARtB played any part in the landlord's decision which if true would be rather ironic not to say tragic."

3.20 Just under a third (29%) said that they were getting older and wanted something smaller to work and 24% said that they had sold land to release capital for other uses. Fewer respondents said their reason for decreasing the hectarage was because of diversifying into other non-agricultural enterprises that required less land (13%), they had no eligible successor (12%) or that they were diversifying into other agricultural enterprises that required less land (10%).