The Tenant Farmers Association (TFA) is looking for a reset for tenant farmers in the upcoming budget amid a "brutal year" for farming

According to the TFA, farmers are increasingly asking questions such as "how will next year’s crop be established; will banks continue lending; and will overdraft facilities be extended?"

"Everyone appears focused on how difficult the coming months are likely to be with the continuing impact of drought, animal disease and rising costs," it said.

The TFA says that farmers are calling on government officials to demonstrate a "proper understanding of farming" in the lead up for budget 2027.

Financial aid

"We need a financial bridge to a hopefully better and more profitable future particularly for the tenanted sector which lacks the security for commercial borrowing," the TFA said.

This will save farmers from "irreversible losses to their businesses and prevent knock"on effects for food security and resilience.

"Costs, yields and market conditions all point in the same direction.

"Rents have remained largely static for a long number of years and there are relatively few tenant notices served for the current year, although some landlord notices remain outstanding," TFA said.

Tenants and landlords

TFA urged tenant farmers to use existing notices to argue for reductions and, to serve notices now for the following year, as these takes12 months to process.

"Amidst volatile markets, rising inputs and extreme weather, rent is one of the few costs they can influence, so the process for resolving it must become faster and more effective.

"That includes making arbitration more accessible and less expensive – an issue which we are urging the Commissioner for the Tenant Farming Sector to take forward," it said.

Drought; disease; stormier winters; persistently high costs; and future fertiliser pressures all point towards a "constrained outlook", the association said.

"Rents must become correspondingly lower. For tenant farmers, a reset is no longer optional, it is essential," it added.

The TFA also urged all landlords to consider acting voluntarily to reduce rent or provide rent abatements rather than waiting for formal reviews.

NFU

In addition, the TFA backed the National Farmers Union (NFU) call for the government to come forward with emergency, interest-free crisis loans for farmers

At the end of last month, the NFU urged the chancellor to reduce the cost of food production and restore farm confidence by prioritising five measures:

Increase the Annual Investment Allowance to at least £5 million and extend its scope;
Provide funding for temporary interest-free Keep Britain Growing Loans;
Ensure the Carbon Border Adjustment Mechanism does not put domestic food producers at a disadvantage to imports;
Remove changes to Agricultural Property Relief and Business Property Relief;
Introduce enhanced capital allowances for incorporated and unincorporated businesses.