Two factors stand out from the annual tenancy survey — the 10th — carried out by the Central Association of Agricultural Valuers to assess the state of play in the letting market. First, the report notes a continuing reluctance on the part of all landlords to relet land long-term and create lifetime tenancies. Second, it appears that landlords are no longer keen to take land in hand and farm it themselves, as they have been in previous years when profits were more certain and tenancy laws less flexible.
But from all parts of England and Wales agents reported that 1985-86 saw landlords quite willing to let land on short-term arrangements, either those with Ministry consent (two to five years) or under the so-called Gladstone v Bower method (13-23 months).
An encouraging sign is that, once again, more private sector land was relet rather than otherwise disposed of on a change of tenancy. If short-term arrangements are included 64.2% of the total acreage was relet: if they are excluded for the purposes of comparison the figure falls to 56.4%, identical to that for 1985.
Otherwise the CAAV notes a general trend towards larger units in those which are freshly let; and a continuing reduction in the private-sector area sold or to be sold.
In the institutional sector, on the other hand, there was a significant increase in the amount of land sold or for sale — hardly surprising in view of the funds’ current disenchantment with agricultural investment — and a fall in the acreage taken in hand for direct farming.
One rather surprising feature was that joint ventures on land previously farmed in hand by the owner showed a further decrease — has the popularity of this initiative peaked? Total return in 1984 was nearly 16,000 acres in 42 arrangements, whereas this year only 20 covering 6,000 were received.
The CAAV stresses that the survey is not comprehensive and should be regarded only as a sample: it covers 108,000 acres in the private sector, and a further 18,000 acres of institutional land. Nevertheless the survey is generally regarded as the most comprehensive analysis available, since proportionately the percentages probably accord closely with the complete picture, as agricultural valuers are normally concerned when a change of tenancy takes place.
The survey also covers fresh lettings of land previously farmed by the owner covering 7,500 acres, joint ventures on land previously farmed by the owner in hand (6,000 acres), and sales to sitting tenants (15,500 acres).
