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The Agriculture Act 2020 (Commencement No. 3 and Transitional Provision) (Wales) Regulations 2024 No. 788 (W.122) (C.49) has implemented the long-awaited changes to succession rules applying to Agricultural Holdings Act 1986 tenancies in Wales. These changes, which were introduced in the Agriculture Act 2020, will come into effect from 1 September 2024.
Unlike England, however, Wales has gone further and rolled out to FBTs as well, the ability of tenants to override tenancy restrictions.
Succession changes
The changes to Agricultural Holdings Act 1986 (AHA) tenancies are:
- The Commercial Unit Test is repealed; and
- When looking at the suitability of the applicant, the tribunal will consider the persons likely capability and capacity to farm the holding commercially, taking into account the need for high standards of efficient production and care for the environment.
In June 2021, we explained England’s new succession rules (see Agriculture Act 2020: England finalises new AHA succession rules), which are also due to come into force on 1 September 2024. As anticipated, Wales is mirroring these incoming changes.
Requests to change tenancy
In addition to this, the Agriculture (Wales) Act 2023 (Commencement No. 2) Order 2024 No. 789 (W.123) (C.50) has brought into force changes relating to both Agricultural Holdings Act 1986 tenancies and farm business tenancies, pursuant to section 24 of the Agriculture (Wales) Act 2023. These changes relate to requests by the tenant for landlord consent or a variation to the terms of the tenancy to allow the tenant to claim financial support or comply with a relevant statutory duty.
The changes made to tenancies in England were explained in our article “Agriculture Act 2020: New power for AHA tenants to override tenancy restrictions”
For Wales the changes are slightly different. First, the definition of “relevant financial assistance” has been amended at Section 19A Agricultural Holdings Act 1986, by virtue of section 24 Agriculture (Wales) Act 2023. For Welsh tenancies, it now refers to payments that Welsh Ministers make only.
Secondly, the Agricultural Tenancies Act 1995 has a new section 8A inserted for Wales (this section does not apply to English tenancies). It enables a tenant to refer to arbitration, a request made by them for landlord’s consent or a variation of the terms of the tenancy, when it has been made with the purpose of enabling the tenant to apply for financial support or comply with a relevant statutory duty. Amongst other scenarios, this gives tenants in Wales recourse against a landlord who is unwilling to let them enter into environmental schemes.
Both the above provisions are already in effect as of the 15 July 2024.
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