Dawn of Era or Just Another Day
For most of us the Brexit outcome was a surprise but even more so how many farmers voted ‘Out’ - no doubt tired of EU seemingly ridiculous bureaucracy and rules. However...
Without a planned strategy we can only now hope that the UK Government continues to both financially support farmers but also avoid strangling the industry by increased regulations in response to non-farming lobbyists.
For the Tenant farmer, however, the concern must be more immediate – even before Brexit we could see the reduced commodity prices and increasing costs having an impact on rents for both AHA and FBTs. Now there are the implications for the payment regime to factor in to budgets and forecasts.
Both Landlords and Tenants need to be aware of this when considering rents – but that is why we have rent review cycles to enable the rent to change, up or down, according to the changing circumstances and market conditions. Just as well for these uncertain “interesting” times ahead!
It should not be forgotten that change brings with it opportunity and Tenants and Landlords should also consider both succession for the next generation or even surrender negotiations thereby releasing new opportunities for both parties. Ultimately this is an industry used to change on a daily basis, be it weather or prices, and so it will adapt to the dawn of a new era. Keep Calm and Carry on Farming!
For advice on all landlord and Tenancy mattes in this new era contact Ellie Allwood.