Agricultural tenancies

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The Agricultural Tenancies Act 1995 (ATA 1995) introduced the farm business tenancy as a replacement for the agricultural holding tenancy (governed by the Agricultural Holdings Act 1986 (AHA 1986)). For further guidance, see Practice Note: Identifying a farm business tenancy.

Farm business tenancy

A tenancy of agricultural land created on or after 1st September 1995 is a farm business tenancy if it meets:

  1. •

    the ‘Business Condition’, and either:

    1. ◦

      the ‘Notice Condition’, or

    2. ◦

      the ‘Agriculture Condition’

The Business Condition

All or part of the land must at all times during the tenancy be farmed for trade or business (not necessarily an agricultural trade or business).

The Notice Condition

Before the tenancy begins, the proposed landlord and tenant must exchange notices stating that the tenancy is to 'be and remain' a farm business tenancy and that its character will be, at first, primarily agricultural.

The Agriculture Condition

At the relevant time (not necessarily at the beginning of the tenancy) the tenancy must be primarily or wholly agricultural.

Some types of tenancy can be within ATA 1995

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