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Agricultural Holdings Act 1986

Type Public General Act

Publication 1986-03-18

Last updated 2024-09-01

State In force

Department Statute Law Database

Source legislation.gov.uk

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Part I — Introductory

Principal definitions

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(1) In this Act “agricultural holding” means the aggregate of the land (whether agricultural land or not) comprised in a contract of tenancy which is a contract for an agricultural tenancy, not being a contract under which the land is let to the tenant during his continuance in any office, appointment or employment held under the landlord.

(2) For the purposes of this section, a contract of tenancy relating to any land is a contract for an agricultural tenancy if, having regard to—

(a) the terms of the tenancy,

(b) the actual or contemplated use of the land at the time of the conclusion of the contract and subsequently, and

the whole of the land comprised in the contract, subject to such exceptions only as do not substantially affect the character of the tenancy, is let for use as agricultural land.

(3) A change in user of the land concerned subsequent to the conclusion of a contract of tenancy which involves any breach of the terms of the tenancy shall be disregarded for the purpose of determining whether a contract which was not originally a contract for an agricultural tenancy has subsequently become one unless it is effected with the landlord’s permission, consent or acquiescence.

(4) In this Act “agricultural land” means—

(a) land used for agriculture which is so used for the purposes of a trade or business, and

(b) any other land which, by virtue of a designation under section 109(1) of the Agriculture Act 1947, is agricultural land within the meaning of that Act.

(5) In this Act “contract of tenancy” means a letting of land, or agreement for letting land, for a term of years or from year to year; and for the purposes of this definition a letting of land, or an agreement for letting land, which, by virtue of subsection (6) of section 149 of the Law of Property Act 1925, takes effect as such a letting of land or agreement for letting land as is mentioned in that subsection shall be deemed to be a letting of land or, as the case may be, an agreement for letting land, for a term of years.

Restriction on letting agricultural land for less than from year to year

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(1) An agreement to which this section applies shall take effect, with the necessary modifications, as if it were an agreement for the letting of land for a tenancy from year to year unless the agreement was approved by the Minister before it was entered into.

(2) Subject to subsection (3) below, this section applies to an agreement under which—

(a) any land is let to a person for use as agricultural land for an interest less than a tenancy from year to year, or

(b) a person is granted a licence to occupy land for use as agricultural land,

if the circumstances are such that if his interest were a tenancy from year to year he would in respect of that land be the tenant of an agricultural holding.

(3) This section does not apply to an agreement for the letting of land, or the granting of a licence to occupy land—

(a) made (whether or not it expressly so provides) in contemplation of the use of the land only for grazing or mowing (or both) during some specified period of the year, or

(b) by a person whose interest in the land is less than a tenancy from year to year and has not taken effect as such a tenancy by virtue of this section.

(4) Any dispute arising as to the operation of this section in relation to any agreement shall be determined by arbitration under this Act.

(5) Notwithstanding subsection (4) above, the parties to the agreement may instead refer for third party determination under this Act the dispute that has arisen as to the operation of this section.

Tenancies for two years or more to continue from year to year unless terminated by notice

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(1) Subject to section 5 below, a tenancy of an agricultural holding for a term of two years or more shall, instead of terminating on the term date, continue (as from that date) as a tenancy from year to year, but otherwise on the terms of the original tenancy so far as applicable, unless—

(a) not less than one year nor more than two years before the term date a written notice has been given by either party to the other of his intention to terminate the tenancy, or

(b) section 4 below applies.

(2) A notice given under subsection (1) above shall be deemed, for the purposes of this Act, to be a notice to quit.

(3) This section does not apply to a tenancy which, by virtue of subsection (6) of section 149 of the Law of Property Act 1925, takes effect as such a term of years as is mentioned in that subsection.

(4) In this section “term date”, in relation to a tenancy granted for a term of years, means the date fixed for the expiry of that term.

Death of tenant before term date

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(1) This section applies where—

(a) a tenancy such as is mentioned in subsection (1) of section 3 above is granted on or after 12th September 1984 to any person or persons,

(b) the person, or the survivor of the persons, dies before the term date, and

(2) Where this section applies, the tenancy, instead of continuing as mentioned in section 3(1) above—

(a) shall, if the death is one year or more before the term date, terminate on that date, or

(b) shall, if the death is at any other time, continue (as from the term date) for a further period of twelve months, but otherwise on the terms of the tenancy so far as applicable, and shall accordingly terminate on the first anniversary of the term date.

(3) For the purposes of the provisions of this Act with respect to compensation any tenancy terminating in accordance with this section shall be deemed to terminate by reason of a notice to quit given by the landlord of the holding.

(4) In this section “term date” has the same meaning as in section 3 above.

Restriction on agreements excluding effect of section 3

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(1) Except as provided in this section, section 3 above shall have effect notwithstanding any agreement to the contrary.

(2) Where before the grant of a tenancy of an agricultural holding for a term of not less than two, and not more than five, years—

(a) the persons who will be the landlord and the tenant in relation to the tenancy agree that section 3 above shall not apply to the tenancy, and

(b) those persons make a joint application in writing to the Minister for his approval of that agreement, and

section 3 shall not apply to the tenancy if it satisfies the requirements of subsection (3) below.

(3) A tenancy satisfies the requirements of this subsection if the contract of tenancy is in writing and it, or a statement endorsed upon it, indicates (in whatever terms) that section 3 does not apply to the tenancy.

Part II — Provisions Affecting Tenancy During its Continuance

Written tenancy agreements

Right to written tenancy agreement

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(1) Where in respect of a tenancy of an agricultural holding—

(a) there is not in force an agreement in writing embodying all the terms of the tenancy (including any model clauses incorporated in the contract of tenancy by virtue of section 7 below), or

(b) such an agreement in writing is in force but the terms of the tenancy do not make provision for one or more of the matters specified in Schedule 1 to this Act,

the landlord or tenant of the holding may, if he has requested the other to enter into an agreement in writing embodying all the terms of the tenancy and containing provision for all of the said matters but no such agreement has been concluded, refer the terms of the tenancy to arbitration under this Act.

(1A) Where the landlord or tenant has the right under subsection (1) above to refer the terms of the tenancy to arbitration under this Act, the landlord and tenant may instead refer the terms of the tenancy for third party determination under this Act.

(2) On any such reference the arbitrator in his award or (as the case may be) the third party in his determination—

(a) shall specify the existing terms of the tenancy, subject to any variations agreed between the landlord and the tenant,

(b) in so far as those terms as so varied neither make provision for, nor make provision inconsistent with, the matters specified in Schedule 1 to this Act, shall make provision for all of the said matters having such effect as may be agreed between the landlord and the tenant or, in default of agreement, as appears to the arbitrator or third party to be reasonable and just between them, and

(3) Where it appears to the arbitrator or third party on a reference under this section that, by reason of any provision which he is required to include in his award or (as the case may be) his determination, it is equitable that the rent of the holding should be varied, he may vary the rent accordingly.

(4) The award of an arbitrator or (as the case may be) the determination of a third party under this section shall have effect as if the terms and provisions specified and made in the award or determination were contained in an agreement in writing entered into by the landlord and the tenant and having effect (by way of variation of the agreement previously in force in respect of the tenancy) as from the making of the award or determination or, if the award or determination so provides, from such later date as may be specified in it.

(5) Where in respect of a tenancy of an agricultural holding—

(a) the terms of the tenancy neither make provision for, nor make provision inconsistent with, the matter specified in paragraph 9 of Schedule 1 to this Act, and

(b) the landlord requests the tenant in writing to enter into such an agreement as is mentioned in subsection (1) above containing provision for all of the matters specified in that Schedule,

the tenant may not without the landlord’s consent in writing assign, sub-let or part with possession of the holding or any part of it during the period while the determination of the terms of the tenancy is pending; and any transaction entered into in contravention of this subsection shall be void.

(6) The period mentioned in subsection (5) above is the period beginning with the date of service of the landlord’s request on the tenant and ending with the date on which an agreement is concluded in accordance with that request or (as the case may be) with the date on which the award of an arbitrator or the determination of a third party on a reference under this section relating to the tenancy takes effect.

Fixed equipment

The model clauses

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(1) The Minister may, after consultation with such bodies of persons as appear to him to represent the interests of landlords and tenants of agricultural holdings, make regulations prescribing terms as to the maintenance, repair and insurance of fixed equipment (in this Act referred to as “the model clauses”).

(2) Regulations under this section may make provision for any matter arising under them to be determined by arbitration or third party determination under this Act.

(3) The model clauses shall be deemed to be incorporated in every contract of tenancy of an agricultural holding except in so far as they would impose on one of the parties to an agreement in writing a liability which under the agreement is imposed on the other.

Arbitration where terms of written agreement are inconsistent with the model clauses

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(1) This section applies where an agreement in writing relating to a tenancy of an agricultural holding effects substantial modifications in the operation of regulations under section 7 above.

(2) Where this section applies, then, subject to subsection (6) below, the landlord or tenant of the holding may, if he has requested the other to vary the terms of the tenancy as to the maintenance, repair and insurance of fixed equipment so as to bring them into conformity with the model clauses but no agreement has been reached on the request, refer those terms of the tenancy to arbitration under this Act.

(2A) Where the landlord or tenant has the right under subsection (2) above to refer the terms of the tenancy as to the maintenance, repair and insurance of fixed equipment to arbitration under this Act (or would have that right but for subsection (6) below), the landlord and tenant may instead refer those terms for third party determination under this Act.

(3) On any reference under this section the arbitrator or third party shall consider whether (disregarding the rent payable for the holding) the terms referred to arbitration or (as the case may be) for third party determination are justifiable having regard to the circumstances of the holding and of the landlord and the tenant, and, if he determines that they are not so justifiable, he may by his award or determination vary them in such manner as appears to him reasonable and just between the landlord and tenant.

(4) Where it appears to the arbitrator or third party on any reference under this section that by reason of any provision included in his award or (as the case may be) his determination it is equitable that the rent of the holding should be varied, he may vary the rent accordingly.

(5) The award or determination of an arbitrator or (as the case may be) the determination of a third party under this section shall have effect as if the terms and provisions specified and made in the award were contained in an agreement in writing entered into by the landlord and the tenant and having effect (by way of variation of the agreement previously in force in respect of the tenancy) as from the making of the award or determination or, if the award or determination so provides, from such later date as may be specified in it.

(6) Where there has been a reference to arbitration or third party determination under this section relating to a tenancy, no subsequent reference to arbitration relating to that tenancy shall be made before the expiry of three years from the coming into effect of the award of the arbitrator or (as the case may be) the determination of the third party on the previous reference.

Transitional arrangements where liability in respect of fixed equipment transferred

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(1) Where by virtue of section 6, 7 or 8 above the liability for the maintenance or repair of any item of fixed equipment is transferred from the tenant to the landlord, the landlord may within the prescribed period beginning with the date on which the transfer takes effect require that there shall be determined by arbitration under this Act and paid by the tenant the amount of any relevant compensation.

(1A) Where the landlord has the right under subsection (1) above to require that there shall be determined by arbitration under this Act and paid by the tenant the amount of any relevant compensation (or would have that right but for the expiry of the prescribed period), the landlord and tenant may instead refer for third party determination under this Act the question of the amount of any relevant compensation that the tenant is to be required to pay.

(2) subsections (1) and (1A) above“relevant compensation” means compensation which would have been payable either under subsection (1) of section 71 below or in accordance with subsection (3) of that section, in respect of any previous failure by the tenant to discharge the liability mentioned in subsection (1) above, if the tenant had quitted the holding on the termination of his tenancy at the date on which the transfer takes effect.

(3) Where by virtue of section 6, 7 or 8 above the liability for the maintenance or repair of any item of fixed equipment is transferred from the landlord to the tenant, any claim by the tenant in respect of any previous failure by the landlord to discharge the said liability shall, if the tenant within the prescribed period beginning with the date on which the transfer takes effect so requires, be determined by arbitration under this Act.

(3A) Where the tenant has the right under subsection (3) above to require that there shall be determined by arbitration under this Act a claim of a type described in that subsection (or would have that right but for the expiry of the prescribed period), the tenant and landlord may instead refer the claim for third party determination under this Act.

(4) Where the terms of a tenancy of an agricultural holding as to the maintenance, repair or insurance of fixed equipment (whether established by the operation of regulations under section 7 above or by agreement) are varied by new regulations made under that section, then, if a reference is made under section 6 above within the prescribed period after the coming into operation of the new regulations, the arbitrator or third party shall, for the purposes of subsection (2) of the said section 6, disregard the variation.

Tenant's right to remove fixtures and buildings

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(1) Subject to the provisions of this section—

(a) any engine, machinery, fencing or other fixture (of whatever description) affixed, whether for the purposes of agriculture or not, to an agricultural holding by the tenant, and

(b) any building erected by him on the holding,

shall be removable by the tenant at any time during the continuance of the tenancy or before the expiry of two months from its termination, and shall remain his property so long as he may remove it by virtue of this subsection.

(2) Subsection (1) above shall not apply—

(a) to a fixture affixed or a building erected in pursuance of some obligation,

(b) to a fixture affixed or a building erected instead of some fixture or building belonging to the landlord,

(d) to a fixture affixed or a building erected before 1st January 1884.

(3) The right conferred by subsection (1) above shall not be exercisable in relation to a fixture or building unless the tenant—

(a) has paid all rent owing by him and has performed or satisfied all his other obligations to the landlord in respect of the holding, and

(b) has, at least one month before both the exercise of the right and the termination of the tenancy, given to the landlord notice in writing of his intention to remove the fixture or building.

(4) If, before the expiry of the notice mentioned in subsection (3) above, the landlord gives to the tenant a counter-notice in writing electing to purchase a fixture or building comprised in the notice, subsection (1) above shall cease to apply to that fixture or building, but the landlord shall be liable to pay to the tenant the fair value of that fixture or building to an incoming tenant of the holding.

(5) In the removal of a fixture or building by virtue of subsection (1) above, the tenant shall not do any avoidable damage to any other building or other part of the holding, and immediately after the removal shall make good all damage so done that is occasioned by the removal.

(6) Any dispute between the landlord and the tenant with respect to the amount payable by the landlord under subsection (4) above in respect of any fixture or building shall be determined by arbitration under this Act.

(6A) Notwithstanding subsection (6) above, the landlord and tenant may instead refer for third party determination under this Act the dispute that has arisen with respect to the amount payable by the landlord under subsection (4).

(7) This section shall apply to a fixture or building acquired by a tenant as it applies to a fixture or building affixed or erected by him.

(8) This section shall not be taken as prejudicing any right to remove a fixture that subsists otherwise than by virtue of this section.

Provision of fixed equipment necessary to comply with statutory requirements

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(1) Where, on an application by the tenant of an agricultural holding, the Tribunal are satisfied that it is reasonable, having regard to the tenant’s responsibilities to farm the holding in accordance with the rules of good husbandry, that he should carry on on the holding an agricultural activity specified in the application to the extent and in the manner so specified and—

(a) that, unless fixed equipment is provided on the holding, the tenant, in carrying on that activity to that extent and in that manner, will contravene requirements imposed by or under any enactment, or

(b) that it is reasonable that the tenant should use, for purposes connected with that activity, fixed equipment already provided on the holding, but that, unless that equipment is altered or repaired, the tenant, in using the equipment for those purposes, will contravene such requirements,

the Tribunal may direct the landlord to carry out, within a period specified in the direction, such work for the provision or, as the case may be, the alteration or repair of that fixed equipment as will enable the tenant to comply with the said requirements.

(2) Where it appears to the Tribunal that an agricultural activity specified in the tenant’s application has not been carried on on the holding continuously for a period of at least three years immediately preceding the making of the application the Tribunal shall not direct the landlord to carry out the work in connection with that activity unless they are satisfied that the starting of the activity did not or, where the activity has not yet been started, will not constitute or form part of a substantial alteration of the type of farming carried on on the holding.

(3) The Tribunal shall not direct the landlord to carry out work under this section unless they are satisfied—

(a) that it is reasonable to do so having regard to the landlord’s responsibilities to manage the land comprised in the holding in accordance with the rules of good estate management and also to the period for which the holding may be expected to remain a separate holding and to any other material consideration, and

(b) that the landlord has refused to carry out that work on being requested in writing to do so by the tenant or has not agreed to carry it out within a reasonable time after being so requested.

(4) The Tribunal shall not direct the landlord to carry out work under this section if he is under a duty to carry out the work in order to comply with a requirement imposed on him by or under any enactment or if provision is made by the contract of tenancy, or by any other agreement between the landlord and the tenant, for the carrying out of work by one of them.

(5) If the landlord fails to comply with a direction under this section the tenant shall have the same remedies as if the contract of tenancy had contained an undertaking by the landlord to carry out the work required by the direction within the period allowed by the Tribunal.

(6) Notwithstanding any term in the contract of tenancy restricting the carrying out by the tenant of alterations to the holding, the remedies referred to in subsection (5) above shall include the right of the tenant to carry out the work himself and recover the reasonable cost of the work from the landlord.

(7) The Tribunal, on an application by the landlord, may extend or further extend the period specified in a direction under this section if it is shown to their satisfaction that the period so specified, or that period as previously extended under this subsection, as the case may be, will not allow sufficient time both for the completion of preliminary arrangements necessary or desirable in connection with the work required by the direction (including, in appropriate cases, the determination of an application by the landlord for a grant out of money provided by Parliament in respect of that work) and for the carrying out of the said work.

(8) The reference in subsection (6) above to the reasonable cost of work carried out by a tenant shall, where the tenant has received a grant in respect of the work out of money provided by Parliament, be construed as a reference to the reasonable cost reduced by the amount of the grant.

Variation of rent

Arbitration of rent

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(1) Subject to the provisions of Schedule 2 to this Act, the landlord or tenant of an agricultural holding may by notice in writing served on the other demand that the rent to be payable in respect of the holding as from the next termination date shall be ... determined in accordance with this section.

(1A) The landlord and tenant may instead refer for third party determination under this Act the question of how much rent is to be payable in respect of the holding as from the next termination date.

(1A) Where a notice under subsection (1) is served, the question of how much rent is to be payable in respect of the holding as from the next termination date—

(a) may be required by the landlord or tenant to be determined by arbitration under this Act (see section 84), or

(b) may be referred by the landlord and tenant for third party determination under this Act (see section 84A).

(2) On a reference under this section the arbitrator or third party shall determine what rent should be properly payable in respect of the holding at the next termination date following the date of the ... notice under subsection (1) and accordingly shall, with effect from that next termination date, increase or reduce the rent previously payable or direct that it shall continue unchanged.

(3) A ... notice under subsection (1) shall cease to be effective for the purposes of this section on the next termination date following the date of ... the notice unless before the said termination date—

(a) an arbitrator or third party has been appointed by agreement between the parties, or

(b) an application has been made ... under section 84 for the appointment of an arbitrator.

(4) References in this section (and in Schedule 2 to this Act) ..., with respect to the rent of any holding, to the next termination date following the date of ... a notice under subsection (1) are references to the next day following the date of ... the notice on which the tenancy of the holding could have been determined by notice to quit given at the date of ... the notice under subsection (1).

(5) Schedule 2 to this Act shall have effect for supplementing this section.

Increases of rent for landlord's improvements

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(1) Where the landlord of an agricultural holding has carried out on the holding any improvement to which this section applies he may by notice in writing served on the tenant within six months from the completion of the improvement increase the rent of the holding as from the completion of the improvement by an amount equal to the increase in the rental value of the holding attributable to the carrying out of the improvement.

(2) This section applies to—

(a) an improvement carried out at the request of, or in agreement with, the tenant,

(b) an improvement carried out in compliance with a direction given by the Tribunal under section 11 above,

(d) an improvement carried out in compliance with a direction given by the Minister under powers conferred on him by or under any enactment,

(e) works executed on the holding for the purpose of complying with the requirements of a notice under section 3 of the Agriculture (Safety, Health and Welfare Provisions) Act 1956 (provision of sanitary conveniences and washing facilities),

(f) an improvement carried out in compliance with an improvement notice served, or an undertaking accepted, under Part VII of the Housing Act 1985 or Part VIII of the Housing Act 1974.

(3) No increase of rent shall be made under subsection (1) above in respect of an improvement within paragraph (a), (b) or (f) of subsection (2) above if within six months from its completion the landlord and tenant agree on any increase of rent or other benefit to the landlord in respect of the improvement.

(4) The increase in rent provided for by subsection (1) above shall be reduced proportionately—

(a) in the case of an improvement within paragraph (b) of subsection (2) above, where a grant has been made to the landlord in respect of the improvement out of money provided by Parliament,

(b) in the case of an improvement within any other paragraph of that subsection, where a grant has been made to the landlord in respect of the improvement out of money provided by Parliament or local government funds, and

(c) in the case of an improvement within paragraph (f) of that subsection, where the tenant has contributed to the cost incurred by his landlord in carrying out the improvement.

(5) Where, on the failure of a landlord to carry out an improvement specified in such a direction as is referred to in subsection (2)(b) above, the tenant has himself carried out the improvement, the provisions of this section shall apply as if the improvement had been carried out by the landlord and as if any grant made to the tenant in respect of the improvement out of money provided by Parliament had been made to the landlord.

(6) No increase in rent shall take effect by virtue of subsection (5) above until the tenant has recovered from the landlord the reasonable cost of the improvement reduced by the amount of any grant made to the tenant in respect of the improvement out of money provided by Parliament.

(7) Any dispute arising between the landlord and the tenant of the holding under this section shall be determined by arbitration under this Act.

(7A) Notwithstanding subsection (7) above, the landlord and the tenant may instead refer the dispute for third party determination under this Act.

(8) This section applies to an improvement whether or not it is one for the carrying out of which compensation is provided under Part V or VI of this Act.

Cultivation of land and disposal of produce

Variation of terms of tenancies as to permanent pasture

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(1) This section applies where a contract for a tenancy of an agricultural holding provides for the maintenance of specified land, or a specified proportion of the holding, as permanent pasture.

(2) Where this section applies, the landlord or tenant may, by notice in writing served on the other, demand a reference to arbitration under this Act of the question whether it is expedient in order to secure the full and efficient farming of the holding that the area of land required to be maintained as permanent pasture should be reduced.

(2A) Where the landlord or tenant has the right under subsection (2) above to demand that the question described in that subsection shall be referred to arbitration under this Act, the landlord and tenant may instead refer that question for third party determination under this Act.

(3) On a reference under subsection (2) or (2A) above the arbitrator or third party may by his award or (as the case may be) his determination direct that the provisions of the contract of tenancy as to land which is to be maintained as permanent pasture or is to be treated as arable land and as to cropping shall have effect subject to such modifications as may be specified in the direction.

(4) If, on a reference under subsection (2) or (2A) above, the arbitrator or third party gives a direction reducing the area of land which under the contract of tenancy is to be maintained as permanent pasture, he may order that the contract of tenancy shall have effect as if it provided that on quitting the holding on the termination of the tenancy the tenant should leave—

(a) as permanent pasture, or

(b) as temporary pasture sown with seeds mixture of such kind as may be specified in the order,

such area of land (in addition to the area of land required by the contract of tenancy, as modified by the direction, to be maintained as permanent pasture) as may be so specified.

(5) The area of land specified in an order made under subsection (4) above shall not exceed the area by which the land required by the contract of tenancy to be maintained as permanent pasture has been reduced by virtue of the direction.

Disposal of produce and cropping

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(1) Subject to the provision of this section and to section 82 below, the tenant of an agricultural holding shall (notwithstanding any custom of the country or the provisions of the contract of tenancy or of any agreement respecting the disposal of crops or the method of cropping of arable land) have, without incurring any penalty, forfeiture or liability, the following rights, namely—

(a) to dispose of the produce of the holding, other than manure produced on the holding, and

(b) to practise any system of cropping of the arable land on the holding.

(2) Subsection (1) above shall not apply—

(a) in the case of a tenancy from year to year, as respects the year before the tenant quits the holding or any period after he has given or received notice to quit which results in his quitting the holding, or

(b) in the case of any other tenancy, as respects the year before its termination.

(3) Subject to any agreement in writing to the contrary, the tenant of an agricultural holding shall not at any time after he has given or received notice to quit the holding sell or remove from the holding any manure or compost or any hay or straw or roots grown in the last year of the tenancy unless the landlord’s written consent has been obtained before the sale or removal.

(4) Before, or as soon as possible after, exercising his rights under subsection (1) above, a tenant shall make suitable and adequate provision—

(a) in the case of an exercise of the right to dispose of produce, to return to the holding the full equivalent manurial value of all crops sold off or removed from the holding in contravention of the custom, contract or agreement, and

(b) in the case of an exercise of the right to practise any system of cropping, to protect the holding from injury or deterioration.

(5) If the tenant of an agricultural holding exercises his rights under subsection (1) above in such manner as to, or to be likely to, injure or deteriorate the holding, the landlord shall have the following remedies, but no other, namely—

(a) the right to obtain, if the case so requires, an injunction to restrain the exercise of those rights in that manner, and

(b) the right in any case, on the tenant’s quitting the holding on the termination of the tenancy, to recover damages for any injury to or deterioration of the holding attributable to the exercise by the tenant of those rights.

(6) For the purposes of any proceedings for an injunction brought under paragraph (a) of subsection (5) above, the question whether the tenant is exercising, or has exercised, his rights under subsection (1) above in such a manner as to, or to be likely to, injure or deteriorate his holding shall be determined by arbitration under this Act; and the award of the arbitrator shall, for the purposes of any proceedings brought under subsection (5) (including an arbitration or third party determination under paragraph (b)) be conclusive proof of the facts stated in the award.

(6A) Notwithstanding subsection (6) above, the landlord and tenant may agree that, for the purposes of proceedings brought by the landlord under paragraph (a) of subsection (5) above, the question described in subsection (6) is instead to be referred for third party determination under this Act.

(6B) On a reference under subsection (6A) above, the determination of the third party shall, for the purposes of any proceedings brought under subsection (5) above (including an arbitration or third party determination under paragraph (b)) be conclusive proof of the facts stated in the determination.

(7) In this section—

“arable land” does not include land in grass which, by the terms of a contract of tenancy, is to be retained in the same condition throughout the tenancy; and

“roots” means the produce of any root crop of a kind normally grown for consumption on the holding.

Distress

No distress for rent due more than a year previously

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Compensation to be set off against rent for purposes of distress

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Restrictions on distraining on property of third party

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Settlement of disputes as to distress

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Miscellaneous

Compensation for damage by game

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(1) Where the tenant of an agricultural holding has sustained damage to his crops from any wild animals or birds the right to kill and take which is vested in the landlord or anyone (other than the tenant himself) claiming under the landlord, being animals or birds which the tenant has not permission in writing to kill, he shall, if he complies with the requirements of subsection (2) below, be entitled to compensation from his landlord for the damage.

(2) The requirements of this subsection are that the tenant shall give his landlord—

(a) notice in writing within one month after the tenant first became, or ought reasonably to have become, aware of the occurrence of the damage,

(b) a reasonable opportunity to inspect the damage—

(i) in the case of damage to a growing crop, before the crop is begun to be reaped, raised or consumed, and

(ii) in the case of damage to a crop which has been reaped or raised, before the crop is begun to be removed from the land, and

(c) notice in writing of the claim, together with particulars of it, within one month after the expiry of the year in respect of which the claim is made.

(3) For the purposes of subsection (2) above—

(a) seed once sown shall be treated as a growing crop whether or not it has germinated, and

(b) “year” means any period of twelve months ending, in any year, with 29th September or with such other date as may by agreement between the landlord and tenant be substituted for that date.

(4) The amount of compensation under this section shall, in default of agreement made after the damage has been suffered, be determined by arbitration under this Act.

(4A) Notwithstanding subsection (4) above, the tenant and landlord may instead refer for third party determination under this Act the question of the amount of compensation to which the tenant is entitled.

(5) Where the right to kill and take the wild animals or birds that did the damage is vested in some person other than the landlord, the landlord shall be entitled to be indemnified by that other person against all claims for compensation under this section; and any question arising under this subsection shall be determined by arbitration under this Act.

(6) Notwithstanding subsection (5) above, the landlord and the other person may instead refer for third party determination under this Act the questions arising between them under that subsection.

Extension of tenancies in lieu of claims to emblements

21

(1) Where the tenancy of an agricultural holding held by a tenant at a rackrent determines by the death or cesser of the estate of any landlord entitled for his life, or for any other uncertain interest, instead of claims to emblements the tenant shall continue to hold and occupy the holding until the occupation is determined by a twelve months’ notice to quit expiring at the end of a year of the tenancy, and shall then quit upon the terms of his tenancy in the same manner as if the tenancy were then determined by effluxion of time or other lawful means during the continuance of his landlord’s estate.

(2) The succeeding landlord shall be entitled to recover from the tenant, in the same manner as his predecessor could have done, a fair proportion of the rent for the period which may have elapsed from the date of the death or cesser of the estate of his predecessor to the time of the tenant so quitting.

(3) The succeeding landlord and the tenant respectively shall as between themselves and as against each other be entitled to all the benefits and advantages and be subject to the terms, conditions and restrictions to which the preceding landlord and the tenant respectively would have been entitled and subject if the tenancy had determined in manner aforesaid at the expiry of the said twelve months’ notice.

Rights to require certain records to be made

22

(1) At any time during the tenancy of an agricultural holding—

(a) the landlord or the tenant may require the making of a record of the condition of the fixed equipment on the holding and of the general condition of the holding itself (including any parts not under cultivation), and

(b) the tenant may require the making of a record of any fixtures or buildings which, under section 10 above, he is entitled to remove and of existing improvements executed by him or in respect of the execution of which he, with the written consent of the landlord, paid compensation to an outgoing tenant.

(2) Any such record shall be made by a person appointed, by the landlord and tenant (“the parties”) or, in default of agreement between the parties, by a person appointed by a professional authority on the application of either of them; and any person appointed by a professional authority may, on production of evidence of his appointment, enter the holding at all reasonable times for the purpose of making any such record.

(2A) A party may not make an application to a professional authority under subsection (2) in any case if the other party has already made an application to a professional authority under that subsection in that case.

(3) The cost of making any such record shall, in default of agreement between the landlord and tenant, be borne by them in equal shares.

(4) No application may be made to a professional authority for a person to be appointed by that authority under subsection (2) above unless the application is accompanied by such fee as may be prescribed as the fee for such an application.

(5) Any instrument of appointment purporting to be made by a professional authority by virtue of subsection (2) above and to be signed by or on behalf of that authority shall be taken to be such an instrument unless the contrary is shown.

(6) In this section “professional authority” has the same meaning as in section 84.

Landlord's power of entry

23

The landlord of an agricultural holding or any person authorised by him may at all reasonable times enter on the holding for any of the following purposes, namely—

(a) viewing the state of the holding,

(b) fulfilling the landlord’s responsibilities to manage the holding in accordance with the rules of good estate management,

Restriction of landlord's remedies for breach of contract of tenancy

24

Notwithstanding any provision in a contract of tenancy of an agricultural holding making the tenant liable to pay a higher rent or other liquidated damages in the event of a breach or non-fulfilment of a term or condition of the contract, the landlord shall not be entitled to recover in consequence of any such breach or non-fulfilment... any sum in excess of the damage actually suffered by him in consequence of the breach or non-fulfilment.

Part III — Notices to Quit

Notices to quit whole or part of agricultural holding

Length of notice to quit

25

(1) A notice to quit an agricultural holding or part of an agricultural holding shall (notwithstanding any provision to the contrary in the contract of tenancy of the holding) be invalid if it purports to terminate the tenancy before the expiry of twelve months from the end of the then current year of tenancy.

(2) Subsection (1) above shall not apply—

(a) where the tenant is insolvent,

(b) to a notice given in pursuance of a provision in the contract of tenancy authorising the resumption of possession of the holding or some part of it for some specified purpose other than the use of the land for agriculture,

(d) where the tenancy is one which, by virtue of subsection (6) of section 149 of the Law of Property Act 1925, has taken effect as such a term of years as is mentioned in that subsection.

(3) Where on a reference under section 12 above with respect to an agricultural holding the arbitrator or third party determines that the rent payable in respect of the holding shall be increased, a notice to quit the holding given by the tenant at least six months before it purports to take effect shall not be invalid by virtue of subsection (1) above if it purports to terminate the tenancy at the end of the year of the tenancy beginning with the date as from which the increase of rent is effective.

(4) On an application made to the Tribunal with respect to an agricultural holding under paragraph 9 of Part II of Schedule 3 to this Act, the Tribunal may, if they grant a certificate in accordance with the application—

(a) specify in the certificate a minimum period of notice for termination of the tenancy (not being a period of less than two months), and

(b) direct that that period shall apply instead of the period of notice required in accordance with subsection (1) above;

and in any such case a notice to quit the holding which states that the Tribunal have given a direction under this subsection shall not be invalid by virtue of subsection (1) above if the notice given is not less than the minimum notice specified in the certificate.

(5) A notice to quit within subsection (3) or (4) above shall not be invalid by virtue of any term of the contract of tenancy requiring a longer period of notice to terminate the tenancy, and a notice to quit within subsection (4) above shall not be invalid by reason of its terminating at a date other than the end of a year of the tenancy.

Restriction on operation of notices to quit

26

(1) Where—

(a) notice to quit an agricultural holding or part of an agricultural holding is given to the tenant, and

(b) not later than one month from the giving of the notice to quit the tenant serves on the landlord a counter-notice in writing requiring that this subsection shall apply to the notice to quit,

then, subject to subsection (2) below, the notice to quit shall not have effect unless, on an application by the landlord, the Tribunal consent to its operation.

(2) Subsection (1) above shall not apply in any of the Cases set out in Part I of Schedule 3 to this Act; and in this Act “Case A”, “Case B” (and so on) refer severally to the Cases set out and so named in that Part of that Schedule.

(3) Part II of that Schedule shall have effect in relation to the Cases there specified.

27

(1) Subject to subsection (2) below, the Tribunal shall consent under section 26 above to the operation of a notice to quit an agricultural holding or part of an agricultural holding if, but only if, they are satisfied as to one or more of the matters mentioned in subsection (3) below, being a matter or matters specified by the landlord in his application for their consent.

(2) Even if they are satisfied as mentioned in subsection (1) above, the Tribunal shall withhold consent under section 26 above to the operation of the notice to quit if in all the circumstances it appears to them that a fair and reasonable landlord would not insist on possession.

(3) The matters referred to in subsection (1) above are—

(a) that the carrying out of the purpose for which the landlord proposes to terminate the tenancy is desirable in the interests of good husbandry as respects the land to which the notice relates, treated as a separate unit;

(b) that the carrying out of the purpose is desirable in the interests of sound management of the estate of which the land to which the notice relates forms part or which that land constitutes;

(c) that the carrying out of the purpose is desirable for the purposes of agricultural research, education, experiment or demonstration, or for the purposes of the enactments relating to smallholdings;

(d) that the carrying out of the purpose is desirable for the purposes of the enactments relating to allotments;

(e) that greater hardship would be caused by withholding than by giving consent to the operation of the notice;

(f) that the landlord proposes to terminate the tenancy for the purpose of the land’s being used for a use, other than for agriculture, not falling within Case B.

(4) Where the Tribunal consent under section 26 above to the operation of a notice to quit, they may impose such conditions as appear to them requisite for securing that the land to which the notice relates will be used for the purpose for which the landlord proposes to terminate the tenancy.

(5) Where, on an application by the landlord, the Tribunal are satisfied that, by reason of any change of circumstances or otherwise, any condition imposed under subsection (4) above ought to be varied or revoked, they shall vary or revoke the condition accordingly.

(6) Where—

(a) on giving consent under section 26 above to the operation of a notice to quit the Tribunal imposed a condition under subsection (4) above, and

(b) it is proved on an application to the Tribunal on behalf of the Crown that the landlord has acted in contravention of the condition or has failed within the time allowed by the condition to comply with it,

the Tribunal may by order impose on the landlord a penalty of an amount not exceeding two years’ rent of the holding at the rate at which rent was payable immediately before the termination of the tenancy, or, where the notice to quit related to a part only of the holding, of an amount not exceeding the proportion of the said two years’ rent which it appears to the Tribunal is attributable to that part.

(7) The Agricultural Land Tribunal may, in proceedings under this section, by order provide for the payment by any party of such sum as the Agricultural Land Tribunal consider a reasonable contribution towards costs.

(8) A penalty imposed under subsection (6) above shall be a debt due to the Crown and shall, when recovered, be paid into the Consolidated Fund.

(9) An order under subsection (6) or (7) above shall be enforceable in the same manner as a judgment or order of the county court to the like effect.

Additional restrictions on operation of notice to quit given* under Case D

28

(1) This section applies where—

(a) notice to quit an agricultural holding or part of an agricultural holding is given to the tenant, and

(b) the notice includes a statement in accordance with Case D to the effect that it is given by reason of the tenant’s failure to comply with a notice to do work.

(2) If the tenant serves on the landlord a counter-notice in writing in accordance with subsection (3) or (4) below requiring that this subsection shall apply to the notice to quit, the notice to quit shall not have effect (whether as a notice to which section 26(1) above does or does not apply) unless, on an application by the landlord, the Tribunal consent to its operation.

(3) Subject to subsection (4) below, a counter-notice under subsection (2) above shall be served not later than one month from the giving of the notice to quit.

(4) Where the tenant not later than one month from the giving of the notice to quit serves on the landlord an effective notice requiring the validity of the reason stated in the notice to quit to be determined by arbitration under this Act—

(a) any counter-notice already served under subsection (2) above shall be of no effect, but

(b) if the notice to quit would, apart from this subsection, have effect in consequence of the arbitration, the tenant may serve a counter-notice under subsection (2) not later than one month from the date on which the arbitrator’s award is delivered to him.

(5) The Tribunal shall consent under subsection (2) above to the operation of the notice to quit unless it appears to them, having regard—

(a) to the extent to which the tenant has failed to comply with the notice to do work,

(b) to the consequences of his failure to comply with it in any respect, and

that a fair and reasonable landlord would not insist on possession.

(6) In this section “notice to do work” means a notice served on a tenant of an agricultural holding for the purposes of paragraph (b) of Case D, being a notice requiring the doing of any work of repair, maintenance or replacement.

Power to make supplementary provision

29

The Lord Chancellor may by order provide for any of the matters specified in Schedule 4 to this Act.

Notice to quit where tenant is a service man

30

Schedule 5 to this Act, which makes provision as to notices to quit in cases where the tenant of an agricultural holding is a service man, shall have effect.

Notices to quit part of agricultural holding

Notice to quit part of holding valid in certain cases

31

(1) A notice to quit part of an agricultural holding held on a tenancy from year to year given by the landlord of the holding shall not be invalid on the ground that it relates to part only of the holding if it is given—

(a) for the purpose of adjusting the boundaries between agricultural units or amalgamating agricultural units or parts of such units, or

(b) with a view to the use of the land to which the notice relates for any of the objects mentioned in subsection (2) below,

and the notice states that it is given for that purpose or with a view to any such use, as the case may be.

(2) The objects referred to in subsection (1) above are—

(a) the erection of cottages or other houses for farm labourers, whether with or without gardens;

(b) the provision of gardens for cottages or other houses for farm labourers;

(d) the letting of land (with or without other land) as a smallholding under Part III of the Agriculture Act 1970;

(e) the planting of trees;

(f) the opening or working of a deposit of coal, ironstone, limestone, brick-earth or other mineral, or a stone quarry or a clay, sand or gravel pit, or the construction of any works or buildings to be used in connection therewith;

(g) the making of a watercourse or reservoir;

(h) the making of a road, railway, tramroad, siding, canal of basin, or a wharf, pier, or other work connected therewith.

Right to treat notice to quit part of holding as notice to quit entire holding

32

(1) Where there is given to the tenant of an agricultural holding a notice to quit part of the holding, being either—

(a) such a notice as is rendered valid by section 31 above, or

(b) a notice given by a person entitled to a severed part of the reversionary estate in the holding,

subsection (2) below shall apply.

(2) If—

(a) within twenty-eight days after the giving of the notice, or

(b) where the operation of the notice depends on any proceedings under this Part of this Act, within twenty-eight days after the time at which it is determined that the notice has effect,

the tenant gives to the landlord or (as the case may be) to the persons severally entitled to the severed parts of the reversion a counter-notice in writing to the effect that he accepts the notice to quit as a notice to quit the entire holding given by the landlord or (as the case may be) those persons, to take effect at the same time as the original notice, the notice to quit shall have effect accordingly.

Reduction of rent where notice is given to quit part of holding

33

(1) Where the landlord of an agricultural holding resumes possession of part of the holding either—

(a) by virtue of section 31(1) above, or

(b) in pursuance of a provision in that behalf contained in the contract of tenancy,

the tenant shall be entitled to a reduction of rent proportionate to that part of the holding and in respect of any depreciation of the value to him of the residue of the holding caused by the severance or by the use to be made of the part severed.

(2) The amount of any reduction of rent under this section shall, in default of agreement made after the landlord resumes possession of the part of the holding concerned, be determined by arbitration under this Act.

(2A) Notwithstanding subsection (2) above, the tenant and landlord may instead refer for third party determination under this Act the question of the amount of any reduction of rent to which the tenant is entitled under this section.

(3) In a case falling within subsection (1)(b) above that falls to be determined by arbitration or third party determination under this Act the arbitrator or (as the case may be) the third party, in assessing the amount of the reduction, shall take into consideration any benefit or relief allowed to the tenant under the contract of tenancy in respect of the land possession of which is resumed by the landlord.

Part IV — Succession on Death or Retirement of Tenant

Tenancies to which Part IV applies

34

(1) The provisions of this Part of this Act shall have effect with respect to—

(a) any tenancy of an agricultural holding granted before 12th July 1984, and

(b) a tenancy granted on or after that date if (but only if)—

(i) the tenancy was obtained by virtue of a direction of the Tribunal under section 39 or 53 below,

(ii) the tenancy was granted (following a direction under section 39 below) in circumstances within section 45(6) below,

(iii) the tenancy was granted by a written contract of tenancy indicating (in whatever terms) that this Part of this Act is to apply in relation to the tenancy, or

(iv) the tenancy was granted otherwise than as mentioned in the preceding provisions of this subsection to a person who, immediately before that date, was a tenant of the holding or of any agricultural holding which comprised the whole or a substantial part of the land comprised in the holding.

(2) In this section “tenant” does not include an executor, administrator, trustee in bankruptcy or other person deriving title from a tenant by operation of law.

(3) Where this Act applies in relation to a tenancy by virtue of section 4(1)(g) of the Agricultural Tenancies Act 1995 , the reference in subsection (1)(b)(iv) above to a substantial part of the land comprised in the holding means a substantial part determined by reference to either area or value.

Succession on death of tenant

Application of sections 36 to 48

35

(1) Sections 36 to 48 below (except sections 40(5), 42 and 45(8) which are of general application) shall apply where—

(a) an agricultural holding is held under a tenancy which falls within paragraph (a) or (b) of section 34(1) above, and

(b) the sole (or sole surviving) tenant (within the meaning of that section) dies and is survived by a close relative of his.

(2) In sections 36 to 48 below ...—

“close relative” of a deceased tenant means—the wife , husband or civil partner of the deceased;a brother or sister of the deceased;a child of the deceased;any person (not within (b) or (c) above) who, in the case of any marriage or civil partnership to which the deceased was at any time a party, was treated by the deceased as a child of the family in relation to that marriage or civil partnership;

“the date of death” means the date of the death of the deceased;

“the deceased” means the deceased tenant of the holding;

“the holding” (except where the context otherwise requires) means the agricultural holding mentioned in subsection (1) above;

“related holding” means, in relation to the holding, any agricultural holding comprising the whole or a substantial part of the land comprised in the holding;

“the tenancy” means the tenancy of the holding.

(3) Where this Act applies in relation to a tenancy by virtue of section 4(1)(g) of the Agricultural Tenancies Act 1995, the reference in subsection (2) above (in the definition of related holding) to a substantial part of the land comprised in the holding means a substantial part determined by reference to either area or value.

Right of any eligible person to apply for new tenancy on death of tenant

36

(1) Any eligible person may apply under section 39 below to the Tribunal for a direction entitling him to a tenancy of the holding unless excluded by subsection (2) or section 37 or 38 below.

(2) Subsection (1) above (and section 41 below) shall not apply if on the date of death the holding was held by the deceased under—

(a) a tenancy for a fixed term of years of which more than twenty-seven months remained unexpired, or

(b) a tenancy for a fixed term of more than one but less than two years.

(3) For the purposes of this section and sections 37 to 48 below, “eligible person” means (... without prejudice to section 41 below) any surviving close relative of the deceased in whose case the following condition is satisfied—

(a) in the seven years ending with the date of death his only or principal source of livelihood throughout a continuous period of not less than five years, or two or more discontinuous periods together amounting to not less than five years, derived from his agricultural work on the holding or on an agricultural unit of which the holding forms part, ...

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) In the case of the deceased’s wife the reference in subsection (3)(a) above to the relative’s agricultural work shall be read as a reference to agricultural work carried out by either the wife or the deceased (or both of them).

(4A) In the case of the deceased’s civil partner the reference in subsection (3)(a) above to the relative’s agricultural work shall be read as a reference to agricultural work carried out by either the civil partner or the deceased (or both of them).

(5) For the purposes of the condition in subsection (3)(a), any period during which a close relative of the deceased was, in the period of seven years mentioned in that condition, attending a full-time course at a university, college or other establishment of higher or further education shall be treated as a period throughout which the relative's only or principal source of livelihood derived from the relative's agricultural work on the holding; but not more than three years in all shall be so treated by virtue of this subsection.

(6) The reference in subsection (3)(a) above to agricultural work carried out by a person on the holding or on an agricultural unit of which the holding forms part includes—

(a) agricultural work carried out by him from the holding or an agricultural unit of which the holding forms part, and

(b) other work carried out by him on or from the holding or an agricultural unit of which the holding forms part,

which is of a description approved in writing by the landlord after the commencement of this subsection.

Exclusion of statutory succession where two successions have already occurred

37

(1) Section 36(1) above (and section 41 below) shall not apply if on each of the last two occasions when there died a sole (or sole surviving) tenant of the holding or of a related holding there occurred one or other of the following things, namely—

(a) a tenancy of the holding or of a related holding was obtained by virtue of a direction of the Tribunal under section 39 below, or such a tenancy was granted (following such a direction) in circumstances within section 45(6) below, or

(b) a tenancy of the holding or of a related holding was granted by the landlord to a person who, being a close relative of the tenant who died on that occasion, was or had become the sole or sole remaining applicant for such a direction.

(2) If on any occasion prior to the date of death, as a result of an agreement between the landlord and the tenant for the time being of the holding or of a related holding, the holding or a related holding became let—

(a) under a tenancy granted by the landlord, or

(b) by virtue of an assignment of the current tenancy,

to a person who, if the said tenant had died immediately before the grant or assignment would have been his close relative, that occasion shall for the purposes of subsection (1) above be deemed to be an occasion such as is mentioned in that subsection on which a tenancy of the holding or a related holding was obtained by virtue of a direction of the Tribunal under section 39 below.

(3) If any such tenancy was granted as mentioned in subsection (2) above for a term commencing later than the date of the grant, the holding under that tenancy shall for the purposes of that subsection not be taken to have become let under that tenancy until the commencement of the term.

(4) Subsections (1) and (2) above—

(a) shall apply whether or not any tenancy granted or obtained (otherwise than by virtue of an assignment) as mentioned in those provisions related to the whole of the land held by the tenant on the occasion of whose death, or with whose agreement, the tenancy was so granted or obtained, as the case may be, and

(b) shall apply where a joint tenancy is granted by the landlord to persons one of whom is a person such as is mentioned in either of those subsections as they apply where a tenancy is granted by the landlord to any such person alone.

(5) Subsection (2) above shall apply where a tenancy is assigned to joint tenants one of whom is a person such as is mentioned in that subsection as it applies where a tenancy is assigned to any such person alone.

(6) Where a tenancy of the holding or of a related holding was obtained by virtue of a direction of the Tribunal under section 53(7) below, that occasion shall for the purposes of subsection (1) above be deemed to be an occasion such as is mentioned in that subsection on which a tenancy of the holding or a related holding was obtained by virtue of a direction of the Tribunal under section 39 below.

(7) Subsection (2) above shall, in relation to any time before 12th September 1984, have effect with the substitution for the words from “as a result” to “grant or assignment” of the words “the holding or a related holding became let under a new tenancy granted by the landlord, with the agreement of the outgoing tenant, to a person who, if the outgoing tenant had died immediately before the grant”.

(8) Subsections (4) and (5) above shall not apply in relation to any tenancy if—

(a) it was granted before 12th September 1984,

(b) it was obtained by virtue of any direction given in any proceedings arising out of an application made under Part II of the Agriculture (Miscellaneous Provisions) Act 1976 before 12th September 1984, or

(9) In this section “tenant” has the same meaning as in section 34 above.

Other excluded cases

38

(1) Section 36(1) above (and section 41 below) shall not apply if on the date of death the tenancy is the subject of a valid notice to quit to which subsection (1) of section 26 above applies, being a notice given before that date in the case of which—

(a) the month allowed by that subsection for serving a counter-notice under that subsection expired before that date without such a counter-notice having been served, or

(b) the Tribunal consented before that date to its operation.

(2) Section 36(1) (and section 41) shall not apply if on the date of death the tenancy is the subject of a valid notice to quit given before that date and falling within Case C or F.

(3) Those sections shall not apply if on the date of death the tenancy is the subject of a valid notice to quit given before that date and falling within Case B, D or E, and

(a) the time within which the tenant could have required any question arising in connection with the notice to be determined by arbitration under this Act expired before that date without such a requirement having been made by the tenant, and the month allowed for serving any counter-notice in respect of the notice expired before that date without any such counter-notice having been served, or

(b) questions arising in connection with the notice were referred to arbitration under this Act before that date and were determined before that date in such a way as to uphold the operation of the notice and (where applicable) the month allowed for serving any counter-notice in respect of the notice expired before that date without a counter-notice having been served, or

(4) Those sections shall not apply if the holding consists of land held by a smallholdings authority or the Minister for the purposes of smallholdings within the meaning of Part III of the Agriculture Act 1970 (whether the tenancy was granted before or after the commencement of the said Part III).

(5) Those sections shall not apply if the tenancy was granted by trustees in whom the land is vested on charitable trusts the sole or principle object of which is the settlement or employment in agriculture of persons who have served in any of Her Majesty’s naval, military or air forces.

Applications for tenancy of holding

39

(1) An application under this section by an eligible person to the Tribunal for a direction entitling him to a tenancy of the holding shall be made within the period of three months beginning with the day after the date of death.

(2) Where only one application is made under this section the Tribunal, if satisfied—

(a) that the applicant was an eligible person at the date of death, and

(b) that he has not subsequently ceased to be such a person,

shall determine whether he is in their opinion a suitable person to become the tenant of the holding.

(3) Where two or more applications are made under this section, then, subject to subsection (4) below, subsection (2) above shall apply to each of the applicants as if he were the only applicant.

(4) If the applicants under this section include a person validly designated by the deceased in his will as the person he wished to succeed him as tenant of the holding, the Tribunal shall first make a determination under subsection (2) above as regards that person, and shall do so as regards the other applicant or each of the other applicants only if the Tribunal determine that the person so designated is not in their opinion a suitable person to become the tenant of the holding.

(5) If under the preceding provisions of this section only one applicant is determined by the Tribunal to be in their opinion a suitable person to become the tenant of the holding, the Tribunal shall, subject to subsection (10) and section 44 below, give a direction entitling him to a tenancy of the holding.

(6) If under the preceding provisions of this section each of two or more applicants is determined by the Tribunal to be in their opinion a suitable person to become the tenant of the holding, the Tribunal—

(a) shall, subject to subsection (9) below, determine which of those applicants is in their opinion the more or most suitable person to become the tenant of the holding, and

(b) shall, subject to subsection (10) and section 44 below, give a direction entitling that applicant to a tenancy of the holding.

(7) Before making a determination under subsection (2) above in the case of any applicant the Tribunal shall afford the landlord an opportunity of stating his views on the suitability of that applicant.

(8) For the purposes of this section, a person's suitability to become the tenant of a holding is to be determined (having regard to any views stated by the landlord) in accordance with criteria specified in regulations made by—

(a) the Secretary of State, in relation to England, and

(b) the Welsh Ministers, in relation to Wales.

(8A) The criteria referred to in subsection (8) must relate to the person's likely capacity to farm the holding commercially to high standards of efficient production and care for the environment, and may in particular include—

(a) criteria relating to the person's experience, training or skills in agriculture or business management;

(b) criteria relating to the person's physical health, financial standing or character;

(9) Where subsection (6) above would apply apart from this subsection, the Tribunal may, with the consent of the landlord, give instead a direction specifying any two, any three or any four of the applicants within that subsection, and entitling the specified applicants to a joint tenancy of the holding.

(10) Where the person or persons who would, subject to section 44 below, be entitled to a direction under this section entitling him or them to a tenancy or (as the case may be) to a joint tenancy of the holding agree to accept instead a tenancy or joint tenancy of a part of the holding, any direction given by the Tribunal under subsection (5), (6) or (9) above shall relate to that part of the holding only.

Provisions supplementary to section 39

40

(1) In section 39 above “will” includes codicil, and for the purposes of that section a person shall be taken to be validly designated by the deceased in his will as the person he wishes to succeed him as tenant of the holding if, but only if, a will of the deceased which is the subject of a grant of probate or administration—

(a) contains an effective specific bequest to that person of the deceased’s tenancy of the holding, or

(b) does not contain an effective specific bequest of that tenancy, but does contain a statement specifically mentioning the holding or the deceased’s tenancy of the holding and exclusively designating that person (in whatever words, and whether by name or description) as the person whom the deceased wishes to succeed him as tenant of the holding.

(2) For the purposes of subsection (1) above a statement which is framed so as to designate as mentioned in paragraph (b) of that subsection different persons in different circumstances shall be taken to satisfy that paragraph if, in the events which have happened, the statement exclusively designates a particular person.

(3) A direction under section 39 above given in favour of a person by reason of his being a person validly designated by the deceased as mentioned in subsection (4) of that section shall be valid even if the probate or administration by virtue of which he was such a person at the giving of the direction is subsequently revoked or varied.

(4) For the purposes of this Part of this Act an application under section 39 above which is withdrawn or abandoned shall be treated as if it had never been made.

(5) Provision shall be made by Tribunal Procedure Rules and by order under section 73(3) of the Agriculture Act 1947 (procedure of Agricultural Land Tribunal) for requiring any person making an application to the Tribunal under section 39 or section 41 to give notice of the application to the landlord of the agricultural holding to which the application relates and to take such steps as the rules or the order may require for bringing the application to the notice of other persons interested in the outcome of the application.

Application by not fully eligible person to be treated as eligible

41

(1) This section applies to any surviving close relative of the deceased who for some part of the seven years ending with the date of death engaged (whether full-time or part-time) in agricultural work on the holding, being a person in whose case—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) the condition specified in paragraph (a) of that definition, though not fully satisfied, is satisfied to a material extent.

(2) A person to whom this section applies may within the period of three months beginning with the day after the date of death apply to the Tribunal for a determination that he is to be treated as an eligible person for the purposes of sections 36 to 48 of this Act.

(3) If on an application under this section—

(a) the Tribunal are satisfied that the applicant is a person to whom this section applies, and

(b) it appears to the Tribunal that in all the circumstances it would be fair and reasonable for the applicant to be able to apply under section 39 above for a direction entitling him to a tenancy of the holding,

the Tribunal shall determine that he is to be treated as an eligible person for the purposes of sections 36 to 48 of this Act, but shall otherwise dismiss the application.

(4) In relation to a person in respect of whom the Tribunal have determined as mentioned in subsection (3) above sections 36 to 48 of this Act shall apply as if he were an eligible person.

(5) A person to whom this section applies may make an application under section 39 above as well as an application under this section; and if the Tribunal determine as mentioned in subsection (3) above in respect of a person who has made an application under that section, the application under that section shall (without prejudice to subsection (4) above) be treated as made by an eligible person.

(6) Without prejudice to the generality of paragraph (b) of subsection (1) above, cases where the condition mentioned in that paragraph might be less than fully satisfied include cases where the close relative’s agricultural work on the holding fell short of providing him with his principal source of livelihood because the holding was too small.

(7) The references in subsections (1) and (6) above to agricultural work carried out by a person on the holding include—

(a) agricultural work carried out by him from the holding, and

(b) other work carried out by him on or from the holding,

which is of a description approved in writing by the landlord after the commencement of this subsection.

Procedure where deceased held more than one holding

42

(1) This section has effect where at the expiry of the period of three months beginning with the day after the date of death of a tenant there are pending before the First-tier Tribunal, or the Agricultural Land Tribunal, or both of them, separate applications made under section 39 above by any person or (as the case may be) by each one of a number of persons, in respect of more than one agricultural land holding.

(2) If the applications are pending in both the First-tier Tribunal and the Agricultural Land Tribunal, they (together with any associated application made under section 41 above) shall be heard and determined by—

(a) the First-tier Tribunal, if the largest holding is in England, and

(b) the Agricultural Land Tribunal, if the largest holding is in Wales.

(3) The order in which the applications (together with any associated application made under section 41 above) are heard and determined shall, subject to and in accordance with the provisions of any such order as is referred to in section 40(5) above, be such as may be decided—

(a) where the applications were made by one person, by that person,

(b) where the applications were made by two or more persons, by agreement between those persons or, in default of agreement—

(i) by the First-tier Tribunal (if that tribunal is hearing and determining the applications), or

(ii) by the chairman of the Agricultural Land Tribunal (if that tribunal is hearing and determining the applications).

(4) Any decision under subsection (3)(b)(i) or (ii) shall be made according to the respective size of the holdings concerned so that any application in respect of any holding which is larger than any of those holdings shall be heard and determined before any application in respect of that other holding.

Restriction on operation of notice to quit given by reason of death of tenant

43

(1) A notice to quit the holding given to the tenant of the holding by reason of the death of the deceased and falling within Case G shall not have effect unless—

(a) no application to become the tenant of the holding is made (or has already at the time of the notice to quit been made) under section 39 above within the period mentioned in subsection (1) of that section, or

(b) one or more such applications having been made within that period—

(i) none of the applicants is determined by the Tribunal to be in their opinion a suitable person to become the tenant of the holding, or

(ii) the Tribunal consent under section 44 below to the operation of the notice to quit in relation to the whole or part of the holding.

(2) Where the Tribunal consent under section 44 below to the operation of a notice to quit to which subsection (1) above applies in relation to part only of the holding, the notice shall have effect accordingly as a notice to quit that part and shall not be invalid by reason that it relates only to part of the holding.

44

(1) Before giving a direction under section 39(5) or (6) above in a case where a notice to quit to which section 43(1) above applies has been given the Tribunal shall afford the landlord an opportunity of applying for their consent under this section to the operation of the notice.

(2) Subject to subsection (5) below, section 27 above shall apply in relation to an application for, or the giving of, the Tribunal’s consent under this section as it applies in relation to an application for, or the giving of, their consent under section 26 above.

(3) The Tribunal shall not entertain an application for their consent to the operation of a notice to quit to which section 43(1) above applies unless it is made in pursuance of subsection (1) above.

(4) Subject to subsection (5) below, if the Tribunal give their consent on an application made in pursuance of subsection (1) above, they shall dismiss the application or each of the applications made under section 39 above.

(5) Where in any case—

(a) a notice to quit to which section 43(1) above applies has been given, and

(b) section 39(10) above applies,

the Tribunal shall give their consent to the operation of the notice to quit in relation to the part of the holding which would, in accordance with section 39(10), be excluded from any direction given by the Tribunal with respect to the holding under section 39; and subsections (2) and (4) above shall not apply.

(6) If on an application made in pursuance of subsection (1) above the Tribunal give their consent to the operation of a notice to quit—

(a) within the period of three months ending with the date on which the notice purports to terminate the tenancy (“the original operative date”), or

(b) at any time after that date,

the Tribunal may, on the application of the tenant, direct that the notice shall have effect from a later date (“the new operative date”).

(7) The new operative date, in the case of a notice to quit, must be a date not later than the end of the period of three months beginning with—

(a) the original operative date, or

(b) the date on which the Tribunal give their consent to the operation of the notice,

whichever last occurs.

Effect of direction under section 39

45

(1) A direction by the Tribunal—

(a) under section 39(5) or (6) above entitling an applicant to a tenancy of the holding, or

(b) under section 39(9) above entitling two or more applicants to a joint tenancy of the holding,

shall entitle him or them to a tenancy or joint tenancy of the holding as from the relevant time on the terms provided by sections 47 and 48 below; and accordingly such a tenancy or joint tenancy shall be deemed to be at that time granted by the landlord to, and accepted by, the person or persons so entitled.

(2) Where the deceased’s tenancy was not derived from the interest held by the landlord at the relevant time, the tenancy or joint tenancy deemed by virtue of subsection (1) above to be granted to, and accepted by, the person or persons so entitled shall be deemed to be granted by the person for the time being entitled to the interest from which the deceased’s tenancy was derived, instead of by the landlord, with like effect as if the landlord’s interest and any other supervening interest were not subsisting at the relevant time.

(3) The reference in subsection (2) above to a supervening interest is a reference to any interest in the land comprised in the deceased’s tenancy, being an interest created subsequently to that tenancy and derived (whether immediately or otherwise) from the interest from which that tenancy was derived and still subsisting at the relevant time.

(4) Subsection (2) above shall not be read as affecting the rights and liabilities of the landlord under this Part of this Act.

(5) Any tenancy of the holding inconsistent with the tenancy to which a direction such as is mentioned in subsection (1) above entitles the person or persons concerned shall, if it would not cease at the relevant time apart from this subsection, cease at that time as if terminated at that time by a valid notice to quit given by the tenant.

(6) If the person or persons whom such a direction entitles to a tenancy or joint tenancy of the holding as from the relevant time becomes or become the tenant or joint tenants of the holding before that time under a tenancy granted by the landlord to, and accepted by, the person or persons concerned, the direction shall cease to have effect and section 48 below shall not apply.

(7) The rights conferred on any person by such a direction (as distinct from his rights under his tenancy of the holding after he has become the tenant or joint tenant of the holding) shall not be capable of assignment.

(8) The Lord Chancellor may by regulations provide for all or any of the provisions of sections 36 to 48 of this Act (except this subsection) to apply, with such exceptions, additions or other modifications as may be specified in the regulations, in cases where the person or any of the persons whom such a direction entitles to a tenancy or joint tenancy of the holding dies before the relevant time.

Interpretation of section 45

46

(1) Subject to subsection (2) below, in sections 45 above and 48 below “the relevant time”—

(a) except where the following paragraph applies, means the end of the twelve months immediately following the end of the year of tenancy in which the deceased died,

(b) if a notice to quit the holding was given to the tenant by reason of the death of the deceased, being a notice falling within Case G which, apart from section 43 above, would have terminated the tenancy at a time after the end of those twelve months, means that time.

(2) Where the Tribunal give a direction under section 39(5), (6) or (9) above in relation to the holding at any time after the beginning of the period of three months ending with the relevant time apart from this subsection (“the original relevant time”), then—

(a) if the direction is given within that period, the Tribunal may, on the application of the tenant, specify in the direction, as the relevant time for the purposes of this section and section 48 below, such a time falling within the period of three months immediately following the original relevant time as they think fit,

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Agricultural Holdings Act 1986

Part I — Introductory

Principal definitions

1

Restriction on letting agricultural land for less than from year to year

2

Tenancies for two years or more to continue from year to year unless terminated by notice

3

Death of tenant before term date

4

Restriction on agreements excluding effect of section 3

5

Part II — Provisions Affecting Tenancy During its Continuance

Written tenancy agreements

Right to written tenancy agreement

6

Fixed equipment

The model clauses

7

Arbitration where terms of written agreement are inconsistent with the model clauses

8

Transitional arrangements where liability in respect of fixed equipment transferred

9

Tenant's right to remove fixtures and buildings

10

Provision of fixed equipment necessary to comply with statutory requirements

11

Variation of rent

Arbitration of rent

12

Increases of rent for landlord's improvements

13

Cultivation of land and disposal of produce

Variation of terms of tenancies as to permanent pasture

14

Disposal of produce and cropping

15

Distress

No distress for rent due more than a year previously

16

Compensation to be set off against rent for purposes of distress

17

Restrictions on distraining on property of third party

18

Settlement of disputes as to distress

19

Miscellaneous

Compensation for damage by game

20

Extension of tenancies in lieu of claims to emblements

21

Rights to require certain records to be made

22

Landlord's power of entry

23

Restriction of landlord's remedies for breach of contract of tenancy

24

Part III — Notices to Quit

Notices to quit whole or part of agricultural holding

Length of notice to quit

25

Restriction on operation of notices to quit

26

Tribunal's consent to operation of notice to quit

27

Additional restrictions on operation of notice to quit given* under Case D

28

Power to make supplementary provision

29

Notice to quit where tenant is a service man

30

Notices to quit part of agricultural holding

Notice to quit part of holding valid in certain cases

31

Right to treat notice to quit part of holding as notice to quit entire holding

32

Reduction of rent where notice is given to quit part of holding

33

Part IV — Succession on Death or Retirement of Tenant

Tenancies to which Part IV applies