Agricultural Tenancies: Navigating Michaelmas and Anticipating Future Trends

As the leaves begin to turn and the air takes on a crisp autumnal edge, the farming community gears up for one of the most pivotal dates in the agricultural calendar: Michaelmas. Falling on 29 September, this date marks the traditional commencement for many agricultural tenancies, whether governed by the Agricultural Holdings Act (AHAs) or Farm Business Tenancies (FBTs). With Michaelmas just around the corner, this week's Field Notes offers a timely refresher for landowners and agents, while also casting an eye towards the future of agricultural tenancies.

Understanding Michaelmas: A Date Steeped in Tradition

Michaelmas, celebrated on 29 September, signals the end of the harvest and the transition from one agricultural year to the next. However, it's also useful to be aware of "Old Michaelmas," observed on 10 October (or sometimes 11 October).  The date shift (and some of the date ambiguity) is a result of England’s shift from the Julian to the Gregorian calendar in 1752, following the Calendar Act 1751. This Act eliminated 11 “surplus” days in September 1752 to enable the country to sync with the Gregorian calendar and moved the official start of the year from Lady Day (25 March) to 1 January. Despite these longstanding changes, some regions, or pockets within regions, continue to use Old Michaelmas, leading to tenancies that commence on this date.

Why Michaelmas Matters

Michaelmas holds significant importance for tenant farmers and landlords alike for several reasons:

Historical Significance

As one of the four traditional quarter days, Michaelmas represents the end of the harvest and the beginning of a new agricultural cycle.

Logistical Ease

Transitioning tenancies at Michaelmas simplifies matters, as most crops are harvested by this time, reducing the complexities of overlapping tenant activities.

Legislative Impact

For both AHA tenancies and FBTs the governing statutes often require at least 12 months' notice ending on the term date, ensuring a smooth transition at the year's end.

Top Tips for Serving Michaelmas Notices

As Michaelmas approaches, here are five essential tips for preparing and serving notices:

Identify Term Dates Accurately

Understanding when the lease term begins, and when it ends, is crucial – and not always as obvious as it sounds. Look out for wording in the lease that will help you to determine the correct dates.  In particular:

• leases that start “on” or "from and including" will start on the stated commencement date.  This is the first day of the lease term and is counted when calculating the duration of the lease.  That means that for tenancies running year to year or for fixed terms of specified numbers of years the lease will expire on the day before the anniversary of the stated commencement date.
• Leases commencing "from" a date begin the day after the commencement date so those leases will generally expire on the anniversary of the stated commencement date.

Determine the Appropriate Notice

Familiarise yourself with the common Michaelmas notices, such as AHA rent reviews notices and FBT termination notices and ensure compliance with statutory requirements.

Maintain Open Communication

Engage in dialogue well in advance to ensure notices are expected and understood, fostering collaboration and reducing contention.

Provide Ample Notice

Avoid cutting it too close; allow sufficient time for service and account for any variables that may affect delivery.

Choose the Right Service Method

Personal service is often the most reliable, while postal service, though cost-effective, carries more risk.

Looking Ahead: Potential Changes in Agricultural Tenancies

The Law Commission's recent announcement of its 14th programme of law reform includes a review of agricultural tenancies. This is a significant development, as the last major overhaul was the introduction of FBTs in 1995. The Commission aims to address concerns such as the lack of security of tenure and the barriers to investment posed by short-term tenancies.

The review will explore whether the current laws strike the right balance between tenant security, opportunities for new entrants, and landlords' interests. While it's too early to predict the outcome, there is potential for reform that might shift towards a more regulated regime, akin to the AHA, reflecting trends in other rental sectors.

Navigating Change: How We Can Assist

As the agricultural sector faces potential reforms and ongoing pressures, our team at Charles Russell Speechlys is here to support you. Whether you're dealing with Michaelmas notices or anticipating future legal changes, we're committed to helping you navigate these challenges and seize new opportunities. In these dynamic times, staying informed and prepared is key. As we move through the farming year, we’ll aim to embrace the challenges and changes ahead with resilience and optimism. For assistance with agricultural tenancy matters, please reach out to Maddie Dunn.

Field Notes is Charles Russell Speechlys’ weekly agricultural law blog, sharing plain-English insight into the legal and policy issues affecting agriculture, agricultural land and rural business life. From hints and tips on avoiding agricultural disputes, pitfalls to keep an eye out when planning for tenancy or family agri-business succession, to the latest agricultural legislative or policy changes and the most interesting farm-related court decisions, Field Notes makes the complex more understandable, always grounded in the realities of life on (and off) the land.

Field Notes comes out every Wednesday. Previous editions of Field Notes:

• Unkept Promises: The Evolving Landscape for Proprietary Estoppel Post-Guest v Guest
• One Year On: Agricultural Holdings Act 1986 succession after the Agriculture Act 2020 reforms
• Cheltenham: Where Clarkson Meets Covenants
• Arbitration Act 2025: what it means for farmers, landowners and rural disputes
• Renters’ Rights Bill: what rural landowners need to know