Farm Business Tenancies: Guidance for long-term FBTs published

Guidance has recently been published by the Farm Tenancy Forum for landlords and tenants considering entering into long-term Farm Business Tenancies in England (FBTs).

The majority of agricultural tenancies entered into after 1 September 1995 will be farm business tenancies, which are governed by the Agricultural Tenancies Act 1995. Whilst the parties to FBTs have significant freedom to negotiate the terms, the tenant has limited security of tenure (unlike agricultural tenancies under the Agricultural Holdings Act 1986).

In February 2026, Guidance was published for landlords and tenants who are considering entering into a long-term FBT in England, setting out the key considerations for each tenancy agreement. The purpose of the Guidance is to help landlords, tenants and their advisors think through the main considerations prior to agreeing a long-term tenancy, recognising that farming businesses and landowners have different circumstances and priorities. The Guidance aims to support discussions between the parties to ensure the agreements reached are fair, practical and suited to the needs of both parties, to help avoid misunderstandings later and support a strong working relationship over the life of the tenancy. 

The guidance covers several areas, including the following:

The permitted use

Which should be clear and unambiguous, with consideration given to circumstances where the holding is not solely being enjoyed for agricultural use;

Fixed equipment

The agreement should specify a detailed schedule of fixed equipment on commencement of the term which includes both parties’ fixed equipment and details of any redundant buildings;

Improvements

The agreement should specify a detailed schedule of the tenant’s improvements which are consented to by the landlord, and the basis of compensation for those improvements at the end of the term;

Repairs and maintenance

As the 1995 Act does not impose any statutory liability upon the parties on repair and maintenance matters, the tenancy agreement will need to clearly specify such responsibilities;

Rent reviews

The parties should consider and agree the approach to the rent being reviewed during the term of the tenancy (i.e. either the statutory provisions of the 1995 Act, or via their own agreed contractual mechanism);

Alienation

The tenant will be able to assign or sublet their interest in whole or part of the holding, unless the tenancy agreement states otherwise;

Termination

The parties should consider when and how the tenancy should terminate, including arrangements for end of tenancy claims for compensation. This may include a break clause (exercisable by either or both parties, either at a point in time or the happening of a certain event), or a part resumption clause. The landlord may also seek to include a forfeiture provision as a basis to regain possession in the event the tenant breaches the tenancy;

Dispute resolution

The agreement should provide for how any dispute as to its terms should be determined, whether that be by arbitration or expert determination, or otherwise.

In addition, the Guidance sets out key considerations for the use and management of the holding, known as the ‘management plan’. This is intended to be a flexible document which does not change the terms of the tenancy agreement – instead, it is an evolving document which is regularly reviewed, addressing the management of the holding in a commercial and profitable way. The Guidance suggests the management agreement may wish to include the following:

• A ‘masterplan’ to reflect the vision of the parties for the holding (i.e. what should the holding look like in 5, 10, 15 years’ time?);
• The plan for implementation, including who is responsible;
• Ensuring good husbandry standards are being met;
• Agreeing approaches to maintenance (e.g. grassland and soil management and conservation of existing habitats, including agreeing the approach towards fertilisers and agrochemicals on the holding)

The Guidance can be located on the websites of forum member organisations, including the National Farmers Union (NFU), Tenant Farmers Association and Country Land and Business Association.