Arbitration Act 2025: what it means for farmers, landowners and rural disputes
The Arbitration Act 2025 came into force on 1 August 2025. While my international dispute resolution colleagues have been focusing on its impact on international arbitration, the Act also makes changes that matter closer to home - particularly for those involved in agricultural and rural disputes.
Why Arbitration Matters in Farming and Agricultural land law
In England, arbitration is a major legal route for resolving many disputes between agricultural landlords and tenants.
- Under the Agricultural Holdings Act 1986 (AHA), arbitration is the process prescribed by statute for resolution of many disputes between landlord and tenant.
- Arbitration can also be chosen when the AHA gives a choice between arbitration and third-party determination, for example in relation to rent review.
- It’s also, with a few exceptions, the default dispute resolution mechanism under the Agricultural Tenancies Act 1995 for Farm Business Tenancy disputes.
Agricultural arbitrations are run in accordance with the Arbitration Act 1996 - the Act now amended by the Arbitration Act 2025.
One of the main uses of arbitration in the context of agricultural holdings is the challenge of “special case” notices to quit under the AHA. Of these, Case B is particularly significant: it allows a landlord to end a tenancy if the land is needed for non-agricultural use for which planning permission has been granted. This is the route often taken by landlords looking to regain possession of land for major development or renewable energy projects. The stakes are high: development can hugely increase land value, but the statutory compensation for tenants is quite limited. Case B arbitrations can therefore be fiercely contested.
What’s Changed Under the Arbitration Act 2025?
From a rural perspective, four key changes stand out:
| Change | What’s New | Why It Matters for Rural Disputes |
| Jurisdiction Challenges | Harder for courts to overturn an award once jurisdiction has been ruled on. | Jurisdiction disputes can arise where it’s unclear whether an arrangement is covered by the AHA - especially when agreements are unwritten, informal or unclear. More limited likelihood of court overturning an award gives parties increased certainty. |
| Arbitrator Impartiality | Arbitrators have a continuing disclosure duty so must keep disclosing anything that could raise doubts about their impartiality. | In a small rural sector where people often know each other, conflict checks will need to be extra thorough. |
| Arbitrator Protections | Costs orders can’t be made against arbitrators if removed (unless bad faith). Resignation immunity clarified. | Encourages arbitrators to take on complex cases without fear of personal cost. |
| Summary Awards | Arbitrators can dismiss weak claims/defences without a full hearing. | Could deter tactical Case B referrals aimed primarily at causing delay to development or renewable energy projects to improve position in surrender negotiations. |
What’s the upshot?
For agricultural disputes the Arbitration Act 2025 isn’t revolutionary, but it does introduce some tools that could speed up disputes and make challenges or appeals harder. The express power to make summary awards is of particular interest as, depending on how this is used and approached by rural arbitrators in practice, the power has the potential to impact the parties’ tactics in high-value Case B/development cases.
If you need advice on rural arbitration, terminating agricultural tenancies, or resolving agricultural disputes please contact Maddie Dunn
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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:
- Renters’ Rights Bill: what rural landowners need to know
- Nature-friendly practice or unnatural risk: beavers, natural nuisance and measured duty, the rule in Rylands v Fletcher
- Food Security is National Security: can regenerative agriculture help fortify the UK?
- Through the Looking-Glass: Is the Government's Vision for Farming Coming into Focus?
- Insight from the Great Yorkshire Show: what does the future hold for farmers and landowners in York and North Yorkshire?
- Adverse possession and estate administration: insights from Nazir v Begum
