These acronyms refer to the two main types of agricultural tenancies in England and Wales. They are very different, and understanding which tenancy applies to you and your land is critical.
Let’s break it down simply.
The “old school” tenancy: The AHA
First up is the Agricultural Holdings Act (AHA) 1986. Think of this as the classic, long-term agreement.
- These tenancies were granted before 1st September 1995.
- The big deal: Their standout feature is security of tenure. This is huge. It often means the tenant farmer has the right to farm the land for their entire lifetime. If the tenancy has been granted to a farming company, it can run until that company is dissolved.
- Family succession: In many cases, these tenancies could even be passed down to a close family member for up to two successions. This created multi-generational farming families on the same piece of land.
You won’t find any new AHA tenancies being created today. They are a legacy from a different era of farming policy. This is not only because of the incredible security given to tenants, but also because they were phased out by the Agricultural Tenancies Act 1995.
Which brings us to ….
The “modern” tenancy: The FBT
Next, we have the Farm Business Tenancy (FBT), which was introduced by the Agricultural Tenancies Act 1995.
- These are any tenancies granted on or after 1st September 1995.
- The big deal: The keyword for FBTs is flexibility. Unlike the lifetime security of an AHA, an FBT is set for a fixed period of time. If it is set to run for more than two years, the tenancy can roll on from year to year until brought to an end.
- No automatic renewal: There is no automatic right to stay on after the term ends or to pass the tenancy on to family.
- Freedom to diversify: FBTs generally give tenants more freedom to use the land for non-farming activities (like setting up a farm shop or renting out buildings), reflecting the needs of a modern farm business.
The type of tenancy in place is crucial for both landlords and tenants as it dictates everything from rent reviews to who can farm the land in the future. The tenancy can also be unwritten, so you might want to take stock of your arrangements and get the terms onto paper – for future reference.
If you need help with an existing AHA tenancy, or an existing or new FBT, then our agricultural property experts can help. Please contact James Southward – jamessouthward@greene-greene.com or by phone on 01284 717522.
This is only intended to be a summary and not specific legal advice. For more information on the services offered by Greene & Greene Solicitors please visit www.greene-greene.com.
