If one considers the investment required to acquire a Farm an Agricultural Sitting Tenancy with succession rights provides very significant opportunities for the younger generation to continue in the sector, for at least their lifetime, without the need to find the finance to buy.

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While Agricultural Holdings Act 1986 tenancies granted before 12th July 1984 provide succession opportunities on the death or retirement of an existing tenant, unless a close family member can satisfy the succession provisions, they will likely lose the farm.

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It is never too soon to consider succession planning and accordingly it is important to be aware of what criteria needs to be met.

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There is always the risk that preparations are delayed until it is too late whereby an actual succession application to the Agricultural Land Tribunal Wales must be made to try and secure the right to occupy the agricultural property for the next generation.

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On the death or retirement of the existing tenant, any potential successor must satisfy 2 criteria being whether the applicant is eligible and suitable to succeed.

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For Eligibility there are 3 qualifications for the applicant to satisfy:

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1. To be a close relative of the deceased /retiring tenant; being spouse, civil partner, brothers and sisters, children or individuals treated as children in the context of the marriage or civil partnership of the existing tenant. These are the only individuals with a right to apply for succession.

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  2. The livelihood test. That is in at least five of the seven years ending with the death or retirement notice, one needs to be ble to prove that the applicant’s principle source of livelihood was derived from agricultural work on the holding, or on an agricultural unit of which the holding forms part. However up to 3 (of the required 5) years in full –time further education (e.g. in College/University) will be considered appropriate to meet this requirement.

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Suitability will depend upon matters such as training, experience, age, health, financial standing, the landlord’s view of matters and the tribunal’s view on the facts. The onus is on the applicant to prove suitability.

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It is essential that a succession application is made within three months of the death of the previous tenant.

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Whilst an application on retirement can be withdrawn prior to a hearing should flaws be exposed (with potential thereafter to re-apply at a later date), there is however only one opportunity to apply on death.

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Farm Business Tenancies normally result in substantially higher (market) rents being charged and do not always provide the same protection to Tenants as that afforded by the 1986 legislation.

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Therefore, one cannot over emphasise the significant need to prepare in good time to try and secure the right for the future generation to farm the tenanted holding, otherwise a very valuable opportunity may well be lost forever. 

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Eifion Bibby is a Chartered Surveyor with Davis Meade Property Consultants and can be contacted on

01492 510360 or by e-mail-:  eifionbibby@dmpcuk.com