2 Tenancies of smallholdings
10.14 A smallholding can only be let to a person who is himself going to farm the holding. By virtue of s 44(2) the proposed tenant must also be a person who is either:
(i)regarded by the authority as being qualified by reason of his agricultural experience to farm the holding on his own account; or
(ii)is a person in respect of whom the authority is satisfied that within a reasonably short time he will become eligible to be so regarded.
10.15 Land can be let to two or more persons, as one or more smallholdings, if they are proposing to farm the land together on a cooperative basis.21 Lettings must, in general, be made in accordance with the authority’s proposals submitted to, and approved by the Minister, and for the time being in force.
10.16 Smallholdings tenancies possess a number of features, distinct from other agricultural tenancies, of which the following might be noted.
(a)General powers of management
10.17 Section 47 of the 1970 Act gives the smallholding authorities such general powers as are required for the management of land held by them for the purposes of smallholdings. They have specific power to further the formation of corporate or unincorporated bodies, with the object of enhancing the efficiency of smallholdings through the use of co-operative methods, and particularly through co-operative purchasing arrangements and co-operative sale and marketing of smallholding produce.22 Authorities also have power to purchase or hire machinery and equipment, stock, fertiliser, seeds and other requisites, and to sell or let them to smallholders so as to assist in the conduct of farming of smallholdings held by the authority.23
(b)Rent
10.18 A smallholdings authority, when determining the rent at which a holding is initially to be let, must have regard to the rent which it might be reasonably expected would obtain were the land already let as an agricultural holding under the 1986 Act.24 The authority must assume the terms of that letting to be the same as those on which they propose to let, and that the level of rent payable for the holding has been determined by arbitration under the 1986 Act.25 The authority must, therefore, have regard to s 12 of and Sch 2 to the 1986 Act and determine the rent payable on review for a comparable agricultural holding (and not a first letting rent).
Section 45(2) further directs them to assume that there would be no improvements, dilapidation, deterioration or damage of which special account would otherwise be taken in fixing the rent. Three-yearly reviews will subsequently be available under s 12 of and Sch 2 to the Agricultural Holdings Act 1986. If the rent is to be varied by agreement, however, the authority must still have regard to the level of rent obtainable on review under the 1986 Act.26(c)Fixed equipment
10.19 Section 46 of the 1970 Act gives the authority power to equip smallholdings properly by providing, improving and repairing fixed equipment, and carrying out other improvements on or for the benefit of its smallholding land. This general power specifically includes power to enter into an agreement with a smallholding tenant for the provision, maintenance, improvement or repair by him of fixed equipment on the holding, or the carrying out of other improvements by him of benefit to the holding.27 The parties are free to agree the terms on which such improvements, or provision, etc of fixed equipment, are to be carried out.
(d)Freedom of cropping
10.20 The tenant’s statutory right of freedom of cropping and disposal of produce, conferred by s 15 of the 1986 Act, is expressly removed if the tenancy is one of a smallholding let as such by a smallholdings authority.28 This right is also removed if the land is let pursuant to a scheme, approved by the Minister, for the purpose of providing holdings on a co-operative basis, with centralised services for the use of tenants or agreed provision for the disposal of the produce of the holdings concerned.29
(e)Variation of other statutory rights
10.21 If a smallholding fulfils the requirements of s 1 of the 1986 Act it will be an agricultural holding with the statutory rights conferred by the 1986 Act.
10.22 Note, however, that statutory succession under Part IV of the 1986 Act is not available to a smallholding tenant.30 Special provision is made in Sch 3, Case A for notice to quit to be served on a tenant of a statutory smallholding on attaining the age of 65. Cf the voluntary retirement provisions applicable to the tenant of an agricultural holding simpliciter.31 Special rules also apply where the landlord serves notice to quit under Sch 3, Case E to the 1986 Act, alleging an irremediable breach of tenancy by the tenant. These enable the necessary material prejudice to the landlord’s interest to be established not simply by looking at the effect of the breach in question, but by looking also at its effect on the arrangements made by the landlord (or Minister) for the letting and conduct of smallholdings.32