2 The Northfield Report
1.11 Growing concern about the large-scale purchase of agricultural land by the financial institutions prompted the appointment in 1977 of a Committee of Inquiry, under Lord Northfield, to examine trends in the Acquisition and Occupancy of Agricultural Land.
The Northfield Report,5 published in 1979, is of major importance for two reasons – it made a detailed survey of the structure of agricultural landowning and tenure, and its recommendations for reform of the tenure legislation subsequently formed the basis of the Agricultural Holdings Act 1984.1.12 The Northfield Committee found that the area of agricultural land subject to tenancies had fallen from approximately 88% in 1908, to about 43% (according to official statistics) in 1978. Because of the development of some forms of tenancy not at arm’s length they estimated that the proportion of land let under commercial agricultural tenancies was probably in the region of 35–40%.6 The introduction of security of tenure in the 1948 Act undoubtedly hastened this trend. Looking into the future, the Northfield Committee estimated that the likely size of the tenanted sector by the year 2020 would be about 20–25%, although if all tenanted land falling in was farmed in hand, and not re-let, the tenanted sector could shrink to a minimum size of between 7% and 19% by that date.7 With these projections in mind they suggested a number of reforms to improve the operation of the Agricultural Holdings legislation. These aimed to hold the tenanted sector at around 20–25% by the year 2020.
(a)Succession rights
1.13 The introduction of succession rights in the Agriculture (Miscellaneous Provisions) Act 1976 had proved a further disincentive to landlords to let land. While not advocating the removal of succession rights altogether, the Northfield Committee recommended that the succession scheme be reformed to remove some of its more glaring anomalies.
They recommended that a limit should also be placed on the amount of land to which an applicant could succeed, so that succession would only be possible to land aggregating one commercial unit from one landlord.8 Stricter rules to assess the eligibility and suitability of successors should also be introduced to ensure that successors were experienced in husbandry and business management.9(b)Lifetime succession10
1.14 In order to encourage efficient farming, it was recommended that a tenant should have the right, when he reached the age of 65, to nominate a successor to succeed to the tenancy. Retirement would be voluntary, compulsory retirement for tenants having been rejected as impractical.
(c)Lettings without security of tenure
1.15 Some members of the Committee of Inquiry were in favour of introducing fixed term tenancies without security of tenure, but only subject to the safeguard of prior tribunal or ministry consent to the letting.11 They were unanimous, however, in advising that a code of guidelines for agricultural landlords should be drawn up and published.12 This could for instance, indicate desirable features for inclusion in tenancies and partnership arrangements, and replace the existing rules of Good Husbandry and Estate Management currently outlined in sections 10 and 11 of the Agriculture Act 1947.