There is general agreement in principle that finding opportunities for new entrants and developing business is going to be vital in maintaining a vibrant farming and crofting sector and by extension a thriving rural economy for the future.

We hear almost daily from people looking for opportunities, and while we have had some success in finding matches, the limiting factor that we face is the number of opportunities coming forward. Our current ratio of seekers to providers sits around 6:1 – this has improved over the years as the SLMS has developed and grown. Our evidence shows that some of the barriers are a matter of perception, and we continue to provide support and advice on options to help bring clarity to discussions on the future of any business. It costs nothing to talk.

Share farming arrangements, as seen in New Zealand, have often been viewed as the best way for new entrants to get that vital start on the ladder. In this country under the current support system, share farming models are problematic. Share farming involves two separate businesses operating on the same land. Under our current land-based support system, with payment derived from historic activity and entitlements held by the farmer, introducing a separate business into the mix on the same land becomes very complex. Hence the contract farming approach is so much easier to administer.

We see very few tenancy options coming forward. There are a lot of discussions and some disappointing narrative between differing views around the Agricultural Holding elements within the Land Reform Bill currently making its way through the system. My take on this is that our current system ensures protection of rights for both parties – it is by no means perfect, but it is what it is, having developed over a long period and fitted to the circumstances applying at a particular period in time.

Key to ongoing success in tenancies is good communication between the parties – something Bob McIntosh, in his role as Tenant Farming Commissioner did so much to improve. It is really encouraging to see the steps Rob Black is now taking in that role to get to the fundamental question of “what does a thriving tenanted sector really mean?”.  The answer to that is going to be key in moving the narrative forward and my fear for the new legislation is that it does nothing to encourage forward thinking on tenancies. Making legislation aimed at trying to retrofit rights is always going to be contentious.

I was intrigued to read articles recently from both Dairy NZ and Beef and Lamb NZ encouraging and advising on tenancies. The clear difference from the system here is that it is very much a ‘freedom to contract’ model. Obviously, there are certain things that are advised (note they are not legislated) to protect both parties, but I liked the quote that “A great lease requires good planning to ensure the expectations of both parties are clear, achievable and meet their needs”.

I will be going to New Zealand to visit family in January, and I hope to look into this further to see what impact it is having on the provision of tenancies.

Ian Davidson