The Farmers’ Union of Wales has welcomed the publication of the new Agricultural Landlord and Tenant Code of Practice for Wales, highlighting it as a step towards improving relationships and long-term sustainability within the tenanted farming sector.

The publication of the Code of Practice follows a collaborative process led by the Welsh Government and key stakeholders, including the Farmers’ Union of Wales.

Tenant farmers play a central role in Welsh agriculture, with around one third of the country’s farmland operated through formal and informal tenancy agreements. The sector provides vital opportunities for new entrants who may not have the capital or family connections to purchase land, while also enabling established farm businesses to expand flexibly. At the same time, tenancy arrangements allow landowners to retain income from their land while ensuring it remains actively farmed - supporting rural economies, communities, and the Welsh language.

The report recognises that despite its importance, the tenanted sector can face challenges around communication, transparency, and fairness between landlords and tenants. In response, the Code of Practice sets out a voluntary framework aimed at fostering stronger, more constructive working relationships across the sector.

At its core, the Code is built on three key principles: clarity, communication and mutual respect. It emphasises the need for open dialogue, clearly defined expectations, and a collaborative approach to resolving issues, while recognising that landlords and tenants may have different but legitimate interests.

The report makes a series of recommendations covering all stages of a tenancy. These include ensuring transparency and full disclosure when offering tenancies, encouraging early and constructive discussions on rent reviews and renewals, and promoting regular engagement between landlords and tenants throughout the life of an agreement. It also highlights the importance of agreeing and documenting responsibilities for repairs, improvements, and investment, as well as supporting tenant access to diversification and environmental schemes where appropriate.

In addition, the Code encourages both parties to address disputes in a timely and proportionate manner, making use of mediation and alternative dispute resolution where possible to reduce costs and maintain relationships. Professional advisers are also expected to play a key role in promoting and upholding the principles of the Code.

While the Code does not introduce new legal obligations, it aims to raise standards of behaviour across the industry and move beyond minimum statutory requirements. By promoting fairness, transparency and cooperation, it seeks to secure a more resilient and forward-looking future for Wales’ vital tenanted farming sector.

FUW President, Ian Rickman said: “Tenant farmers play a key role in the fabric of Wales’ family farm structure, our rural communities and our wider economy. However, over the years many tenants have faced challenges in securing fair agreements, long-term stability and the confidence to invest in their businesses.

"The FUW has welcomed the opportunity to contribute to the development of this Code of Practice, and the publication of this framework represents an important step towards fostering fairer, more transparent and constructive relationships between landlords and tenants. It is vital that this helps to underpin confidence within the tenanted sector and ensures that tenant farmers can continue to thrive as an integral part of Welsh agriculture.”