Defra is looking to overhaul England’s farm tenancy system as concerns mount that short-term agreements are holding back investment in British food production.

Environment Secretary Dame Angela Eagle has set out plans to work with farmers and landowners on longer, more secure tenancies, with the aim of helping agricultural businesses invest, expand and remain profitable.

Tenant farmers manage a third of England’s agricultural land and play a significant role in supporting the country’s £160bn agri-food industry.

However, many face restrictive tenancy agreements, limited access to finance and difficulties securing government funding, making it harder to invest in equipment, improve soil health or expand production.

Speaking at the Tenant Farmers Association’s National Executive Committee on Wednesday, Eagle acknowledged the challenges and committed to developing a long-term plan for the sector.

Defra will now work with farming organisations, including the TFA, National Farmers’ Union and Country Land and Business Association, to identify changes needed to improve conditions for tenant farmers.

A series of workshops will take place over the coming months, focusing on longer tenancy agreements, fairer access to agricultural funding and improving relationships between farmers and landowners.

TFA chief executive George Dunn welcomed the government’s commitment but warned that longstanding problems had held back agricultural businesses.

“For too long, the sector has been held back by short-term agreements, restrictive tenancy terms and difficult relationships,” he said.

He stressed that fairer, more flexible agreements would be critical to helping tenant farmers contribute to Britain’s food and environmental security.

The government is also looking to improve access to environmental funding and private nature markets, ensuring farmers renting land are not disadvantaged when applying for schemes designed to support sustainable agriculture.

Meanwhile, Defra is reforming its Farm Tenancy Forum to give working farmers a stronger say in agricultural policy.

A new Tenant Farmer Group will meet ahead of the forum, with two representatives feeding farmers’ concerns directly into discussions.

The plans come ahead of an independent Law Commission review of agricultural tenancy legislation, due to begin in 2027.

That review will consider whether existing laws offer sufficient security for farmers to invest in their businesses, while ensuring landowners remain willing to make land available for agricultural use.

For Britain’s food supply chain, the focus is on removing barriers that prevent farmers from investing in production at a time when the industry is facing mounting financial and environmental pressures.

However, any changes to tenancy arrangements remain some way off, with Defra still gathering evidence before determining what reforms may be needed.

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