AHA succession – the rules have changed, are you affected?

Effective from 1 September 2024, small but significant changes to the Agricultural Holdings Act 1986 (“AHA”) came into force, as mandated by the Agriculture Act 2020. The changes relate to succession rules, where an existing tenant of an AHA tenancy is looking to retire or has died.

The AHA provides a framework for agricultural tenancies, including rules on succession. Under the rules, a close relative of an AHA tenant could apply to the First Tier Tribunal for a new tenancy upon the tenant’s death or retirement, provided they meet specific eligibility and suitability criteria.

Prior to 1 September 2024, the rules were as follows:

1. The applicant must be an eligible person, namely they must:
   • be a close relative of the deceased or retiring tenant, such as a spouse, civil partner, sibling, or child;
   • demonstrate that their principal source of livelihood has been derived from the holding for at least five of the seven years preceding the tenant’s death or retirement (known as the livelihood condition);
   • not already be the occupier of another “commercial unit” of agricultural land (known as the occupancy condition).
2. The applicant must also be a suitable person - the Tribunal would assess the applicant’s training, experience, age, health, financial standing, and also the landlord’s views to determine suitability.

Under the eligible person requirements, for applications for succession from 1 September 2024 onwards an applicant is no longer prohibited from applying for a new tenancy whilst already holding another commercial unit of agricultural land.

Furthermore, under the suitable person requirements, a new test has been introduced.  Whilst similar to the previous test, a greater emphasis is now placed on the prospective tenant being able to farm in a commercially viable and sustainable manner. It also allows for the Secretary of State for England, or the Welsh Ministers for Wales as applicable to determine criteria of a person’s suitability.

Finally, there is now no minimum age for retirement for an existing AHA tenant (the previous minimum age was 65).