An OSWESTRY firm specialising in rural financial advice says it has ssen a rise in tenant farmers being given the chance to buy their land.

Davis Meade Property Consultants, based in Beatrice Street, also said that tenant farmers are being offered compensation for their land to be sold.

Philip Meade, from the business, added there are a number of things to consider if you are a tenant farmer being put in this position.

“First and foremost in most people’s minds will be how much they should pay to buy the farm or ask for the surrender," he said.

“Contrary to what some may believe, there is no statutory right for tenants to buy their farm. There are ‘rule of thumb’ formulas that give an indication of what the ‘usual’ sort of discount you can expect might be (20-40 per cent) or the sort of surrender payment you might ask for (20-30 per cent) of vacant possession value, but these are so general that they are often of little assistance.

“Ultimately the deal a tenant will arrive at with his or her landlord will depend on a number of factors such as the age of the tenant, the terms of the tenancy – lifetime or farm business tenancy – and why the landlord is seeking to do the deal.

“Other deals can involve part of the farm in lieu of a surrender payment such as the farmhouse or some land.”

He recommends that tenants given the chance to buy the farm should consider how any tenant’s improvements are accounted for as they shouldn’t have to pay for them twice as well as how the entitlements are treated, as they usually belong to the tenant.