THE ending of classic agrienvironment schemes and the resulting loss of income must be factored into rent review negotiations.

The Tenant Farmers Association (TFA) said the termination of schemes such as the Countryside Stewardship Scheme (CSS) and Environmentally Sensitive Areas (ESA) must be taken into account.

Chief executive George Dunn said many agreements will end over the next few years and not all will be able to transfer to Higher Level Schemes (HLS).

“Whilst it might still be possible to join the Entry Level Stewardship Scheme (ELS), there is likely to be a reduction in revenue, particularly if the farm continues to operate in accordance with the previous schemes’ conditions,” he said.

Historically, just over 50 per cent of ESA agreement holders and fewer than 40 per cent of those with CSS agreements have managed to switch to HLS.

The Government predicts an 80 per cent increase in HLS activity next year but, Mr Dunn said, more stringent targeting and pressure on resources would see transfers to HLS lower than previously.

He urged tenants and landlords to study Natural England’s targeting statements for HLS.

He also recommended them to have early discussions with Natural England to assess the chances of moving into HLS following the ending of classic schemes.

If a move to HLS was unlikely, then this must be taken into account in any existing rental agreements and in the next rent review.