THE Tenant Farmers' Association has welcomed the publication of advice to tenants and landlords on issues affecting them through CAP reform.

Produced by the Tenancy Reform Industry Group and published by Defra, the advice reminds both landlords and tenants about the need to ensure that agreements are in place which take into consideration the new Single Farm Payment and which are fair to all parties.

"The TFA has been extremely concerned about how some landlords have been seeking to gain an unfair advantage in relation to Single Farm Payment when renewing or granting new Farm Business Tenancies," said Reg Haydon, TFA national chairman.

"We have seen a large number of agreements which require tenants to relinquish any entitlement to the landlord, or his nominee, for little or no compensation. The new guidance gives a clear signal that this is not acceptable."

The guidance seeks to ensure fairness between the parties to a tenancy agreement and states: "It would be unfair if the individual to whom entitlement had been allocated were required, by a clause in the agreement, to give it up for little or no consideration in comparison to its value.

"At the end of the tenancy, the tenant should be able either to retain control of the entitlement allocated to him for use against other land or pass it to his landlord, or a nominee, for fair compensation."

Mr Haydon urged landlords to take the advice on board and said it had the backing of all industry bodies with an interest in the landlord/tenant sector, including the TFA and CLA.

"To require entitlement to be given up for little or no compensation is tantamount to theft and bullying," said Mr Haydon.

Lord Whitty, Farming Minister, launched the advice and said he would keep matters under review. If necessary he would consider further measures.

"We welcome the Minister's statement as we have been suggesting that a statutory compensation code is introduced to provide fair compensation for tenants required to leave entitlement behind when tenancies end," said Mr Haydon.

The TFA will meet Lord Whitty shortly for furthe discussions.