We believe, that few, if any, tenant farmers will be directly affected by the decision to withdraw funding for the adjudication scheme to support the Code of Good Practice on tenant farmer diversification.
However, this decision was not taken lightly. It was always expected that the Code of Good Practice would be the primary tool for the majority of landlords and tenants to assist them in reaching agreement on proposals for diversification. Parties would only have referred to the adjudication scheme where agreement was not possible. The scheme would have provided an independent view of the merits or otherwise of the diversification proposal, but would not have imposed any obligation on either landlords or tenants to comply with the decision. Whilst funding for the scheme has now been withdrawn, the Code continues to be available to provide useful and informative advice to farm tenants and their landlords on how to deal with proposals for diversification.
The budget for the adjudication scheme to support the Code of Good Practice on tenant farmer diversification was £240,000 over a period of four years. As there were no applications for the adjudication scheme in the first year, and given the pressures on DEFRA’s budget, the decision was taken to end the scheme. This decision was not taken lightly. The withdrawal of funding for the scheme will contribute generally to savings across the Department.