LANDOWNERS are taking part in a nationwide probe aimed at helping tenant farmers create new enterprises and jobs to replace livelihoods destroyed by chronic agricultural recession.

The Country Land and Business Association is backing the reinstatement of the Tenancy Reform Group, an industry-wide initiative which will tackle the need for tenancy reform where it is concluded that certain aspects of current legislation might be presenting obstacles to the diversification of farm businesses occupying let land and buildings.

The revival of TRIG follows talks between the CLA, the NFU, the Tenant Farmers' Association and the Government.

West Midlands CLA rural surveyor Caroline Beddell said: "We know that tenants have suffered as much or more than other farmers as a result of the serious decline in agricultural incomes, so we are delighted that Ministers have approved our proposal to address concerns expressed by the TFA and the NFU about tenancy issues on an industry-wide basis."

She explained: "While current tenancy legislation is not normally a barrier to rural enterprise, the CLA recognises that there are some problems. These are usually resolved by taking a partnership approach, as both tenant and landlord benefit from good quality diversification. We have raised concerns that current tax law can create disincentives to both diversification and longer-term tenancies. At the same time, many tenants have expressed doubts about entering into long tenancies."

Mrs Beddell said: "The key concern of tenancy legislation should be to ensure that there are a range of options for landlords and tenants to agree, including farm business tenancies, contract farming and share farming. The Government should not seek to be prescriptive on the outcomes."