Tenant farmers play a key role within Welsh agriculture. Around one third of the nation’s farmland is managed through tenancy arrangements, underlining just how vital the sector is to food production, land management and rural life. These arrangements provide crucial opportunities for new entrants, particularly those without the capital or inheritance needed to purchase land, while also enabling established businesses to grow and adapt. At the same time, they allow landowners to retain an income from their land while ensuring it remains actively farmed - supporting rural economies, sustaining communities and food production and helping to preserve the Welsh language.

Despite its importance, the tenanted sector has not been without its challenges. Too often, issues around communication, transparency and fairness have created uncertainty and, in some cases, strained relationships between landlords and tenants.

To this end, the Farmers’ Union of Wales has welcomed the opportunity to collaborate with the Welsh Government and other key stakeholders to help form the new Agricultural Landlord and Tenant Code of Practice for Wales The Code reflects a shared commitment to strengthening relationships and securing the long-term sustainability of our tenanted farming system.

At its heart, the Code promotes three key principles: clarity, communication and mutual respect. These are not abstract ideals, but practical foundations for better working relationships. By encouraging open dialogue, clearly defined expectations and a willingness to engage constructively, the Code recognises that while landlords and tenants may have different interests, these can and should be balanced in a fair and cooperative way.

Importantly, the Code covers all stages of a tenancy - from the initial offering of agreements through to rent reviews, renewals and day-to-day management. It highlights the need for transparency, early discussion and proper documentation, while also encouraging collaboration on investment, improvements and access to diversification or environmental opportunities.

While the Code does not introduce new legal requirements, its value lies in raising standards across the industry. It provides a framework that goes beyond minimum obligations, aiming to build trust and confidence within the sector.

For the FUW, the introduction of this Code is to be welcomed. It represents a positive step towards ensuring tenant farmers - so integral to Welsh agriculture - are supported to thrive, invest and continue playing their essential role in the future of our rural economy and food production.