THREE-QUARTERS of tenant farmers are seriously interested in Defra’s proposed agricultural exit scheme according to a recent Tenant Farmers Association survey.

The role it could play in facilitating retirements and opening up opportunities for new entrants will become clearer when detailed proposals are published, according to data published in Savills Landscope. The estate’s firm believes many factors will influence how successful the scheme is, including the size of its lump sum payments and qualification requirements.

They feel this demonstrates the appetite for a retirement scheme in the industry.

As part of the Agricultural Transition, Defra plans to offer farmers the chance to take their remaining direct payment income as a lump sum in 2022, provided they exit the industry. Detailed proposals for how the scheme might operate have not yet been published, meaning such significant interest in a lump sum of capital is perhaps unsurprising.

Indeed, more than three-quarters said the as-yet-unannounced value would be an important deciding factor for them. Other important considerations included tax implications (68%), readiness to retire (50%), finding suitable alternative housing (34%), their relationship with their landlord (27%) and finding alternative employment (21%).

Overall, 360 farmers were surveyed. Half of those interested in the scheme rented their land on traditional, Agricultural Holdings Act tenancies with security of tenure.

Most of the interest came from the South West of England, where just over 40% of the respondents agreed that the proposed lump sum exit scheme would be their only opportunity to retire from agriculture, and that the scheme would allow land liquidity to increase and create more opportunities for new entrants and progressive farms to contribute to a sustainable agricultural industry.

Detailed proposals and a consultation are due to be published by Defra in March. In addition to the decision making factors raised by the tenants, ultimately its success will depend upon the practicalities of achieving what is required to prove an exit from the industry given the short time frame in which the scheme will be available. Cooperation between the parties will be key where a tenant wishes to apply.

Savills are also promoting the launch of the Farming Innovation Pathways competition. The project will help translate leading research into practical agricultural techniques that can directly benefit farmers.

Aimed at developing new and existing farm-focused innovations, it will act as a bridge between the final stages of the Transforming Food Production programme and the launch of the Defra Research and Development Innovation package in 2022.

The Transforming Food Production programme has already facilitated advancement in areas such as insect farming, sustainable livestock feed, agricultural robotics and autonomous growing systems.

The Farming Innovation Pathways will be the first competition of its kind following the UK’s departure from the EU. In total £12m is available to fund feasibility studies and industrial research.