LANDLORDS and their agents have been warned against raising rents for dairy farmers.

Stephen Wyrill, national vicechairman of the Tenant Farmers’ Association, said it is a critical time for dairy tenants.

After a few years of relative rent stability, some landlords and agents are seeking increases on the back of better milk prices.

Mr Wyrill, at the National Dairy Event, said there had been no real improvement in dairy margins because of increased costs.

He also said it was wrong for landlords to try and apply farm rents comparable to those in the residential letting market.

“It is like comparing chalk with cheese and must be countered on every occasion it occurs,” said Mr Wyrill, a tenant farmer near Richmond.

“I cannot see that there is any scope for increases in average dairy farm rents at this time.”

If landlords pursued the arguments to arbitration, TFA members with its farm business protector insurance would be protected from the legal costs involved.

Mr Wyrill highlighted the huge need for investment on many tenanted farms.

He said: “It has been some 20 to 25 years since many dairy farms in the tenanted sector saw any significant investment in fixed equipment.

This is particularly the case for those dairy farms within county council smallholding estates.

“If we are to meet the challenges of the future then decisions need to be made about the investment that will be necessary for these units.”

The new rules on nitrate vulnerable zones – particularly the requirements of the new slurry storage capacity – presented problems for tenanted dairy farmers.

“On traditional tenancies, it is the landlord who is responsible for ensuring that there is sufficient fixed equipment to meet statutory standards.

However, we are aware that on nearly all estates, there will be insufficient resources available for landlords to provide the necessary fixed equipment,” said Mr Wyrill.

“It is for this reason that the TFA continues to argue for sufficient grant aid for this fixed equipment from Defra and we will maintain the pressure on the secretary of state to provide this.

“Over the past 12 months, we have seen prices for dairy commodities fall back from last year’s peak although there has been a slight recovery more recently.

“The nervousness among dairy farmers has been exacerbated by the recent retail price war on milk and dairy products, and I would warn processors and retailers not to try to pass the costs associated with this on to producers, or else it will hasten the number of dairy farmers already leaving the industry to the detriment of us all.

“What might seem in the shortterm interests of their shareholders will be to their long-term harm.”